General information and changes in organisational structure
AS Kalev pursues several fields of activity, including manufacturing and sale of
foodstuffs, real-estate-related activities, as well as publishing and printing
activities. The company has long-term experience in the chocolate, sugar and
flour confectionery product segment as well as the dairy product segment.
Foodstuff production is carried out in five production plants located in
Põrguvälja (in Rae Municipality), Paide, Viljandi, Jõhvi and Kiviõli. Kalev's
sales activities are pursued through a pan-Estonian retail chain which consists
of 15 candy stores and cafes. AS Kalev has also been involved in real estate
development and administration for a longer period of time. AS Kalev has also
branched out into publishing and printing.
A restructuring process was launched in AS Kalev Group last financial year. A
significant portion of the results will already be seen before the end of the
current financial year.
In May 2006, AS Kalev Chocolate Factory was established for the purpose of
manufacturing and marketing chocolate and sugar confectionery products. In
September this financial year, AS Kalev Chocolate Factory also started
manufacturing the bakery and flour confectionery products of subsidiaries AS
Vilma and AS Kalev Jõhvi Tootmine.
A new subsidiary was incorporated under the AS Kalev Group structure in the
first quarter of the financial year 2006/2007. AS Kalev Real Estate Company (AS
Kalev REC) acquired BCA Center, a private limited company which has a share
capital of 40 000 kroons and is fully owned by AS Kalev REC. Through OÜ BCA
Center, AS Kalev REC participated in the Private Partnership for Tallinn Schools
Project competitions. Winning of these competitions, OÜ BCA Center concluded a
contract on the right of superficies on registered immovables which accommodate
five schools. OÜ BCA Center obliged to reconstruct the real estate objects (a
total area of nearly 27 700 m2) and lease them out to Tallinn City for a term of
thirty years. The average rent was established at 155 kr/m2, which includes
maintenance and periodical major repairs of the school buildings and the
surrounding areas (administration, maintenance of technical systems, interior
and exterior cleaning) during the term of the contract. The investment
obligation is secured by AS Kalev REC and must be fulfilled in the second half
of 2008 at the latest.
As the most renowned Estonian company and a major advertiser, AS Kalev has a
direct relationship with the media market. This is also the reason for expansion
of the investment portfolio towards the press market. As a socially active
company, AS Kalev acknowledges its co-responsibility in the shaping of the
public opinion, even though the company has no intentions of intervening in the
contents of the acquired publications. The company aims at creating additional
value for various publications. In the publishing and printing segment, AS Kalev
is expecting a long-term and stable profit from the relatively quickly growing
media market.
In the second quarter of the financial year, several new subsidiaries and
associated companies were incorporated into Kalev Group. AS Kalev acquired a
19.4% stake in AS PR Põhjarannik. AS Kalev won the right to purchase the company
at the auction held on 21 November 2006 where AS Kalev was declared the best
bidder. AS PR Põhjarannik's main activities include publication, printing
services and organisation of information dissemination. Among other things, AS
PR Põhjarannik issues the daily “Põhjarannik” in both Estonian and Russian, with
the paper issue covering a majority of North-eastern Estonia.
On 28 November, AS Kalev concluded a contract under which the company acquired
100% of the shares of AS Inreko Press. The main fields of activity of AS Inreko
Press include publishing, and organisation of public events and press events.
The public limited company publishes journals and books (including, for
instance, "Sporditäht" and "Ärielu").
On 19 December 2006, AS Kalev concluded a contract under which the company
acquired all shares of OÜ Olliwood. Under the contract, the ownership was
transferred to AS Kalev on the moment of the notarisation of the contract of
sale. OÜ Olliwood's main activities include publishing — including, for
instance, "Just" and "Basket", and the children's publication "Muumi" — and
organisation of public and press events.
The third quarter of the financial year saw the incorporation of a few more
subsidiaries and associated companies into AS Kalev Group. On 20 February, AS
Kalev concluded a contract on the purchase and sale of an 80% stake in AS
Uniprint. AS Uniprint is involved with the provision of printing services —
various advertising and small publications, official documents and quality
journals. AS Kalev had previously concluded a contract under which the company
acquired 20% of the shares in the above public limited company. With the
transaction, AS Kalev thus effectively became the full owner of AS Uniprint.
