#1Telekom Austria Public Bond Investor Presentation July, 2003 TELE KOM AUS TRIA#2Cautionary Statement This presentation contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Forward-looking information involves risks and uncertainties that could significantly affect expected results. These risks and uncertainties are discussed in Telekom Austria's SEC filings, including, but not limited to, Telekom Austria's Form 6-K containing the relevant press release and certain sections of the Company's Annual Report on Form 20-F. TELE KOM AUS TRIA#3Legal Disclaimer The following information does not include an offer to subscribe or to purchase or a solicitation to treat relating to the securities and may not be construed to contain such offer or solicitation. Furthermore, it does not constitute a prospectus within the meaning of Austrian civil law or Austrian capital market law and may not be construed to constitute such prospectus. An offering of the securities is exempt from the requirement to draw up and publish a prospectus pursuant to § 3 subpara. 1 no 11 of the Austrian Capital Market Act. TELE KOM AUS TRIA#4Table of Contents Group Overview Business Overview Financial Overview ■ Credit Rating Summary of Key Credit Strengths TELE KOM AUS TRIA#5Group Overview TELE KOM AUS TRIA#6Group Overview Incumbent telecommunications operator in Austria Market leader in all core domestic markets ◉ As of year end 2002: • Access Lines: 3.1 million in Austria • Mobile subscribers: 3.0 million in Austria, 1.1 million in Croatia and 350,000 in Slovenia Internet subscribers: 847,000 in Austria, 275,000 in Czech Republic TELE KOM czech on line AUS voice.dota TRIA vedno zame. simobil mobilkom austria VXP mobilkom [liechtenstein] TELE KOM AUS TRIA#7Telekom Austria Group Telekom Austria Group Wireline Wireless 100% Telekom Austria AG mobilkom austria AG & Co KG 99% Czech On Line a.s. VIPnet doo 100% 75% 100% Si.mobil d.d. mobilkom [liechtenstein] AG Group Revenue Split 2002 By segment Wireless 43% Wireline 57% By region International 10% Domestic 90% Total managed revenues EUR 3,908mln Organised in two strategic business segments, Wireline and Wireless Developed from product-oriented infrastructure company to a customer focused full-service provider Group EBITDA Split 2002 Wireless 44% Wireline 56% Total managed EBITDA EUR 1,515mln * excluding costs for idle workforce and retirement of long-lived assets TELE KOM AUS TRIA#8Telekom Austria Ownership Structure as of March 31, 2003 Shareholder Structure Free Float 38.0% Telecom Italia 14.8% ÖIAG 47.2% ÖIAG Highlight Holding and Privatisation Agency of the Republic of Austria ■ New Austrian Government has reiterated its intention to proceed with a full privatisation Telecom Italia Strategic shareholder since 1998 ■ Sold 15% to become pure financial investor in November 2002, in line with its strategic de-leveraging plan Free Float ■ IPO in November 2000 Currently 38% TELE KOM AUS TRIA#9Group Overview - 2002 Highlights Strengthening of domestic market position across all business segments Stabilisation of fixed line operations Limited downside from further market de-regulation ■ Profitable growth in all mobile activities ☐ Strong financial performance in 2002 • first net profit in two years strong operating free cash flow net debt reduction despite reacquisition of 25% of mobilkom austria ■ Maximising