AS Kalev is selling the shares of AS Kalev Paide Tootmine, AS Kalev Jõhvi Tootmine, AS Kalev Choholate Factory, AS Vilma and OÜ Maiasmokk AS Kalev signed today the sale and purchase contract of shares with ALTA CAPITAL PARTNERS S.C.A SICAR for selling 3 857 824 shares (100% of share capital) of AS Kalev Paide Tootmine (“KPT”), 13 835 334 shares (100% of share capital) of AS Kalev Chocolate Factory (“KCF”), 991 shares (99,1%) of AS Kalev Jõhvi Tootmine (“KJT”) 720 000 shares (100% of share capital) of AS Vilma and a share (81,26% of share capital) of OÜ Maiasmokk (“Maiasmokk”). Transferable enterprise Kalev Paide Tootmine AS owns 65,5933% of shares of AS Valmetek Invest (“Valmetek”). Kalev AS shall continue business activities under its current business name. Trade marks connected with food industry shall be transferred to the buyer within the frames of this transaction. The right of the trade mark KALEV shall be maintained by AS Kalev. The main activity of KCF is the manufacturing and sales of sugar and chocolate confectionery products and sales of flour confectionery products. The main activity of KJT is the manufacturing of flour confectionery products. The main activity of KPT is the manufacturing and the sale of dairy products. The main activity of Maiasmokk is the manufacturing of bakery products and catering services. The main activity of Valmetek is the manufacturing and the sale of cheese. The main activity of Vilma is the manufacturing of flour confectionery products and flour mixtures. Two main activities - flour and chocolate confectionery industry and dairy products industry will be assigned by AS Kalev as a result of the transaction. AS Kalev will focus subsequently on the developing of existing activities - real estate development and investments, media and print industry and will explore also new investment opportunities. The transaction is not a related party transaction according to the rules of the Tallinn Stock Exchange, applicable to the issuers. The members of the Management and Supervisory Board of Ltd. Kalev do not have any other interest in relation to the transaction. The purchase price of the shares is 880 000 000,00 EEK (eight hundred eighty million Estonian kroons), from which the financial obligations of the transferable enterprises and costs related with the transaction (in total 350 000 000 EEK according to the estimation of the management bodies) shall be deducted on the closing day of the transaction. The purchaser shall pay the purchase price of the shares to AS Kalev simultaneously with the transfer of the title of the shares by AS Kalev on the closing day. The clearances for merger issued by the Competition Board of the Republic of Estonia and if necessary also by Competition Board of the Republic of Latvia and approval for the sale of shares by the general meeting of shareholders of AS Kalev are, among others, the preconditions of the closure. The management bodies of AS Kalev estimate that the company will receive with the transaction extraordinary profit about 300 million EEK and the positive cash flow to the company will be about 530 million EEK. The financial results, in thousands EEK, of the previous three financial years of the transferable enterprises are as follows: -------------------------------------------------------------------------------- | KCF | 13.06.06-30.06.20 | | | | | 07 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Turnover | 452 182 | | | -------------------------------------------------------------------------------- | Profit | 23 563 | | | -------------------------------------------------------------------------------- | Dividends per | - | | | | share | | | | -------------------------------------------------------------------------------- | Net profit per | 0,00 | | | | share | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KPT | 01.07.06-30.06.07 | 01.07.05-30.06.06 | 01.07.04-30.06.05 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Turnover | 315 726 | 413 546 | 435 996 | -------------------------------------------------------------------------------- | Profit | 40 212* | - 33 009 | - 26 073 | -------------------------------------------------------------------------------- | Dividends per | - | - | - | | share | | | | -------------------------------------------------------------------------------- | Net profit per | 0,01 | - 0,01 | - 0,01 | | share | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KJT | 01.07.06-30.06.07 | 01.07.05-30.06.06 | 01.01.04-30.06.05 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Turnover | 40 575 | 32 753 | 53 450 | -------------------------------------------------------------------------------- | Profit | -3 877 | - 3 728 | - 8 170 | -------------------------------------------------------------------------------- | Dividends per | - | - | - | | share | | | | -------------------------------------------------------------------------------- | Net profit per | - 4 | - 4 | - 8 | | share | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Vilma | 01.07.06-30.06.07 | 01.01.05-30.06.06 | 01.07.04-30.06.05 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Turnover | 29 503 | 55 157 | 40 633 | -------------------------------------------------------------------------------- | Profit | - 2 465 | 839 | 431 | -------------------------------------------------------------------------------- | Dividends