Consolidated Financial Results of Q3 and 9 months of 2007 In the third quarter of 2007, AS Silvano Fashion Group earned a net profit of EEK 16.5 million (EUR 1.1 million), which increased by EEK 11.7 million (EUR 0.8 million) as compared to the third quarter of the previous year. The net margin of the third quarter of this year is 4.2% (Q3 2006: 12.0%). The third quarter sales resulted in EEK 397.9 million (EUR 25.4 million) and the Group's gross margin in Q3 2007 reached 40.2% compared to 41.9 % in the third quarter of 2006. Operating margin reached 13.3% (12.9% in Q3 2006) and operating profit was EEK 53.1 million (EUR 3.4 million) compared to EEK 5.2 million (EUR 0.3 million) in Q3 2006. Cumulative nine months sales of AS Silvano Fashion Group amounted to EEK 1,177.1 million (EUR 75.2 million), having increased 11.7 times compared to the nine months of 2006. The Group's gross and operating margins in the nine months stood at 42.6% and 23.7% respectively (44.1% and 9.0% in the nine months of 2006). Operating profit in the nine months of 2007 amounted to EEK 279.2 million (EUR 17.8 million) compared to EEK 9.0 million (EUR 0.6 million) in nine months of 2006. Net profit for the nine months of 2007 amounted to EEK 162.8 million (EUR 10.4 million) and net margin reached 13.8% (7.8% in the nine months of 2006). Sales Revenue Sales by Products/Services In the nine months of 2007 sales revenue related to sales of women's apparel increased by EEK 24.2 million (EUR 1.6 million) compared to nine months of 2006, forming 9.1% of the Group's sales revenue (9 months 2006: 82.5%). Lingerie sales in the nine months of 2007 amounted to EEK 1,044.1 million (EUR 66.7 million) forming 88.7% of total Group's sales revenue. Subcontracting services increased by EEK 7.9 million (EUR 0.5 million) as compared to the same period of 2006. Subcontracting services in the nine months of 2007 amounted to EEK 25.5 million (EUR 1.6 million) forming 2.2% of total sales revenue. Sales by business segments -------------------------------------------------------------------------------- | | 9 | 9 | Change | 9 | 9 | Change | 9 | 9 | | | month | months | EEK | months | months | EUR | months | months | | | s | 2006 | Millio | 2007 | 2006 | millio | 2007 | 2006 | | | 2007 | EEK | n | EUR | EUR | n | percen | percen | | | EEK | millio | | millio | millio | | tage | tage | | | Milli | n | | n | n | | from | from | | | on | | | | | | sales | sales | -------------------------------------------------------------------------------- | Women | 107.5 | 83.3 | 24.2 | 6.9 | 5.3 | 1.6 | 9.1% | 82.5% | | 's | | | | | | | | | | appar | | | | | | | | | | el | | | | | | | | | -------------------------------------------------------------------------------- | Linge | 1,044 | - | 1,044. | 66.7 | - | 66.7 | 88.7% | - | | rie | .1 | | 1 | | | | | | -------------------------------------------------------------------------------- | Subco | 25.5 | 17.6 | 7.9 | 1.6 | 1.1 | 0.5 | 2.2% | 17.5% | | ntrac | | | | | | | | | | ting | | | | | | | | | | servi | | | | | | | | | | ces | | | | | | | | | | and | | | | | | | | | | other | | | | | | | | | | sales | | | | | | | | | -------------------------------------------------------------------------------- | Total | 1,177 | 100.9 | 1,076. | 75.2 | 6.4 | 68.8 | 100.0% | 100.00 | | | .1 | | 2 | | | | | % | -------------------------------------------------------------------------------- Sales by Markets Women's apparel Women's apparel sales revenue has increased in all markets. In the nine months of 2007 the sales volume in the Estonian market increased by EEK 8.7 million (EUR 0.6 million) in comparison with the same period of the previous year. The sales volume in Latvia increased by 21.1% in the nine months, amounting to EEK 22.9 million (EUR 1.5 million) and in Finland by 6.8%, amounting to EEK 17.0 million (EUR 1.1 million) primarily due to increase of wholesale in Finland. Sales revenue in Lithuania increased in the nine months period of 2007 by 148%, amounting to EEK 6.6 million (EUR 0.4 million) due to new PTA retail outlets in Lithuania. During the third quarter of 2007 apparel business expanded to Ukrainian market. Lingerie The majority of lingerie sales revenue in the nine months of 2007 was earned on the Russian markets (amounting to EEK 571.0 million (EUR 36.5 million) giving 54.5% of all lingerie sales volume for the nine months of 2007). Sales in Russia comprise both retail sales and wholesale. The second biggest region of lingerie sales is Belarus, amounting to EEK 217.9 million (EUR 13.9 million) giving 20.8 % of all lingerie sales revenue (also comprising both retail sales and wholesale). As lingerie sales is a new business