group cash flows . • optimising performance in operating segments • strict cost management • efficient deployment of resources TELE KOM AUS TRIA#10Financial Highlights Revenues EUR mln +1.3% 3,908 3,859 962.5 +0.4% 966.5 EBITDA* EUR mln +2.7% 1,515 1,475 399.8 +1.5% 405.9 FY 2001 FY 2002 1Q 2002 1Q 2003 FY 2001 FY 2002 1Q 2002 1Q 2003 Net Debt CAPEX -1.3% EUR mln 3,282 -2.4% 3,204 3,204.2 EUR mln -18.4% 3,162.1 812 -10.0% 81.0 72.9 662 FY 2001 FY 2002 1Q 2002 1Q 2003 FY 2001 FY 2002 1Q 2002 1Q 2003 * excluding costs for idle workforce and retirement of long-lived assets TELE KOM AUS TRIA#11Business Overview TELE KOM AUS TRIA#12Wireline ■ 2002 revenue decline due to strong price competition and lower volumes significant revenue improvement over course of year (4Q revenue growth of 2.1% vs. 1Q decline of 9.7%) . ■ Stable EBITDA margin due to sustainable improvement in efficiency ☐ ☐ headcount reduction by 1,690 Stabilisation of market share . stronger position in business market following increased sales efforts Number of fixed line competitors fell from 39 to 28 in 2002 ⚫ further consolidation expected in 2003 Wireline Revenues and EBITDA** EUR mln Revenues -6.0% EBITDA** -6.6% Voice Market Shares* 7% 3% 5% 6% Telekom Austria Tele2 UTA 53% telering etel 2,402.40* 2,259.40* 905.7* 12% 846.0* 2001 2002 2001 2002 14% * excluding intragroup business ** excl. costs for idle workforce and retirement of long-lived assets Telekom Austria estimates Telekabel Others TELE KOM AUS TRIA#13Wireline Costs Reduction in 2002 - ■ 80% completion of 5-year headcount reduction plan within two years ■ EUR 85 million of costs reductions in the fixed line segment during 2002 4Q impacted by reversals (EUR 24.3mln) and extraordinary costs (EUR 27.4mln Personnel Costs in 2002 Other Operating Costs* in 2002 Bad debts 2.3 505.4 54.7 10.3 2.9 34.2 3.5 22.8 50.8 14.0 512.1 Other 426.2 Closure of locations Reversals Wireline integration costs 507.4 Additional redundancy costs etc.) (severance payments Cost reductions Sales and customer Service Cost reductions One-off costs Total 2001 Total 2002 Total 2001 * All pre-EBITDA costs excluding personnel and interconnection costs Total 2002 TELE KOM AUS TRIA#14Stable Wireline Increase in voice minutes in 1Q 03 compared to 1Q 02; stable total volumes incl. Internet dial-up (-0.1% compared to 1Q 02) ■ Due to the increased integration of local and long-distance, these are now shown as "national" as of 1Q 03 Wireline Minutes Voice Market Shares (minutes) 2,650 2,667 60% 2,647 2,439 2,454 1,152 1,134 1,123 1,016 1,004 50% 1,498 1,423 1,450 1,533 1,524 40% 1Q 02 2Q 02 3Q 02 Q1/02 4Q 02 1Q 03 Q2/02 Q3/02 Q4/02 Q1/03 Internet dial up Voice traffic* * including national, international and fixed to mobile calls Local + Long distance (excl. Internet dial up) Fixed to Mobile International Total Average (excl. Internet dial up) TELE KOM AUS TRIA#15ADSL-Growth Driven by Marketing Push ADSL Net Additions Highlights (,000) 19 EUR 16 16 24 22 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 * 1Q 2003 ARPU / Month* 15 37 Dial up ADSL ADSL to drive revenues growth and customer retention Net adds rise following simplified product offering 40% of current ADSL customers had no Internet before New product features and content push TELE KOM AUS TRIA#16☐ Wireless Repurchase of minority stake in mobilkom austria (now 