per | - | - | - | | share | | | | -------------------------------------------------------------------------------- | Net profit per | - 0,03 | 0,00 | 0,00 | | share | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Maiasmokk | 01.07.06-30.06.07 | 01.01.05-30.06.06 | 01.07.04-31.12.04 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Turnover | 7 120 | 10 364 | 5 784 | -------------------------------------------------------------------------------- | Profit | - 916 | - 3 654 | - 854 | -------------------------------------------------------------------------------- | Dividends per | - | - | - | | share | | | | -------------------------------------------------------------------------------- | Net profit per | -0,01 | -0,04 | -0,01 | | share | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Valmetek | 01.01.06-31.12.06 | 01.01.05-31.12.05 | 01.01.04-31.12.04 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Turnover | - | - | - | -------------------------------------------------------------------------------- | Profit | - 1 351 | 101 | - | -------------------------------------------------------------------------------- | Dividends per | - | - | - | | share | | | | -------------------------------------------------------------------------------- | Net profit per | -0,02 | 0,25 | - | | share | | | | -------------------------------------------------------------------------------- * The KPT profit includes extraordinary profit from transfer of registered immovable property. The audited annual reports for the last two years of the transferable enterprises KCF, KPT, KJT and Vilma and non-audited annual reports of Maiasmokk and Valmetek, in thousands EEK, shown in a comparable table are as follows: 1.KCF Income statement -------------------------------------------------------------------------------- | | 13.06.2006-30.06.2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales revenue | 452 182 | -------------------------------------------------------------------------------- | Cost of sales | -318 564 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gross profit | 133 618 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Marketing expenses | -78 400 | -------------------------------------------------------------------------------- | Administrative expenses | -22 692 | -------------------------------------------------------------------------------- | Other operating income | 482 | -------------------------------------------------------------------------------- | Other operating expenses | -1 181 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit | 31 827 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income and expenses | -8 264 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PROFIT/LOSS FOR THE FINANCIAL YEAR | 23 563 | | BEFORE TAXES | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET PROFIT FOR THE FINANCIAL YEAR | 23 563 | -------------------------------------------------------------------------------- Balance sheet -------------------------------------------------------------------------------- | | 30.06.2007 | 13.06.2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Cash | 1 232 | 400 | -------------------------------------------------------------------------------- | Trade receivables | 30 091 | 0 | -------------------------------------------------------------------------------- | Other receivables | 23 835 | 0 | -------------------------------------------------------------------------------- | Prepayments | 760 | 0 | -------------------------------------------------------------------------------- | Inventories | 46 712 | 0 | -------------------------------------------------------------------------------- | Total current assets | 102 630 | 400 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Tangible non-current | 368 373 | 0 | | assets | | | -------------------------------------------------------------------------------- | Total non-current | 368 373 | 0 | | assets | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 471 003 | 400 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | -------------------------------------------------------------------------------- | Liabilities | | | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 58 970 | 0 | -------------------------------------------------------------------------------- | Customer prepayments | 11 | 0 | -------------------------------------------------------------------------------- | Trade accounts payable | 24 002 | 0 | -------------------------------------------------------------------------------- | Other current | 70 881 | 0 | | liabilities | | | -------------------------------------------------------------------------------- | Tax debt | 6 426 | 0 | -------------------------------------------------------------------------------- | Accruals | 4 350 | 0 | -------------------------------------------------------------------------------- | Total current | 164 640 | 0 | | liabilities | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 191 803 | 0 | -------------------------------------------------------------------------------- | Total non-current | 191 803 | 0 | | liabilities | | | -------------------------------------------------------------------------------- | Total liabilities | 356 443 | 0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | -------------------------------------------------------------------------------- | Share