Annual report 2001 - Polkomtel
Annual report 2001 - Polkomtel
Annual report 2001 - Polkomtel
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<strong>Annual</strong> Report<br />
<strong>2001</strong>
Albrecht Dürer (1471–1528), German artist, the<br />
most recognised painter of the Northern Renaissance.<br />
Apart from painting, his vast body of<br />
interest included art theory, printmaking and<br />
drawings. Dürer was one of the first artists in<br />
Northern Europe who applied the achievements of<br />
the Italian Renaissance in the Dutch realism and<br />
German tradition of art, thus creating his unique,<br />
uniform style. Dürer was the first artist who used<br />
all techniques of making prints known at that time.<br />
His engravings, dry-points and etchings created<br />
new path in the art of engraving. Thanks to the<br />
plenitude of content, innovativeness of form and<br />
mastery of technique, he developed and propagated<br />
the printmaking, the art which was young and little<br />
popular at those times.<br />
Dürer put a lot of attention to provide German<br />
artists with theoretical grounds – he thoroughly
studied the geometrical perspective and proportions<br />
of human body. The studies resulted in his Treatise<br />
on Measurement with Compass and Ruler in<br />
Lines, Planes and Whole Bodies, issued in<br />
1528. In his artistic work, Dürer also improved<br />
the technique of woodcut, and his most outstanding<br />
achievement in this field, known as the Master<br />
Engravings, were Knight, Death and Devil<br />
(1513), St. Jerome in his Study (1514) and<br />
Melencolia I (1514), where Dürer expressed his<br />
views on life. He was named the ”Apelles of black<br />
lines” by his contemporaries, which is a proof of<br />
their admiration for his printmaking work and<br />
understanding of its significance. Next generations<br />
of artists were under influence of his style,<br />
technique, compositions and themes. Currently the<br />
National Museum of Warsaw hosts one of the<br />
greatest collections of the prints of Albrecht Dürer.
<strong>Annual</strong> Report<br />
<strong>2001</strong>
TABLE OF CONTENTS<br />
Financial Highlights 3<br />
Letter from the President of the Management Board 4<br />
Management Board 6<br />
Supervisory Board 6<br />
Shareholders 6<br />
Polish Mobile Telephony Market in <strong>2001</strong> 7<br />
<strong>Polkomtel</strong> S.A. on the Mobile Telephony Market 8<br />
Key Events 9<br />
Customer Service 10<br />
Employees 11<br />
New Services and Innovations 12<br />
Operating Results 18<br />
Investments in the Network Expansion 19<br />
Financial Results 20<br />
Financial Report 23<br />
Company as a Corporate Citizen 33<br />
Prizes and Awards 35
Wentzel Hollar, Albrecht Dürer’s Self-Portrait, 1645<br />
Etching, 22.9 x 16.5 cm<br />
After the self-portrait of Albrecht Dürer, painting, 1498
Financial Highlights<br />
3
LETTER FROM THE PRESIDENT OF THE MANAGEMENT BOARD<br />
Dear Ladies and Gentlemen,<br />
In <strong>2001</strong>, <strong>Polkomtel</strong> S.A. recorded the highest operating and financial profit<br />
in its history. The rising subscriber base, sales revenue, and profit serve as<br />
proof of our yet another success in harnessing the opportunities created by<br />
the rapidly expanding market of wireless telephony. Recently the growth<br />
rate has slumped slightly but the market continues to foster possibilities for<br />
dynamic development, which is attested to by the fact that as at the end of<br />
the year, we had 3.44m users, that is by 40% more than in 2000.<br />
As we work to expand our customer base, we continue to be mindful of our<br />
obligations towards those who finance our activities – the Shareholders. We<br />
are creating Company value by generating regular streams of profit and<br />
revenue. In <strong>2001</strong>, we were Poland’s most profitable wireless telephony<br />
operator, with a net profit of PLN 591m, almost thrice the profit realised in<br />
2000. The EBITDA of PLN 1.5bn was also record-breaking. The Company<br />
was able to achieve such results thanks to the proper cost management,<br />
particularly in relation to financial expenses. Thanks to support on the part<br />
of our Shareholders, we are able to obtain the funds required for<br />
development at a lower cost than if we relied on external sources. The key<br />
factor in our successful performance in terms of revenues is the loyalty of<br />
our customers, who generate the highest APRU (average revenue per user)<br />
on the market. Analysts and rating agencies have appreciated the<br />
Company’s low indebtedness and its effective capital management by<br />
awarding high scores to our operating activity.<br />
4<br />
Without a doubt, <strong>2001</strong> was the year of rapid rise in popularity of all types of<br />
non-voice services, in particular, of the short message system (SMS).<br />
Together with our business partners we have begun to introduce valueadded<br />
services related to information, location-based, entertainment, and<br />
mobile e-commerce solutions. We consider these services and the<br />
expenditure made on the GPRS system as a preparation for third-generation<br />
telephony services. In order to prepare customers to the new phase of<br />
market development, we have implemented a number of new services
including fixed-mobile integration services, and location-based services<br />
which provide the user with access to detailed information on the nearest<br />
ATM, service station or cinema.<br />
The Plus GSM network incurs high capital expenditure. To date, the aggregate<br />
value of <strong>Polkomtel</strong> S.A.’s investments amounts to PLN 4.9bn, out of which<br />
close to PLN 940m was spent last year. This expenditure is allocated for<br />
network development and launch of new services. In <strong>2001</strong>, <strong>Polkomtel</strong> S.A.<br />
– as the first in Poland and as one of the first in the world – implemented<br />
CAMEL technology, a component of third-generation mobile telephony<br />
systems. We have also expanded the application of the SIM Toolkit<br />
technology, which provides users with easier access to various news services.<br />
The quality of these technologies has improved materially following the<br />
completion of investments in the development of a backbone network,<br />
which increased line throughput and transmission speed.<br />
<strong>Polkomtel</strong> S.A.’s forecasts for the immediate future provide for a continued<br />
rise in the number of network users, who will be using an increasingly broad<br />
offering of services. The time and procedure of implementation of thirdgeneration<br />
telephony will be the factors of greatest bearing on the overall<br />
situation on the Polish mobile telephony market. I am convinced that<br />
thanks to our unyielding focus on the introduction of new services and<br />
investments in network development, we are well positioned to meet the<br />
demands of the market.<br />
President of the Management Board<br />
<strong>Polkomtel</strong> S.A.<br />
5
Management<br />
Board<br />
(as of December 31st, <strong>2001</strong>)<br />
Marek Mroczkowski – President of the Management Board, General Director<br />
Wojciech Pytel – Director of Operations<br />
Krzysztof Żmijewski – Human Resources Director<br />
Władysław Wilkans – IT Director<br />
Jesper Helmuth Larsen – Financial Director<br />
John Treuge – Technical Director<br />
Lars Andersen – Marketing Director<br />
Supervisory<br />
Board<br />
(as of December 31st, <strong>2001</strong>)<br />
Andrzej Modrzejewski – Chairman<br />
Andrzej Herman – Member<br />
Marian Krzemiński – Member<br />
Ireneusz Reszczyński – Member<br />
Jesper Theill Eriksen – Member<br />
Thomas Andresen – Member<br />
Peter Walz – Member<br />
Jürgen von Kuczkowski – Member<br />
Shareholders<br />
Węglokoks S.A.<br />
4.00%<br />
Tel Energo S.A.<br />
1.01%<br />
TelBank S.A.<br />
0.50%<br />
Polskie Sieci<br />
Elektroenergetyczne S.A.<br />
16.05%<br />
Polski Koncern<br />
Naftowy ORLEN S.A.<br />
19.61%<br />
Tele Danmark A/S<br />
19.61%<br />
KGHM Polska<br />
Miedź S.A.<br />
19.61%<br />
Vodafone Americas<br />
Asia Inc.<br />
19.61%<br />
6
POLISH MOBILE TELEPHONY MARKET IN <strong>2001</strong><br />
The year <strong>2001</strong> was the sixth consecutive year when the number of subscribers of wireless<br />
telephony grew. Despite Poland’s difficult economic situation, which translates into<br />
households’ lower disposable income, demand for mobile telephony, measured by the<br />
number of new users, continues to grow. As at the end of the year, over 10 million Poles – that<br />
is more than 3.26m more than a year before – were using wireless phones. The penetration<br />
ratio (number of wireless phones per 100 residents) stands at 26% compared to 17% at the<br />
beginning of <strong>2001</strong>. A comparison with the penetration ratio of fixed-line telephony –<br />
approximately 30% – shows that the moment when the number of persons using mobile<br />
phones will exceed the number of fixed-line telephony users is near.<br />
As the number of users of wireless telephony is steadily growing, the market’s growth rate is<br />
falling: from 71% in 2000 to 48% in <strong>2001</strong>. Operators are deriving less revenue on new<br />
customers due to the increasingly popular pre-paid services – last year 70% of the new<br />
