FINANCIAL HIGHLIGHTS - Revenue for 6m 2008 551 million kroons, up 2.7% yoy - Retail sales growth 12.7% for Q2 and 9.3% for 6m 2008 - Gross margin 60.7% for Q2 and 56.5% for 6m 2008 - Operating margin 7.9% for Q2 and 2.8% for 6m 2008 - Net profit for Q2 2008 18.8 million kroons, 116% growth yoy - Cumulative net profit for 6m 2008 7.8 million kroons Chairman of the Management Board Meelis Milder: “I am delighted to report that second quarter results reflect a definite turnaround in Baltika's profitability. The efforts made over the past twelve months to enhance the efficiency of our retail system, which has experienced rapid growth and expansion to new markets, are bearing fruit: in the second quarter, practically all our profitability indicators improved significantly compared with the prior year. We are also pleased that the 2006 and 2007 investments in the Eastern European markets, which caused a temporary downturn in the Group's profitability, are paying off. Currently, these are practically the only markets in Europe where economic growth and consumption are increasing at an accelerating pace. Moreover, in the second quarter the three largest of the four Central and Eastern European markets in our retail portfolio (Russia, Ukraine and Poland) turned a profit at the retail level; a year ago the same could be said about one market only. Furthermore, our brand portfolio is proving its quality despite the cooling and toughening retail environment of the Baltic markets. In the Baltics, the decline in menswear sales is being more than offset by the consumers' enthusiastic reception of our ladieswear collections. Monton's and Mosaic's distribution in large markets is yielding double-digit growth figures.” Baltika Group ended the second quarter with a consolidated net profit of 18.8 million kroons (1.2 million euros) and a net margin of 6.6% (Q2 2007: 3.2%). Compared with the same period in 2007, net profit grew more than two-fold. In the second quarter, consolidated sales revenue grew by 5.5%, retail revenues expanding by 12.7% and wholesale revenues dropping by 22.2%. The Group's second quarter gross margin was 60.7% against 57.9% in the second quarter of 2007, and operating margin 7.9% against 6.0% in the second quarter of 2007. Consolidated sales revenue for the first six months was 550.6 million kroons (35.2 million euros), a 2.7% improvement year-over-year (yoy). Retail revenues for the first six months grew by 9.3% and wholesale revenues decreased, as anticipated, by 20.3%. The Group's six months' gross and operating margins were 56.5% and 2.8% respectively (6m 2007: 55.2% and 7.5%). Consolidated net profit for the first half-year was 7.8 million kroons (0.5 million euros) and net margin 1.4% (6m 2007: 5.7%). REVENUE Revenue by business segment -------------------------------------------------------------------------------- | EEK million | Q2 2008 | Q2 2007 | +/- | 6m 2008 | 6m 2007 | +/- | -------------------------------------------------------------------------------- | Retail | 262.7 | 233.2 | 12.7% | 488.3 | 446.8 | 9.3% | -------------------------------------------------------------------------------- | Wholesale | 21.2 | 27.2 | -22.2% | 61.3 | 76.9 | -20.3% | -------------------------------------------------------------------------------- | Subcontracting | 0 | 8.5 | - | 0 | 8.5 | - | -------------------------------------------------------------------------------- | Other | 0.6 | 0.8 | -27.8% | 1.0 | 3.8 | -73.7% | -------------------------------------------------------------------------------- | Total | 284.5 | 269.7 | 5.5% | 550.6 | 536.0 | 2.7% | -------------------------------------------------------------------------------- EUR 1 = EEK 15.6466 RETAIL Compared with 2007, Baltika's retail sales for the first half-year grew by 9.3% to 488.3 million kroons (31.2 million euros). Although in the first quarter sales (growth 5.6%) fell short of expectations, mainly on account of poor results for March, in the second quarter sales growth improved to 12.7%. During the first half-year, the Group focused on streamlining its store portfolio and enhancing the stores' sales efficiency. Accordingly, sales space grew relatively slowly - in the first six months the average sales area grew by 14% yoy. Sales efficiency improved in the second quarter when the Group's average sales efficiency (sales per square metre) rose by 4% yoy. The improvement in sales efficiency was underpinned by strong growth in comparable store sales which in the second quarter rose to 8%. The best results in comparable store sales were achieved in the Central and Eastern European markets, which each delivered growth in excess of 20%. Owing to the impacts of the first quarter, comparable store sales growth for the first half-year remained at 1%. In the second quarter, the Group increased sales in all markets. The Russian, Ukrainian, and Polish growth rates - 19%, 27% and 24% respectively - are particularly impressive given that the sales area in those markets has remained practically stable for a year. Compared with the prior year, second quarter retail sales in the Baltics grew as follows: Estonia 1%, Latvia 8% and Lithuania 5% - strong results against the background of decelerating economic growth in the countries involved. All markets' six-month results were also satisfactory. Retail sales by market -------------------------------------------------------------------------------- | EEK