capital | 90 997 | 400 | -------------------------------------------------------------------------------- | Financial year profit | 23 563 | 0 | -------------------------------------------------------------------------------- | Total equity | 114 560 | 400 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | 471 003 | 400 | | EQUITY | | | -------------------------------------------------------------------------------- 2. KPT Income statement -------------------------------------------------------------------------------- | | 2006/2007 | 2005/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales revenue | 315 726 | 413 546 | -------------------------------------------------------------------------------- | Cost of sales | -298 089 | -443 704 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gross profit/loss | 17 637 | -30 158 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Marketing expenses | -2 472 | -2 486 | -------------------------------------------------------------------------------- | Administrative expenses | -3 862 | -4 234 | -------------------------------------------------------------------------------- | Other operating income | 33 978 | 17 868 | -------------------------------------------------------------------------------- | Other operating | -3 061 | -12 873 | | expenses | | | -------------------------------------------------------------------------------- | Operating profit/ loss | 42 220 | -31 883 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income and | -2 008 | -1 126 | | expenses | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PROFIT/LOSS FOR THE | 40 212 | -33 009 | | FINANCIAL YEAR | | | -------------------------------------------------------------------------------- Balance sheet -------------------------------------------------------------------------------- | | 30.06.2007 | 30.06.2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Cash and cash | 2 153 | 43 | | equivalents | | | -------------------------------------------------------------------------------- | Receivables | 3 178 | 9 029 | -------------------------------------------------------------------------------- | Other receivables | 25 222 | 23 805 | -------------------------------------------------------------------------------- | Prepayments | 9 364 | 7 587 | -------------------------------------------------------------------------------- | Inventories | 18 299 | 23 012 | -------------------------------------------------------------------------------- | Total current assets | 58 216 | 63 476 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Investments in | 47 960 | 20 000 | | associates | | | -------------------------------------------------------------------------------- | Real estate investments | 0 | 1 876 | -------------------------------------------------------------------------------- | Tangible non-current | 27 617 | 45 264 | | assets | | | -------------------------------------------------------------------------------- | Total non-current | 75 577 | 67 140 | | assets | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 133 793 | 130 616 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | -------------------------------------------------------------------------------- | Liabilities | | | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Trade accounts payable | 54 672 | 104 341 | -------------------------------------------------------------------------------- | Other current | 67 085 | 49 114 | | liabilities | | | -------------------------------------------------------------------------------- | Tax debt | 594 | 499 | -------------------------------------------------------------------------------- | Accruals | 1 292 | 3 524 | -------------------------------------------------------------------------------- | Provisions | 0 | 3 200 | -------------------------------------------------------------------------------- | Total current | 123 643 | 160 678 | | liabilities | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total non-current | 0 | 0 | | liabilities | | | -------------------------------------------------------------------------------- | Total liabilities | 123 643 | 160 678 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | -------------------------------------------------------------------------------- | Share capital | 38 578 | 38 578 | -------------------------------------------------------------------------------- | Retained earnings/loss | -68 640 | -35 631 | -------------------------------------------------------------------------------- | Profit/loss for the | 40 212 | -33 009 | | financial year | | | -------------------------------------------------------------------------------- | Total equity | 10 150 | -30 062 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | 133 793 | 130 616 | | EQUITY | | | -------------------------------------------------------------------------------- 3.KJT Income statement -------------------------------------------------------------------------------- | | 2006/2007 | 2005/2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales revenue | 40 575 | 32 753 | -------------------------------------------------------------------------------- | Cost of sales | -40 013 | -32 303 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gross profit | 562 | 450 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Marketing