customers purchased pre-paid telephones.<br />
Faced with the trying economic conditions, the mobile telephony operators strived to<br />
optimise the capital expenditure incurred on development of the infrastructure and on<br />
marketing. They competed by extending their offerings, by applying competitive pricing<br />
policies, and by establishing an image of attractive and reliable partners in business and<br />
everyday life. The operators focused on the quality of the provided services and on activities<br />
designed to minimise customer churn. Ideas to keep customers loyal included replacement of<br />
used terminals with new ones, introduction of new, cost-optimising tariffs, and launching<br />
increasingly popular loyalty schemes consisting in accumulating points redeemable for<br />
prizes.<br />
In <strong>2001</strong>, the operators launched the first location-based service and noted significant rise in<br />
interest in audio and text services. With the use of SMS-based solutions, customers were<br />
Market Shares of Individual Mobile Telephony Operators (number of customers)<br />
<strong>Polkomtel</strong> S.A. - Plus GSM<br />
34.2%<br />
PTC - ERA GSM<br />
37.8%<br />
Centertel - Idea<br />
28.0%<br />
provided access to information on the location of the nearest bank, ATM, service station,<br />
hotel, restaurant, cinema or theatre (and what was playing). Based on independent analyses<br />
of the telecommunications market’s future development trends, non-voice services will be<br />
the most rapidly developing segment of the mobile telephony market. At present, revenues<br />
7
derived from non-voice services represent less than 5% of<br />
the total revenue of the Polish operators, but this figure<br />
has been growing at a fast pace.<br />
<strong>2001</strong> was the first year of such a large-scale migration of<br />
customers from fixed-line networks to wireless telephony.<br />
For many retail customers, wireless telephony became<br />
much more attractive, particularly in the pre-paid system<br />
of services.<br />
Albrecht Dürer, The Nativity, 1504<br />
Engraving, 16.8 x 11.8 cm<br />
POLKOMTEL S.A. ON THE MOBILE TELEPHONY MARKET<br />
<strong>Polkomtel</strong> S.A. is one of the three operators on the Polish mobile telephony market.<br />
We launched our operations on February 1st, 1996, when we received the first Polish licence<br />
to provide services in the GSM 900 system. We have conducted our commercial activities<br />
under the Plus GSM trade name. We currently hold a permit to use the public mobile telephony<br />
network and to reserve frequencies in the following systems: GSM (900 MHz), DCS<br />
(1800 MHz) and UMTS. In <strong>2001</strong>, we earned a net profit of PLN 591m, with sales revenue at<br />
PLN 4,232m.<br />
Our strategy encompasses the provision of services to a broad group of customers, with<br />
particular focus on the business segment. As a result, in <strong>2001</strong> we once again were the leader<br />
in the segment of the largest corporate users. Currently, more than half of the 500 largest<br />
Polish companies rely on the Plus GSM network. Overall, at the end of <strong>2001</strong>, Plus GSM provided<br />
services to 3.44m customers, while our network covered 98% of Poland’s territory.<br />
8
KEY EVENTS<br />
January 1st, <strong>2001</strong><br />
<strong>Polkomtel</strong> S.A.’s Technical Assistance Centre is awarded the international ISO 9002<br />
certificate for handset repairs for Plus GSM subscribers.<br />
January 19th, <strong>2001</strong><br />
Grand opening of the ”From Monet to Gauguin” Art Exhibition held at the National Museum<br />
in Warsaw, under the auspices of Plus GSM.<br />
March 1st, <strong>2001</strong><br />
Plus GSM introduces a new tariff offering: Czasami (Sometimes), Często (Often), and Non<br />
Stop (Non Stop). The new offering provides subscribers with an opportunity to customise<br />
the package of services and prices to fit their individual needs and telephone use.<br />
May 15th, <strong>2001</strong><br />
The Plus GSM network offers a special promotional package including 3GB (gigabytes)<br />
Internet access via GPRS, 10MB (megabytes) WAP access via GPRS, Motorola Timeport 260<br />
handset (GPRS – enabled), and hook up to the Plus GSM network under one of the new tariff<br />
schemes.<br />
May 25th, <strong>2001</strong><br />
As the first in Poland and as one of the first in the world, the Plus GSM network implements<br />
CAMEL technology, which is a component of the 3G mobile telephony resources. It permits<br />
subscribers to access services – currently only available within the home network – also<br />
during international roaming.<br />
June 18th, <strong>2001</strong><br />
The Extraordinary General Shareholders Meeting adopts a resolution on the procedure for<br />
the financing of the Company’s further growth towards the development of the thirdgeneration<br />
mobile telephony (UMTS): the shareholders are to advance PLN 500m to the<br />
Company.<br />
June 27th, <strong>2001</strong><br />
<strong>Polkomtel</strong> S.A.’s Supervisory Board appoints members to the Management Board. Mr Marek<br />
Mroczkowski is appointed the President of the Management Board and the Company’s<br />
General Director. The following persons are appointed members of the Management Board:<br />
Mr Lars Andersen, Marketing Director; Mr Wojciech Pytel, Director of Operations;<br />
Mr Jesper Helmuth Larsen, Financial Director; Mr John Treuge, Technical Director;<br />
Mr Krzysztof Żmijewski, Human Resources Director; and Mr Władysław Wilkans,<br />
ITDirector.<br />
July 23rd, <strong>2001</strong><br />
The Plus GSM network launches an international roaming service in cooperation with the<br />
200th operator and concurrently 100th country to become available to Plus GSM subscribers<br />
while travelling abroad.<br />
9
CUSTOMER SERVICE<br />
As at the end of December <strong>2001</strong>, the Plus GSM’s customer base – including subscribers (57%)<br />
and pre-paid users (43%) – amounted to 3.44m users. This means that within a year our<br />
customer base grew by 40%.<br />
In <strong>2001</strong>, our customer service strategy had the following objectives: to provide friendly,<br />
professional and customised service and to use every available means of contact to establish<br />
long-term customer relationships. We provided our customers alternative means of contact<br />
with the Customer Service Department, and increased the scope of the available self-service<br />
solutions by introducing the Interactive Voice Response System and direct debit.<br />
10<br />
Internet – in February <strong>2001</strong> we provided our customers with the ability to contact Plus GSM<br />
using e-mail.<br />
Direct debit – in March <strong>2001</strong>, customers were provided with a new form of payment, which<br />
permits them to pay for telecommunications services without the necessity of personally<br />
executing the transaction. The payment is made by the customer’s bank directly to the<br />
operator’s account.<br />
Interactive Voice Response (IVR) – in November <strong>2001</strong>, we introduced the Plus Kod service,<br />
which is a simple way to identify Plus GSM network subscribers contacting the Customer<br />
Service Department. As a result, customers may obtain all the necessary information on<br />
accounts and current liabilities quickly and easily.<br />
We also offer our subscribers access to Program 5 Plus under which, in exchange for using<br />
network services, subscribers earn points redeemable for prizes. In December <strong>2001</strong>, the<br />
programme had almost 300,000 participants.<br />
Under the programme, additional points are awarded to participants who take part in various<br />
types of events and service promotions. Beyond the continually growing pool of prizes which<br />
also come from third-party business partners, programme participants may use numerous<br />
privileges. The possibilities range from discounts at Plus GSM shops to purchase of tickets and<br />
passes for attractive concerts, shows and other spectacular cultural and sporting events.<br />
We were the only operator to have shown preference for subscribers by offering them both<br />
the possibility of having their handsets replaced and activating the Plus Tobie (Plus for You)<br />
tariff, under which subscribers can use free minutes. Users who have been with Plus GSM for<br />
18 months may receive up to 120 minutes of free calls. We have also introduced unique tariff<br />
products, which are customised to respond to a given user’s style of telephone use (at peak<br />
hours / non-peak hours / weekends), thanks to which subscribers are able to manage their<br />
calling costs in a more efficient way.<br />
We already hold four customer service ISO 9002 quality certificates. In August <strong>2001</strong>, we<br />
obtained an ISO 9002 certificate for the procedure of handling complaints and customer<br />
correspondence on <strong>Polkomtel</strong> S.A.’s activities, and in September – for registration of<br />
customer data and provision of access to services. In addition to these two, we also hold<br />
quality certificates covering customer service via the telephone, updating customer accounts<br />
at written or called-in request, and handset repairs. The ISO 9002 certificates were awarded<br />
by KEMA QUALITY B.V., a Dutch certification company.