Under the contract, AS Kalev had to pay a total of nearly 54.8 million kroons
for 80% of the shares, with 4 million kroons of the purchase price paid by AS
Kalev on the day of conclusion of the contract of sale. In April, AS Kalev paid
24.1 million kroons of the transaction price, with nearly 26.7 million kroons to
be paid by 5 April 2009 at the latest. If the company pays for the shares before
the term indicated in the contract of sale, the purchase price will be reduced
by deducting an annual 6% of the purchase price for the period of advance
payment of the purchase price by AS Kalev. The right of ownership over the
shares will be transferred to AS Kalev on the day of payment of the last
instalment. Until transfer of the right of ownership over the shares, the
sellers shall encumber the AS Uniprint shares which form the object of the
contract of sale for the benefit of AS Kalev. With the contract concluded on 3
January 2007, AS Kalev also acquired, in March, 50% of the shares of AS
Uniprint's subsidiary AS Unipress.
On 12 March 2007, AS Kalev concluded a contract under which the company acquired
all shares of AS Eksklusiiv. Under the contract, the ownership over 100% of the
shares was transferred to AS Kalev on 14 March 2007. AS Eksklusiiv's main field
of activity is publication of „Avenüü“ and „Avenüü Professional“ journals.
The above acquisitions do not constitute related party transactions in the
meaning of the stock exchange rules.
Kalev Group's parent company is AS Kalev. In addition, the group incorporates
fourteen subsidiaries. AS Kalev has a significant interest in the following
companies:
1.2. Financial results
In the first 9 months of the financial year 2006/2007, AS Kalev Group had an
average of 779 employees (786 employees in the comparative period last financial
year).
The net sales and net profit of AS Kalev Group companies for the first 9 months
of the financial year 2006/2007 have been brought out in the below tables (in
thousands of kroons and euros), separately for each company. Data has been
presented for 10 companies, because the balance sheet volume of AS Kalev
Merchant Services Ltd only makes up less than 0.5% of the parent company's
turnover. The data on associated companies and AS Eksklusiiv has not been
included, since AS Kalev only acquired the latter in March 2007. The data on AS
Kalev Paide Tootmine and AS Kalev Real Estate Company also includes the
corresponding financial results of their subsidiaries.
* consolidated
--------------------------------------------------------------------------------
| | Net sales | | Net profit | |
--------------------------------------------------------------------------------
| EEK | 2006/2007 | 2005/2006 | 2006/2007 | 2005/2006 |
--------------------------------------------------------------------------------
| | 9 months | 9 months | 9 months | 9 months |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AS Kalev | 144392 | 319797 | -38894 | -5851 |
--------------------------------------------------------------------------------
| AS Kalev Chocolate | 334434 | 0 | 24207 | 0 |
| Factory | | | | |
--------------------------------------------------------------------------------
| AS Kalev Paide | 232533 | 335889 | 6568 | -14229 |
| Tootmine* | | | | |
--------------------------------------------------------------------------------
| AS Kalev REC* | 329874 | 68984 | 36808 | 67418 |
--------------------------------------------------------------------------------
| AS Kalev Jõhvi Tootmine | 28081 | 25929 | -3268 | -1267 |
--------------------------------------------------------------------------------
| OÜ Maiasmokk | 5474 | 5055 | -307 | -770 |
--------------------------------------------------------------------------------
| AS Vilma | 21106 | 29966 | -65 | 806 |
--------------------------------------------------------------------------------
| OÜ Sugarstar | 2454 | 0 | -750 | 0 |
--------------------------------------------------------------------------------
| AS Inreko Press | 2103 | 0 | -35 | 0 |
--------------------------------------------------------------------------------
| OÜ Olliwood | 2664 | 0 | -1007 | 0 |
--------------------------------------------------------------------------------
* consolidated
--------------------------------------------------------------------------------
| | Net sales | | Net profit | |
--------------------------------------------------------------------------------
| EUR | 2006/2007 | 2005/2006 | 2006/2007 | 2005/2006 |
--------------------------------------------------------------------------------
| | 9 months | 9 months | 9 months | 9 months |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| AS Kalev | 9228 | 20439 | -2486 | -374 |
--------------------------------------------------------------------------------
| AS Kalev Chocolate | 21374 | 0 | 1547 | 0 |