million | 6m 2008 | 6m 2007 | +/- | Percentage, 6m | | | | | | 2008 | -------------------------------------------------------------------------------- | Estonia | 114.0 | 113.7 | 0% | 23% | -------------------------------------------------------------------------------- | Lithuania | 110.6 | 103.3 | 7% | 23% | -------------------------------------------------------------------------------- | Russia | 88.0 | 79.4 | 11% | 18% | -------------------------------------------------------------------------------- | Ukraine | 81.4 | 72.0 | 13% | 17% | -------------------------------------------------------------------------------- | Latvia | 71.2 | 64.7 | 10% | 15% | -------------------------------------------------------------------------------- | Poland | 16.4 | 13.7 | 20% | 3% | -------------------------------------------------------------------------------- | Czech Republic | 6.7 | 0 | - | 1% | -------------------------------------------------------------------------------- | Total | 488.3 | 446.8 | 9% | 100% | -------------------------------------------------------------------------------- EUR 1 = EEK 15.6466 In terms of brands, Monton accounted for 55% or 269 million kroons (17.2 million euros) of the Group's six-month retail revenue, 11% growth yoy, and Mosaic contributed 33% or 162 million kroons (10.4 million euros), up 15% yoy. The contribution of Baltman decreased 19% to 37 million kroons (2.4 million euros). As an upmarket Baltic-based menswear brand, Baltman has been hit the hardest by economic slowdown; in addition, no new Baltman stores have been opened in the last twelve months. Six-month sales of Ivo Nikkolo grew 48% yoy to 15 million kroons (1.0 million euros). STORES AND SALES AREA At the end of June 2008, Baltika had 126 stores with a total sales area of 24,661 square metres. Compared with June 2007, the retail system has grown by two stores and 1,650 square metres (net) whilst the sales area operated by the Group has increased by 7%. Stores by market -------------------------------------------------------------------------------- | | 30.06.2008 | 30.06.2007 | -------------------------------------------------------------------------------- | Estonia | 30 | 29 | -------------------------------------------------------------------------------- | Lithuania | 29 | 30 | -------------------------------------------------------------------------------- | Russia | 22 | 25 | -------------------------------------------------------------------------------- | Ukraine | 22 | 21 | -------------------------------------------------------------------------------- | Latvia | 16 | 14 | -------------------------------------------------------------------------------- | Poland | 5 | 5 | -------------------------------------------------------------------------------- | Czech Republic | 2 | - | -------------------------------------------------------------------------------- | Total stores | 126 | 124 | -------------------------------------------------------------------------------- | Total sales area, sqm | 24,661 | 23,011 | -------------------------------------------------------------------------------- In the first half of 2008, Baltika closed seven stores and opened five, two of them in the second quarter, entering three new cities: Ostrava in the Czech Republic, Kaliningrad in Russia and Narva in Estonia. In the second half-year, the Group expects to open 12 to 17 and close 4 to 8 stores, taking the total number of stores to 133 to 138 by the year-end. WHOLESALE In the first half-year, the bulk of wholesale operations are performed in the first quarter; the second quarter is traditionally weaker. Consolidated wholesale revenue for the first six months of 2008 was 61.3 million kroons (3.9 million euros), a 20.3% decrease yoy. Wholesale revenues have declined in line with projections. EARNINGS AND MARGINS Second quarter results indicate that the Group's strategic direction - focus on expansion, export and diversification of the market portfolio - is producing results. While the Baltic economies are experiencing a slowdown, the markets in Central and Eastern Europe are undergoing positive developments that support the Group's performance. Following a period of rapid expansion, Baltika's main goal in the first half of 2008 was to improve sales efficiency. Among other measures, this involved closing any non-performing stores. Positive results emerged in the second quarter, which ended with a 4% improvement in sales efficiency (yoy), a high gross margin and a strong net profit. However, it ought to be noted that the Group's performance will remain affected by the opening of stores and their ensuing start-up periods. The first half-year saw two different cycles - a weak first quarter and a strong second quarter. In the second quarter, the Group's gross margin rose to 60.7% (Q2 2007: 57.9%) taking the half-year gross margin to 56.5%, a fair improvement on the 55.2% measured for the first half of 2007. Consolidated gross profit for the first six months was 311.3 million kroons (19.9 million euros), up 5.1% yoy, whilst second quarter gross profit grew by a solid 10.7% yoy. Administrative and general expenses and distribution costs for the first six months grew by 3.1% and 13.7% yoy respectively. The impact of exchange differences varied. If in the first quarter exchange differences resulted in