EMPLOYEES<br />
As at the end of <strong>2001</strong>, our workforce, measured<br />
as full-time equivalents, amounted to 2,657<br />
Polish employees and six foreign specialists.<br />
In comparison to the number of persons<br />
employed as at the end of 2000 (2,346 full-time<br />
equivalents), our workforce grew by 311 fulltime<br />
employees.<br />
The backbone of the <strong>Polkomtel</strong> S.A. staff are university graduates (46% of the workforce),<br />
whose average age in <strong>2001</strong> stood at 29. Our employees participated in the total of 32,778<br />
training days, with the training’s overall objective being to enhance our employees'<br />
knowledge and skills – particularly in the Technical and IT Divisions.<br />
In recruiting our management staff, we relied mainly on internal resources; this is why in<br />
<strong>2001</strong> almost 80% of the managers were promoted up from among our employees.<br />
Our efforts to create and strengthen the public image included: launch of a project entitled<br />
”Establishing the Image of an Attractive Employer”; participation in the job fair at the Silesia<br />
University of Technology, where <strong>Polkomtel</strong> S.A. was awarded the title of the ”Company for<br />
Engineers”; and participation in the INTECH <strong>2001</strong> job fair, where we earned the title of the<br />
”Most Desired Employer”.<br />
We also received the title of the ”<strong>2001</strong> Human Resources Investor” awarded by the Warsaw<br />
Institute of Management for our consistent policy of promoting professional development<br />
among our staff, for raising the level of human resource management, and for promoting<br />
knowledge.<br />
11
NEW SERVICES AND INNOVATIONS<br />
In <strong>2001</strong>, we provided our customers with access to dozens of new services.<br />
Offering for Corporate and Institutional Customers<br />
Tariff and payment-related services:<br />
- Taryfy Lider (Leader Tariffs) were introduced on May 15th, <strong>2001</strong> for the segment of large<br />
corporate customers. The customers receive a cheaper subscription, in comparison with the<br />
one offered to other segments, with extra call-time minutes included in the subscription fee.<br />
– Strefa Biurowa (Office Zone) was introduced in May <strong>2001</strong> using the Intelligent Network<br />
platform. It is used to set up internal networks based on the Plus GSM network. Office Zone<br />
is a functional version of System Plus which has been enhanced by an option to introduce<br />
customised charges depending on the location of the System Plus members. If a subscriber<br />
initiating the call is within reach of the base stations comprising the Office Zone, the cost<br />
of the call is billed at special reduced rates – both subscribers (the one calling and the one<br />
being called) must be members of the same System Plus group.<br />
– Plus Turbo was launched in November <strong>2001</strong> as a cutting-edge service on the Polish market<br />
which enables a subscriber to have two different subscriptions – private and business – on<br />
a single SIM card.<br />
Location-based services:<br />
– POS Plus was activated on April 24th, <strong>2001</strong> in cooperation with PolCard. It permits the<br />
servicing of credit cards on electronic terminals equipped with GSM modems, for example<br />
in taxis or used during fairs and trade events<br />
12<br />
Convergent services:<br />
Pakiet Plus (Plus Package) services based on the <strong>Polkomtel</strong> S.A.’s transmission resources<br />
facilitate the integration of mobile network services with those of a fixed-line network. This<br />
allows us to provide customers with comprehensive telecommunications services. The<br />
following services are part of Pakiet Plus:<br />
– Intranet Plus: launched on July 25th, <strong>2001</strong> as a local network access service, based on the<br />
provision of wireless data transmission to the company’s local intranet network. The service<br />
is provided using high-speed data transmission (HSCSD) or packet transmission (GPRS).<br />
– Internet access: launched on September 19th, <strong>2001</strong> to provide customers with access to the<br />
Internet with a defined capacity (five line capacities to choose from).<br />
– Fixed line: launched in September <strong>2001</strong> enables <strong>Polkomtel</strong> S.A. to provide customers with<br />
the ability to use of a portion of the network’s transmission resources for the purpose of<br />
the following services: customer’s PABX connecting to the <strong>Polkomtel</strong> S.A. network,<br />
Internet access or access to IT resources of the customer’s corporate network, e.g. within<br />
the framework of the Intranet Plus services.
News services:<br />
– Biznes Plus was launched on June 15th, <strong>2001</strong> in cooperation with an outside business<br />
partner. The service provides access to business information via SMS or WAP.<br />
Offer for Retail Customers<br />
Tariff services:<br />
On March 1st, <strong>2001</strong>, Plus GSM introduced a new tariff offering with three user profiles and 12<br />
tariff schemes. All the tariff schemes have free calling minutes (from 10 to 300 minutes,<br />
defined by the scheme name) included in the subscription fee. The way that the free calling<br />
minutes can be used depends on which user profile has been chosen. Thanks to this offer,<br />
customers may select the tariff scheme which best suits their calling needs:<br />
– Czasami – the user profile designed for persons calling at off-peak hours and during the<br />
weekend – times at which the effective rates are lower. Customers may also activate an<br />
additional service, Sami Swoi. The following tariff schemes are available in the Czasami user<br />
profile: Czasami 10, Czasami 30, and Czasami 150.<br />
– Często – the user profile created for these who connect<br />
throughout the day. The Często schemes are differentiated<br />
depending on the time of day when a call is made – calls are<br />
cheaper at off-peak hours, in the evening and on weekends.<br />
Customers may also activate an additional service, Sami Swoi.<br />
The following tariff schemes are available in the Często user<br />
profile: Często 15, Często 50, Często 100, and Często 150.<br />
– Non Stop – under this user profile there is no rate<br />
differentiation depending on the time of day (flat rate). In<br />
addition, subscribers can activate the System Plus service. The<br />
following tariff schemes are available in the Non Stop user<br />
profile: Non Stop 15, Non Stop 50, Non Stop 100, Non Stop<br />
150, and Non Stop 300.<br />
Loyalty programme tariffs:<br />
– Plus Tobie and Plus Tobie II – tariff schemes implemented,<br />
respectively, on January 15th, <strong>2001</strong> (under the then-effective<br />
tariffs) and on June 18th, <strong>2001</strong> (for new tariffs). Under these<br />
programmes subscribers are awarded additional free calling<br />
minutes for the duration of their Plus GSM subscription. Within<br />
this service, customers who have been Plus GSM subscribers for<br />
18 and 36 months may receive from 20 to 120 free minutes,<br />
depending on their tariff scheme and length of the subscription<br />
period.<br />
Albrecht Dürer, Adam and Eve (detail), 1504<br />
Engraving, 25.3 x 19.3 cm (cut off)<br />
13
Location-based services:<br />
– Pilot Plus was launched on June 15th, <strong>2001</strong> as an SMS location-based service under which<br />
users can gather information on the nearest ATM, bank, Plus GSM shop, service station,<br />
cinemas and theatres (and what’s playing), hotels, restaurants, or camping grounds. The<br />
service covers 40,000 cities and towns in Poland.<br />
Communications services:<br />
– Chat Plus was introduced on January 2nd, <strong>2001</strong> as a new communications tool enabling<br />
users to chat via wireless handsets.<br />
– Bramka WWW-SMS (Web-to-SMS Gate) was launched on August 12th <strong>2001</strong> as an<br />
enhanced version of the Internet Web-to-SMS gate and additionally includes dropdown<br />
menu, character counter, SMS counter, real-time notices on exceeding the limit or on the<br />
blocking of the subscriber’s MSISDN number (an SMS can be received via the SMS gate).<br />
– New user profiles in the Plusnet e-mail service were introduced as of December 19th,<br />
<strong>2001</strong> for customers using the Plusnet e-mail service. They can select from among two user<br />
profiles: Zielony (Green) for everyone and Srebrny (Silver) for the demanding users<br />
(provides greater capacity and many additional services such as the option to read e-mails<br />
from two additional accounts, or mail filters).<br />
Information services:<br />
– In March <strong>2001</strong>, we started to provide access to entertainment and news services and to<br />
audio and text services. The services are based on the IN platform and permit our<br />
subscribers and Simplus users to take part in competitions or use news and entertainment<br />
services for higher call charges. This offering is parallel to TP S.A.’s 0-700 service. The<br />
services are developed in cooperation with twenty of Poland’s largest media and<br />
entertainment companies. An example of such an offering is the voting service which was<br />
launched in September <strong>2001</strong>. On the SMS platform, the service forwarded most up-to-theminute<br />
information on the general election to the Sejm (Lower House of Polish<br />
Parliament).<br />
– Directory of our subscribers was launched on July 9th, <strong>2001</strong> (accessible using WAP and<br />
SMS). It is the first service of this type in Poland which provides access to a database of<br />
telephone numbers of Plus GSM subscribers, permitting a number search as long as a given<br />
number is listed.<br />
– Info Plus is an SMS-based news service which was launched on October 1st, <strong>2001</strong>. Users<br />
can take out a 30-day subscription to access the following categories of information: News,<br />
Weather, Sport, Entertainment (humour and quote of the day), Practical (name days,<br />
lottery, quote of the day), and Business (daily news, exchange rates, stock market news).<br />
Info Plus subscribers receive two or three SMSes daily.<br />
– PKP Info (Polish State Railways Information) was launched on October 1st, <strong>2001</strong> with<br />
an outside business partner. It provides access to information on train timetables via SMS.<br />
14
– SMS Plus Portal was launched on November 6th, <strong>2001</strong> as a service permitting users to<br />
create their own SMS news services.<br />
– Encyklopedia PWN (Polish Scientific Publisher’s Encyclopaedia) was introduced on<br />
December 17th, <strong>2001</strong> as a means to provide SMS or WAP access to all entries in the PWN<br />
Great Encyclopaedia.<br />
Voice (audio and text) news services:<br />
– Reporter Plus was introduced on April 23rd, <strong>2001</strong> as a package of voice services designed<br />
for Plus GSM subscribers, accessible under the shortened numbers: 300 – News, 301 – Sport,<br />
302 – Weather, 303 – Entertainment, 304 – Special Service.<br />
– Voice News Service at 3232 was launched on November 20th, <strong>2001</strong> to provide information<br />
to our subscribers on eight Polish urban areas: Warsaw, Cracow, Poznań, the Katowice<br />
agglomeration, Gdańsk-Gdynia-Sopot, Wrocław, Łódź, and Szczecin (including<br />
information on how to get downtown from the airport, where to stay and dine, and how to<br />
order a taxi).<br />
Entertainment services:<br />
– Rozrywka Plus (Entertainment Plus) was introduced on May 25th, <strong>2001</strong> as a package of<br />
entertainment services provided using SMS, including: games (anagrams, guessing games,<br />
Black Jack), quizzes, ringing tones, logos, icons, and graffiti. Subscribers are awarded<br />
subscription to the Info Plus news service for every won game or correct quiz solution.<br />
– Rozrywka Plus (accessible using WAP) was launched on July 2nd, <strong>2001</strong> as a WAP<br />
counterpart to the SMS entertainment service. At present, it includes three games<br />
(Battleships, SicBo and Roulette) and a quiz.<br />
– Nowe Dzwonki Plus (New Ringing Tones Plus) service was launched in an improved<br />
version on July 29th, <strong>2001</strong> allowing users to choose their handset ringing tones from any<br />
one of the 300 available tunes, including the hottest hits.<br />