line for the Group, comparable figures of previous periods are not available. In terms of lingerie brands, the sales of “Milavitsa” core brand accounted for 76.0% of total lingerie sales revenue in the nine months of 2007 and amounted to EEK 779.9 million (EUR 49.9 million). The sales of “Lauma” core brand accounted for 5.6% of total lingerie sales and amounted to EEK 57.5 million (EUR 3.7 million). Other brands such as “Alisee”, “Aveline”, “Laumelle”, “Lauma Aqua”, “Laumelle Aqua” and “Bellita” comprised 18.4% of total lingerie sales in the nine months of 2007 amounting to EEK 188.9 million (EUR 12.0 million). Total sales by markets -------------------------------------------------------------------------------- | | 9 | 9 | Chang | 9 | 9 | Chang | 9 month | 9 month | | | mont | mont | e | month | month | e | 2007 | 2006 | | | h | h | EEK | 2007 | 2007 | EUR | percenta | percenta | | | 2007 | 2006 | milli | EUR | EUR | milli | ge from | ge from | | | EEK | EEK | on | milli | milli | on | sales | sales | | | mill | mill | | on | on | | | | | | ion | ion | | | | | | | -------------------------------------------------------------------------------- | Estonia | 126. | 52.1 | 74.7 | 8.1 | 3.3 | 4.8 | 10.8% | 51.6% | | | 8 | | | | | | | | -------------------------------------------------------------------------------- | Finland | 39.2 | 27.0 | 12.2 | 2.5 | 1.8 | 0.7 | 3.3% | 26.8% | -------------------------------------------------------------------------------- | Latvia | 37.3 | 19.1 | 18.2 | 2.4 | 1.2 | 1.2 | 3.2% | 18.9% | -------------------------------------------------------------------------------- | Belarus | 217. | - | 217.9 | 13.9 | - | 13.9 | 18.5% | - | | | 9 | | | | | | | | -------------------------------------------------------------------------------- | Ukraine | 72.9 | - | 72.9 | 4.7 | - | 4.7 | 6.2% | - | -------------------------------------------------------------------------------- | Russia | 571. | - | 571.0 | 36.5 | - | 36.5 | 48.5% | - | | | 0 | | | | | | | | -------------------------------------------------------------------------------- | Other | 112. | 2.7 | 109.3 | 7.1 | 0.1 | 7.0 | 9.51% | 2.7% | | markets | 0 | | | | | | | | -------------------------------------------------------------------------------- | Total | 1,17 | 100. | 1076. | 75.2 | 6.4 | 68.8 | 100.0% | 100.0 % | | | 7.1 | 9 | 2 | | | | | | -------------------------------------------------------------------------------- Retail Sales Total retail sales of the Group in nine months of 2007 amounted to EEK 200.8 million (EUR 12.8 million), increasing 3.6 times compared to the nine months of 2006. Retail operations were conducted in Estonia, Latvia, Russia, Belarus, Poland, Lithuania and Ukraine. At the end of September 2007 the Group operated 94 retail outlets with a total area of 10,427 square meters. Women's apparel retail operations were conducted in Estonia, Latvia, Lithuania, Russia and Ukraine. At the end of September 2007 in the Group operated 23 women's apparel stores with a total sales area of 4,690 square meters (30 September 2006: 2,688 square meters). Lingerie retail operations were conducted in Russia, Belarus, Latvia, Lithuania and Poland. In September SFG acquired an operator of a chain of 16 lingerie retail outlets in Lithuania with the total area of 877 square meters. Shops were operated primarily under the name of “Amadea Line”. The newly acquired retail outlets already had strong ties to the Group, with over 40% of revenue generated from sales of “Lauma Lingerie” branded products. Following the acquisition, the newly acquired outlets will also commence sales of “Milavitsa” branded lingerie. Rebranding of the acquired shops will be considered. At the end of September after the acquisition the Group operated 71 lingerie stores with a total area of 5,737 square meters. Within the nine months of 2007 23 new stores were opened: ten women's apparel stores operating under the PTA brand (five in Russia, three in Lithuania, one in Estonia and one in Ukraine), and thirteen lingerie stores under the Oblicie brand (twelve in Russia and one in Poland). 