Comments by the CEO
Within the first half-year of 2009, 25 apartments or plots were sold and 21
objects reserved in Arco Vara projects. In the Boulevard Residence Madrid
project in Sofia, a 30-year rental agreement was concluded with the Austrian
supermarket chain Billa, by which the supermarket will rent approx. 900 m2 of
the ground floor sales space of the building. Within six months, 16 apartments
have been sold in the Kodukolde project in Tallinn and 7 apartments in the BM-1
project in Latvia.
The strategy of Arco Vara development division is to finish the unfinished
apartments in the Kodukolde project and the plots in the Merivälja2 projects in
Tallinn, the apartments in the Bišumuiža-1 project in Riga, the apartments and
business areas in the Boulevard Residence Madrid and Manastirski projects in
Sofia with more favourable construction prices. The finished residential and
business areas are to be sold by releasing invested equity and reducing the
liabilities of the Group. In order to stay in competition and accelerate sales
pace, we have reduced plot and apartment prices of Arco Vara projects in the 2nd
quarter, too. As a result of this, we have written down the book value of some
projects.
In the construction division, new agreements in the amount of 116.1 million
kroons (7.4 million euros) were concluded during the six months, thereof 13.0
millions kroons (0.8 million euros) in the 2nd quarter. The result was by times
lower than the target set for the 2nd quarter. Considering the great need for
working capital, the cash flows of the division will be tense until autumn, when
receivables will be due.
With the restructuring of the service division, we have considerably reduced
administration costs of the division and reduced the loss by double. The number
of employees has been reduced by 81 persons within six months and by 257
persons year-over-year. During the first half-year, the division has sold most
of the real estate objects historically acquired for short-term investments,
which has helped to break even the cash flows of the division.
During the first half-year, the work organisation of some smaller offices
outside the capital city was changed, where we gave up the classical
office-based work organisation and applied the home office system by
maintaining
our full service selection at the same time. In other offices, more cost
effective work organisation solutions are being implemented in cooperation with
employees.
The aim of the service division is to continue implementing the partially
applied and in the current market situation justified work organisation also in
foreign markets, which allows increasing service provision with unlimited means
in these countries, with a future focus on Estonia, Latvia and Bulgaria.
In summary, without revaluations and redeeming the extraordinary principal
amounts, the company would have earned both net profit and positive cash flow.
Apart from real estate revaluation, the group managed to earn 19.0 million
kroons (1.2 million euros) gross profit in the first half-year (2008 HY1: 50.7
million kroons; 3.2 million euros) and 7.5 million kroons (0.5 million euros)
net profit (2008 HY1: -27.8 million kroons; -1.8 million euros), whereof the net
profit without revaluations made up 22.1 million kroons (1.4 million euros) in
the 2nd quarter. The cost cutting programme has been more successful than
expected and when comparing with the cost basis of the 1st quarter 2008, the
cost level of the first half-year of the present year is approx. 65 million
kroons (4.1 million euros) lower. Apart from principal amount redemptions to
banks, the cash flows of the company would have been positive by approx. 10
million kroons (0.6 million euros). Irrespective of the successful cost cutting
programme and net profit before revaluations, the biggest risk is the liquidity
of the Group. To improve this, important projects have to be sold. After the
balance sheet date, targeted auctions of several important projects are going on
both to local and international investors.
MAIN INDICATORS OF THE 1ST HALF-YEAR
Revenue and other income for the first half-year months totalled 277.0 million
kroons (17.7 million euros), 19.7% down year-over-year
EBIT amounted to -51.1 million kroons (-3.3 million euros), 3.9% up
year-over-year.
Net loss was -27.0 million kroons (-1.7 million euros), 40.0% down
year-over-year.
Equity ratio was 36.0% (2008 HY1: 56.1%). ROE was negative (2008 HY1: neg.).
ROIC was negative (2008 HY1: 0.3%)
In the construction division, new agreements in the amount of 116.1 million
kroons (7.4 million euros) were concluded, 2008 HY1: 209.1 million kroons (13.4
million euros).
At the end of 1st half-year, order backlog in the construction business stood at
142.6 million kroons (9.1 million euros) against 338.0 million kroons (21.6
million euros) in 2008 HY1.
During the half-year, 25 apartments and plots were sold (2008 HY1: 47).