System services<br />
– WAP was made available on March 30th, <strong>2001</strong> in an improved version which includes<br />
additional functions such as: sending SMSes from WAP pages, forwarding bookmarks to<br />
telephones (to save most often used WAP pages) or remote WAP configuration of Ericsson<br />
handsets (configuration information can be forwarded from Web pages to access the service<br />
via telephone). In June <strong>2001</strong>, we changed the visual layout of the network’s WAP pages so<br />
that currently they are more functional and attuned to the users’ needs.<br />
M-banking services:<br />
– In <strong>2001</strong>, in cooperation with Pekao S.A., mBank, Inteligo, and BZ WBK we launched SMS<br />
services permitting subscribers to access their bank accounts.<br />
15
Simplus (Plus GSM pre-paid service):<br />
– Simplus PLN 30 calling card was introduced in February <strong>2001</strong> as a pre-paid card with a new<br />
nominal value. It allows subscribers to extend the account term by an additional 30 days.<br />
– International calling service was introduced in June <strong>2001</strong>. Simplus users can call from<br />
Poland to most countries in the world.<br />
– Simplus Mega was introduced in <strong>2001</strong> as an addition to the Simplus offering which is based<br />
on SIM Toolkit technology. Due to its ability to enlarge the telephone menu, a Mega card<br />
provides easy access to a number of added-value services such as location-based, banking,<br />
and m-commerce.<br />
– Mono – second Simplus tariff scheme was introduced on September 3rd, <strong>2001</strong>. It has a flat<br />
rate per minute. The name of the existing tariff scheme was changed to Multi (its rates<br />
depend upon the time of day).<br />
– Usługi Krótkim Kodem (Shortened Code Services) were implemented on September 3rd,<br />
<strong>2001</strong> as a package of services permitting subscribers to manage their Simplus accounts<br />
directly via the telephone (change tariffs, check tariff status, activate the account, change<br />
the language, etc.) without having to use the IVR system or to speak to a call centre<br />
assistant.<br />
– International access to SMSes was launched on December 15th, <strong>2001</strong> as a first on the<br />
market, free-of-charge roaming service providing access to SMSes retrieval in over 100<br />
countries.<br />
– SimplusNet (e-mail for Simplus users) was introduced on December 19th, <strong>2001</strong> as a<br />
service which provides Simplus users with e-mail accounts and notifies, free-of-charge, of<br />
every e-mail received.<br />
Roaming Services<br />
Roaming – the assurance of global reach – is one of the key drivers of our success and has<br />
allowed us to become a leader among Polish GSM operators over the last five years in terms<br />
of the number of countries and operators available in roaming for subscribers of the Plus GSM<br />
network.<br />
As at the end of <strong>2001</strong>, 213 business partners in 106 countries worldwide provided roaming<br />
access. Among them were Kenya, Venezuela, Peru, Armenia, Tanzania, Turkmenistan, Ghana,<br />
Uganda, Madagascar, Mozambique, and Mongolia. In October <strong>2001</strong>, we launched tri-band<br />
roaming (based on the iDEN system) with Nexel, an American operator.<br />
16<br />
– SMS Welcome was launched on May 31st, <strong>2001</strong> as part of the network’s roaming services.<br />
It is available in 15 languages to all foreign visitors (in-roamers) logging into the Plus GSM<br />
network and to Plus GSM subscribers travelling abroad. Plus GSM subscribers receive an SMS
Welcome in Polish which contains a greeting, information on emergency numbers, and the<br />
telephone number of the Polish embassy in a given country.<br />
– Voice information service for in-roamers was activated on July 20th, <strong>2001</strong> under the short<br />
No. 3131 in five languages: English, German, French, Russian, and Polish. The service<br />
provides basic information on Cracow and Warsaw needed by a person visiting Poland (e.g.<br />
taxi service, information on hotels and restaurants, and emergency numbers).<br />
Albrecht Dürer, The Betrothal of the Virgin<br />
Woodcut, 29.5 x 20.6 cm<br />
17
OPERATING RESULTS<br />
Customer Base<br />
As of the end of <strong>2001</strong>, the number of<br />
customers using our network stood at 3.44m<br />
and was 40% higher than the 2000 figure. The<br />
number of subscribers amounted to 1.96m,<br />
while customers using pre-paid services<br />
totalled 1.48m (an increase of 21.8% and<br />
74.2%, respectively). Customers using pre-paid<br />
services represented 64% of the customers<br />
acquired in <strong>2001</strong>.<br />
Churn Rate<br />
In <strong>2001</strong>, the churn rate was 22% as compared<br />
to 16.4% in 2000. The increase was to a great<br />
extent caused by the worsening economic<br />
situation that forced many users to stop using<br />
the network’s services. However, quarterly data<br />
indicate a slowdown in the growth of the churn<br />
rate. Accordingly, in the fourth quarter of <strong>2001</strong>,<br />
the rate dropped to 5.1%, from 5.8% in the<br />
third quarter.<br />
The above is a result of the growing attractiveness of the services offered by Plus GSM and<br />
loyalty programmes that include different types of reduced tariffs or free minutes that are<br />
available to active customers and those who have been using our services for a long time.<br />
Average Revenue Per User<br />
18<br />
In <strong>2001</strong>, average revenue per user (ARPU) dropped by 17.9%, to PLN 114.5 per month. The<br />
occurrence of a decrease is a natural consequence of the growing market penetration and is<br />
observed globally. The above is caused by an increasingly greater proportion of pre-paid<br />
phone users in the total number of customers. Such customers generate substantially lower<br />
revenues as compared with those generated by subscribers (throughout <strong>2001</strong>, the figures<br />
were PLN 36.6 and PLN 165.4 a month, respectively). Additionally, in line with the growing<br />
market saturation, new customers are acquired from among less frequent users of Plus GSM<br />
services. This, coupled with cheaper tariffs, means a drop in average revenue per subscriber.<br />
In <strong>2001</strong>, the figure dropped by 11.4%. However, this pattern does not apply to pre-paid<br />
service users, who on average spent 6.7% more than in 2000.
INVESTMENTS IN THE NETWORK EXPANSION<br />
In <strong>2001</strong>, our capital expenditure amounted to PLN 938.5m. The resources were used mainly<br />
to further expand our GSM network and to complete the construction of the backbone<br />
network. It is the largest and most technically advanced transmission network using wireless<br />
technology in Poland, consisting of over 180 SDH lines of a total length of 4,350 km.<br />
<strong>Polkomtel</strong> S.A.’s backbone network connects 160 cities in 16 major administrative units of<br />
Poland, enables a reduction of transmission costs in the Plus GSM network and, at the same<br />
time, ensures a high degree of reliability.<br />
We introduced many new elements that enhance the network’s functionality and the quality<br />
of services.<br />
– Operator's own synchronising network making use of, among other technologies, the<br />
atomic clock.<br />
– Testing of the platform for the purposes of GPRS-based international roaming was<br />
accomplished successfully.<br />
– <strong>Polkomtel</strong> S.A. was the first operator in Poland and one of the first operators worldwide to<br />
implement the CAMEL technology enabling the provision of roaming services, as well as<br />
third generation mobile telephony services. The application of this technology enables the<br />
monitoring of services involving: data transmission, image transmission,<br />
videoconferencing, pre-paid connections and individual messages on account balances in<br />
the home network, also available in roaming.<br />
– We launched a transit layer that will enable further implementation of new products,<br />
services and technologies in the Plus GSM network.<br />
– At the end of <strong>2001</strong>, an ATM-based transport network was launched. It was the next step<br />
towards the operation of a mobile telephony network that is in line with the third<br />
generation networks.<br />
– Capacity of the radio access network was increased by 27.5%.<br />
The construction of a backbone network will enable <strong>Polkomtel</strong> S.A. to commence the<br />
provision of convergent services in the near future. Thus, major customers will be able to use<br />
mobile and fixed-line telephony services, as well as the Internet, within a single tariff scheme.<br />
<strong>2001</strong> was a year that witnessed thorough changes in the regulatory environment.<br />
We concluded agreements on cooperation and settlements with mobile telephony operators.<br />
A number of agreements were signed with alternative telecommunications operators. In<br />
addition, pursuant to a decision by the President of Telecommunications Regulation<br />
Authority, the rules for settlements with TP S.A. concerning domestic and international<br />
traffic were changed. As a result, the share of interconnection revenue in <strong>Polkomtel</strong> S.A.’s<br />
total revenue grew to over 20%.<br />
19
FINANCIAL RESULTS<br />
Sales Revenue<br />
In <strong>2001</strong>, the total net sales revenue amounted to<br />
PLN 4,232m, which represents a 20.3% increase over<br />
the previous year. Sales revenue comparised mainly<br />
the revenue on sales of telephony services. Its share<br />
in the revenue structure reached 97.5% in <strong>2001</strong>,<br />
while a year earlier it amounted to 95.8%. The majority<br />
of the remaining revenue was derived from sales<br />
Albrecht Dürer, The Annunciation,<br />
Woodcut, 29.9 x 21.3 cm<br />
of handsets. This is an activity complementary to the core business and is aimed at increasing<br />
the number of customers, that is our potential for revenue generation in the future.<br />
The dynamic revenue growth in <strong>2001</strong> was caused mainly by the growing customer base. We<br />
acquired 982,000 new users during the period. The total number of the Plus GSM network<br />
users reached 3,444,000, which represents an increase of 40% compared to the end of 2000.<br />
This high growth rate was only partially reflected in the increase in revenue, due to the<br />
decrease in the average revenue per customer. In <strong>2001</strong>, the average monthly revenue per<br />
customer was PLN 114.5 against PLN 139.5 in 2000 (down by 17.9%).<br />
At the same time, a gradual increase in the share of additional services, that is data<br />
transmission and text messages, in the total revenue was seen. Overall in <strong>2001</strong>, the revenue<br />
on non-voice services amounted to PLN 226.7m and accounted for 5.3% of the total revenue.<br />
In 2000, non-voice services represented 2.8% and in 1999 only 0.9% of the total revenue.<br />
Operating Expenses<br />
20<br />
The cost of sales was PLN 3,158m, which represented a 14.4% increase over 2000. As a result,<br />
the cost dynamics was 5.9% below the revenue dynamics. The main cost item was the cost of<br />
services sold (77.4%) and the cost of handsets sold (21.6%). The latter item increased by<br />
27%, to PLN 681m in <strong>2001</strong>. The reduction of the costs of handsets sold, and the<br />
corresponding reduction of the share of handset sales in the total revenue were a consequence<br />
of a lower proportion of new connections in the total number of customers and of the policy<br />
of limiting subsidised sales of new handsets. The increased share of pre-paid system users<br />
who use less technologically advanced devices or buy second-hand handsets was also very<br />
important in this context.<br />
In turn, the cost of services sold rose by 15% last year. A relatively low rate of the growth<br />
(considering a high increase in the number of customers and an over 30% rise of depreciation<br />
charges resulting from larger investments) is a consequence of a rational financial policy and<br />
the completed investments in the improvement of the quality of customer service.<br />
In <strong>2001</strong>, the balance of other operating income and expenses amounted to (-PLN 89.3m) as<br />
compared to (-PLN 115m) in 2000.