16 lingerie stores were acquired in Lithuania. Number of stores -------------------------------------------------------------------------------- | | 30.09.2007 | 31.12.2006 | -------------------------------------------------------------------------------- | Estonia | 8 | 7 | -------------------------------------------------------------------------------- | Latvia | 6 | 6 | -------------------------------------------------------------------------------- | Poland | 8 | 7 | -------------------------------------------------------------------------------- | Belarus | 20 | 20 | -------------------------------------------------------------------------------- | Russia | 32 | 15 | -------------------------------------------------------------------------------- | Lithuania | 19 | - | -------------------------------------------------------------------------------- | Ukraine | 1 | - | -------------------------------------------------------------------------------- | Total stores | 94 | 55 | -------------------------------------------------------------------------------- | Total sales area, m2 | 10,427 | 6,997 | -------------------------------------------------------------------------------- Women's apparel sales revenue increased in the nine months period of 2007 by 47.0% compared to 2006, amounting to EEK 82.9 million (EUR 5.1 million). The increase in retail sales was supported by the increase in sales in the like-for-like spaces as well as the considerably greater number of stores. The increase in retail sales of women's apparel of the like-for-like spaces was 13.1% compared to the 9 months of 2006, whereas in Estonia the increase was 17.0%. The increase of like-for like services in third quarter of 2007 was only 3.1% due to renovation of 2 stores during third quarter. Sales efficiency decreased (sales per square meter) in the retail chain of women's apparel by 1.0% in the nine moths of 2007. Slight decrease of sales efficiency is mainly caused by lower sales efficiency of new stores during the launch period. In the nine months of 2007 the main objectives for the women's apparel segment expansion of retail chain in Russia and Lithuania and entry into the Ukrainian retail market on the third quarter of 2007. The like-for-like increase in the Oblicie lingerie retail chain is about 37.9% for stores operating more than one year. Group's main objectives in lingerie retail operations is opening of new stores in Russia. In addition to the general seasonal marketing campaigns directed to the new markets, marketing operations were focused on campaigns supporting the expansion on the Russian market. As lingerie sale is a new business line for Group, comparable figures of previous years cannot be presented. Wholesale In the nine months of 2007 wholesales amounted to EEK 663.4 million (EUR 42.4 million) giving 85.1% of the Group's total revenue. Main wholesales regions in the lingerie business of the Group were Russia, Ukraine, the Baltic republics and Belarus, and in the women's apparel business - Finland and the Baltic States. Sales revenue from wholesales of women's apparel increased by 13.3% in the nine months period of 2007 compared to same period of 2006, amounting to EEK 42.0 million ( EUR 2.0 million). Sales of subcontracting and other services Subcontracting and other services amounted to EEK 25.5 million (EUR 1.6 million). Subcontracting services increased in the women's apparel segment mainly due to the Finnish market. The increase in turnover of 21.0% in comparison with the same period of the previous year was mainly caused by the increase in the price of sewing and full service sold to customers. Profits The Group's gross margin in the nine months of 2007 was 42.6% (the nine months of 2006: 44.1%). Gross profit for the nine months of 2007 amounted to EEK 501.8 million (EUR 32.1 million) compared to EEK 44.5 million (EUR 2.8 million) in the nine months of 2006. The operating profit for the nine months of 2007 amounted to EEK 279.2 million (EUR 17.8 million), resulting in an operating profit margin of 23.7% (the nine months of 2006: 9.0%). Operating profit was affected by expenses incurred due to the listing at the Warsaw Stock Exchange in the amount of EEK 7.0 million (EUR 0.5 million). The net profit of the Group (after taxes and minority shareholding) for the nine months of 2007 amounted to EEK 162.8 million (EUR 10.4 million). The net profit margin for the nine months of 2007 was 13.8% compared to 7.8% in the same period of the previous year. Balance sheet The total assets on the consolidated balance sheet amounted to EEK 1,089 million (EUR 69.6 million) as of 30 September 2007. Compared to the end of the previous year the balance sheet total assets have increased by EEK 276.4 million (EUR 17.7 million). Both assets and liabilities have increased in connection with rapid retail expansion and funds obtained from the issue of additional shares. As of the end of September the inventories of the Group amounted to EEK 303.2 million (EUR 19.4 million) increasing by EEK 72.9 million (EUR 4.7 million) over the end of the year 2006. The increase in the balance of inventories is related to the expansion of activities in Russia and other retail markets. Trade receivables have increased by EEK 42.1 million (EUR 2.7 