--------------------------------------------------------------------------------
| EEK | EUR |
--------------------------------------------------------------------------------
| | HY1 | HY1 | Q2 | Q2 2008 | HY1 | HY1 | Q2 | Q2 |
| | 2009 | 2008 | 2009 | | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| In | | | | | | | | |
| millions | | | | | | | | |
--------------------------------------------------------------------------------
| Revenue | 277, | 344, | 181, | 232,9 | 17,7 | 22,0 | 11,6 | 14,9 |
| and other | 0 | 8 | 3 | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -51, | -49, | -37, | -19,5 | -3,3 | -3,1 | -2,4 | -1,2 |
| | 1 | 2 | 1 | | | | | |
--------------------------------------------------------------------------------
| incl. net | -34, | -16, | -34, | -4,4 | -2,2 | -1,1 | -2.2 | -0,3 |
| revaluatio | 5 | 9 | 5 | | | | | |
| n of | | | | | | | | |
| investment | | | | | | | | |
| property | | | | | | | | |
| and | | | | | | | | |
| inventory | | | | | | | | |
--------------------------------------------------------------------------------
| Profit / | -26, | -33, | -11, | -17,2 | -1,7 | -2,1 | -0,7 | -1,1 |
| loss | 2 | 5 | 6 | | | | | |
| before tax | | | | | | | | |
--------------------------------------------------------------------------------
| incl. | 0,0 | -19, | 0,0 | -19,5 | 0,0 | -1,2 | 0,0 | -1,2 |
| profit or | | 5 | | | | | | |
| loss from | | | | | | | | |
| transfer | | | | | | | | |
| of | | | | | | | | |
| financial | | | | | | | | |
| assets | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | -27, | -44, | -12, | -28,0 | -1,7 | -2,9 | -0,8 | -1,8 |
| / loss | 0 | 7 | 4 | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| EPS (in | -0,2 | -0,5 | -0,1 | -0,38 | -0,02 | -0,03 | -0,01 | -0,02 |
| kroons and | 8 | 4 | 3 | | | | | |
| euros) | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 1 | 3 | | | 121,2 | 208,8 | | |
| assets at | 896, | 267, | | | | | | |
| period end | 7 | 0 | | | | | | |
--------------------------------------------------------------------------------
| Invested | 1 67 | 3 | | | 107,2 | 192,9 | | |
| capital at | 6,7 | 019, | | | | | | |
| period end | | 0 | | | | | | |
--------------------------------------------------------------------------------
| Net debt | 875, | 815, | | | 55,9 | 52,1 | | |
| at period | 4 | 4 | | | | | | |
| end | | | | | | | | |
--------------------------------------------------------------------------------
| Equity at | 683, | 1 | | | 43,7 | 117,1 | | |
| period end | 7 | 832, | | | | | | |
| | | 7 | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Average | 1,9 | 1,9 | | | 1,9 | 1,9 | | |
| loan term | | | | | | | | |
| (in years) | | | | | | | | |
--------------------------------------------------------------------------------
| Average | 5,7% | 7,2% | | | 5,7% | 7,2% | | |
| interest | | | | | | | | |
| rate of | | | | | | | | |
| loans (per | | | | | | | | |
| year) | | | | | | | | |
--------------------------------------------------------------------------------
| ROIC | neg. | 0,3% | | | neg. | 0,3% | | |
| (rolling 4 | | | | | | | | |
| quarters) | | | | | | | | |
--------------------------------------------------------------------------------
| ROE | neg. | neg. | | | neg. | neg. | | |
| (rolling 4 | | | | | | | | |
| quarters) | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Number of | 257 | 569 | | | 257 | 569 | | |
| staff at | | | | | | | | |
| period end | | | | | | | | |
--------------------------------------------------------------------------------
REVENUE AND PROFIT
--------------------------------------------------------------------------------
| EEK | EUR |
--------------------------------------------------------------------------------
| | HY1 | HY1 | Q2 | Q2 | HY1 | HY1 | Q2 | Q2 |
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
--------------------------------------------------------------------------------
| In | | | | | | | | |
| millions | | | | | | | | |
--------------------------------------------------------------------------------
| Revenue | | | | | | | | |
| and | | | | | | | | |
| other | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Services | 20,2 | 65,5 | 9,5 | 32,8 | 71,0 | 116,6 | -17,8 | -26,8 |
--------------------------------------------------------------------------------
| Developm | 148,7 | 139,9 | 118,6 | 110,2 | 9,5 | 32,8 | 71,0 | 116,6 |
| ent | | | | | | | | |
--------------------------------------------------------------------------------
| Construc | 129,9 | 206,1 | 71,0 | 116,6 | -17,8 | -26,8 | 0,0 | 181,3 |
| tion | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminat | -21,9 | -66,7 | -17,8 | -26,7 | 0,0 | 181,3 | 232,9 | 0,0 |
| ions | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 276,9 | 344,8 | 181,3 | 232,9 | 17,7 | 22,0 | 11,6 | 14,9 |
| revenue | | | | | | | | |
| and | | | | | | | | |
| other | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | | | | | | | | |
--------------------------------------------------------------------------------
| Services | -10,6 | -18,0 | -5,4 | -9,8 | -0,7 | -1,2 | -0,3 | -0,6 |
--------------------------------------------------------------------------------
| Developm | -36,9 | -22,2 | -36,6 | -6,1 | -2,4 | -1,4 | -2,3 | -0,4 |
| ent | | | | | | | | |
--------------------------------------------------------------------------------
| Construc | -4,7 | 3,9 | -1,3 | -0,3 | -0,3 | 0,2 | -0,1 | 0,0 |
| tion | | | | | | | | |
--------------------------------------------------------------------------------
| Eliminat | 0,4 | -1,9 | 0,6 | 2,6 | 0,0 | -0,1 | 0,0 | 0,2 |
| ions | | | | | | | | |
--------------------------------------------------------------------------------
| Unalloca | 0,8 | -11,0 | 5,7 | -5,9 | 0,1 | -0,7 | 0,4 | -0,4 |
| ted | | | | | | | | |
| expenses | | | | | | | | |
--------------------------------------------------------------------------------