100% owned) 11.5% growth in revenues to EUR 1.9bn and 15.7% EBITDA growth to EUR 661min in 2002 Increase in Austrian market share despite strong competition and penetration of 84% ■ Accelerated domestic subscriber growth in 2002 and 2003 to exceed 3 million. • . Growth of Average Revenue Per User (ARPU) of 5% and Minutes of Use (MoU) of 9% Targeted customer retention activities led to a decline in churn rate Group's total number of mobile subscribers has grown by 12% to over 4.4 million from FY2001 to FY2002 ⚫ of which 1.45 million international • Wireless Revenues Austrian Wireless Market Share EUR mln 5.1% Revenues EBITDA 21.1% +11.5% +15.7% 1,713.2* 231.1 48.1 1,909.4* 303.5 79.2 571.3* 660.9* 114.8 1.9 79.2 1441.7 1538.3 509.4 545.2 29.7% FY 01 -15.6 FY 02 Mobilkom Austria ■ VIPnet FY 01 FY 02 * Si.mobil * Total consolidated figures 44.1% mobilkom austria IT-mobile Austria Connect* tele.ring** E.ON 50.1%, Telenor Mobile 17.45%, Orange 17.45%, Tele Danmark 15% ** Western Wireless Int. 100% TELE KOM AUS TRIA#17Wireless (cont'd) ■ Growth in Croatian/Slovenian mobile subsidiaries ☐ access to further Eastern European growth markets Strong mobile data proposition • • significant growth in GPRS users increasing SMS/MMS usage ■ No 3G greenfield exposure • low UMTS licence fee Liechtenstein Wireless Footprint mobilkom [liechtenstein] Stake: 100% Subs: 2,000 Austria mobilkom austria Stake: 100% Subs: 3.0m Market share: 44% Wireless Revenue Split - 2002 mobilkom austria 79.8% Slovenia Si.mobil Stake: 75% Croatia VIPnet Stake: 99% Si.mobil 4.1% mobilkom liechtenstein VIPnet Subs: 0.4m Subs: 1.1m 0.3% Market share: 23% Market share: 50% 15.8% TELE KOM AUS TRIA#18Partnership Agreement with Vodafone ◉ Agreement includes Austria, Croatia and Slovenia and, inter alia, the following acitivities: • Roaming • • Development of products and services Global account management Purchasing/Supply Chain Management ■ Current status of cooperation • Eurocall roaming tariff successfully launched in Austria and Croatia A1 O vodafone™ Dual branding for global products and services • First joint global account offers • Product roadmaps are harmonized Vodafone/mobilkom austria communication campaigns have started • Next priorities: virtual home environment, assisted roaming and GPRS roaming TELE KOM AUS TRIA#19mobilkom austria - ARPU and Costs 1Q 03 blended ARPU increased 2.3% compared to 1Q 02; MOUS up by 5.1% 1Q 03 competition driven higher by handset subsidies leading to rising SAC and SRC compared to 1Q 02 (1Q 02 SRC include reversal of provision for retention costs in the amount of EUR 2 million) Average Monthly ARPUS EUR 9.9 58.4 57.3 10.8 1Q 02 1Q 03 SAC and SRC EUR mln Contract Prepaid 26.6 18.2 15.6 ☐ SAC SRC 13.1 11.0 5.1 1Q 02 1Q 03 34.4 36.0 36.5 36.2 35.2 41.3 ☐ 28.1 26.7 26.6 18.2 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 1Q 02 2Q 02 3Q 02 4Q 02 1Q 03 ☐ SRC + SAC TELE KOM AUS TRIA#20Financial Overview TELE KOM AUS TRIA#21Financial Overview - Telekom Austria Group Revenues EBITDA* EBITDA margin (%) Net Interest Net Debt Free Cash Flow Net Debt/EBITDA EBITDA/Net Interest Free Cash Flow/Net Debt CAPEX 2002 (EUR mln) % Change 2001 (EUR mln) 3,908 +1.3% 3,859 1,515 +2.7% 1,475 38.8% + 0.6 p.p. 38.2% 156 -1.2% 158 3,204 -2.4% 3,282 670 +11.8% 599 2.1x -5.0% 2.2x 9.7x +3.9% 9.3x 20.9% + 2.6 p.p 18.3% 662 -18.4% 812 * as reported: excluding costs for idle workforce and retirement of long-lived assets TELE KOM AUS TRIA#22Telekom Austria Debt Maturity Profile Telekom Austria Debt Maturity Profile* EUR mln 1,400 1,310** 108 1,200 6 1,000 Highlights ■ Most of the bonds were issued and loans granted while Telekom Austria was fully owned by the Republic of Austria. 