Financial Statements - Entel

EMPRESA NACIONAL DE TELECOMUNICACIONES S.A. & SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor Transalation Purposes OnlyThe international operations of our Peruvian subsidiary generated revenue of Th.CLP $23,614,846and Th.CLP $22,179,440 for 2012 and 2011, equivalent to 1.7% and 1.8% of the Group’s ordinaryrevenue for each of the respective years.Although sales from the range of services and associated goods are common to the varioussegments, it is possible to identify the following percentages for 2012 revenue.Consumers SMEs Corporations Other activities TotalMobile business 73 20 5 2 100%Wireline business 8 22 47 23 100%Transactions between segments are calculated at market prices, which normally correspond to theprices of sales to third parties.Given the nature of the business and its financing, financial costs are not distributed.Income by business segment is calculated at different levels, although income at the level ofEBITDA is given the greatest weighting since its components largely include directly relatedallocations.The allocation of assets and liabilities to each of the business segments arising as a result of therestructuring of the Group companies at the beginning of 2011 is still being defined andimplemented. The information available is partial and subject to modifications, and as such itsincorporation has been postponed for future financial statements.In the allocation of revenue and expenditure to each business segment, the correlations betweenthese flows and assets and liabilities have been taken into account, without asymmetric allocations.The Entel Group provides mobile telecommunication services, including voice, value addedservices, mobile Internet and broadband. Also provides wireline services based on integratedsolutions for data voice and IT for enterprises. In addition to infrastructure network rental andtraffic business. The Group also provides call center services to third parties and to relatedcompanies.These activities are primarily undertaken in Chile. Activities outside Chile are undertaken by twocompanies operating in Peru that provide wireline and call center services.At Group level, there are no customers on which significant percentages of revenue areconcentrated. Sales to prepaid mobile intermediaries are not included in the analysis.27. CAPITAL MANAGEMENTCapital requirements for financing investment are met using the Group’s own resources,originating from issuing shares and retaining profits, as well as resources originating from a longtermdebt with third parties.In line with the established policies, the debt ratio may reach a maximum of the greater of the levelat which Debt/Equity is equal to 1.5 or Debt/Ebitda is equal to 3.0;- 56 -