| Total | -51,0 | -49,2 | -37,1 | -19,5 | -3,3 | -3,2 | -2,3 | -1,2 |
| EBIT | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Interest | -13,5 | 16,0 | -8,5 | 11,0 | -0,9 | 1,0 | -0,5 | 0,7 |
| income | | | | | | | | |
| and | | | | | | | | |
| expense | | | | | | | | |
--------------------------------------------------------------------------------
| Net | 38,3 | -0,4 | 34,0 | -8,7 | 2,5 | 0,0 | 2,2 | -0,6 |
| other | | | | | | | | |
| financia | | | | | | | | |
| l items | | | | | | | | |
--------------------------------------------------------------------------------
| Income | -0,8 | -11,2 | -0,8 | -10,8 | -0,1 | -0,7 | -0,1 | -0,7 |
| tax | | | | | | | | |
| expense | | | | | | | | |
--------------------------------------------------------------------------------
| Net | -27,0 | -44,7 | -12,3 | -28,0 | -1,8 | -2,9 | -0,7 | -1,8 |
| profit / | | | | | | | | |
| loss | | | | | | | | |
--------------------------------------------------------------------------------
Due to the low low inventory balance an improvement in turnover can be expected
in the 4th quarter 2009. In autumn, the project Boulevard Residence Madrid will
be completed in Sofia. In Tallinn, more than 60 apartments add in the Kodukolde
project, and in the Merivälja 2 project more than 50 plots with full
infrastructure. The recent reservations and new sales will be reflected as
turnover after the end of construction and getting authorisation for use.
The consolidated result of the half-year will most be affected by the weak
results 1st quarter. When not considering the real estate revaluations, the 2nd
quarter is considerably better than the first. After the balance sheet date, it
is evident that the turnover at the beginning of the 3rd quarter has the same
level as in the 2nd quarter. No considerable improvement in profitability in
daily operations is forecasted for the 2nd half-year. Main cost cuttings have
been made and the focus of the Group is now set on increasing the turnover and
improving the liquidity through the sales of projects.
Apart from real estate revaluations, the net profit of the Group in the
half-year was 7.5 million kroons (0.5 million euros) against a -27.8 million
kroons (-1.8 million euros) net loss year-over-year. As of end of half year, the
claim against AS Ühendatud Kapital with a book value of 66.5 million kroons (4.2
million euros) has not been additionally discounted. We except the Tallinn
Arbitrage to take a decision by October at the latest. After the decision, the
company management will weigh the likeliness of receiving the claim again.
In the 2nd quarter, the write down of the claim related to the joint company
Bisumuizas Nami SIA in 2008 in the amount of 34.1 million kroons (2.2 million
euros) was cancelled, because the equity of Bisumuizas Nami SIA on 31.12.2008
was -16.2 million koons (- 1.0 million euros) and on 30.06.2009 45.9 million
kroons ( 2.9 million euros).
In the 2nd quarter, considerable fair value adjustments were made as during the
2nd quarter, the company reduced sales prices in all residential projects on
sale, which will reduce the revenues from the projects. The biggest write up was
made in Latvia where the right of leasehold right recorded under inventory was
reclassified to investment property as in the near future, no development
activities are planned. It is a residential project on a land plot in size of 86
ha, located at the Mazais Baltezers lake near Riga. According to the detailed
plan, a total of 189 plots for houses with a total gross enclosed area of
172,380 m2 can be built.
CASH FLOWS
--------------------------------------------------------------------------------
| EEK | EUR |
--------------------------------------------------------------------------------
| | HY1 2009 | HY1 2008 | HY1 2009 | HY1 2008 |
--------------------------------------------------------------------------------
| In millions | | | | |
--------------------------------------------------------------------------------
| Cash flows | -8,2 | -107,0 | -0,5 | -6,8 |
| from | | | | |
| operating | | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Cash flows | 21,7 | -156,6 | 1,4 | -10,0 |
| from | | | | |
| investing | | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Cash flows | -68,2 | -267,9 | -4,4 | -17,1 |
| from | | | | |
| financing | | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Net cash | -54,7 | -531,5 | -3,5 | -34,0 |
| flow | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Cash and | 172,6 | 765,0 | 11,0 | 48,9 |
| cash | | | | |
| equivalents | | | | |
| at beginning | | | | |
| of period | | | | |
--------------------------------------------------------------------------------
| Effect of | -0,3 | -0,3 | 0,0 | 0,0 |
| exchange | | | | |
| rate | | | | |
| fluctuations | | | | |
--------------------------------------------------------------------------------
| Cash and | 117,6 | 233,2 | 7,5 | 14,9 |
| cash | | | | |
| equivalents | | | | |
| at end of | | | | |
| period | | | | |
--------------------------------------------------------------------------------
In January 2009, 40 million kroons from the loan principals related to the
Tivoli and Laeva projects were paid back on an extraordinary basis, by releasing
the Group from the obligation to keep liquid assets in an amount of 150 million
kroons (9.6 million euros) in the SEB bank. On an extraordinary basis, smaller
loans and principal amounts have been paid back, too. Apart from extraordinary
loan redemptions, the cash flows of the Group would have been positive by
approx. 10 million kroons (0.6 million euros) due to the successful cost cutting
programme. These refunding transactions have decreased the general liquidity of
the Group. The loans related to the Ahtri 3 project in the amount of 97.2
million kroons (6.2 million euros) in Sampo bank have been extended by paying
back the principal in the amount of 3.0 million kroons (0.2 million euros) only.