million) amounting to EEK 153.8 million (EUR 9.8 million). Trade receivables balance grown due to the growth of business and a change in the payment terms of agreements with some customers made in order to retain competitiveness, especially in the CIS markets. Trade payables have increased by EEK 35.1 million (EUR 2.2 million) compared to the end of previous year amounting to EEK 122.7 million (EUR 7.8 million). The volumes of trade payables increased on account of the increase in sales volumes and the stores opening . At the end of June 2007, the Group's borrowings amounted to EEK 26.4 million (EUR 1.7 million), having decreased by EEK 3.5 million (EUR 0.2 million) since the beginning of the year. Investments During the nine months of 2007 the Group's investments totaled EEK 117.8 million (EUR 7.5 million). A total of EEK 29.6 million (EUR 1.9 million) was invested in retail operations, other investments were connected to equipment and facilities to maintain effective production operations. Personnel By the end of September of 2007, the Group employed 3,490 employees, including 436 in retail operations and 2,302 in production. The rest of the employees are employed in wholesale, administration and support operations. The average number of employees in nine months of 2007 was 3,375. The total salaries and wages for the nine months of 2007 amounted to EEK 182.6 million (EUR 11.6 million). The remuneration paid to members of the Management Board and Supervisory Board totaled EEK 1.4 million (EUR 0.09 million). Selected financial data (nine months of 2007) -------------------------------------------------------------------------------- | Key figures and ratios | 30.09.2007 | 30.09.2006 | Change | -------------------------------------------------------------------------------- | Net sales (EEK million) | 1,177.1 | 100.9 | 1,076.2 | -------------------------------------------------------------------------------- | Net income, attributable to | 162.8 | 7.8 | 155.0 | | shareholders (EEK million) | | | | -------------------------------------------------------------------------------- | Earnings before interest, taxes and | 307.4 | 13.1 | 294.3 | | depreciation (EBITDA) ( EEK million) | | | | -------------------------------------------------------------------------------- | Earnings before interest and taxes | 279.1 | 9.0 | 270.1 | | (EBIT) (EEK million) | | | | -------------------------------------------------------------------------------- | Net sales (EUR million) | 75.2 | 6.5 | 68.7 | -------------------------------------------------------------------------------- | Net income attributable to | 10.4 | 0.5 | 9.9 | | shareholders (EUR million) | | | | -------------------------------------------------------------------------------- | Earnings before interest, taxes and | 19.6 | 1.3 | 18.3 | | depreciation (EBITDA) ( EUR million) | | | | -------------------------------------------------------------------------------- | Earnings before interest and taxes | 17.8 | 1.1 | 16.7 | | (EBIT) (EUR million) | | | | -------------------------------------------------------------------------------- | Operating margin, % | 23.7% | 8.9% | - | -------------------------------------------------------------------------------- | Net margin, % | 13.8% | 7.8% | - | -------------------------------------------------------------------------------- | ROA, % | 14.9% | 13.3% | - | -------------------------------------------------------------------------------- | ROE, % | 18.5% | 40.1% | - | -------------------------------------------------------------------------------- | Earnings per share (EPS), in EEK | 4.23 | 4.02 | - | -------------------------------------------------------------------------------- | Earnings per share (EPS), in EUR | 0.27 | 0.26 | - | -------------------------------------------------------------------------------- | Current ratio | 3.5 | 1.3 | - | -------------------------------------------------------------------------------- | Quick ratio | 2.1 | 0.5 | - | -------------------------------------------------------------------------------- Underlying formulas: Operating margin = operating profit / sales revenue Net margin = net profit attributable to equity holders of the parent / sales revenue ROA (return on assets) = net profit attributable to equity holders of the parent / average total assets ROE (return on equity) = net profit attributable to equity holders of the parent / average equity EPS (earnings per share) = net profit attributable to equity holders of the parent / weighted average number of ordinary shares Current ratio = current assets / current liabilities Quick ratio = (current assets - inventories) / current liabilities