1. Interim financial statements of Og fjarskipti hf. Third quarter of 2005
Eiríkur S. Jóhannsson
Árni Pétur Jónsson
Gunnar Smári Egilsson
Viðar Þorkelsson

2. Agenda Consolidated financial overview
Interim consolidated financial statements at September 30th, 2005
Analysis of each entity of the group by sector – telecommunication and media
Principal tasks for Media the media sector
Principal tasks for Og Vodafone - the telecommuncation sector
Dagsbrún
Forecast for 2005 and the future

3. Consolidated financial overview – Q1-Q3 2005
Pretax-profit ISK 673 million
Net profit ISK 554 million
Consolidated EBITDA of ISK mill. or 21,3% of total revenues
Sales ISK million
Growth in sales of 115% from Q1-Q3 2004
By including revenues from the media sector in Q1-Q then the growth in sales is ISK million or 21,3%
Cash from operations excluding interest is ISK million
Investments in fixed assets is ISK 828 million
Financial outcome exceeds the Company’s budget

4. Consolidated Financial Statements September 30th, 2005

5. Consolidated Income Statement
Growth in Income
Revenues increase by 115% between Q1-Q3 05 and Q1-Q3 05
21,3% increase when the media sector is taken into account in Q1-Q3 2004
Cost of services sold
An increase of 136%
Contribution margin
The contribution margin is 39% for the first 9 months of 2005 compared to 45% the first 9 months of 2004.
Operating expenses
An increase of 93%
Associates
Operating results improving in Q3
In thousands ISK
9 months 2005
9 months 2004
Variance
Sales
Cost of services sold
Contribution margin
Other operating revenues
91.512
84.050
7.462
Operating expenses
Operating income
Net financial expense
Share of loss of affiliated companies
-7.300
Pre-tax profit
Income tax
Net profit

6. Consolidated Balance Sheet
In thousands ISK
Variance
Assets
Fixed assets
Current assets
Accounts receivable
Non- entered services
84.545
Total assets
Total assets
Increase because of investment in P/F Kall and growth in cash due to sale of treasury stock
Accounts Receivable ISK 75 million increase due to investment in P/F Kall

7. Consolidated Balance Sheet
Stockholders´ equity
Increases due to increase in retained earnings and sold treasury stock
Current liablities Have decreased since the refinancing was concluded in the beginning of 2005
Interest bearing debt less cash and cash equivalent
Amounts to ISK million
Current Ratio
0,95 and has increased from year-end 2004 when it was 0,66
In thousands ISK
Variance
Liablilities and Stockholders´
Equity
Stockholders´ equity
Liabilities
Long term liabilities
Current liabilities
Total Liabilities
TOTAL LIABILITIES AND STOCKHOLDERS´ EQUITY

8. Consolidated Cash Flow
CASH PROVIDED FROM OPERATIONS
Amounted to ISK million or an increase of ISK 436 mill between years
INVESTMENT ACTIVITIES
Investments in fixed assets of ISK 828 million
Investments in intangibles are ISK 148 million of which ISK 109 million are due to software and licensing
In thousands ISK
9 months 2005
9 months 2004
Net earnings according to Income Statement
Adjustments for non-cash items
Depreciation / amortization
Gain on the sale of fixed assets
Changes in operating assets and liabilities
CASH PROVIDED FROM OPERATION EXCLUDING FINANCIAL ITEMS
Received interest revenues
64.131
Paid interest expense
NET CASH PROVIDED FROM OPERATION
INVESTING ACTIVITIES
FINANCING ACTIVITIES
52.595
Cash and cash equivalent at the end of the period

9. Sales itemized by services Q1-Q3 2005

10. EBITDA - consolidated
Irregular revenues and cost are exempt in this presentation. EBITDA grows by 55% from Q to Q3 2005
528

11. Net profits – development in million ISK

12. Segment reporting – Q1-Q3 2005Og
Vodafone
P/F Kall
365 Media
Elimination
Consolidated
Sales
Cost of services sold
13.220
Contribution margin
49.278
Other operating revenue
91.139
373
91.512
Operating expenses
Operating profit before financing items and taxes (EBIT)
16.528

13. Og Vodafone Telecommunication sector

14. Financial overview - Telecommunication
Sales are recorded at ISK million in Q1-Q3 2005
A 15% increase in sales from Q1-Q or ISK 771 million
EBITDA in Q1-Q is ISK million and increases by 15% for the same period last year
EBITDA ratio is 27% of total revenues in Q1-Q compared to 27,0% in Q1-Q3 2004
Investments in fixed assets is ISK 541 million
Sales are recorded at ISK million in Q3 2005
A 16,7% increase in sales from Q or ISK 297 million
EBITDA in Q is 554 million and increases by 23% from Q3 2004
EBITDA ratio is 27% of total revenues in Q compared to 26,2% in Q3 2004