737 800 600 400 200 459 424 596 0 - 2003 2004 2005 2006 532 162 2007 Thereafter * as of Dec. 31, 2002 ** EUR 459mln current portion of long-term debt EUR 737mln short-term debt, EUR 6mln lines of credit and EUR 108mln of current lease obligations 365 ■ As per 31 December 2002, a total of EUR 1.75bn of total bank debt was guaranteed by the Republic of Austria. ■ The proceeds from the bond issue will be used to extend Telekom Austria's debt maturity profile. TELE KOM AUS TRIA#23Net Debt Reduction Capex declines by 18%; capex to revenue ratio falls from 21% to 17% ■ Net debt/EBITDA 2.1x; interest coverage of 9.7x; net gearing of 128% EUR mln Capital Expenditures Net Debt EUR mln 917.7 812.2 3,282 662.4 594.6 449.0 340.7 363.2 323.1 321.7 693 771 693 Mobilkom purchase price 3,204 2000 2001 2002 Dec. 31, 2001 Wireless Wireline Acquisition of 25% in mobilkom Other net cash generated Dec. 31, 2002 austria TELE KOM AUS TRIA#24Employee Benefit Obligations • Pension liabilities are negligible EUR mln FY2002 FY2001 Pensions 9.7 9.9 Contractual termination benefits 132.3 287.3 Service awards 57.9 59.2 Severance 32.6 21.8 TELE KOM AUS TRIA#25Financial Overview - Telekom Austria - Group Credit Ratios Improving EBITDA/Net Interest FY2000 - FY2002 Net Debt/EBITDA FY2000 - FY2002 6.60x 3.20x 9.68x 9.32x FY 2000 FY 2001 FY 2002 2.20x 2.10x FY 2000 FY 2001 FY 2002 ■ Telekom Austria managed to strongly improve its Net Interest Coverage since FY2000 ■ Net Debt/EBITDA has dropped to 2.1x in FY2002 from 3.2x in FY2000 TELE KOM AUS TRIA#26* Source: ABN Amro Credit Research New Telecom Italia Telefonica 46% 41% Portugal Telecom 40% Telekom Austria 39% KPN 36% BT 31% TDC 28% TDC Portugal Telecom ■ Telekom Austria compares favourably with its European peer group • 39% EBITDA margin • Further reduction in CAPEX and debt planned TELE KOM AUS TRIA 12.7x 11.3x Financial Overview - Telekom Austria vs European Peers* EBITDA margin FY2002 EBITDA Interest Cover FY2002 Net Debt/EBITDA FY2002 Telekom Austria 9.7x New Telecom Italia 8.0x Telefonica 7.3x BT 5.2x KPN 3.7x New Telecom Italia 3.2x 2.8x KPN 2.4x TDC Telekom Austria 2.1x Telefonica 1.9x Portugal Telecom 1.8x BT 1.8x#27Medium Term Internal Financial Targets Revenue CAGR EBITDA CAGR CAPEX CAPEX/Revenues Average Yearly FCF Net Debt/Equity Net Debt/EBITDA Wireline headcount reduction Wireline Operating Cost reduction Term Target 2003 - 2006 app. 2% 2003 - 2006 2003 app. 3% EUR 640mln ~ 14% EUR 500mln 2003 120% 2003 2.0x 2003 600 2003 4% ■ Cash generation remains the key focus for Telekom Austria. ■ Telekom Austria strictly adheres to its internal financial targets. TELE KOM AUS TRIA#28Credit Rating TELE KOM AUS TRIA#29Credit Rating M Moody's Investors Service Limited Standard & Poor's 25 June 2003 Senior unsecured: Baa2 outlook stable ■Austria's leading provider of telecommunications and Information and Communication Technology services ■ An important rating factor is Telekom Austria's strengthening financial risk profile and the expectation that the company will generate