After the balance sheet date, a half of the commercial papers have been extended
and restructured in the amount of 26 million kroons (1.6 million euros).
Major short-term liabilities:
* the Ahtri project loan of 97.2 million kroons (6.2 million euros),
* calculated principal redemptions in the amount of approx. 40 million kroons
(2.6
million euros) from the sales of assets („Kodukolde”, „Merivälja2” and
„Boulevard Residence Madrid”)
* „Tivoli” and „Laeva2” project loans in the total amount of 114.5 million
kroons (7.3 million euros)
* „Kodukolde“ project loan in the amount of 73.4 million kroons (4.7 million
euros).
On a current basis, loans have been redeemed in the „Kodukolde” project in
Tallinn, Estonia and the „Bišumuiža-1” project in Riga, Latvia. In spring, the
relevant loans have been refunded and the new loan service level will remain
under sales prices by leaving the Group more disposable funds. Most of the
liabilities of the Group are in euros.
SERVICE DIVISION
Cost and business model optimisation started a year ago has had good results but
is still not sufficient for earning net profit. By cash flow, the revenues and
expenses of the division are in balance in the 1st quarter and do not need any
subsidy from parent company. Having the liquidity of the company as its
priority, the division sold in the 1st quarter objects that were acquired
earlier as short-term investments, due to the market situation, the prices have
sometimes been under the cost price.
The information after the balance sheet date is that in July, Service Division
in Estonia (operator of real estate agencies) made the first positive net
profit this year - approx. 0.4 million kroons (0.0 million euros), the Latvian
and the Bulgarian agencies in total broke even.
Due to the situation in real estate the number of employees in the division has
reduced by 82%, i.e. 257 persons during 12 months. The number of brokerage
transactions of the Group in 12 months has decreased by 57%, the number of
valuation reports has decreased by 60%.
The nonrecurring operating costs of the division amounted to more than 2.0
million kroons (0.1 million euros) and were related to redundancy payments and
sales of assets under their cost price.
As at the end of half-year the division employed 58 persons (2008 HY1: 315
persons).
--------------------------------------------------------------------------------
| | HY1 2009 | HY1 | change, | Q2 2009 | Q2 2008 | change, % |
| | | 2008 | % | | | |
--------------------------------------------------------------------------------
| Number of | 449 | 913 | -51% | 241 | 430 | -44% |
| brokered | | | | | | |
| objects | | | | | | |
--------------------------------------------------------------------------------
| Projects | 60 | 270 | -78% | 60 | 293 | -80% |
| being | | | | | | |
| sold, pcs. | | | | | | |
--------------------------------------------------------------------------------
| Number of | 1 625 | 4 044 | -60% | 815 | 1 992 | -59% |
| valuation | | | | | | |
| reports | | | | | | |
--------------------------------------------------------------------------------
| Number of | 32 | 46 | -30% | | | |
| appraisers | | | | | | |
| * | | | | | | |
--------------------------------------------------------------------------------
| Number of | 102 | 183 | -44% | | | |
| real | | | | | | |
| estate | | | | | | |
| brokers* | | | | | | |
--------------------------------------------------------------------------------
| Average | 58 | 315 | -82% | | | |
| number of | | | | | | |
| staff | | | | | | |
--------------------------------------------------------------------------------
* Includes authorisation agreements
DEVELOPMENT DIVISION
During the 1st half-year, 25 apartments or plots were sold and 21 objects were
reserved. Under the Boulevard Residence Madrid project in Sofia, a long-term
rental agreement with the Austrian supermarket chain Billa was concluded for
approx. 900 m2. In May, Tallinn Administrative Court cancelled the Tivoli
detailed plan (see Note 18). The Group has appealed.
The main risk factor for the development division is the refinancing of loans of
land bank in Estonia.
Although the cash flow of the Group is tense, we consider it to be sensible to
finish the unfinished projects with more favourable construction prices in
order to satisfy the demand with ready to be sold stock. No new investments are
planned at the moment.
In order to manage the liquidity risk, the prices in current projects in the
Baltics as well as in Sofia have been decreased in order to improve sales, and
during the year we aim at selling both development projects and cash flow
generating projects. For some employees, salaries and working times have been
reduced. As at the end of March the division employed 41 persons (2008 HY1: 49
persons).
Further information on the projects: www.arcorealestate.com/arendus
CONSTRUCTION DIVISION
The construction division has won tenders of environmental and infrastructure
engineering. The average volume of the tenders has decreased and the contractor
is the state or local governments.