Balance Sheet Consolidated, unaudited -------------------------------------------------------------------------------- | | | 30.09. | 30.09.20 | 31.12.20 | 30.09.2 | 30.09.2 | 31.12.2 | | | | 2007 | 06 | 06 | 007 | 006 | 006 | -------------------------------------------------------------------------------- | | | EEK | EEK | EEK | EUR | EUR | EUR | | | | thousa | thousand | thousand | thousan | thousan | thousan | | | | nd | | | d | d | d | -------------------------------------------------------------------------------- | ASSETS | | | | | | | | -------------------------------------------------------------------------------- | Current | | | | | | | | | assets | | | | | | | | -------------------------------------------------------------------------------- | Cash and | | 180,99 | 3,838 | 200,460 | 11,568 | 245 | 12,812 | | cash | | 2 | | | | | | | equivalents | | | | | | | | -------------------------------------------------------------------------------- | Trade | | 153,82 | 12,485 | 111,729 | 9,831 | 798 | 7,141 | | receivables | | 2 | | | | | | -------------------------------------------------------------------------------- | Other | | 73,595 | 2,774 | 45,094 | 4,704 | 177 | 2,882 | | receivables | | | | | | | | | and | | | | | | | | | prepayments | | | | | | | | -------------------------------------------------------------------------------- | Prepaid | | 22,672 | 1,174 | 31,568 | 1,449 | 75 | 2,017 | | taxes | | | | | | | | -------------------------------------------------------------------------------- | Inventories | | 303,23 | 29,940 | 230,255 | 19,380 | 1,914 | 14,716 | | | | 1 | | | | | | -------------------------------------------------------------------------------- | Total | | 734,31 | 50,211 | 619,106 | 46,932 | 3,209 | 39,568 | | current | | 2 | | | | | | | assets | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current | | | | | | | | | assets | | | | | | | | -------------------------------------------------------------------------------- | Investments | | 7,651 | 0 | 78 | 489 | 0 | 5 | | in equity | | | | | | | | | accounted | | | | | | | | | investees | | | | | | | | -------------------------------------------------------------------------------- | Available-fo | | 1,643 | 0 | 1,772 | 105 | 0 | 113 | | r-sale | | | | | | | | | financial | | | | | | | | | assets | | | | | | | | -------------------------------------------------------------------------------- | Other | | 67,171 | 600 | 2,349 | 4,293 | 39 | 150 | | receivables | | | | | | | | -------------------------------------------------------------------------------- | Property, | | 247,90 | 8,281 | 172,281 | 15,844 | 529 | 11,011 | | plant and | | 5 | | | | | | | equipment | | | | | | | | -------------------------------------------------------------------------------- | Intangible | | 29,822 | 6,353 | 16,551 | 1,906 | 406 | 1,058 | | assets | | | | | | | | -------------------------------------------------------------------------------- | Total | | 354,19 | 15,234 | 193,031 | 22,637 | 974 | 12,337 | | non-current | | 2 | | | | | | | assets | | | | | | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | | 1,088, | 65,445 | 812,137 | 69,569 | 4,183 | 51,905 | | | | 504 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | | | | | | | AND EQUITY | | | | | | | | -------------------------------------------------------------------------------- | Current | | | | | | | | | liabilities | | | | | | | | -------------------------------------------------------------------------------- | Loans and | | 26,396 | 21,065 | 29,907 | 1,687 | 1,346 | 1,911 | | borrowings | | | | | | | | -------------------------------------------------------------------------------- | Trade | | 122,66 | 10,069 | 87,534 | 7,840 | 644 | 5,594 | | payables | | 9 | | | | | | -------------------------------------------------------------------------------- | Corporate | | 7,542 | 0 | 5,976 | 482 | 0 | 382 | | income tax | | | | | | | | | liability | | | | | | | | -------------------------------------------------------------------------------- | Other tax | | 17,039 | 2,152 | 19,369 | 1,089 | 138 | 1,238 | | liabilities | | | | | | | | -------------------------------------------------------------------------------- | Other | | 33,405 | 4,965 | 27,815 | 2,135 | 317 | 1,778 | | payables | | | | | | | | -------------------------------------------------------------------------------- | Provisions | | 12 | 12 | 12 | 1 | 1 | 1 | -------------------------------------------------------------------------------- | Total | | 207,06 | 38,263 | 170,613 | 13,234 | 2,446 | 10,904 | | current | | 3 | | | | | | | liabilities | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current | | | | | | | | | liabilities | | | | | | | | -------------------------------------------------------------------------------- | Loans and | | 4,976 | 3,539 | 9,544 | 318 | 226 | 610 | | borrowings | | | | | | | | -------------------------------------------------------------------------------- | Deferred tax | | 201 | 0 | 201 | 13 | 0 | 13 | | liabilities | | | | | | | | -------------------------------------------------------------------------------- | Other | | 0 | 119 | 0 | 0 | 8 | 0 | | liabilities | | | | | | | | -------------------------------------------------------------------------------- | Provisions | | 140 | 140 | 139 | 9 | 9 | 9 | -------------------------------------------------------------------------------- | Total | | 5,317 | 3,798 | 9,884 | 340 | 243 | 632 | | non-current | | | | | | | | | liabilities | | | | | | | | -------------------------------------------------------------------------------- | Total | | 212,38 | 42,061 | 180,497 | 13,574 | 2,689 | 11,536 | | liabilities | | 0 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | | | | | | -------------------------------------------------------------------------------- | Share | | 400,00 | 19,469 | 379,472 | 25,565 | 1,244 | 24,252 | | capital at | | 0 | | | | | | | par value | | | | | | | | -------------------------------------------------------------------------------- | Share | | 229,39 | 40,994 | 83,011 | 14,661 | 2,620 | 5,305 | | premium | | 5 | | | | | | -------------------------------------------------------------------------------- | Statutory | | 1,046 | 1,046 | 1,046 | 67 | 67 | 67 | | capital | | | | | | | | | reserve | | | | | | | | -------------------------------------------------------------------------------- | Translation | | -54,96 | 26 | -10,710 | -3,513 | 2 | -684 | | reserve | | 7 | | | | | | -------------------------------------------------------------------------------- | Retained | | 161,83 | -38,151 | -987 | 10,343 | -2,439 | -63 | | earnings | | 3 | | | | | | -------------------------------------------------------------------------------- | Total equity | | 737,30 | 23,384 | 451,832 | 47,123 | 1,494 | 28,877 | | attributable | | 7 | | | | | | | to equity | | | | | | | | | holders of | | | | | | | | | the parent | | | | | | | | -------------------------------------------------------------------------------- | Minority | | 138,81 | 0 | 179,808 | 8,872 | 0 | 11,492 | | interest | | 7 | | | | | | -------------------------------------------------------------------------------- | Total equity | | 876,12 | 23,384 | 631,640 | 55,995 | 1,494 | 40,369 | | | | 4 | | | | | | -------------------------------------------------------------------------------- | TOTAL | | 1,088, | 65,445 | 812,137 | 69,569 | 4,183 | 51,905 | | LIABILITIES | | 504 | | | | | | | AND EQUITY | | | | | | | | -------------------------------------------------------------------------------- Income Statement-9 months 2007 Consolidated, unaudited -------------------------------------------------------------------------------- | | | 2007 | 2006 | 2007 | 2006 | | | | 9 | 9 | 9 months | 9 months | | | | months | months | EUR | EUR | | | | EEK | EEK | thousand | thousand | | | | thousan | thousan | | | | | | d | d | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales revenue | | 1 177,1 | 100,898 | 75,232 | 6,449 | | | | 25 | | | | -------------------------------------------------------------------------------- | Costs of goods sold | | -675,29 | -56,398 | -43,159 | -3,604 | | | | 2 | | | | -------------------------------------------------------------------------------- | Gross Profit | | 501,833 | 44,500 | 32,073 | 2,844 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Distribution costs | | -140,33 | -23,493 | -8,969 | -1,501 | | | | 4 | | | | -------------------------------------------------------------------------------- | Administrative expenses | | -125,29 | -11,305 | -8,008 | -723 | | | | 8 | | | | -------------------------------------------------------------------------------- | Other operating income | | 93,551 | 284 | 5,979 | 18 | -------------------------------------------------------------------------------- | Other operating expenses | | -50,601 | -951 | -3,234 | -61 | -------------------------------------------------------------------------------- | Operating profit | | 279,151 | 9,034 | 17,841 | 577 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income/expenses | | | | | | -------------------------------------------------------------------------------- | Interest expenses | | -2,018 | -894 | -129 | -57 | -------------------------------------------------------------------------------- | Gains/losses on conversion of | | -3,740 | -2 | -239 | 0 | | foreign