strong free cash flow ■The rating agency also notes the company's public commitment to various financial parameters, including an average cash flow (pre-acquisitions) target of EUR 500 million 25 June 2003 Senior unsecured: BBB outlook stable Leading market positions in all telecommunications segments in Austria; ■ Strong operating profitability and sustainable free operating cash flow The stable outlook reflects expectations that Telekom Austria will continue to defend successfully its domestic market-leading position TELE KOM AUS TRIA#30Summary of Key Credit Strengths TELE KOM AUS TRIA#31Summary of Key Credit Strengths Group ☐ Wireline Wireless ☐ Management focused on cash flow generation and reducing costs and capital expenditure further ■ Low Leverage (Net Debt/EBITDA) of 2.1x with scope for further debt reduction ☐ Interest coverage and cash flow to debt ratios are strong and amongst the best in the European telecom operator universe ■ Solid liquidity position ■ Stable Group revenues and EBITDA ■ Wireline trends are encouraging with successful cost reductions achieved ■ Wireline competitive landscape is becoming less aggressive Further stabilisation of revenues Additional cost cutting measure to mitigate effect of higher interconnection and personnel costs Wireless growth potential from foreign operations ■ UMTS is already commercially launched in Austria at low cost Increase in revenues and earnings, but at lower growth rates TELE KOM AUS TRIA#32Summary of Terms Issuer Guarantor Rating Issue Size Maturity Documentation Listing Use of Proceeds Bookrunners Telekom Finanzmanagement GmbH Telekom Austria AG Baa2 (stable) / BBB (stable) Benchmark tbd Off Telekom Austria's EMTN Programme Luxembourg Restructuring of Debt Maturity Profile ABN AMRO, BA-CA/HVB, Lehman Brothers TELE KOM AUS TRIA#33Appendix TELE KOM AUS TRIA#34Net Debt - Telekom Austria Group EUR mln Long-term debt Short-term debt Mar. 31, 03 Dec. 31, 02 1,957.4 2,079.9 1,394.0 1,309.9 - Cross border lease, included in short-term debt -108.2 -107.9 + Capital lease obligations 5.6 7.3 + Related parties 0.6 0.4 Cash and cash equivalents, short-term and long-term investments -56.2 -46.5 Financial instruments, included in other assets -31.1 -38.7 Net debt of Telekom Austria Group 3,162.1 3,204.2 Shareholders' equity Net debt/equity 2,545.7 2,509.5 124.2% 127.7% TELE KOM AUS TRIA#35Debt Allocation as of March 31, 2003 ■ 21% of Telekom Austria Group Debt is located in the Wireless segment/mobilkom austria Group, of which 17% is guaranteed by Telekom Austria TELEKOM AUSTRIA GROUP DEBT ALLOCATION Wireless stand alone 4% Wireless secured by Telekom Austria 17% Wireline 79% TELE KOM AUS TRIA#36Regulation Overview Wireline ■ New regulator in charge as of November 2002 ■ New Telecom Law to be introduced in July 2003 • Focus on infrastructure based providers • Reduced number of market definition Decision to leave unbundling fees unchanged was made in January 2003 Wireless ■ One of the lowest termination rates in Europe ■ Number portability not expected before the end of 2003 TELE KOM AUS TRIA#37Financial Overview - Total Managed Results* Annual growth EUR mln 1Q 2002 2Q 2002 3Q 2002 4Q 2002 2002 1Q 2003 (1Q 03 vs 1Q 02) Operating Revenues Wireline 565.9 541.8 555.7 Wireless 452.2 454.8 509.8 Intersegmental eliminations & -55.6 -61.3 -63.5 596.6 492.6 -80.8 2,260.0 