expenses | -888 | -714 | -------------------------------------------------------------------------------- | Administrative expenses | -2 058 | -1 841 | -------------------------------------------------------------------------------- | Other operating income | 0 | 74 | -------------------------------------------------------------------------------- | Other operating | -530 | -759 | | expenses | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit/loss | -2 914 | -2 790 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income and | -963 | -938 | | expenses | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PROFIT/LOSS FOR THE | -3 877 | -3 728 | | FINANCIAL YEAR BEFORE | | | | TAXES | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PROFIT/LOSS FOR THE | -3 877 | -3 728 | | FINANCIAL YEAR | | | -------------------------------------------------------------------------------- Balance sheet -------------------------------------------------------------------------------- | | 30.06.2007 | 30.06.2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Cash | 17 | 5 | -------------------------------------------------------------------------------- | Receivables | 30 | 123 | -------------------------------------------------------------------------------- | Other receivables | 1 622 | 3 614 | -------------------------------------------------------------------------------- | Prepayments | 616 | 680 | -------------------------------------------------------------------------------- | Inventories | 2 774 | 2 771 | -------------------------------------------------------------------------------- | Total current assets | 5 059 | 7 193 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Tangible non-current | 27 679 | 26 288 | | assets | | | -------------------------------------------------------------------------------- | Total non-current | 27 679 | 26 288 | | assets | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 32 738 | 33 481 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | -------------------------------------------------------------------------------- | Liabilities | | | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 1 329 | 6 551 | -------------------------------------------------------------------------------- | Trade accounts payable | 2 218 | 4 442 | -------------------------------------------------------------------------------- | Other current | 18 236 | 6 959 | | liabilities | | | -------------------------------------------------------------------------------- | Tax debt | 750 | 466 | -------------------------------------------------------------------------------- | Accruals | 1 244 | 896 | -------------------------------------------------------------------------------- | Total current | 23 777 | 19 314 | | liabilities | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 3 212 | 4 541 | -------------------------------------------------------------------------------- | Total non-current | 3 212 | 4 541 | | liabilities | | | -------------------------------------------------------------------------------- | Total liabilities | 26 989 | 23 855 | -------------------------------------------------------------------------------- Equity -------------------------------------------------------------------------------- | Share capital | 1 000 | 1 000 | -------------------------------------------------------------------------------- | Statutory legal reserve | 428 | 428 | -------------------------------------------------------------------------------- | Retained earnings | 8 198 | 11 926 | -------------------------------------------------------------------------------- | Profit/loss for the | -3 877 | -3 728 | | financial year | | | -------------------------------------------------------------------------------- | Total equity | 5 749 | 9 626 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | 32 738 | 33 481 | | EQUITY | | | -------------------------------------------------------------------------------- 4.Vilma Income statement -------------------------------------------------------------------------------- | | 2006/2007 | 01.01.05-30.06.2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales revenue | 29 503 | 55 157 | -------------------------------------------------------------------------------- | Cost of sales | -27 766 | -40 167 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gross profit | 1 737 | 14 990 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Marketing expenses | -558 | -9 366 | -------------------------------------------------------------------------------- | Administrative expenses | -1 964 | -3 690 | -------------------------------------------------------------------------------- | Other operating income | 36 | 108 | -------------------------------------------------------------------------------- | Other operating | -1 224 | -520 | | expenses | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit/loss | -1 973 | 1 522 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income and | -492 | -683 | | expenses | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PROFIT/LOSS FOR THE | -2 465 | 839 | | FINANCIAL YEAR BEFORE | | | | TAXES | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET PROFIT/LOSS FOR THE | -2 465 | 839 | | FINANCIAL YEAR | | | -------------------------------------------------------------------------------- Balance