In the 1st half-year, the major new construction agreements were the
Emajõe-Võhandu drinking water project and the Kohtla-Järve-Kiviõli sewerage
project.
In the 1st half-year new construction contracts worth 116.1million kroons (7.4
million euros) were concluded, thereof 13.0 millions kroons (0.8 million euros)
in the 2nd quarter. As at end of half-year, the residual cost of building
contracts is 143 million kroons (9.1 million euros). As at the end of first
half-year the division employed 143 persons (2008 HY1: 181 persons).
Condensed consolidated interim financial statements
Condensed consolidated income statement
--------------------------------------------------------------------------------
| | Note | HY1 2009 | HY1 2008 | Q2 2009 | Q2 2008 |
--------------------------------------------------------------------------------
| in EEK, | | | | | |
| thousands | | | | | |
--------------------------------------------------------------------------------
| Rendering | | 151 756 | 222 890 | 75 842 | 134 199 |
| of | | | | | |
| services | | | | | |
--------------------------------------------------------------------------------
| Sale of | | 33 034 | 90 589 | 14 626 | 71 759 |
| goods | | | | | |
--------------------------------------------------------------------------------
| Total | 2 | 184 790 | 313 479 | 90 468 | 205 958 |
| revenue | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cost of | 3 | -274 865 | -262 733 | -187 273 | -176 406 |
| sales | | | | | |
--------------------------------------------------------------------------------
| Gross | | -90 075 | 50 746 | -96 805 | 29 552 |
| profit | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Other | 2,4 | 92 165 | 31 342 | 90 857 | 26 948 |
| income | | | | | |
--------------------------------------------------------------------------------
| Selling | 5 | -1 999 | -9 238 | -1 120 | -4 566 |
| and | | | | | |
| distributi | | | | | |
| on costs | | | | | |
--------------------------------------------------------------------------------
| Administra | 6 | -37 979 | -72 913 | -17 377 | -38 840 |
| tive | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Other | 4 | -13 171 | -49 105 | -12 696 | -32 592 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| EBIT | | -51 059 | -49 168 | -37 141 | -19 498 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Finance | 7 | 15 141 | 31 569 | 7 369 | 17 558 |
| income | | | | | |
--------------------------------------------------------------------------------
| Finance | 7 | 9 692 | -15 929 | 18 221 | -15 228 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Profit / | | -26 226 | -33 528 | -11 551 | -17 168 |
| loss | | | | | |
| before tax | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Income tax | | -809 | -11 155 | -809 | -10 788 |
| expense | | | | | |
--------------------------------------------------------------------------------
| Profit / | | -27 035 | -44 683 | -12 360 | -27 956 |
| loss for | | | | | |
| the period | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | |
| aggregated | | | | | |
| loss | | | | | |
--------------------------------------------------------------------------------
| Exchange | | 125 | 64 | 8 | 4 |
| rate | | | | | |
| difference | | | | | |
| s in | | | | | |
| converting | | | | | |
| foreign | | | | | |
| company | | | | | |
--------------------------------------------------------------------------------
| Aggregate | | -26 910 | -44 619 | -12 352 | -27 952 |
| profit / | | | | | |
| loss for | | | | | |
| the period | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | |
| distributi | | | | | |
| on for the | | | | | |
| period: | | | | | |
--------------------------------------------------------------------------------
| Parent | | -26 259 | -51 865 | -12 561 | -36 640 |
| company's | | | | | |
| participat | | | | | |
| ion in | | | | | |
| loss | | | | | |
--------------------------------------------------------------------------------
| Minority | | -651 | 7 246 | 209 | 8 688 |
| interest | | | | | |
| in loss | | | | | |
--------------------------------------------------------------------------------
| | | -26 910 | -44 619 | -12 352 | -27 952 |
--------------------------------------------------------------------------------
| Aggregate | | | | | |
| profit | | | | | |
| distributi | | | | | |
| on for the | | | | | |
| period: | | | | | |
--------------------------------------------------------------------------------
| Parent | | -26 259 | -51 865 | -12 561 | -36 640 |
| company | | | | | |
| participat | | | | | |
| ion in | | | | | |
| aggregate | | | | | |
| loss | | | | | |
--------------------------------------------------------------------------------
| Minority | | -651 | 7 246 | 209 | 8 688 |
| interest | | | | | |
| in | | | | | |
| aggregate | | | | | |
| loss | | | | | |
--------------------------------------------------------------------------------
| | | -26 910 | -44 619 | -12 352 | -27 952 |
--------------------------------------------------------------------------------
| Earning | 8 | | | | |
| per share | | | | | |
--------------------------------------------------------------------------------
| - basic | | -0,28 | -0,54 | -0,13 | 0,38 |
--------------------------------------------------------------------------------
| - diluted | | -0,28 | -0,54 | -0,13 | 0,38 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Note | HY1 2009 | HY1 2008 | Q2 2009 | Q2 2008 |
--------------------------------------------------------------------------------
| in EUR, | | | | | |
| thousands | | | | | |
--------------------------------------------------------------------------------
| Rendering | | 9 699 | 14 245 | 4 847 | 8 577 |
| of | | | | | |
| services | | | | | |