555.7 1,909.4 474.7 -261.2 -63.9 -1.8% 5.0% nm other Total 962.5 935.3 1,002.0 1,008.4 3,908.2 966.5 0.4% EBITDA Wireline 211.9 207.8 208.3 179.4 807.4 215.5 1.7% Wireless 187.9 161.2 202.9 97.5 649.5 189.8 1.0% Intersegmental eliminations & 0.0 -0.3 -0.1 7.9 7.5 0.6 nm other Total 399.8 368.7 411.1 284.8 1,464.4 405.9 1.5% EBIT Wireline 5.1 -3.6 Wireless 121.9 94.0 8.1 129.0 -124.9 35.9 -115.3 380.8 10.2 100.0% 111.0 -8.9% Intersegmental eliminations & -0.1 -0.1 0.0 7.9 7.7 0.7 nm other Total CAPEX** 126.9 90.3 137.1 -81.1 273.2 121.9 -3.9% Wireline Wireless Total 40.5 63.3 71.5 165.4 340.7 49.8 23.0% 40.5 88.6 66.5 126.1 321.7 30.5 -24.7% 81.0 151.9 138.0 291.5 662.4 80.3 -0.9% * For comparison reasons financial figures contained in this table follow the reporting structure of Telekom Austria which was established at the beginning of 2003. The new reporting structure has not been subject to audit yet. For 2002 audited figures please refer to the annual report. ** 1Q 2003 Capex is shown including the impact of one-time non-cash additions to account for asset retirement obligation following the introduction of SFAS No. 143 amounting to EUR 7.4mln for the group. TELE KOM AUS TRIA#38- Financial Overview Total Managed Results (cont'd)* Annual growth EUR mln 1Q 2002 2Q 2002 3Q 2002 4Q 2002 2002 1Q 2003 (1Q 03 vs 1Q 02) Wireline EBITDA 211.9 207.8 208.3 179.4 807.4 215.5 1.7% Idle workforce costs 9.7 9.2 3.0 7.5 29.4 4.8 -50.5% Net loss of retirement of long-lived 4.0 0.8 0.7 2.2 7.7 0.6 -85.0% assets Voluntary retirement provision 0.9 -25.1 -11.6 -21.5 -57.3 -1.3 nm Adjusted wireline EBITDA 226.5 192.7 200.4 167.6 787.2 219.6 -3.0% Wireless EBITDA 187.9 161.2 202.9 97.5 649.5 189.8 1.0% Net loss of retirement of long-lived assets 0.4 1.9 1.6 7.5 11.4 2.5 nm 188.3 163.1 204.5 105.0 660.9 192.3 2.1% Group EBITDA 399.8 368.7 411.1 284.8 1,464.4 405.9 1.5% Idle workforce costs 9.7 9.2 3.0 7.5 29.4 4.8 -50.5% Net loss of retirement of long-lived 4.4 2.7 2.3 11.6 21.0 3.1 -29.5% assets Voluntary retirement provision 0.9 -25.1 -11.6 Adjusted group EBITDA 414.8 355.5 404.8 -21.5 282.4 -57.3 -1.3 nm 1,457.5 412.5 -0.6% Cash flows** Cash generated from operations 187.7 343.9 232.0 Cash from (used in) investing activities Cash from (used in) financing activities Effect of exchange rate changes Net increase (decrease) in cash and cash equivalents -36.6 -728.9 -160.4 411.1 -138.9 -82.0 0.0 0.0 1.3 407.8 1,171.4 -271.5 -1,175.9 -166.9 2.4 135.8 -27.7% -87.7 nm 1.8 -39.0 nm 3.7 5.5 nm -9.3 26.1 12.4 -28.2 1.0 14.6 nm * For comparison reasons financial figures contained in this table follow the reporting structure of Telekom Austria which was established at the beginning of 2003. The new reporting structure has not been subject to audit yet. For 2002 audited figures please refer to the annual report. ** Cash flows are based on consolidated results which do not include the wireless business segments during 1Q and 2Q 2002. TELE KOM AUS TRIA#39Financial Overview - Wireline* EUR mln Operating Revenues EBITDA EBIT 1Q 2002 2Q 2002 3Q 2002 4Q 2002 565.9 541.8 555.7 596.6 2002 2,260.0 1Q 2003 555.7 211.9 207.8 208.3 179.4 807.4 215.5 5.1 -3.6 8.1 -124.9 -115.3 10.2 Annual growth (1Q 03 vs 1Q 02) -1.8% 1.7% 100.0% Wireline operating revenues Switched voice base traffic 132.5 119.9 120.3 123.1 495.8 121.2 -8.5% Switched voice monthly rental & 