sheet -------------------------------------------------------------------------------- | | 30.06.2007 | 30.06.2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Cash | 0 | 6 | -------------------------------------------------------------------------------- | Trade receivables and | 1 525 | 7 964 | | other receivables | | | -------------------------------------------------------------------------------- | Prepayments | 882 | 99 | -------------------------------------------------------------------------------- | Inventories | 1 707 | 1 839 | -------------------------------------------------------------------------------- | Total current assets | 4 114 | 9 908 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Tangible non-current | 17 303 | 15 985 | | assets | | | -------------------------------------------------------------------------------- | Total non-current | 17 303 | 15 985 | | assets | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 21 417 | 25 893 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | -------------------------------------------------------------------------------- | Liabilities | | | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 1 550 | 3 660 | -------------------------------------------------------------------------------- | Customer prepayments | 0 | 17 | -------------------------------------------------------------------------------- | Trade accounts payable | 1 745 | 1 898 | -------------------------------------------------------------------------------- | Other current | 2 560 | 154 | | liabilities | | | -------------------------------------------------------------------------------- | Tax debt | 468 | 1 323 | -------------------------------------------------------------------------------- | Accruals | 678 | 523 | -------------------------------------------------------------------------------- | Total current | 7 001 | 7 575 | | liabilities | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 4 312 | 5 749 | -------------------------------------------------------------------------------- | Total non-current | 4 312 | 5 749 | | liabilities | | | -------------------------------------------------------------------------------- | Total liabilities | 11 313 | 13 324 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | -------------------------------------------------------------------------------- | Share capital | 7 200 | 7 200 | -------------------------------------------------------------------------------- | Share premium | 50 | 50 | -------------------------------------------------------------------------------- | Statutory legal reserve | 720 | 720 | -------------------------------------------------------------------------------- | Retained earnings | 4 599 | 3 760 | -------------------------------------------------------------------------------- | Financial year | -2 465 | 839 | | profit/loss | | | -------------------------------------------------------------------------------- | Total equity | 10 104 | 12 569 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | 21 417 | 25 893 | | EQUITY | | | -------------------------------------------------------------------------------- 5. Maiasmokk Income statement -------------------------------------------------------------------------------- | | 2006/2007 | 01.01.05-30.06.06 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales revenue | 7 120 | 10 364 | -------------------------------------------------------------------------------- | Cost of sales | -3 796 | -6 546 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Gross profit | 3 324 | 3 818 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Marketing expenses | -1 910 | -2 255 | -------------------------------------------------------------------------------- | Administrative expenses | -2 116 | -4 596 | -------------------------------------------------------------------------------- | Other operating income | -135 | -600 | | and expenses | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit/loss | -837 | -3 633 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income and | -79 | -21 | | expenses | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET PROFIT/LOSS FOR THE | -916 | -3 654 | | FINANCIAL YEAR | | | -------------------------------------------------------------------------------- Balance sheet -------------------------------------------------------------------------------- | | 30.06.2007 | 30.06.2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Cash | 50 | 262 | -------------------------------------------------------------------------------- | Receivables | 9 | 93 | -------------------------------------------------------------------------------- | Other receivables | 46 | | -------------------------------------------------------------------------------- | Prepayments | 5 | 137 | -------------------------------------------------------------------------------- | Inventories | 140 | 89 | -------------------------------------------------------------------------------- | Total current assets | 250 | 581 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Tangible non-current | 746 | 560 | | assets | | | -------------------------------------------------------------------------------- | Total non-current | 746 | 560 | | assets | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 996 | 1 141 