Operating Result<br />
Due to the factors discussed above, the operating profit reached PLN 983.9m in <strong>2001</strong>, against<br />
PLN 642.3m in 2000 (an increase by 53.2%). In turn, EBITDA (calculated on the basis of the<br />
management accounting data), rose by 41.5% and amounted to PLN 1,527.4m. The EBITDA<br />
margin, therefore, reached 35.6% in <strong>2001</strong>, against 30.5% in 2000.<br />
Net Result on Financial Activities<br />
In <strong>2001</strong>, the result on financial transactions was negative and reduced the operating profit by<br />
PLN 258.9m. In the previous year, the value of this item was similar and amounted to<br />
(-PLN 253.4m). This result was recorded despite the increase of debt from PLN 1,936m to<br />
PLN 2,072m. One of the factors that contributed to such an adverse development were<br />
falling EUR and USD exchange rates (by 8.6% and 3.8%, respectively).<br />
Net Profit<br />
A significant increase in the operating result, coupled with a stable balance of the financial<br />
income and expenses, contributed to a strong growth of the pre-tax profit. In <strong>2001</strong>, the pretax<br />
profit increased by 86% and amounted to PLN 725m. As a result of a decrease in the<br />
effective tax rate (from 47% to 18%), the net profit’s growth was even stronger. Following<br />
an increase of 187%, the net profit reached PLN 591m.<br />
Balance Sheet<br />
As at the end of <strong>2001</strong>, the balance-sheet total amounted to PLN 7,283m and did not change<br />
significantly in relation to the previous year (down by 2%). The asset structure changed in<br />
<strong>2001</strong>. The share of fixed assets increased from 36% to 43%, while the weighting of current<br />
assets in the asset structure decreased from 13% to 10%. Prepayments and accrued income,<br />
which mainly include the value of the UMTS license, still represent a very significant item in<br />
the asset structure (45%).<br />
On the other hand, a decrease in the weight of liabilities in the equity and liabilities was<br />
observed (down from 75% in 2000 to 54% as at the end of <strong>2001</strong>). Total liabilities amounted<br />
to PLN 3,943m, of which PLN 2,072m was attributed to the liabilities under loans and<br />
borrowings (an increase of 7% in relation to 2000). A borrowing of PLN 500m advanced by<br />
the Company’s shareholders to finance the purchase of the UMTS license represents a<br />
significant debt item.<br />
21
Cash Flow<br />
In <strong>2001</strong>, the net operating cash flow amounted to PLN 540.5m and was comparable with the<br />
net profit earned in the same period. Investment activities, in turn, absorbed PLN 944m. The<br />
value of capital expenditure did not change in relation to the previous year. The surplus of<br />
capital expenditure over the inflow of cash from the operating activities was financed entirely<br />
by the shareholders with a borrowing (PLN 500m) and through a share issue (PLN 412.5m).<br />
Some of the proceeds were also used to repay Company’s liabilities to financial institutions.<br />
Albrecht Dürer, The Adoration of the Magi, 1511<br />
Woodcut, 29.2 x 22.1 cm<br />
22
FINANCIAL REPORT<br />
as of December 31st, 2000 December 31st, <strong>2001</strong><br />
previous year<br />
current year<br />
BALANCE SHEET<br />
Fixed assets 2 679 461 849.54 3 147 486 451.29<br />
Current assets 929 294 178.23 718 623 167.38<br />
Balance-sheet total 7 434 236 476.23 7 282 559 319.86<br />
Shareholders’ equity 1 373 498 864.71 2 514 447 790.32<br />
PROFIT AND LOSS ACCOUNT<br />
Net sales revenue 3 518 242 714.14 4 231 642 205.24<br />
Profit on sales 757 322 757.47 1 073 182 766.41<br />
Operating profit 642 280 103.13 983 860 908.73<br />
Pre-tax profit 388 841 676.31 725 001 609.12<br />
Net profit 205 899 631.96 590 948 925.61<br />
Financial Highlights<br />
Cash-flow statement<br />
Net operating cash flow 648 044 851.16 540 543 337.59<br />
Net investing cash flow -959 486 518.45 -943 888 625.47<br />
Net financing cash flow 314 327 519.03 429 306 699.73<br />
Albrecht Dürer,<br />
St. Eustache, 1501-1502<br />
Engraving, 36 x 26.1 cm<br />
23
Auditor’s Opinion<br />
To the Shareholders, Supervisory Board and Management Board of <strong>Polkomtel</strong> S.A.<br />
We have audited the financial statements of <strong>Polkomtel</strong> S.A., with registered offices at<br />
Al. Jerozolimskie 81, Warsaw, Poland, comprising:<br />
– Balance sheet as of December 31st, <strong>2001</strong>, showing a balance-sheet total of PLN<br />
7,282,559,319.86,<br />
– Profit and loss account for the period January 1st – December 31st, <strong>2001</strong>, showing a net<br />
profit of PLN 590,948,925.61,<br />
– Cash-flow statement for the period January 1st – December 31st, <strong>2001</strong>, showing a net<br />
increase in cash during the financial year of PLN 25,961,411.85,<br />
– Notes to the balance sheet and the profit and loss account, with supplementary<br />
information.<br />
The Company’s Directors are responsible for the preparation of the financial statements.<br />
Our responsibility was to issue an opinion on the financial statements based on the findings<br />
of the audit.<br />
We carried out our audit in accordance with the provisions of<br />
– the Polish Accountancy Act of September 29th, 1994,<br />
– professional auditing standards issued by the National Board of Chartered Auditors.<br />
The abovementioned regulations and standards require that we plan and perform our audit so<br />
as to obtain reasonable and sufficient evidence to issue an opinion on whether the audited<br />
financial statements are free from material misstatements.<br />
In particular, our audit included examination, largely on a test basis, of evidence relevant to<br />
the amounts and disclosures in the financial statements. It also included an assessment of<br />
significant estimates and judgments made by the Company in the preparation of the financial<br />
statements and of whether the accounting policies are appropriate to the situation of the<br />
Company. In forming our opinion we also evaluated the overall adequacy of the presentation<br />
of information in the financial statements. We believe that our audit has provided us with<br />
sufficient evidence to issue an opinion.<br />
24<br />
In our opinion the financial statements of <strong>Polkomtel</strong> S.A. for the <strong>2001</strong> financial year were<br />
prepared, in all material aspects:<br />
– based on properly maintained accounting books, permitting the preparation of the financial<br />
statements free from material misstatements,<br />
– consistent, in terms of their form and content, with the requirements of the Polish<br />
Accountancy Act of September 29th, 1994 and the Company’s Articles of Association,
– in accordance with consistently applied Polish accounting principles, as defined in the<br />
abovementioned Polish Accountancy Act,<br />
and disclose, in a fair and clear manner, all the information necessary for the assessment of<br />
the Company’s profitability and financial result on the operations in the period under review,<br />
as well as the assets and financial standing of the Company as of December 31st, <strong>2001</strong>.<br />
The financial information contained in the Directors’ Report on the Company’s business<br />
activities in the <strong>2001</strong> financial year, which was based directly on the audited financial<br />
statements, is consistent with the statements.<br />
While issuing no qualifications as to the accuracy and reliability of the audited financial<br />
statements, we would like to draw attention to Section 16 of the notes wherein the<br />