--------------------------------------------------------------------------------
| Sale of | | 2 111 | 5 790 | 935 | 4 586 |
| goods | | | | | |
--------------------------------------------------------------------------------
| Total | 2 | 11 810 | 20 035 | 5 782 | 13 163 |
| revenue | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cost of | 3 | -17 567 | -16 792 | -11 969 | -11 274 |
| sales | | | | | |
--------------------------------------------------------------------------------
| Gross | | -5 757 | 3 243 | -6 187 | 1 889 |
| profit | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Other | 2,4 | 5 890 | 2 003 | 5 807 | 1 722 |
| income | | | | | |
--------------------------------------------------------------------------------
| Selling | 5 | -128 | -590 | -72 | -292 |
| and | | | | | |
| distributi | | | | | |
| on costs | | | | | |
--------------------------------------------------------------------------------
| Administra | 6 | -2 427 | -4 660 | -1 111 | -2 482 |
| tive | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Other | 4 | -842 | -3 138 | -811 | -2 083 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| EBIT | | -3 264 | -3 142 | -2 374 | -1 246 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Finance | 7 | 968 | 2 018 | 471 | 1 122 |
| income | | | | | |
--------------------------------------------------------------------------------
| Finance | 7 | 619 | -1 018 | 1 165 | -973 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Profit / | | -1 677 | -2 142 | -738 | -1 097 |
| loss | | | | | |
| before tax | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Income tax | | -52 | -713 | -52 | -689 |
| expense | | | | | |
--------------------------------------------------------------------------------
| Profit / | | -1 729 | -2 855 | -790 | -1 786 |
| loss for | | | | | |
| the period | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | |
| aggregated | | | | | |
| loss | | | | | |
--------------------------------------------------------------------------------
| Exchange | | 8 | 4 | 1 | 0 |
| rate | | | | | |
| difference | | | | | |
| s in | | | | | |
| converting | | | | | |
| foreign | | | | | |
| company | | | | | |
--------------------------------------------------------------------------------
| Aggregate | | -1 721 | -2 851 | -789 | -1 786 |
| profit / | | | | | |
| loss for | | | | | |
| the period | | | | | |
--------------------------------------------------------------------------------
| Profit | | | | | |
| distributi | | | | | |
| on for the | | | | | |
| period: | | | | | |
--------------------------------------------------------------------------------
| Parent | | -1 678 | -3 315 | -803 | -2 342 |
| company's | | | | | |
| participat | | | | | |
| ion in | | | | | |
| loss | | | | | |
--------------------------------------------------------------------------------
| Minority | | -42 | 463 | 13 | 555 |
| interest | | | | | |
| in loss | | | | | |
--------------------------------------------------------------------------------
| | | -1 720 | -2 852 | -790 | -1 787 |
--------------------------------------------------------------------------------
| Aggregate | | | | | |
| profit | | | | | |
| distributi | | | | | |
| on for the | | | | | |
| period: | | | | | |
--------------------------------------------------------------------------------
| Parent | | -1 678 | -3 315 | -803 | -2 342 |
| company | | | | | |
| participat | | | | | |
| ion in | | | | | |
| aggregate | | | | | |
| loss | | | | | |
--------------------------------------------------------------------------------
| Minority | | -42 | 463 | 13 | 555 |
| interest | | | | | |
| in | | | | | |
| aggregate | | | | | |
| loss | | | | | |
--------------------------------------------------------------------------------
| | | -1 720 | -2 852 | -790 | -1 787 |
--------------------------------------------------------------------------------
| Earning | 8 | | | | |
| per share | | | | | |
--------------------------------------------------------------------------------
| - basic | | -0,02 | -0,03 | -0,01 | 0,02 |
--------------------------------------------------------------------------------
| - diluted | | -0,02 | -0,03 | -0,01 | 0,02 |
--------------------------------------------------------------------------------
Statement of financial position
--------------------------------------------------------------------------------
| EEK | EUR |
--------------------------------------------------------------------------------
| | Note | 30.06.200 | 31.12.200 | 30.06.2009 | 31.12.2008 |
| | | 9 | 8 | | |
--------------------------------------------------------------------------------
| in thousands | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | | 117 580 | 172 574 | 7 515 | 11 029 |
| equivalents | | | | | |
--------------------------------------------------------------------------------
| Financial | | 32 | 40 416 | 2 | 2 583 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Receivables | 9 | 245 808 | 294 352 | 15 710 | 18 813 |
--------------------------------------------------------------------------------
| Prepayments | | 6 204 | 6 165 | 397 | 394 |
--------------------------------------------------------------------------------
| Inventories | 10 | 815 692 | 849 440 | 52 132 | 54 289 |
--------------------------------------------------------------------------------
| Biological | | 1 299 | 3 679 | 83 | 235 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Total current | | 1 186 615 | 1 366 626 | 75 839 | 87 343 |
| assets | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial | | 295 | 255 | 19 | 16 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Receivables | 9 | 10 213 | 6 671 | 653 | 427 |
--------------------------------------------------------------------------------