currencies | | | | | | -------------------------------------------------------------------------------- | Other financial income / | | 6,212 | -48 | 397 | 3 | | expenses | | | | | | -------------------------------------------------------------------------------- | Total financial income / | | 454 | -944 | 29 | 60 | | expenses | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit before corporate income | | 279,605 | 8,090 | 17,870 | 517 | | tax | | | | | | -------------------------------------------------------------------------------- | Corporate income tax | | -72,381 | -264 | -4,626 | -17 | -------------------------------------------------------------------------------- | Net profit | | 207,224 | 7,826 | 13,244 | 500 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net profit attributable to | | 162,820 | 7,826 | 10,406 | 500 | | parent company | | | | | | -------------------------------------------------------------------------------- | Net profit attributable to | | 44,404 | 0 | 2,838 | 0 | | minority shareholders | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share | | | | | | -------------------------------------------------------------------------------- | Basic earnings per share | | 4.23 | 4.02 | 0.27 | 0.26 | | (EEK/EUR) | | | | | | -------------------------------------------------------------------------------- | Diluted earnings per share | | 4.23 | 4.02 | 0.27 | 0.26 | | (EEK/EUR) | | | | | | -------------------------------------------------------------------------------- Income Statement-Q3 Consolidated, unaudited -------------------------------------------------------------------------------- | | 2007 | 2006 | 2007 | 2006 | | | Q3 | Q3 | Q3 | Q3 | | | EEK | EEK | EUR | EUR | | | thousan | thousand | thousand | thousand | | | d | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales revenue | 397,924 | 39,810 | 25,432 | 2,544 | -------------------------------------------------------------------------------- | Costs of goods sold | -237,92 | -23,114 | -15,206 | -1,477 | | | 3 | | | | -------------------------------------------------------------------------------- | Gross Profit | 160,001 | 16,696 | 10,226 | 1,067 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Distribution costs | -50,366 | -7,635 | -3,219 | -488 | -------------------------------------------------------------------------------- | Administrative expenses | -47,738 | -3,755 | -3,051 | -240 | -------------------------------------------------------------------------------- | Other operating income | 11,140 | 65 | 712 | 4 | -------------------------------------------------------------------------------- | Other operating expenses | -19,934 | -203 | -1,274 | -13 | -------------------------------------------------------------------------------- | Operating profit | 53,103 | 5,165 | 3,394 | 330 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income/expenses | | | | | -------------------------------------------------------------------------------- | Interest expenses | -1,627 | -348 | -104 | -22 | -------------------------------------------------------------------------------- | Losses on conversion of foreign | -2,473 | -2 | -158 | 0 | | currencies | | | | | -------------------------------------------------------------------------------- | Other financial income / expenses | 4,616 | -18 | 295 | -1 | -------------------------------------------------------------------------------- | Total financial income / expenses | 516 | -368 | 33 | -23 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit before corporate income | 53,619 | 4,797 | 3,427 | 307 | | tax | | | | | -------------------------------------------------------------------------------- | Corporate income tax | -24,894 | 0 | -1,591 | 0 | -------------------------------------------------------------------------------- | Net profit | 28,725 | 4,797 | 1,836 | 307 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net profit attributable to parent | 16,523 | 4,797 | 1,056 | 307 | | company | | | | | -------------------------------------------------------------------------------- | Net profit attributable to | 12,202 | 0 | 780 | 0 | | minority shareholders | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share | | | | | -------------------------------------------------------------------------------- | Basic earnings per share | 0.42 | 2.46 | 0.03 | 0.16 | | (EEK/EUR) | | | | | -------------------------------------------------------------------------------- | Diluted earnings per share | 0.42 | 2.46 | 0.03 | 0.16 | | (EEK/EUR) | | | | | -------------------------------------------------------------------------------- Sergei Kusonski Member of the Management Board