an exchange loss of 8.4 million kroons (537 thousand euros) and had a notably negative impact on the Group's performance, in the second quarter the differences resulted in an exchange gain of 4.5 million kroons (288 thousand euros), which had a positive impact. The overall impact on the half-year was negative with exchange losses recognised in other operating expenses and financial expenses totalling 3.9 million kroons (249 thousand euros). In comparison, exchange losses for the first six months of 2007 totalled 1.3 million kroons (83 thousand euros). Consolidated operating profit for the second quarter was 22.5 million kroons (1.4 million euros), a vigorous 38.8% improvement on the prior year, and operating margin for the second quarter was 7.9% (Q2 2007: 6.0%). Consolidated operating profit for the first half-year amounted to 15.2 million kroons (1.0 million euros), a 62.2% decrease yoy, and operating margin for six months was 2.8% (6m 2007: 7.5%). Operating profit for six months includes 11.25 million kroons (0.7 million euros) of gain from the revaluation of investment property, which was earned in the first quarter and recognised in other operating income. Operating profit for the first six months of 2007 included 16.21 million kroons (1.0 million euros) of income from the divestment of property, plant and equipment, which was also earned in the first quarter and recognised in other operating income. The Group's financial expenses for the first six months of 2008 totalled 6.7 million kroons (431 thousand euros), up 56.9% yoy. The bulk of the growth results from an increase in foreign exchange losses. Interest expenses for the same period grew by 22.2% to 5.1 million kroons (325 thousand euros). Baltika's net profit for the second quarter surged to 18.8 million kroons (1.2 million euros), a more than two-fold increase on the second quarter of 2007, and net margin rose to 6.6% (Q2 2007: 3.2%). Consolidated net profit for six months was 7.8 million kroons (0.5 million euros) and the period's net margin was 1.4%. The corresponding figures for the first half of 2007 were 30.4 million kroons (1.9 million euros) and 5.7%. BALANCE SHEET At 30 June 2008, Baltika's balance sheet total was 742 million kroons (47.5 million euros), a 17% increase yoy. Trade receivables totalled 68 million kroons (4.3 million euros), representing a 17 million kroon (1.1 million euro) decrease, and trade payables amounted to 123 million kroons (7.8 million euros), representing a 36 million kroon (2.3 million euro) increase on 30 June 2007. At 30 June, inventories stood at 283 million kroons (18.1 million euros), 23% growth yoy, and inventory turnover ratio (sales revenue/average inventories) was 5.04 (30 June 2007: 5.34). The decrease in trade receivables may be attributed to a decline in wholesale operations. Inventories and payables have increased on account of purchases made for the autumn and winter season in excess of the prior year. At 30 June 2008, Baltika's borrowings totalled 213 million kroons (13.6 million euros), including bank loans of 145 million kroons (9.2 million euros), overdraft liabilities of 57 million kroons (3.7 million euros) and finance lease liabilities of 11 million kroons (0.7 million euros). Compared with 30 June 2007, borrowings have increased by 38 million kroons (2.4 million euros). Real estate development loans amount to 19 million kroons (1.2 million euros). At the end of June, the Group's net debt (interest-bearing liabilities less cash and bank balances) to equity ratio was 56.9% against 48.0% at the end of June 2007. INVESTMENT In the first half of 2008 the Group invested 56.3 million kroons (3.6 million euros): 23.5 million kroons (1.5 million euros) in the retail business, 24.9 million kroons (1.6 million euros) in real estate development, 4.3 million kroons (0.3 million euros) in information technology and 3.6 million kroons (0.2 million euros) in manufacturing. Investments for the first half of 2007 totalled 53.9 million kroons (3.4 million euros). PEOPLE At 30 June 2008, the Group employed 1,938 (30 June 2007: 2,011) people including 954 (989) in the retail system, 766 (817) in manufacturing and 218 (205) at the head office. The number of people employed outside Estonia was 755 (788), i.e. 39%. The six months' average number of employees was 1,944 (6m 2007: 1,978). Employee remuneration expenses for the first six months of 2008 totalled 115.2 million kroons/7.4 million euros (6m 2007: 91.4 million kroons/5.8 million euros). Payments made to members of the supervisory council and management board totalled 2.0 million kroons/126 thousand euros (6m 2007: 2.6 million kroons/166 thousand euros). ANNUAL GENERAL MEETING The annual general meeting of Baltika's shareholders which convened on 18 June 2008 approved the annual report for 2007 and the allocation of profits. The meeting resolved to transfer the net profit for 2007 of 40,773 thousand kroons (2,606 thousand euros) to retained earnings and not to distribute any dividends. The general meeting re-appointed AS PricewaterhouseCoopers as the company's auditors for 2008. In addition, the meeting declared the subscription for Series E bonds unsuccessful and decided that any prepayments made in connection with the subscription should be returned. KEY FIGURES OF THE GROUP (6 months 2008) -------------------------------------------------------------------------------- | | 