| Investment | 12 | 656 436 | 542 753 | 41 954 | 34 688 |
| property | | | | | |
--------------------------------------------------------------------------------
| Property, plant | 13 | 30 836 | 41 812 | 1 971 | 2 672 |
| and equipment | | | | | |
--------------------------------------------------------------------------------
| Intangible | 14 | 12 336 | 12 475 | 788 | 797 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Total | | 710 116 | 603 966 | 45 385 | 38 600 |
| non-current | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| TOTAL ASSETS | | 1 896 731 | 1 970 592 | 121 224 | 125 943 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Loans and | 15 | 501 282 | 353 417 | 32 038 | 22 587 |
| borrowings | | | | | |
--------------------------------------------------------------------------------
| Liabilities | 16 | 118 709 | 132 677 | 7 587 | 8 480 |
--------------------------------------------------------------------------------
| Deferred income | | 89 619 | 65 174 | 5 728 | 4 165 |
--------------------------------------------------------------------------------
| Provisions | | 11 703 | 5 917 | 748 | 378 |
--------------------------------------------------------------------------------
| Total current | | 721 313 | 557 185 | 46 101 | 35 610 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Loans and | 15 | 485 059 | 692 919 | 31 001 | 44 286 |
| borrowings | | | | | |
--------------------------------------------------------------------------------
| Liabilities | 16 | 5 535 | 4 404 | 354 | 281 |
--------------------------------------------------------------------------------
| Deferred income | | 20 | 20 | 1 | 1 |
| tax liability | | | | | |
--------------------------------------------------------------------------------
| Provisions | | 1 100 | 4 291 | 70 | 274 |
--------------------------------------------------------------------------------
| Total | | 491 714 | 701 634 | 31 426 | 44 842 |
| non-current | | | | | |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| TOTAL | | 1 213 027 | 1 258 819 | 77 527 | 80 452 |
| LIABILITIES | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Share capital | | 952 842 | 952 842 | 60 898 | 60 898 |
--------------------------------------------------------------------------------
| Share premium | | 0 | 712 514 | 0 | 45 538 |
--------------------------------------------------------------------------------
| Statutory | | 31 463 | 31 463 | 2 011 | 2 011 |
| capital reserve | | | | | |
--------------------------------------------------------------------------------
| Other reserves | | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Retained | | -298 413 | -984 668 | -19 072 | -62 932 |
| earnings | | | | | |
--------------------------------------------------------------------------------
| Own shares | | -3 992 | -3 992 | -255 | -255 |
--------------------------------------------------------------------------------
| Total equity | | 681 900 | 708 159 | 43 582 | 45 260 |
| attributable to | | | | | |
| equity holders | | | | | |
| of the parent | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Minority | | 1 804 | 3 614 | 115 | 231 |
| interests | | | | | |
--------------------------------------------------------------------------------
| Total equity | | 683 704 | 711 773 | 43 697 | 45 491 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| TOTAL | | 1 896 731 | 1 970 592 | 121 224 | 125 943 |
| LIABILITIES AND | | | | | |
| EQUITY | | | | | |
--------------------------------------------------------------------------------
Condensed consolidated interim cash flow statement
--------------------------------------------------------------------------------
| EEK | EUR |
--------------------------------------------------------------------------------
| | Note | HY1 2009 | HY1 2008 | HY1 2009 | HY1 2008 |
--------------------------------------------------------------------------------
| in thousands | | | | | |
--------------------------------------------------------------------------------
| Net profit / | | -27 035 | -44 683 | -1 729 | -2 855 |
| loss | | | | | |
--------------------------------------------------------------------------------
| Interest income | 7 | 13 480 | -16 004 | 862 | -1 023 |
| and expense | | | | | |
--------------------------------------------------------------------------------
| Gains and | | 0 | 19 476 | 0 | 1 245 |
| losses on | | | | | |
| disposal of | | | | | |
| subsidiaries | | | | | |
| and interests | | | | | |
| in jointly | | | | | |
| controlled | | | | | |
| entities | | | | | |
--------------------------------------------------------------------------------
| Gains and | 7 | -2 667 | 1 465 | -170 | 94 |
| losses on other | | | | | |
| financial | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Impairment | 7 | -31 634 | -25 248 | -2 022 | -1 614 |
| losses on | | | | | |
| financial | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Depreciation, | 3,4,6 | 2 382 | 3 700 | 152 | 235 |
| amortisation | | | | | |
| and impairment | | | | | |
| losses on | | | | | |
| property, plant | | | | | |
| and equipment | | | | | |
| and intangible | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Gain / loss on | 3,4,6 | -1 056 | -38 | -68 | -1 |
| the sale of | | | | | |
| property, plant | | | | | |
| and equipment | | | | | |
| and intangible | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Gain / loss on | 4 | 1 761 | 0 | 114 | 0 |
| the sale of | | | | | |
| investment | | | | | |
| property | | | | | |
--------------------------------------------------------------------------------
| Change in the | 4 | -74 420 | 16 855 | -4 756 | 1 077 |
| fair value of | | | | | |
| investment | | | | | |
| property and | | | | | |