Company’s Directors described the impact of the Ministry of Finance’s currently binding<br />
interpretation regarding the tax settlement of the license.<br />
Auditor:<br />
Maria Rzepnikowska<br />
Reg. No. 3499<br />
Persons acting on behalf of the auditor:<br />
Maria Rzepnikowska, Executive Board<br />
President<br />
Wacław Nitka, Executive Board Member<br />
Deloitte & Touche Audit Services Sp. z o.o.<br />
ul. Fredry 6<br />
00-097 Warsaw, Poland<br />
Entity qualified to audit financial statements<br />
Reg. No. 73<br />
Warsaw, February 8th, 2002<br />
25
Balance Sheet – Assets<br />
26<br />
as of December 31st, 2000 December 31st, <strong>2001</strong><br />
previous year<br />
current year<br />
ASSETS<br />
Fixed assets 2 679 461 849.54 3 147 486 451.29<br />
Intangible fixed assets 144 611 720.00 212 860 194.65<br />
Costs of organisation and subsequent<br />
extension of joint-stock company 9 806 254.27 9 452 833.23<br />
Research and development expense 0.00 0.00<br />
Goodwill 0.00 0.00<br />
Other intangible fixed assets 113 055 675.91 156 416 701.66<br />
Intangible fixed assets not put into service 21 749 789.82 46 990 659.76<br />
Prepayments for intangible fixed assets 0.00 0.00<br />
Tangible fixed assets 2 534 850 129.54 2 934 626 256.64<br />
Owned land 26 352 959.84 26 352 959.84<br />
Buildings and structures 341 984.38 332 526.03<br />
Plant and equipment 2 139 746 135.83 2 492 068 941.46<br />
Vehicles 19 318 772.78 25 091 428.67<br />
Other tangible fixed assets 48 654 887.62 62 969 103.85<br />
Investments in progress 298 347 626.18 326 590 888.98<br />
Prepaid investments 2 087 762.91 1 220 407.81<br />
Financial fixed assets 0.00 0.00<br />
Shares and equity interests 0.00 0.00<br />
Securities 0.00 0.00<br />
Long-term loans advanced 0.00 0.00<br />
Other financial fixed assets 0.00 0.00<br />
Long-term accounts receivable 0.00 0.00<br />
Current assets 929 294 178.23 718 623 167.38<br />
Stocks 174 488 411.71 146 562 948.80<br />
Materials 3 269 346.00 23 547 653.76<br />
Semi-products and work in progress 0.00 0.00<br />
Finished products 0.00 0.00<br />
Goods for resale 171 219 065.71 123 015 295.04<br />
Prepaid deliveries 0.00 0.00<br />
Short-term accounts receivable 740 286 255.20 531 579 295.41<br />
Short-term trade debtors 408 643 078.07 412 463 365.53<br />
Taxes, subsidies and social security receivable 328 755 456.26 116 951 851.07<br />
Other accounts receivable 2 887 720.87 2 164 078.81<br />
Accounts receivable under court proceedings 0.00 0.00<br />
Treasury shares for disposal 0.00 0.00<br />
Marketable securities 0.00 0.00<br />
Cash and cash equivalents 14 519 511.32 40 480 923.17<br />
Cash in hand 844 403.14 875 027.62<br />
Cash at banks 12 508 188.15 24 589 878.26<br />
Other cash and cash equivalents 1 166 920.03 15 016 017.29<br />
Prepayments and accrued income 3 825 480 448.46 3 416 449 701.19<br />
Deferred income tax 56 586 863.33 0.00<br />
Accrued income 3 535 323 917.16 3 262 497 772.85<br />
Other prepayments and accrued income 233 569 667.97 153 951 928.34<br />
Total assets 7 434 236 476.23 7 282 559 319.86
Balance Sheet – Equity and Liabilities<br />
as of December 31st, 2000 December 31st, <strong>2001</strong><br />
previous year current year<br />
SHAREHOLDERS’ EQUITY AND LIABILITIES<br />
Shareholders’ equity 1 373 498 864.71 2 514 447 790.32<br />
Share capital 1 500 000 000.00 2 050 000 000.00<br />
Called-up share capital not paid (negative value) 0.00 0.00<br />
Reserve funds 10 373 661.35 26 845 631.91<br />
Share premium account 0.00 0.00<br />
Statutory reserve funds 10 373 661.35 26 845 631.91<br />
Reserve funds set up pursuant<br />
to the Articles of Association 0.00 0.00<br />
Additional contributions to equity 0.00 0.00<br />
Other 0.00 0.00<br />
Revaluation capital reserve 0.00 0.00<br />
Other capital reserve 0.00 0.00<br />
Currency-translation differences<br />
on foreign-currency branches (plants) 0.00 0.00<br />
Accumulated loss or retained<br />
profit brought forward -342 774 428.60 -153 346 767.20<br />
Net profit (loss) 205 899 631.96 590 948 925.61<br />
Provisions 29 881 636.52 286 084 119.72<br />
Deferred income tax provision 0.00 233 469 840.21<br />
Other provisions 29 881 636.52 52 614 279.51<br />
Provison for stocks 0.00 0.00<br />
Provisions for guarantees 0.00 0.00<br />
Other provisions 29 881 636.52 52 614 279.51<br />
Liabilities and special accounts 5 591 413 256.92 3 943 247 077.52<br />
Long-term liabilities 2 944 108 121.92 2 888 459 256.65<br />
Long-term borrowings, bonds<br />
and other securities 0.00 500 000 000.00<br />
Long-term bank loans 1 410 382 298.81 1 014 918 256.65<br />
Other long-term liabilities 1 533 725 823.11 1 373 541 000.00<br />
Short-term liabilities 2 645 882 731.01 1 052 654 334.25<br />
Short-term borrowings,<br />
notes and other securities 149 800 000.00 138 300 000.00<br />
Bank loans 376 040 730.77 418 740 478.19<br />
Prepaid deliveries 0.00 0.00<br />
Trade creditors 521 125 266.57 406 208 326.19<br />
Promissory notes payable 0.00 0.00<br />
Tax. duty. social security payable 341 349 641.68 61 301 435.21<br />
Salaries and wages payable 15 140.57 179 163.78<br />
Other short-term liabilities 1 257 551 951.42 27 924 930.88<br />
Special accounts 1 422 403.99 2 133 486.62<br />
Accruals and deferred income 439 442 718.08 538 780 332.30<br />
Accrued expenses 179 369 183.13 287 656 873.08<br />
Deferred income 260 073 534.95 251 123 459.22<br />
Total shareholders’ equity and liabilities 7 434 236 476.23 7 282 559 319.86<br />
27
Profit and Loss Account<br />
28<br />
For period ending December 31st, 2000 December 31st, <strong>2001</strong><br />
previous year current year<br />
Net sales revenue 3 518 242 714.14 4 231 642 205.24<br />
Net revenue on sales of products and services 3 369 340 434.94 4 125 731 223.03<br />
Revenue on sales of products 0.00 0.00<br />
Revenue on sales of services 3 369 340 434.94 4 125 731 223.03<br />
Net revenue on sales of goods<br />
for resale and materials 148 902 279.20 105 910 982.21<br />
Revenue on sales of handsets 99 056 400.14 98 862 973.58<br />
Revenue on sales of other goods<br />
for resale and materials 49 845 879.06 7 048 008.63<br />
Cost of sales 2 760 919 956.67 3 158 459 438.83<br />
Cost of products and services sold 2 125 956 782.20 2 445 333 830.27<br />
Cost of products sold 0.00 0.00<br />
Cost of services sold 2 125 956 782.20 2 445 333 830.27<br />
Raw materials and energy used 91 748 388.02 75 177 284.97<br />
Contracted services 1 163 672 778.44 1 278 484 416.31<br />
Taxes and charges 13 230 359.28 38 464 399.87<br />
Salaries and wages 164 736 114.11 216 946 339.67<br />
Employee benefits 42 065 462.53 54 322 624.31<br />
Depreciation and amortisation 344 868 128.95 450 044 531.86<br />
Other 305 635 550.87 331 894 233.28<br />
Cost of goods for resale and materials sold 634 963 174.47 713 125 608.56<br />
Cost of handsets sold 536 606 974.00 681 317 119.66<br />
Cost of other goods for resale sold 98 356 200.47 31 808 488.90<br />
Gross profit (loss) on sales 757 322 757.47 1 073 182 766.41<br />
Selling costs 0.00 0.00<br />
General and administrative expenses 0.00 0.00<br />
Profit (loss) on sales 757 322 757.47 1 073 182 766.41<br />
Other operating income 123 205 155.64 99 915 938.10<br />
Proceeds from sale of tangible fixed assets 3 040 669.18 3 329 356.98<br />
Subsidies 0.00 0.00<br />
Other 120 164 486.46 96 586 581.12<br />
Other operating expenses 238 247 809.98 189 237 795.78<br />
Value of tangible fixed assets disposed of 3 018 516.32 1 923 768.45<br />
Other 235 229 293.66 187 314 027.33<br />
Provisions for accounts receivable.<br />
including for: 181 143 441.26 10 482 319.31<br />
Accounts receivable uncollectible under law 1 175 273.96 3 768 960.72<br />