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | -------------------------------------------------------------------------------- | Liabilities | | | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Customer prepayments | 3 | 14 | -------------------------------------------------------------------------------- | Trade accounts payable | 222 | 449 | -------------------------------------------------------------------------------- | Other current | 4 532 | 3 299 | | liabilities | | | -------------------------------------------------------------------------------- | Tax debt | 274 | 617 | -------------------------------------------------------------------------------- | Accruals | 369 | 250 | -------------------------------------------------------------------------------- | Total current | 5 400 | 4 629 | | liabilities | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total liabilities | 5 400 | 4 629 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | -------------------------------------------------------------------------------- | Share capital | 90 | 90 | -------------------------------------------------------------------------------- | Share premium | 1 597 | 1 597 | -------------------------------------------------------------------------------- | Statutory legal reserve | 70 | 70 | -------------------------------------------------------------------------------- | Retained earnings | -5 245 | -1 591 | -------------------------------------------------------------------------------- | Profit/loss for the | -916 | -3 654 | | financial year | | | -------------------------------------------------------------------------------- | Total equity | -4 404 | -3 488 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | 996 | 1 141 | | EQUITY | | | -------------------------------------------------------------------------------- 6. Valmetek Invest Income statement -------------------------------------------------------------------------------- | | 2006 | 2005 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating expenses | -755 | -29 | -------------------------------------------------------------------------------- | Other operating expenses | 0 | -1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit/loss | -755 | -30 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial expenses | -725 | -2 | -------------------------------------------------------------------------------- | Financial income | 129 | 132 | -------------------------------------------------------------------------------- | Total financial income and | -596 | 130 | | expenses | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET PROFIT/LOSS FOR THE | -1 351 | 101 | | FINANCIAL YEAR | | | -------------------------------------------------------------------------------- Balance sheet -------------------------------------------------------------------------------- | | 31.12.2006 | 31.12.2005 | -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Cash and cash | 834 | 844 | | equivalents | | | -------------------------------------------------------------------------------- | Receivables and | | | | prepayments | | | -------------------------------------------------------------------------------- | Taxes repayments | 1 185 | 1 363 | -------------------------------------------------------------------------------- | Other receivables | 4 270 | 4 132 | -------------------------------------------------------------------------------- | Inventories | | | -------------------------------------------------------------------------------- | Prepayments for | 0 | 39 261 | | inventories | | | -------------------------------------------------------------------------------- | Total current assets | 6 289 | 45 600 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Tangible non-current | 79 270 | 23 507 | | assets | | | -------------------------------------------------------------------------------- | Total non-current | 79 270 | 23 507 | | assets | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 85 559 | 69 107 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | -------------------------------------------------------------------------------- | Liabilities | | | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Trade accounts payable | 19 009 | 0 | -------------------------------------------------------------------------------- | Other current | 3 670 | 24 866 | | liabilities | | | -------------------------------------------------------------------------------- | Total current | 22 679 | 24 865 | | liabilities | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total liabilities | 22 679 | 24 865 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | -------------------------------------------------------------------------------- | Share capital | 64 130 | 400 | -------------------------------------------------------------------------------- | Shares not registered | 0 | 43 741 | -------------------------------------------------------------------------------- | Retained earnings | 101 | 0 | -------------------------------------------------------------------------------- | Profit/loss for the | -1 351 | 101 | | financial year | | | -------------------------------------------------------------------------------- | Total equity | 62 880 | 44 242 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | 85 559 | 69 107 | | EQUITY | | | -------------------------------------------------------------------------------- After