| biological | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 3 | 108 924 | 0 | 6 962 | 0 |
| from property | | | | | |
| and inventory | | | | | |
| revaluation | | | | | |
--------------------------------------------------------------------------------
| Exchange gains | 7 | -4 012 | 4 671 | -256 | 299 |
| and losses | | | | | |
--------------------------------------------------------------------------------
| Corporate | | 651 | 11 731 | 42 | 750 |
| income tax | | | | | |
| expense | | | | | |
--------------------------------------------------------------------------------
| Operating cash | | -13 626 | -28 075 | -869 | -1 793 |
| flow before | | | | | |
| working capital | | | | | |
| changes | | | | | |
--------------------------------------------------------------------------------
| Change in | | 19 179 | -48 687 | 1 226 | -3 111 |
| receivables and | | | | | |
| prepayments | | | | | |
--------------------------------------------------------------------------------
| Change in | | -42 996 | -47 214 | -2 748 | -3 018 |
| inventories | | | | | |
--------------------------------------------------------------------------------
| Change in | | 2 190 | 474 | 140 | 30 |
| biological | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Change in | | 27 082 | 16 454 | 1 731 | 1 052 |
| payables and | | | | | |
| deferred income | | | | | |
--------------------------------------------------------------------------------
| NET CASH USED | | -8 171 | -107 048 | -520 | -6 840 |
| IN OPERATING | | | | | |
| ACTIVITIES | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | -7 599 | -12 885 | -486 | -824 |
| property, plant | | | | | |
| and equipment | | | | | |
| and intangible | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Proceeds from | | 3 600 | 313 | 230 | 20 |
| sale of | | | | | |
| property, plant | | | | | |
| and equipment | | | | | |
| and intangible | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | -5 100 | -900 | -326 | -58 |
| investment | | | | | |
| property | | | | | |
--------------------------------------------------------------------------------
| Proceeds from | | 205 | 29 000 | 13 | 1 853 |
| sale of | | | | | |
| investment | | | | | |
| property | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | 0 | -126 299 | 0 | -8 072 |
| subsidiaries | | | | | |
| and interests | | | | | |
| in jointly | | | | | |
| controlled | | | | | |
| entities | | | | | |
--------------------------------------------------------------------------------
| Proceeds from | | 0 | 1 005 | 0 | 64 |
| disposal of | | | | | |
| subsidiaries | | | | | |
| and interests | | | | | |
| in jointly | | | | | |
| controlled | | | | | |
| entities | | | | | |
--------------------------------------------------------------------------------
| Acquisition of | | 0 | -126 500 | 0 | -8 085 |
| other financial | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Proceeds from | | 45 739 | 107 502 | 2 923 | 6 871 |
| sale of other | | | | | |
| financial | | | | | |
| assets | | | | | |
--------------------------------------------------------------------------------
| Loans granted | | -23 480 | -49 739 | -1 501 | -3 179 |
--------------------------------------------------------------------------------
| Repayment of | | 5 429 | 3 426 | 347 | 219 |
| loans granted | | | | | |
--------------------------------------------------------------------------------
| Interest | | 2 921 | 18 460 | 187 | 1 180 |
| received | | | | | |
--------------------------------------------------------------------------------
| NET CASH USED | | 21 715 | -156 617 | 1 387 | -10 011 |
| IN / FROM | | | | | |
| INVESTING | | | | | |
| ACTIVITIES | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Proceeds from | | 74 601 | 41 754 | 4 768 | 2 669 |
| loans received | | | | | |
--------------------------------------------------------------------------------
| Repayment of | | -120 987 | -227 687 | -7 732 | -14 552 |
| loans and | | | | | |
| payment of | | | | | |
| finance lease | | | | | |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Change in | | 0 | -14 | 0 | -1 |
| overdraft | | | | | |
--------------------------------------------------------------------------------
| Change in group | | 0 | -798 | 0 | -51 |
| account | | | | | |
| liability | | | | | |
--------------------------------------------------------------------------------
| Interest paid | | -21 819 | -35 917 | -1 394 | -2 296 |
--------------------------------------------------------------------------------
| Dividends paid | | 0 | -42 274 | 0 | -2 702 |
--------------------------------------------------------------------------------
| Income tax paid | | 0 | -2 916 | 0 | -186 |
| on dividends | | | | | |
--------------------------------------------------------------------------------
| NET CASH USED | | -68 205 | -267 852 | -4 358 | -17 119 |
| IN / FROM | | | | | |
| FINANCING | | | | | |
| ACTIVITIES | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| NET CASH FLOW | | -54 661 | -531 517 | -3 491 | -33 970 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | | 172 574 | 765 008 | 11 029 | 48 893 |
| equivalents at | | | | | |
| beginning of | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| Decrease / | | -54 661 | -531 517 | -3 493 | -33 970 |
| increase in | | | | | |
| cash and cash | | | | | |
| equivalents | | | | | |
--------------------------------------------------------------------------------
| Effect of | | -333 | -333 | -22 | -21 |
| exchange rate | | | | | |
| fluctuations | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | | 117 580 | 233 158 | 7 515 | 14 901 |
| equivalents at | | | | | |
| end of period | | | | | |
--------------------------------------------------------------------------------