Doubtful trade debtors 179 968 167.30 6 713 358.59<br />
Other provisions and revaluation write-offs 12 955 290.77 4 816 048.23<br />
Other operating expenses 41 130 561.63 172 015 659.79
Operating profit (loss) 642 280 103.13 983 860 908.73<br />
Income from equity investments 0.00 0.00<br />
Income from other financial fixed assets 0.00 0.00<br />
Other financial income 105 547 163.50 118 998 998.25<br />
Interest received 66 281 093.81 48 465 333.63<br />
Other 39 266 069.69 70 533 664.62<br />
Foreign exchange gains (realised) 18 096 100.06 57 916 442.01<br />
Other financial income 21 169 969.63 12 617 222.61<br />
Commissions and other income 4 024 952.40 7 166 529.51<br />
Interest accrued 17 145 017.23 5 450 693.10<br />
Financial expenses 358 985 590.32 377 858 297.86<br />
Revaluation write-offs<br />
on financial fixed assets<br />
and short-term securities 0.00 0.00<br />
Interest, including to subsidiary<br />
and associated undertakings 318 517 318.76 301 630 745.31<br />
Interest on loans and borrowings 170 572 553.48 184 941 141.59<br />
Interest on loans and borrowings<br />
– accrued 18 806 943.32 27 351 381.57<br />
Interest on loans and borrowings<br />
– paid 151 765 610.16 157 589 760.02<br />
Other interest 147 944 765.28 116 689 603.72<br />
Other interest – accrued 41 179 207.82 31 347 534.57<br />
Other interest – paid 106 765 557.46 85 342 069.15<br />
Other financial expenses 40 468 271.56 76 227 552.55<br />
Foreign exchange losses 26 111 903.84 10 053 365.48<br />
Realised 26 111 903.84 9 970 854.94<br />
Unrealised 0.00 82 510.54<br />
Other 14 356 367.72 66 174 187.07<br />
Pre-tax profit (loss) before extraordinary items 388 841 676.31 725 001 609.12<br />
Result on extraordinary items 0.00 0.00<br />
Extraordinary gains 0.00 0.00<br />
Extraordinary losses 0.00 0.00<br />
Pre-tax profit (loss) 388 841 676.31 725 001 609.12<br />
Corporate income tax 216 779 617.34 -156 004 020.03<br />
Other mandatory decrease of profit<br />
(increase of loss) -33 837 572.99 290 056 703.54<br />
Difference between income tax as disclosed<br />
in balance sheet and income tax payable -33 837 572.99 290 056 703.54<br />
Net profit (loss) 205 899 631.96 590 948 925.61<br />
29
Cash-Flow Statement<br />
For period January 1st – January 1st –<br />
December 31st, 2000 December 31st, 2000<br />
NET OPERATING CASH FLOW<br />
– indirect method *) 648 044 851.16 540 543 337.59<br />
Net profit (loss) 205 899 631.96 590 948 925.61<br />
Total adjustments 442 145 219.20 -50 405 588.02<br />
Depreciation and amortisation 346 787 084.19 450 058 086.86<br />
Foreign exchange (gains) losses 14 622 132.41 -44 932 219.22<br />
Dividends and interest 192 063 589.00 183 878 410.24<br />
(Profit) loss on investment activities 9 795 797.39 25 805 936.86<br />
Net change in other reserves 126 271 533.25 248 733 382.53<br />
Corporate income tax<br />
(disclosed in profit and loss account) 182 942 044.35 134 052 683.51<br />
Corporate income tax paid -214 913 691.12 60 215 104.23<br />
Change in stocks -71 568 950.91 27 925 462.91<br />
Change in accounts receivable -236 274 268.76 311 964 976.26<br />
Change in short-term liabilities<br />
(net of loans and borrowings) 2 570 232 164.07 -1 646 401 884.66<br />
Change in prepayments and accrued income -2 397 084 378.73 227 261 733.68<br />
Change in deferred income 117 235 646.26 -8 950 075.73<br />
Other adjustments -197 963 482.20 -20 017 185.49<br />
B. NET INVESTING CASH FLOW -959 486 518.45 -943 888 625.47<br />
Investing cash inflow 33 085 096.41 8 078 099.39<br />
Sale of intangible fixed assets 0.00 0.00<br />
Sale of tangible fixed assets 32 950 868.58 8 078 099.39<br />
Sale of financial fixed assets, including: 0.00 0.00<br />
in subsidiary undertakings 0.00 0.00<br />
in associated undertakings 0.00 0.00<br />
in Parent Undertaking 0.00 0.00<br />
Sale of marketable securities 0.00 0.00<br />
Decrease in long-term loans advanced 0.00 0.00<br />
Dividends received 0.00 0.00<br />
Interest received 0.00 0.00<br />
Other investing cash inflow 134 227.83 0.00<br />
30
Investing cash outflow -992 571 614.86 -951 966 724.86<br />
Acquisition of intangible fixed assets -57 558 633.59 -134 104 271.20<br />
Acquisition of tangible fixed assets -935 012 981.27 -817 862 453.66<br />
Acquisition of financial fixed assets, including: 0.00 0.00<br />
in subsidiary undertakings 0.00 0.00<br />
in associated undertakings 0.00 0.00<br />
in Parent Undertaking 0.00 0.00<br />
Acquisition of treasury shares 0.00 0.00<br />
Purchase of marketable securities 0.00 0.00<br />
Long-term loans advanced 0.00 0.00<br />
Other investing cash outflow 0.00 0.00<br />
C. NET FINANCING CASH FLOW 314 327 519.03 429 306 699.73<br />
Financing cash inflow 632 643 371.26 1 000 131 966.64<br />
Increase in long-term loans and borrowings 0.00 500 000 000.00<br />
Issue of bonds or other long-term<br />
debt securities 0.00 0.00<br />
Increase in short-term loans and borrowings 345 343 371.26 42 699 747.42<br />
Issue of bonds or other short-term<br />
debt securities 149 800 000.00 0.00<br />
Proceeds from issue of own shares 137 500 000.00 412 500 000.00<br />
Additional contributions to equity 0.00 0.00<br />
Other financing cash inflow 0.00 44 932 219.22<br />
Financing cash outflow -318 315 852.23 -570 825 266.91<br />
Decrease in long-term loans and borrowings -111 630 130.82 -375 446 856.67<br />
Redemption of bonds<br />
or other long-term debt securities 0.00 0.00<br />
Decrease in short-term bank loans and borrowings 0.00 0.00<br />
Redemption of bonds<br />
or other short-term debt securities 0.00 -11 500 000.00<br />
Cost of issue of own shares 0.00 0.00<br />
Retirement of treasury shares 0.00 0.00<br />
Dividends and other distributions to shareholders 0.00 0.00<br />
Distribution from profit to executive<br />
and supervisory staff 0.00 0.00<br />
Charitable distributions 0.00 0.00<br />
Decrease in financed lease liabilities 0.00 0.00<br />
31
Interest paid -192 063 589.00 -183 878 410.24<br />
Other financing cash outflow -14 622 132.41 0.00<br />
D. TOTAL NET CASH FLOW (A+/-B+/-C) 2 885 851.74 25 961 411.85<br />
E. BALANCE-SHEET CHANGE IN CASH 2 885 851.74 25 961 411.85<br />
change in cash resulting<br />
from foreign exchange gains/losses<br />
F. CASH AT BEGINNING OF PERIOD 11 633 659.58 14 519 511.32<br />
G. CASH AT END OF PERIOD (F+/- D) 14 519 511.32 40 480 923.17<br />
32
POLKOMTEL S.A. sponsored the exhibition in the National Museum in Warsaw<br />
Albrecht Dürer<br />
Significance and Influence of his Prints in the Sixteenth Century
RIVALS, CONTINUERS, IMITATORS<br />
Albrecht Dürer’s art was imitated by a number of artists.<br />
However, Dürer had only a few assistants as he did not keep a<br />
regular studio. He preferred to cooperate with other artists, to<br />
name Hans Baldung Grien, Hans Schäufelein or Hans Suess<br />
from Kulmbach. Sebald Beham with his brother Barthel and<br />
Georg Pencz probably also worked at Dürer’s studio.<br />
Death did not cease his fame. Dürer’s drawings continued to<br />
fascinate with style, technique and form. Also the themes of his<br />
works were attractive to artists, writers and art theoreticians, as<br />
they reflected the intellectual approach of Renaissance artists,<br />
who explored the surrounding world and expressed it in its<br />
natural shapes.<br />
Words of Hans Sachs, the famous poet from Nuremberg,<br />
inscribed on the Erhard Schön’s woodcut portrait of the poet<br />
(1528), are an apt description of Albrecht Dürer’s art:<br />
”His art was superior to other artist of his times. He was honoured<br />
by dukes, lords and all artists who still admire and praise his work<br />
and use it as a great example”.