30.06.2008 | 30.06.2007 | +/- | -------------------------------------------------------------------------------- | Revenue (EEK million) | 550.6 | 536.0 | 2.7% | -------------------------------------------------------------------------------- | Retail sales (EEK million) | 488.3 | 446.8 | 9.3% | -------------------------------------------------------------------------------- | Share of retail sales in revenue | 89% | 83% | | -------------------------------------------------------------------------------- | Number of stores | 126 | 124 | 1.6% | -------------------------------------------------------------------------------- | Sales area (sqm) | 24,661 | 23,011 | 7.2% | -------------------------------------------------------------------------------- | Number of employees (end of | 1,938 | 2,011 | -3.6% | | period) | | | | -------------------------------------------------------------------------------- | Gross margin | 56.5% | 55.2% | | -------------------------------------------------------------------------------- | Operating margin | 2.8% | 7.5% | | -------------------------------------------------------------------------------- | EBT margin | 1.5% | 6.7% | | -------------------------------------------------------------------------------- | Net margin | 1.4% | 5.7% | | -------------------------------------------------------------------------------- | Current ratio | 1.6 | 1.8 | -11.1% | -------------------------------------------------------------------------------- | Inventory turnover | 5.04 | 5.34 | -5.6% | -------------------------------------------------------------------------------- | Debt to equity ratio | 61.8% | 54.6% | | -------------------------------------------------------------------------------- | Return on equity | 5.7% | 28.5% | | -------------------------------------------------------------------------------- | Return on assets | 2.8% | 14.1% | | -------------------------------------------------------------------------------- EUR 1 = EEK 15.6466 Definitions of key ratios Gross margin = (Revenue-Cost of goods sold)/Revenue Operating margin = Operating profit/Revenue EBT margin = Profit before income tax/Revenue Net margin = Net profit (attributable to parent)/Revenue Current ratio = Current assets/Current liabilities Inventory turnover = Revenue/Average inventories* Debt to equity ratio = Interest-bearing liabilities/Equity Return on equity (ROE) = Net profit (attributable to parent)/Average equity* Return on assets (ROA) = Net profit (attributable to parent)/Average total assets* *Based on 12-month average CONSOLIDATED INCOME STATEMENT (unaudited, in EEK thousand) -------------------------------------------------------------------------------- | | Q2 2008 | Q2 2007 | 6m 2008 | 6m 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Revenue | 284,520 | 269,714 | 550,575 | 536,043 | -------------------------------------------------------------------------------- | Cost of goods sold | -111,687 | -113,570 | -239,317 | -239,999 | -------------------------------------------------------------------------------- | Gross profit | 172,833 | 156,144 | 311,258 | 296,044 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Distribution costs | -141,260 | -127,223 | -278,576 | -245,011 | -------------------------------------------------------------------------------- | Administrative and general | -13,285 | -12,465 | -26,147 | -25,352 | | expenses | | | | | -------------------------------------------------------------------------------- | Other operating income | 4,988 | 303 | 12,229 | 16,580 | -------------------------------------------------------------------------------- | Other operating expenses | -780 | -550 | -3,541 | -1,980 | -------------------------------------------------------------------------------- | Operating profit | 22,496 | 16,209 | 15,223 | 40,281 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income (expenses) | -2,970 | -2,465 | -6,748 | -4,301 | -------------------------------------------------------------------------------- | Interest expenses, net | -2,616 | -2,321 | -5,089 | -4,166 | -------------------------------------------------------------------------------- | Foreign exchange losses, net | -328 | -76 | -1,940 | -63 | -------------------------------------------------------------------------------- | Other financial income | -26 | -68 | 281 | -72 | | (expenses), net | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit before income tax | 19,526 | 13,744 | 8,475 | 35,980 | -------------------------------------------------------------------------------- | Income tax | -655 | -4,471 | -1,098 | -4,893 | -------------------------------------------------------------------------------- | Net profit | 18,871 | 9,273 | 7,377 | 31,087 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net profit attributable to | 18,834 | 8,704 | 7,811 | 30,367 | | equity holders of the parent | | | | | | company | | | | | -------------------------------------------------------------------------------- | Net profit (loss) attributable | 37 | 569 | -434 | 720 | | to minority shareholders | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Basic earnings per share, EEK | 1.01 | 0.47 | 0.42 | 1.63 | -------------------------------------------------------------------------------- | Diluted earnings per share, EEK | 1.01 | 0.47 | 0.42 | 1.63 | -------------------------------------------------------------------------------- CONSOLIDATED INCOME STATEMENT (unaudited, in EUR thousand) -------------------------------------------------------------------------------- | | Q2 2008 | Q2 2007 | 6m 2008 | 6m 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Revenue | 18,184 | 17,238 | 35,188 | 34,259 | -------------------------------------------------------------------------------- | Cost of goods sold | -7,138 | -7,258 | -15,295 | -15,339 | -------------------------------------------------------------------------------- | Gross profit | 11,046 | 9,979 | 19,893 | 18,921 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Distribution costs | -9,028 | -8,131 | -17,804 | -15,659 | -------------------------------------------------------------------------------- | Administrative and general | -849 | -797 | -1,671 | -1,620 | | expenses | | | | | -------------------------------------------------------------------------------- | Other operating income | 319 | 19 | 782 | 1,060 | -------------------------------------------------------------------------------- | Other operating expenses | -50 | -35 | -226 | -127 | -------------------------------------------------------------------------------- | Operating profit | 1,438 | 1,036 | 973 | 2,574 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Financial income (expenses) | -190 | -158 | -431 | -275 | -------------------------------------------------------------------------------- | Interest expenses, net | -167 | -148 | -325 | -266 | -------------------------------------------------------------------------------- | Foreign exchange losses, net | -21 | -5 | -124 | -4 | -------------------------------------------------------------------------------- | Other financial income | -2 | -4 | 18 | -5 | | (expenses), net | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit before income tax | 1,248 | 878 | 542 | 2,300 | -------------------------------------------------------------------------------- | Income tax | -42 | -286 | -70 | -313 | -------------------------------------------------------------------------------- | Net profit | 1,206 | 593 | 471 | 1,987 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net profit attributable to | 1,204 | 557 | 499 | 1,941 | | equity holders of the parent | | | | | | company | | | | | -------------------------------------------------------------------------------- | Net profit (loss) attributable | 2 | 35 | -28 | 46 | | to minority shareholders | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Basic earnings per share, EUR | 0.06 | 0.03 | 0.03 | 0.10 | -------------------------------------------------------------------------------- | Diluted earnings per share, EUR | 0.06 | 0.03 | 0.03 | 0.10 | -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET (unaudited, in EEK thousand) -------------------------------------------------------------------------------- | | 30.06.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Cash and bank | 16,638 | 31,494 | -------------------------------------------------------------------------------- | Trade and other receivables | 111,647 | 113,563 | -------------------------------------------------------------------------------- | Inventories | 283,316 | 220,698 | -------------------------------------------------------------------------------- | Non-current assets held for sale | 0 | 500 | -------------------------------------------------------------------------------- | Total current assets | 411,601 | 366,255 | -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Deferred income tax asset | 5,897 | 5,897 | -------------------------------------------------------------------------------- | Other non-current assets | 7,744 | 11,448 | -------------------------------------------------------------------------------- | Investment property | 22,540 | 11,250 | -------------------------------------------------------------------------------- | Property, plant and equipment | 234,947 | 203,098 | -------------------------------------------------------------------------------- | Intangible assets | 59,742 | 58,409 | -------------------------------------------------------------------------------- | Total non-current assets | 330,870 | 290,102 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 742,471 | 656,357 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 73,591 | 100,167 | -------------------------------------------------------------------------------- | Trade and other payables | 182,333 | 129,364 | -------------------------------------------------------------------------------- | Total current liabilities | 255,924 | 229,531 | -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 139,076 | 84,319 | -------------------------------------------------------------------------------- | Other liabilities | 1,172 | 1,086 | -------------------------------------------------------------------------------- | Deferred income tax liability | 2,075 | 2,075 | -------------------------------------------------------------------------------- | Total non-current liabilities | 142,323 | 87,480 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 398,247 | 317,011 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY | | | -------------------------------------------------------------------------------- | Share capital at par value | 186,449 | 186,449 | -------------------------------------------------------------------------------- | Reserves | 26,133 | 26,133 | -------------------------------------------------------------------------------- | Retained earnings | 108,722 | 67,949 | -------------------------------------------------------------------------------- | Net profit for the period | 7,811 | 40,773 | -------------------------------------------------------------------------------- | Currency translation differences | 9,299 | 8,131 | -------------------------------------------------------------------------------- | Total equity attributable to equity holders | 338,414 | 329,435 | | of the parent company | | | -------------------------------------------------------------------------------- | Minority interest | 5,810 | 9,911 | -------------------------------------------------------------------------------- | TOTAL EQUITY | 344,224 | 339,346 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND EQUITY | 742,471 | 656,357 | -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET (unaudited, in EUR thousand) -------------------------------------------------------------------------------- | | 30.06.2008 | 31.12.2007 | -------------------------------------------------------------------------------- | ASSETS | | | -------------------------------------------------------------------------------- | Current assets | | | -------------------------------------------------------------------------------- | Cash and bank | 1,063 | 2,013 | -------------------------------------------------------------------------------- | Trade and other receivables | 7,136 | 7,258 | -------------------------------------------------------------------------------- | Inventories | 18,107 | 14,105 | -------------------------------------------------------------------------------- | Non-current assets held for sale | 0 | 32 | -------------------------------------------------------------------------------- | Total current assets | 26,306 | 23,408 | -------------------------------------------------------------------------------- | Non-current assets | | | -------------------------------------------------------------------------------- | Deferred income tax asset | 377 | 377 | -------------------------------------------------------------------------------- | Other non-current assets | 495 | 732 | -------------------------------------------------------------------------------- | Investment property | 1,441 | 719 | -------------------------------------------------------------------------------- | Property, plant and equipment | 15,016 | 12,980 | -------------------------------------------------------------------------------- | Intangible assets | 3,818 | 3,733 | -------------------------------------------------------------------------------- | Total non-current assets | 21,146 | 18,541 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 47,453 | 41,949 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | -------------------------------------------------------------------------------- | Current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 4,703 | 6,402 | -------------------------------------------------------------------------------- | Trade and other payables | 11,653 | 8,268 | -------------------------------------------------------------------------------- | Total current liabilities | 16,357 | 14,670 | -------------------------------------------------------------------------------- | Non-current liabilities | | | -------------------------------------------------------------------------------- | Borrowings | 8,889 | 5,389 | -------------------------------------------------------------------------------- | Other liabilities | 75 | 69 | -------------------------------------------------------------------------------- | Deferred income tax liability | 133 | 133 | -------------------------------------------------------------------------------- | Total non-current liabilities | 9,096 | 5,591 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 25,453 | 20,261 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY | | | -------------------------------------------------------------------------------- | Share capital at par value | 11,916 | 11,916 | -------------------------------------------------------------------------------- | Reserves | 1,670 | 1,670 | -------------------------------------------------------------------------------- | Retained earnings | 6,949 | 4,343 | -------------------------------------------------------------------------------- | Net profit for the period | 499 | 2,606 | -------------------------------------------------------------------------------- | Currency translation differences | 594 | 520 | -------------------------------------------------------------------------------- | Total equity attributable to equity holders | 21,629 | 21,055 | | of the parent company | | | -------------------------------------------------------------------------------- | Minority interest | 371 | 633 | -------------------------------------------------------------------------------- | TOTAL EQUITY | 22,000 | 21,688 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND EQUITY | 47,453 | 41,949 | -------------------------------------------------------------------------------- Ülle Järv CFO, Member of the Management Board +372 630 2741 Further information: Triin Palge Head of Investor Relations +372 630 2886 triin.palge@baltikagroup.com