the end of the last economic year there have not been any material changes in economic activities of the transferable enterprises. The loans taken by the transferable enterprises as of September 20, 2007 are as follows: -------------------------------------------------------------------------------- | Enterprise | Lender | Sum | -------------------------------------------------------------------------------- | KCF | AS DnB NORD Banka | 11,969,454 € | | | Estonian branch | | -------------------------------------------------------------------------------- | KCF | AS DnB NORD Banka | 1,279,000 € | | | Estonian branch | | -------------------------------------------------------------------------------- | KCF | AS DnB NORD Banka | Overdraft up to | | | Estonian branch | 1,279,000 € | -------------------------------------------------------------------------------- | KCF | AS SEB Eesti Ühispank | Overdraft up to | | | | 2,000,000 EEK | -------------------------------------------------------------------------------- | KJT | AS Sampo Pank | 4,208,600 EEK | -------------------------------------------------------------------------------- | KPT | As Hansapank | 2,237,306 € | -------------------------------------------------------------------------------- | Vilma | AS SEB Eesti Ühispank | 343,485 € | -------------------------------------------------------------------------------- Structure of shareholders of the transferable enterprises and their holding % is as follows: -------------------------------------------------------------------------------- | Enterprise | Issuer, holding % | Shareholder, holding % | -------------------------------------------------------------------------------- | KPT | Kalev , 100% | - | -------------------------------------------------------------------------------- | KCF | Kalev , 100% | - | -------------------------------------------------------------------------------- | Vilma | Kalev , 100% | - | -------------------------------------------------------------------------------- | KJT | Kalev, 99,1% | - | -------------------------------------------------------------------------------- | Maiasmokk | Kalev, 81,26 | - | -------------------------------------------------------------------------------- | Valmetek | - | KPT - 65, 5933 % | -------------------------------------------------------------------------------- Court and arbitration proceedings related to the transferable enterprises are as follows: 1) AS Annikom (bankrupt) action against AS Kalev Jõhvi Tootmine - claim in the sum of 105 714,29 kroons deriving from lease contract of business premises. AS Kalev Jõhvi Tootmine has submitted a counterclaim. Harju County Court, civil matter number 2-05-3740. 2) AS Vilma action for annulment of the 28.03.2007 directive number 70 of the Minister of Agriculture and the 30.04.2007 tax notice number 12-5/182 of the Southern Tax and Customs Centre. Tallinn Administrative Court, administrative case number 3-07-851. Contracts between AS Kalev and the transferable enterprises are as follows: -------------------------------------------------------------------------------- | Lender | Recipient of Loan | Sum | Term | -------------------------------------------------------------------------------- | AS Kalev | KPT | 28,106,000 | 30.06.08 | -------------------------------------------------------------------------------- | KPT | Kalev REC | 800,000 | 30.06.08 | -------------------------------------------------------------------------------- | KPT | AS Kalev | 5,700,000 | 30.06.08 | -------------------------------------------------------------------------------- | KPT | AS Kalev | 19,829,111 | 30.06.08 | -------------------------------------------------------------------------------- A contract for use of group account has also been entered into between AS Kalev, KPT and Kalev REC. Names of supervisory and management board members of the transferable enterprises are as follows: -------------------------------------------------------------------------------- | Enterprise | Management Board | Supervisory Board | -------------------------------------------------------------------------------- | KCF | Kati Kusmin | Oliver Kruuda | | | Mait Nilson | Tarmo Maasikmäe | | | | Alar Pink | -------------------------------------------------------------------------------- | KJT | Kati Kusmin | Oliver Kruuda | | | Mait Nilson | Tarmo Maasikmäe | | | | Andres Rannamäe | -------------------------------------------------------------------------------- | Vilma | Kati Kusmin | Oliver Kruuda | | | Mait Nilson | Tarmo Maasikmäe | | | | Alar Pink | -------------------------------------------------------------------------------- | KPT | Oliver Kruuda | Tarmo Maasikmäe | | | | Allan Viirma | | | | Andres Rannamäe | -------------------------------------------------------------------------------- | Maiasmokk | Oliver Kruuda | - | -------------------------------------------------------------------------------- | Valmetek Invest | Oliver Kruuda | Tarmo Maasikmäe | | | | Allan Viirma | | | | Alar Pink | -------------------------------------------------------------------------------- Oliver Kruuda Management Board member (Director) of AS Kalev
AS Kalev is selling the shares of AS Kalev Paide Tootmine, AS Kalev Jõhvi Tootmine, AS Kalev Choholate Factory, AS Vilma and OÜ Maiasmokk
| Source: Luterma