| Factory | | | | |
--------------------------------------------------------------------------------
| AS Kalev Paide | 14862 | 21467 | 420 | -909 |
| Tootmine* | | | | |
--------------------------------------------------------------------------------
| AS Kalev REC* | 21083 | 4409 | 2352 | 4309 |
--------------------------------------------------------------------------------
| AS Kalev Jõhvi Tootmine | 1795 | 1657 | -209 | -81 |
--------------------------------------------------------------------------------
| OÜ Maiasmokk | 350 | 323 | -20 | -49 |
--------------------------------------------------------------------------------
| AS Vilma | 1349 | 1915 | -4 | 52 |
--------------------------------------------------------------------------------
| OÜ Sugarstar | 157 | 0 | -48 | 0 |
--------------------------------------------------------------------------------
| AS Inreko Press | 134 | 0 | -2 | 0 |
--------------------------------------------------------------------------------
| OÜ Olliwood | 170 | 0 | -64 | 0 |
--------------------------------------------------------------------------------
The economic activities of AS Kalev and the profitability of the financial
indicators of the group in the given period have been significantly affected by
the group restructuring process and product portfolio reorganisation launched at
the end of last financial year. In the first 9 months of the financial year
2006/2007, consolidated net sales amounted to 721.6 million kroons (46.1 million
euros). The net sales have increased by nearly 1%, compared to the same period
last financial year, with the Group's total net sales being affected by a drop
in the milk product sales volume and turnover increase in the real estate
segment. The consolidated net profit of AS Kalev for the first 9 months of the
financial year amounted to 25.2 million kroons (1.6 million euros). The net
profit for the comparative period amounted to nearly 41 million kroons (2.6
million euros). The higher profitability indicators, compared to last financial
year, were conditioned by the projects realised by AS Kalev REC.
Important factors contributing to the results of AS Kalev Group for the first 9
months of the financial year:
1) The 15% annual increase in confectionery product turnover, with the segment
profitability increasing more than the sales;
2) A near 28% decrease in milk product segment turnover; the negative results
for the comparative period have quickly shrank, with the milk product segment
brought out of the red in the reporting period;
3) The flour confectionery segment results for the financial year exceed the
results for the comparative period by nearly two times.
AS Kalev has increased gearing in the financing of its activities and
development. The company has issued short-term bonds. The group's financial
expenses have been increased by the refinancing of loans, redemption of bonds as
well as new mortgages taken in the first three quarters of the financial year.
The purposes mainly involve financing activities in the field of real estate
administration and development.
Most important financial ratios in Kalev Group*
--------------------------------------------------------------------------------
| | AS Kalev Group |
--------------------------------------------------------------------------------
| | 01.07.2006- | 01.07.2005- |
--------------------------------------------------------------------------------
| | 31.03.2007 | 31.03.2006 |
--------------------------------------------------------------------------------
| Current ratio | 0.79 | 0.67 |
--------------------------------------------------------------------------------
| Financial gearing | 0.71 | 0.68 |
--------------------------------------------------------------------------------
| Asset turnover ratio | 0.66 | 0.90 |
--------------------------------------------------------------------------------
| Net profit margin (%) | 3.5% | 5.8% |
--------------------------------------------------------------------------------
| Return on assets, ROA (%) | 2.3% | 5.2% |
--------------------------------------------------------------------------------
* The financial ratios have been calculated based on the following methods:
Current ratio = current assets / current liabilities
Financial gearing = total liabilities / average total assets
Asset turnover ratio = revenue / average total assets
Net profit margin = net profit / revenue * 100%
Return on assets (ROA) = net profit / average total assets * 100%
1.3. Product market and sales
In the first 9 months of the financial year 2006/2007 AS Kalev sold a total of
16 600 tons of confectionery and dairy products. Total sales decreased by 19%
compared to the same period last financial year. 56% of the total sales were
sold at the home market, and 44% exported.
