Investor News

Budapest, April 11, 2014 15:00

Magyar Telekom (Reuters: MTEL.BU and Bloomberg: MTELEKOM HB), the leading Hungarian telecommunications service provider (the “Company”), announces that it held its Annual General Meeting (the “AGM”) on April 11, 2014. The AGM approved the audited consolidated and standalone financial statements of the Company, as well as the Corporate Governance and Management Report of the Company for the business year of 2013, and it decidedon the use of the profit after tax earned in 2013. The report of the Board of Directors on the management of the Company, on the business operation, on the business policy and on the financial situation of the Company and the Magyar Telekom Group in 2013 was presented to the shareholders. The relevant reports of the Supervisory Board, the Audit Committee and the Auditor were also presented. The AGM elected the Statutory Auditor of the Company and it approved the amended Articles of Association and the operation of the Company in accordance with the new Civil Code.

The AGM approved the 2013 consolidated financial statements of the Company prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the EU, including balance sheet total assets of HUF 1,091,248 million and a profit of HUF 28,855 million. The AGM also approved the 2013 standalone financial statements prepared in accordance with the Hungarian Accounting Regulations (HAR), including balance sheet total assets of HUF 933,229 million and an after-tax net income of HUF 32,133 million.

Following, the AGM decided on the use of the 2013 profit after tax. The Company shall not pay dividend for the business year of 2013 and shall allocate the full amount of after-tax profits of HUF 32,132,931,180 based on Hungarian Accounting Rules figures as retained earnings.

The AGM authorized the Board of Directors to purchase Magyar Telekom ordinary shares through the stock exchange for 18 months following the approval date. The shares to be purchased on the basis of the authorization together with the treasury shares already held by the Company shall not at any time exceed more than 10% of the share capital effective at the date of granting the authorization (i.e. up to 104,274,254 ordinary shares with a face value of HUF 100 each) of the Company.

The AGM reviewed and approved the Corporate Governance and Management Report for the business year of 2013 of the Company, and, having evaluated the performance of the members of the Board of Directors in the preceding business year, resolved to grant the relief from liability to the Board members regarding the 2013 business year. The AGM amended the remuneration of the members of the Board of Directors, Supervisory Board and the Audit Committee.

The AGM elected PricewaterhouseCoopers Könyvvizsgáló Kft. as the Statutory Auditor of the Company, to perform the auditing tasks concerning the year 2014, i.e. for the period ending on May 31, 2015 or the day of the Annual General Meeting closing the 2014 business year. The AGM approved the contents of the material elements of the contract to be concluded with the Statutory Auditor.

Connected to the entering into effect of the new Civil Code, the AGM approved the amended Articles of Association, the operation of the Company in accordance with the new Civil Code, and the amended Rules of Procedure of the Supervisory Board.

This investor news may contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should not have undue reliance placed upon them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, our Annual Reports for the year ended December 31, 2012 available on our website at https://www.telekom.hu.