15. Sales itemized by services – Q1-Q3 2005

16. Quarterly revenues itemized by services – Og Vodafone
Mobile
15% increase
Fixed line
9% increase
Data transfer
50% increase

17. Cost of services sold – as percentage of sales

18. Contribution margin – as percentage of sales

19. Operating expenses – as percentage of sales

20. Salaries and related expenses* - as a percentage of sales
* Irregular one-time expense is exluded in Q3 2004

21. EBITDA – as a percentage of total revenues Regular operations
Note
Irregular revenues and costs are excluded in this presentation of EBITDA.
EBITDA
EBITDA decreases slightly between years or from 29,6% in Q to 26,8% in Q This is due to temporary increase in operation costs because of organisational changes and rising sales and marketing activities.
ISK 528 m.
ISK 554 m.

22. P/F Kall, The Faeroe Islands
Sales revenue ISK 170 million in Q3 EBITDA in Q3 ISK 33 million EBITDA ratio 19,4% in Q3 Operations according to plans in Q3

23. 365 Media The media sector

24. Financial overview Media
Total sales in Q1-Q were ISK million
Increase in revenues is 26,5% from Q1-Q3 2004
Print 43%
Broadcasting 17%
EBITDA Q1-Q is ISK 685 million
EBITDA ratio in Q1-Q was 14%
Investments in fixed assets is ISK 277 million in Q1-Q3 2005
Total sales in Q were ISK million and increased by ISK 372 million from Q or 29%
EBITDA in Q was ISK 224 million but was ISK 226 million in Q2 2005
EBITDA ratio in Q was 13,4% compared to 13.7% in Q2 2005

25. 365 broadcasting – sales trendline
Growth in sales
An increase of 26% Q and Q3 2004

26. 365 print – sales trendline
Growth in sales
An increase of 32% Q and Q3 2004

27. Cost of services sold – as a percentage of sales

28. Contribution margin – as a percentage of sales

29. Operating expenses – as a percentage of sales

30. EBITDA – as a percentage of total revenues
Note
Irregular revenues and cost are excluded in this presentation of EBITDA

31. Overview of 365 Media

32. Main projects in Q3 – 2005 Media
Re-organization of the news department of the broadcasting media
New News channel
The acquisition of the production company Saga Film and merger with Storm
Sirkus – development of new concept for the younger generation
Veggfóður

33. Overview of Og Vodafone

34. Administration & human resources
Simple management
CEO
Árni Pétur Jónsson
Technical division
Marketing division
Sales & customer care
Administration & human resources
Gestur G Gestsson
Björn Víglundsson
Ómar Svavarsson
Hrönn Sveinsdóttir
Creates, adjusts and maintains the technology that we rely upon
Creates and maintains the image and provokes the customers interest in us and our products
Sells our products and services and holds on to our customers by good after-sales services.
Creates and maintains good culture, ensures practical and efficient operation. Supports the staff in their daily work

35. Main projects in Q3 – 2005 Og Vodafone
Introduction of new projects for Companies
Advances on the market through the TV-show Idol
Cooperation with Vodafone insures accessibility to the latest products, both to individuals and companies
New prepaid system in use
A new survey from “Sigos” reveales that roaming abroad is of excellent quality at Og Vodafone
Payoff from systematic work in preceding months
The bandwidth to foreign countries doubled in Q3
Introduction of new projects for the individual market in preparation

39. 2006 We have started to look towards the year 2006
Review of the Company’s policy formulation has begun
Important issues of 2006 have been defined in co-operation with Vodafone
The Company aims at rationalization in operations
The Company as a hole is contemplating furter advances on the domestic market

42. Dagsbrún hf.
Dagsbrún will own and operate entities that compete in the telecommunication, news and entertainment sectors and related sectors
The parent company will put emphasis on expansion and growth both domestically and abroad
Several investment opportunities are being considered, both in listed aswell as unlisted companies.
Ownership in P/F Kall is now 100%
Dagsbrún will be able to invest for up to ISK 15 billion according to authorised increase in stockholder’s equity (ISK million par value)

43. Financial forecast and the future

44. Forecasted financial outcome 2005 Consolidated
Turnover for 2005 is predicted to be ISK – million
EBITDA for the year 2005 is expected to fall in the range of ISK to million
The Company aims to double its operational activities in the next months

45. Thank you