1.3.1. Confectionery products
The total sales of the sugar and chocolate confectionery products of Kalev Group
increased by 11% in the first 9 months of the financial year 2006/2007, compared
to the same period last year (incl. +16% in the 3rd quarter), amounting to
nearly 290 million kroons (118.5 million euros). The total sales volume in the
segment amounted to 4 702 tons in the first 9 months of the financial year
2006/2007, remaining on par with the total volume of sugar and chocolate
confectionery products sold in the same period last year. At the same time, the
dynamics of the sale of confectionery products was different for different
product groups: a significant growth could be seen in the sales of chocolate
tablets (17%) and boxed chocolate candies (11%); the sale of candies increased
by 8%, compared to the first 9 months of the last financial year. The sale of
chocolate tablets showed the biggest growth in volume (15%), compared to the
same period last financial year. The profitability of the sugar and chocolate
confectionery products, however, increased even faster than sales, growing by
20% from the same period last year. These results were achieved through
production efficiency enhancement, product portfolio optimising, price
corrections and successful launch of new products.
According to the retail trade survey conducted by AC Nielsen Eesti (March 2007),
Kalev Group is still the leader of the Estonian chocolate and sugar
confectionery market - the company's market share was 35.7% as regards turnover,
and 41.4% as regards sales volume. The same survey also ranked Kalev third on
the biscuit market, with a 9.1% market share as regards sales volume. On the
Estonian bread market, Kalev has a 3% market share as regards turnover.
In the 3rd quarter of the financial year, the company launched two new chocolate
tablets - Kalev tiramisu-flavoured milk chocolate with biscuit pieces (100g) and
Kalev white chocolate with biscuit and strawberry pieces (100g). The company
also launched new boxed chocolate candies — Kadriorg assortment of praline
candies (435 g) and Kalev Souffle assortment of chocolate candies with whipped
filling (235g). New candies included Kalev cherry-flavoured jelly candy (and the
same as a 20g uncoated candy). In the given period, the company also launched a
total of 11 specially designed Valentine's Day and Easter products.
The sale of Kalev Group flour confectionery products (incl. bakery products,
biscuits and flour mixes) increased by a little over 2% in the first 9 months of
the financial year 2006/2007 (by nearly 16% in the 3rd quarter). As regards
volume, the total sales of the same segment amounted to 2 986 tons in the first
9 months of the financial year 2006/2007. The sale of flour confectionery
products decreased by nearly 8% compared to the same period last financial year.
Similarly to sugar and chocolate confectionery segments, different sales
dynamics can be distinguished among the product groups of the flour
confectionery segment: e.g. the sale of flour mixes increased by 25% compared to
the first 9 months of last financial year, and the sale of bakery products by 7%
while biscuit sales decreased by 10%. In the bakery product segment, a new cake
portfolio (a total of 11 products) was launched under Kalev trademark and 5 new
strudels under Linda trademark in the 3rd quarter. In addition, 11 new products
were launched under Linda and Kalevipoeg trademark in the bread segment.
Of the total sale of confectionery products (incl. sugar, chocolate and flour
confectionery products) in the financial year 2006/2007, domestic sales made up
the majority (91%), with nearly 9% of the products being exported to foreign
markets. Russia made up 34% of the total export of confectionery products in the
financial year, the so-called Travel Trade segment nearly 21%, and other
countries 15%. The export of confectionery products increased by 11.5% compared
to the first 9 months of the last financial year.
Through its retail network of 15 stores, the company sold 16.4 million kroons
worth of goods (incl. sugar, chocolate and flour confectionery products, bakery
products and other purchased products) to final consumer in the first 9 months
of the year.
1.3.2. Dairy products
The total sale of AS Kalev's dairy products in the first 9 months of the
financial year amounted to 8 700 tons. This constitutes a near 28% decrease
compared to the same period last year. Export made up 78% of the sales of dairy
products, with most of the output exported to EU member states. Germany was the
biggest export destination, buying 57% of the total sales.
in the first 9 months of the financial year 2006/2007, crude milk stocked by AS
Kalev Paide Tootmine was used for producing various dairy products - mainly
skimmed milk and milk powder, high-temperature pasteurized milk and cream - in
the total volume of 8 320 tons, of which whole milk and skimmed milk powder and
cream made up the majority (85.5%). New products launched by the company
included cream powder.
In the reporting period, the internal EU prices for whole milk and skimmed milk
powder were more favourable compared to the base period. The wholesale price for
skimmed milk powder increased by 14.4% in Germany (the nine-month average for
2005/2006: 1.994 EUR/t; the nine-month average for 2006/2007: 2.281 EUR/t) and
the price for milk powder by 5.8% (the nine-month average for 2005/2006: 2.405
EUR/t; the nine-month average for 2006/2007: 2.545 EUR/t).