137.5 131.8 145.9 138.3 553.5 137.9 0.3% others Payphones and VAS 17.2 22.0 18.6 23.8 81.6 18.2 5.8% Data and IT- solutions 82.1 82.2 86.5 92.7 343.5 87.4 6.5% Internet access & media 44.3 43.4 44.7 47.0 179.4 48.4 9.3% Wholesale voice & Internet 83.5 74.3 71.0 76.6 305.4 80.5 -3.6% Wholesale data 22.3 25.0 22.9 36.0 106.2 25.2 13.0% Other 46.5 43.2 45.8 59.1 194.6 36.9 -20.6% Total wireline operating 565.9 541.8 555.7 596.6 2,260.0 555.7 -1.8% revenues Market Shares (Minutes) National Fixed-to-mobile 51.2% 51.7% 52.7% 53.2% 53.2% 54.0% 2.8 p.p. 49.7% 51.2% 51.9% 52.2% 52.2% 52.5% 2.8 p.p. International Total traffic voice 45.0% 46.5% 47.6% 47.3% 47.3% 47.6% 2.6 p.p. Total traffic voice (incl. Internet dial up) 50.4% 51.2% 55.1% 55.3% 52.1% 52.6% 52.6% 52.8% 2.4 p.p. 55.6% 55.3% 55.3% 55.2% 0.1 p.p. * For comparison reasons financial figures contained in this table follow the reporting structure of Telekom Austria which was established at the beginning of 2003. The new reporting structure has not been subject to audit yet. For 2002 audited figures please refer to the annual report. TELE KOM AUS TRIA#40Financial Overview - Wireline (cont'd) Annual growth 1Q 2002 2Q 2002 3Q 2002 4Q 2002 2002 1Q 2003 (1Q 03 vs 1Q 02) Minutes (in million) National Fixed-to-mobile International 1,178 1,111 1,120 1,198 4,607 1,194 1.4% 197 203 213 213 826 210 6.6% 123 109 117 122 471 120 -2.4% Total voice minutes 1,498 1,423 1,450 1,533 5,904 1,524 1.7% Internet dial up 1,152 1,016 1,004 1,134 4,306 1,123 -2.5% Total wireline minutes 2,650 2,439 2,454 2,667 10,210 2,647 -0.1% Average Tariffs (EUR) National 0.052 0.048 0.047 0.045 0.048 0.044 -15.4% Fixed-to-mobile 0.234 0.193 0.189 0.182 0.189 0.184 -9.8% International 0.219 0.221 0.215 0.203 0.213 0.205 -6.4% Average Voice 0.086 0.082 0.081 0.077 0.081 0.076 -11.6% Internet dial up 0.015 0.016 0.016 0.016 0.016 0.016 6.7% Access Lines (000's) PSTN 2,723.9 2,704.1 ISDN basic ISDN multi Total 2,684.6 2,659.1 2,659.1 412.7 419.5 424.8 430.1 430.1 8.2 8.2 8.1 8.1 8.1 8.1 3,144.8 3,131.8 3,117.5 3,097.3 3,097.3 3,076.8 2,630.5 -3.4% 438.2 6.2% -1.2% -2.2% 3,795.3 3,789.1 3,778.4 3,762.3 3,762.3 3,749.9 -1.2% Channels (000's) ADSL Lines (000's) Retail 101.7 113.8 126.1 143.1 143.1 Wholsale 18.2 22.2 25.5 31.0 31.0 161.2 36.9 58.5% 102.7% Total 119.9 136.0 151.6 174.1 174.1 198.1 65.2% Internet Customers (000's) Austria 724.8 760.6 803.4 846.5 846.5 920.4 27.0% Czech Republic 254.0 252.3 262.1 275.3 275.3 280.8 10.6% TELE KOM AUS TRIA#41Financial Overview - Wireless* EUR mln Operating Revenues 1Q 2002 2Q 2002 3Q 2002 4Q 2002 2002 Annual growth 1Q 2003 (1Q 03 vs 1Q 02) mobilkom austria 379.0 365.9 394.1 399.3 1,538.3 391.4 3.3% VIPnet 58.8 72.7 99.6 72.5 303.6 65.3 11.1% Si.mobil 16.3 19.0 21.8 22.1 79.2 19.0 16.6% mobilkom [liechtenstein] 0.6 0.9 1.3 2.1 4.9 2.4 300.0% Intersegmental -2.5 -3.7 -7.0 -3.4 Total 452.2 454.8 509.8 492.6 -16.6 1,909.4 -3.4 nm 474.7 5.0% EBITDA mobilkom austria 167.1 131.8 148.6 87.9 535.4 158.4 -5.2% VIPnet 22.4 29.3 51.4 10.6 113.7 27.9 24.6% Si.mobil -1.2 0.4 3.2 -0.7 1.7 3.8 nm mobilkom [liechtenstein] -0.1 0.1 0.1 0.0 0.1 0.2 nm Intersegmental -0.3 -0.4 -0.4 -0.3 -1.4 -0.5 nm Total 187.9 161.2 202.9 97.5 649.5 189.8 1.0% EBIT mobilkom austria 116.8 81.6 93.8 47.1 339.3 99.9 -14.5% VIPnet 9.9 15.5 35.9 -5.7 55.6 11.8 19.2% Si.mobil -4.3 -2.8 -0.3 -5.1 -12.5 -0.3 nm