• Bartholomäus Bruyn the Elder, Christ Appearing to Mary, 1515–1525<br />
After a drawing from the Small Passion of Albrecht Dürer tempera, oil on oak panel, 67 x 32.5 cm
• German painter, Adam and Eve, beginning of 17th century<br />
Copy of Albrecht Dürer’s engraving of 1504, oil on copper plate, 24.5 x 18.5 cm
• Master of Messkirch, The Mocking of Christ, between 1530 and 1538<br />
After a drawing from the Small Passion of Albrecht Dürer, tempera, oil on spruce panel, 63.7 x 52.2 cm
• Hans Schäufelein, Portrait of a Man, ca. 1507<br />
Signed with the AD monogram, oil on lime panel, 41 x 31.5 cm
• Georg Pencz (Nuremberg school)?, The Holy Trinity<br />
After Albrecht Dürer’s woodcut of 1511, oil on panel, 51.3 x 39.2 cm
• Lucas Cranach the Elder, Adam and Eve, 1512<br />
Copy of Albrecht Dürer’s engraving of 1504, tempera on wood, 59 x 44 cm
COMPANY AS A CORPORATE CITIZEN<br />
We have actively participated in Poland’s cultural and social life since the inception of Plus GSM. Through sponsored<br />
activities, we support a number of initiatives and programmes in the areas of public security, health care, education,<br />
cultural life and sport. We also engage in charitable activities.<br />
Our most notable initiatives and programmes in <strong>2001</strong> included:<br />
We pay particular attention to supporting organisations and institutions that operate for the benefit of children and<br />
youth.<br />
We provide support and assistance to the following organisations and institutions: selected children’s homes,<br />
Fundacja Edukacji Ekonomicznej (Foundation for Economic Education) for the gifted children from poor families,<br />
Fundacja Bezpieczne Dzieciństwo (Safe Childhood Foundation) which organises holidays for children from poor<br />
families, and Stowarzyszenie Po Pierwsze Rodzina (Family First Association) operating for the benefit of physically<br />
and mentally challenged children.<br />
We also support education initiatives in cooperation with such academic institutions as the Technical Universities<br />
of Warsaw and Lublin. For several years, <strong>Polkomtel</strong> S.A. has donated large amounts of computer equipment to<br />
schools and institutions. In <strong>2001</strong>, nineteen such organisations obtained help from us.<br />
Special support was lent to organisations and institutions in the health care sector. We provided financial aid to such<br />
scientific and research initiatives as those of the Robert Koch Foundation at the Tuberculosis and Pulmonary<br />
Diseases Institute in Warsaw and the Physiology and Pathology of Hearing Institute. We also cooperated with the<br />
Dr Clown Foundation, which is engaged in laughter therapy programmes at children’s in-patient clinics.<br />
Charity Work and Health Care<br />
Co-operation with TOPR, GOPR and WOPR<br />
We continued cooperation with three emergency response organisations: Tatrzańskie Ochotnicze Pogotowie<br />
Ratunkowe (Polish Tatra mountains emergency response corps), Górskie Ochotnicze Pogotowie Ratunkowe<br />
(Polish mountains emergency response corps) and Wodne Ochotnicze Pogotowie Ratunkowe (Polish rivers and<br />
lakes emergency response service corps). The 603 100 100 Emergency Line (toll-free calls for Plus GSM subscribers<br />
and pre-paid users) facilitates the prompt response of emergency teams, while funds directly donated to the three<br />
organisations were largely spent on modernisation and purchase of safety equipment.<br />
Safety<br />
”From Monet to Gauguin” painting exhibition<br />
Impressionsts’ and Post Impressionsts’ paintings from Musee d’Orsay in Paris were exhibited in the national<br />
museums in Warsaw, Poznań and Kraków. It was thanks to our support that the paintings of the most renown<br />
33<br />
Culture
epresentatives of Impressionism and Post Impressionism were shown in Poland, which was definitely the highlight<br />
of cultural life in Poland in <strong>2001</strong>. We were the exclusive sponsor of the exhibition.<br />
A record 500,000 visitors saw the paintings in the three cities.<br />
Release of ”Głosy” CD<br />
A million copies’ publication of the Zbigniew Preisner CD ”Głosy”, distributed by Gazeta Wyborcza (the recording<br />
included new pieces of music and arrangements by Zbigniew Preisner), and a subsequent concert, were some of the<br />
highlights of the Fifth Anniversary of Plus GSM.<br />
”Lato Filmów” Film and Art Festival in Kazimierz Dolny<br />
Plus GSM once again sponsored the Kazimierz Summer Film Festival, whose main objective is to promote nonmainstream<br />
values among young people.<br />
Centenary of the first staging of ”Wesele” by Stanisław Wyspiański in Kraków<br />
Plus GSM sponsored the celebrations of the centenary of ”Wesele” (The Wedding), which included ”Serce moje gram”<br />
and ”Duchy świadków Wesela” (musical and theatre shows), various academic sessions, the ”Encyklopedia Wesela”<br />
(a book on the Wyspiański drama), and ”Wesele” cinema film shows.<br />
Cooperation with Towarzystwo Muzyczne im. Henryka Wieniawskiego (Polish musical society for culture makers,<br />
artists and music lovers)<br />
For many years, we have supported the society. In <strong>2001</strong>, the long-term cooperation produced a joint organisation<br />
of Międzynarodowy Konkurs Skrzypcowy im. H. Wieniawskiego (international violin contest) and<br />
Międzynarodowy Konkurs Lutniczy im. H. Wieniawskiego (international violin makers contest).<br />
Sport<br />
Sponsorship of the Polish national volleyball team<br />
The cooperation of Plus GSM and the Polish national volleyball team, which continued for three years, has been the<br />
most extensive sponsorship programme in Polish sport ever.<br />
Beach volleyball Poland’s Championship for Women ”Simplus CUP <strong>2001</strong>”<br />
Last year, we resolved to use the trade name ”Simplus” as a sponsor trademark for beach volleyball, which has been<br />
recently gaining in popularity in Poland.<br />
Tour de Pologne cycling event<br />
Plus GSM has cooperated with the Tour de Pologne for many years. The sponsorship of the event allowed us to reach<br />
out to its present and future clients in south-eastern Poland.<br />
34
Other issues<br />
Seminar ”The Internet, its processes and interaction as a driving force for a 21st century company”, featuring<br />
Michael Hammer<br />
Plus GSM was the main sponsor of the seminar, featuring a most exquisite business and management theoretician,<br />
Michael Hammer. The seminar attracted a lot of attention from the media and the managerial staff of Poland’s<br />
largest corporations.<br />
Sponsorship of the Best Web Page contest ”I.Net Awards”<br />
Plus GSM was for the second time the exclusive sponsor of the ”I.Net Awards” contest. The contest was followed by<br />
a festive gala in December <strong>2001</strong>.<br />
Celebrations of the 175th Anniversary of the Technical University of Warsaw<br />
Plus GSM was a Leading Sponsor of the anniversary celebrations at one of the oldest technical universities in Poland.<br />
We are also fully financing the new building of the Museum of the Technical University of Warsaw, currently under<br />
construction. The cooperation with the University offers us an opportunity to frequently meet some of the<br />
Company’s potential employees.<br />
PRIZES AND AWARDS<br />
During a GSM congress held in Cannes, we received the prestigious GSM Association prize in ”Best GSM<br />
Application in a Crisis” category for our activities in <strong>2001</strong> organised to help flood victims, and most importantly<br />
for the fund raising campaign among subscribers using SMSes with special tariff rates. This is the second prize that<br />
we have received from the GSM Association. In 2000, we were commended for the ”Service Programme for Deaf<br />
and Hearing Disabled Customers” which was recognised as the Most Innovative GSM Product.<br />
September <strong>2001</strong> – <strong>Polkomtel</strong> S.A. takes first place in the ”Infrastructural Enterprises” category in a ranking organised<br />
under the auspices of the Prime Minister and based on the research of the Institute of Economic Studies at the Polish<br />
Academy of Sciences which was carried out upon the initiative of the Prawo i Gospodarka news magazine.<br />
July <strong>2001</strong> – the Company is awarded the title of 2000 Patron of Culture in Kraków in the ”Most Interesting and<br />
Effective Form of Patronage” category.<br />
July <strong>2001</strong> – Plus GSM’s international roaming services wins the ”Know the World” prize as the best service of its kind.<br />
June <strong>2001</strong> – the Company is awarded the Economic Prize by the President of the Republic of Poland as the ”Best<br />
Polish Company of 2000”.<br />
35
June <strong>2001</strong> – Plus GSM’s display at the MTP Elektricon job fair wins the<br />
Company the Silver Medal.<br />
May <strong>2001</strong> – the Company receives the ”Golden Arrow of <strong>2001</strong>” in<br />
the ”Innovations” category and additional prize in the ”Multimedia<br />
Web pages” category for Miasto Plusa (City of Plus), and in the<br />
”Direct B2C Transfer” category it is honoured for its Program 5<br />
Plus.<br />
May <strong>2001</strong> – the Company takes first place and receives the<br />
Rzeczpospolita ”Eagle” in the ”Infrastructure Enterprise” category in<br />
terms of the effective use of human resources, assets and finances.<br />
Research was conducted by the Institute of Economic Sciences at the<br />
Polish Academy of Sciences under the auspices of the Prime Minister<br />
of the Republic of Poland.<br />
Albrecht Dürer,<br />
St. Mary with Child and Monkey, ca. 1498<br />
Engraving, 19.1 x 12.3 cm<br />
May <strong>2001</strong> – Plus GSM’s packet data transmission (GPRS) wins Gold<br />
Medal and Sliver Medal is awarded for the Company’s display during INFOSYSTEM <strong>2001</strong> International<br />
Telecommunications, Technology and Electronics Trade Show.<br />
April <strong>2001</strong> – the 2000 Boomerang award goes to the Company in Loyalty Campaigns category for its Program 5<br />
Plus, and a special award is awarded by Telekomunikacja Polska SA – ”Golden Receiver” – for the best telemarketing<br />
campaign, Plus GSM’s Handset Replacement Programme.<br />
March <strong>2001</strong> – the Company is honoured with the ”Human Resource Investor” distinction emblem for the ongoing<br />
enhancement of the level of human resource management, promotion of knowledge and practical know-how. The<br />
emblem is awarded at the Great Gala of the Warsaw Institute of Management during the 8th Staff Conference and<br />
3rd Staff Fair.<br />
February <strong>2001</strong> – Świat Telekomunikacji awards Plus GSM the ”Golden Antenna” for Simplus campaign as the ”Best<br />
Promotion of the Year”.<br />
36
02-001 Warsaw, Aleje Jerozolimskie 81,<br />
Phone (+48 22) 607 10 00<br />
Customer Service Office: phone (+48 22) 607 16 01<br />
Commercial Information: phone 0 800 601 601<br />
Internet: http://www.plusgsm.pl<br />
Albrecht Dürer, Knight and Landsknecht<br />
Woodcut: 38.7 x 27.3 cm