AS Kalev's subsidiary AS Kalev Paide Tootmine concluded, for the first half-year
2007, crude milk buying-in contracts under which the company will supply nearly
160 tons of crude milk a day. The negotiated price formation was based on a
co-operation model which considers a long-term partnership between the parties
and which was satisfactory for both dairy producers and processors. Under the
agreement, the price of crude milk will be formed on the basis of the European
average prices for milk powder, skimmed milk powder and butter.
1.3.3. Real estate activities
AS Kalev pursues real estate management and development activities through its
subsidiary AS Kalev Real Estate Company (hereinafter Kalev REC), and through its
subsidiaries and associated companies. In the real estate segment, the most
important current project has to do with the development activities of the
subsidiary OÜ BCA Center in the reconstruction of five schools within the
framework of the Private Partnership for Tallinn Schools Project. Kalev REC also
continued further development of ongoing real estate projects. The company
completed a 19-apartment building on Marat street in Tallinn, and a 25-apartment
building on Hommiku street in Pärnu, of which the company has already sold 13
and 15 apartments, respectively. Kalev REC also sold a registered immovable in
Kadriorg, Tallinn. Under the detailed plan, an apartment building with a total
area of 1800 m2 may be built on the site. Kalev REC's Bulgarian-based subsidiary
EOOD Stude REC launched construction of an apartment building in Sofia. The
building is scheduled to be completed in the spring of 2008.
In addition to focusing on development of residential and commercial space,
Kalev REC is increasingly paying attention to the public real estate market
segment, actively participating in the private partnership project tenders.
1.3.4. Media
During the financial year, AS Kalev has expanded its investment portfolio into
the relatively quickly-growing publishing and printing segment. On the media
market, the company is expecting a long-term stable profit. For this purpose, AS
Kalev conducted, during the 3rd quarter of the financial year, an in-depth
analysis of the management and activities of the acquired publishing companies
as well as the overall situation in the market segment. The conclusions drawn by
the company were used for specifying AS Kalev's objectives in the media segment,
and the development directions for the acquired products. Several preparatory
activities have been launched for organisational and product development
purposes. Consolidation of different publishing companies allows to create
synergy in the future, and to optimise activities and resources.
According to an Emor survey, the reader numbers and circulation of the
publications acquired by AS Kalev has remained the same.
1.4. Future activities
The home market is the main market for AS Kalev's sugar and chocolate
confectionery products. It is therefore important for the company to maintain
its current market share. The company continues to pursue its goal of increasing
the profitability of the sales of its confectionery and dairy products through
assortment optimisation and production efficiency enhancement.
The profitability of the production activities are closely tied with various
exogenous factors: the lack of skilled labour on the local market, and the
general wage increase have a direct effect on the company's expenses, with the
local economy and economic-political factors on foreign markets having an effect
on the demand. Further to the development in the supply of production factors,
the investment plan includes projects designed for reducing the labour required
for the processes. Product development will play an important role. In the
chocolate confectionery segment, the company will focus on developing chocolate
tablets, chocolate candy and boxed chocolate candy. In the sugar confectionery
segment, the focus will lie on chewing candy and toffee. Product development
will include both extension of the best before dates and creation of new
flavours.
The company's goal in the bread segment of the bakery and flour confectionery
sector is to obtain a 12% domestic market share in the medium-long perspective.
The share of bakery products is expected to increase in the flour confectionery
segment, with continual focus to be paid to the biscuit and flour mix segment.
As regards the dairy product segment, AS Kalev will focus on product positioning
in order to ensure sustainability of the introduced changes. In order to achieve
our goals, we will bring our product portfolio into line with the Group strategy
in accordance with the market situation. Raw material price and energy
consumption remain the two key factors contributing to the cost price in the
production of dairy products. Conclusion of a long-term raw material contract
therefore proves very important for planning future activities. In addition to
the benefits received from long-term raw material contracts concluded with
suppliers, we can also enhance efficiency of the production processes in AS
Kalev Paide Tootmine, thus ensuring an increase in productivity.