mobilkom [liechtenstein] -0.2 -0.1 -0.1 -0.2 -0.6 0.1 nm Intersegmental -0.3 -0.2 -0.3 -0.2 -1.0 -0.5 Total 121.9 94.0 129.0 35.9 380.8 111.0 nm -8.9% CAPEX mobilkom austria 30.6 58.8 46.1 70.5 206.0 20.1 -34.3% VIPnet 7.2 22.4 13.6 29.0 72.2 8.7 20.8% Si.mobil 2.7 7.2 6.7 26.4 43.0 1.7 -37.0% mobilkom [liechtenstein] 0.0 0.2 0.1 0.2 0.5 0.0 nm Total 40.5 88.6 66.5 126.1 321.7 30.5 * -24.7% For comparison reasons financial figures contained in this table follow the reporting structure of Telekom Austria which was established at the beginning of 2003. The new reporting structure has not been subject to audit yet. For 2002 audited figures please refer to the annual report. TELE KOM AUS TRIA#42Financial Overview Wireless (cont'd) - Annual growth 1Q 2002 2Q 2002 3Q 2002 4Q 2002 2002 1Q 2003 (1Q 03 vs 1Q 02) mobilkom austria Market Share (Subs) Penetration in Austria 42.6% 81.9% 42.8% 42.9% 44.4% 44.4% 44.1% 1.5 p.p. 83.1% 84.1% 83.1% 83.1% 84.2% 2.3 p.p. Subscribers (000's) Contract Prepaid Total 1,445.0 1,480.4 1,528.4 1,574.9 1,574.9 1,592.6 10.2% 1,396.5 1,413.4 1,408.2 1,426.5 1,426.5 1,434.6 2,841.5 2,893.8 2,936.6 3,001.4 2.7% 3,001.4 3,027.2 6.5% Monthly ARPU (EUR) Contract 58.4 60.8 60.9 59.0 59.8 57.3 -1.9% Prepaid 9.9 9.9 10.5 10.7 10.3 10.8 9.1% 34.4 36.0 36.5 36.2 35.8 35.2 2.3% Average Minutes of Use MOU charged/Ø subs 113.2 117.5 120.5 123.3 118.7 119.0 5.1% Churn Rates GSM Churn Rate 3.9% 4.1% 3.8% 5.1% 17.0% 4.0% 0.1 p.p. Contract-GSM Churn Rate 2.9% 2.5% 1.9% 2.8% 10.2% 2.9% 0.0 p.p. Prepaid-GSM Churn Rate 4.9% 5.8% 5.8% 7.6% 24.2% 5.2% 0.3 p.p. SAC total (EUR m) 13.1 15.5 14.8 22.2 65.6 15.6 SRC total (EUR m) 5.1 12.6 11.9 19.1 48.7 11.0 19.1% 115.7% Mobile Data Data in % of airtime revenues 10.6% 9.3% 9.2% 11.3% 10.2% 12.1% Number of SMS (mn) 129.0 117.9 126.0 147.1 519.9 148.9 1.5 p.p. 15.5%. TELE KOM AUS TRIA#43Financial Overview Wireless (cont'd) - Annual growth 1Q 2002 2Q 2002 3Q 2002 4Q 2002 2002 1Q 2003 (1Q 03 vs 1Q 02) VIP net Market Share (Subs) 47.6% 48.1% 47.1% 48.2% 48.2% Penetration in Croatia 42.3% 45.3% 49.1% 51.9% 51.9% 50.3% 50.5% 2.7 p.p. 8.2 p.p. Vip Net's Subscribers (000's) Contract 129.3 138.7 151.8 176.0 176.0 178.8 38.3% Prepaid Total 781.3 818.2 864.0 921.8 921.8 938.3 20.1% 910.6 956.9 1,015.8 1,097.8 1,097.8 1,117.1 22.7% Monthly ARPU (EUR) Contract 49.4 52.6 52.5 49.9 51.1 44.9 -9.1% Prepaid 14.2 14.8 15.8 13.7 14.6 12.4 19.1 20.2 21.2 19.3 20.0 17.6 -12.7% -7.9% Average Si.mobil Market Share (Subs) 21.6% 21.7% 21.9% 23.4% 23.4% 23.1% 1.5 p.p. Penetration in Slovenia 67.6% 69.4% 70.8% 74.7% 74.7% 75.7% 8.1 p.p. Subscribers (000's) Contract 114.4 126.3 135.0 154.5 154.5 161.2 40.9% Prepaid 176.9 173.8 174.4 195.5 195.5 190.3 7.6% Total 291.3 300.1 309.4 350.0 350.0 351.5 20.7% Monthly ARPU (EUR) Contract 28.3 28.7 29.2 28.1 28.6 25.6 -9.5% Prepaid 5.8 6.8 6.6 5.9 6.3 5.1 -12.1% Average 14.2 15.7 16.2 15.7 15.5 14.3 0.7% mobilkom [liechtenstein] Subscribers (000's) 1.5 1.7 1.8 2.0 2.0 2.1 40.0% TELE KOM AUS TRIA#44Further Details Listing Vienna Listing: NYSE Listing: TKA AV / TELA.VI TKA US/TKA.N Contact ■ Contact Person: Telephone: ■ Fax: ■ E-Mail: ■ Website: Mr Hans Lang +43 (0)59 059 1 25208 +43 (0)59 0 59 91 25208 [email protected] www.telekom.at ■ Financial Calendar August 26, 2003: First Half Results 2003 November 19, 2003: First Nine Months Results 2003 TELE KOM AUS TRIA