Real estate activities are pursued through AS Kalev REC and its direct
subsidiaries. Real estate sector — one of the most quickly-growing branches of
economy in the present economic cycle — remains an important part of AS Kalev
Group's diverse value creation process. In addition to focusing on residential
and commercial space development, the Group's real estate development pursuits
concentrate around the public real estate market, incl. participation in the
so-called private partnership projects.
Entry into and expansion of activities in the printing service and media sector
have the aim of diversifying the investment portfolio of AS Kalev. Financial
investments in the sector involve both the print industry and companies
operating in the press industry. In the media segment, AS Kalev will continue
its activities aimed at organisational and product development.
INCOME STATEMENT
in thousands of kroons and euros
--------------------------------------------------------------------------------
| | Consolidat | Consolidated EUR | |
| | ed EEK | | |
--------------------------------------------------------------------------------
| | 9 months | 9 months | 9 months | 9 months |
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 721562 | 714548 | 46116 | 45668 |
--------------------------------------------------------------------------------
| Cost of sales of goods | -568972 | -596161 | -36364 | -38102 |
| and services | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 152590 | 118387 | 9752 | 7566 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing expenses | -82266 | -73699 | -5258 | -4710 |
--------------------------------------------------------------------------------
| Administrative and | -72085 | -49222 | -4607 | -3146 |
| general expenses | | | | |
--------------------------------------------------------------------------------
| Other income and | 49721 | 56581 | 3178 | 3616 |
| expenses | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 47960 | 52047 | 3065 | 3326 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other financial income | -22754 | -10363 | -1454 | -662 |
| and expenses | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss before | 25206 | 41684 | 1611 | 2664 |
| minority interest | | | | |
--------------------------------------------------------------------------------
| Share of minority | 29 | -415 | 2 | -27 |
| shareholders | | | | |
--------------------------------------------------------------------------------
| Net profit/loss for the | 25235 | 41269 | 1613 | 2638 |
| financial year | | | | |
--------------------------------------------------------------------------------
| Net earnings per share | 1 | 2 | 0 | 0 |
| held by the owners of | | | | |
| the parent company | | | | |
| (basic and diluted; in | | | | |
| kroons and euros) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Consolidat | Consolidated EUR | |
| | ed EEK | | |
--------------------------------------------------------------------------------
| | 3rd q | 3rd q | 3rd q | 3rd q |
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2007 | 2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue | 263805 | 174760 | 16860 | 11169 |
--------------------------------------------------------------------------------
| Cost of sales of goods and | -219526 | -153205 | -14030 | -9792 |
| services | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 44279 | 21555 | 2830 | 1378 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing expenses | -28776 | -24731 | -1839 | -1581 |
--------------------------------------------------------------------------------
| Administrative and general | -23598 | -17741 | -1508 | -1134 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Other income and expenses | 32133 | 38264 | 2054 | 2446 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 24038 | 17347 | 1536 | 1109 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other financial income and | -9307 | -4065 | -595 | -260 |
| expenses | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss before minority | 14731 | 13282 | 941 | 849 |
| interest | | | | |
--------------------------------------------------------------------------------
| Share of minority | 7 | 12 | 0 | 1 |
| shareholders | | | | |
--------------------------------------------------------------------------------
| Net profit/loss for the | 14738 | 13294 | 941 | 850 |
| financial year | | | | |
--------------------------------------------------------------------------------
| Net earnings per share held | 1 | 1 | 0 | 0 |
| by the owners of the parent | | | | |
| company (basic and diluted; | | | | |
| in kroons and euros) | | | | |
--------------------------------------------------------------------------------
BALANCE SHEET
in thousands of kroons and euros
--------------------------------------------------------------------------------
| | Consolidat | Consolidated EUR | |
| | ed EEK | | |
--------------------------------------------------------------------------------
| | 31.03.2007 |31.06.2006 |31.03.2007 |31.06.2006
|
| | | | | |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 5 488 | 10 080 | 351 | 644 |
--------------------------------------------------------------------------------
| Receivables | 162 276 | 134 930 | 10 371 | 8 624 |
--------------------------------------------------------------------------------
| Prepayments | 1 136 | 1 715 | 73 | 110 |
--------------------------------------------------------------------------------
| Inventories | 206 458 | 240 334 | 13 195 | 15 360 |
--------------------------------------------------------------------------------
| Total current assets | 375 358 | 387 059 | 23 990 | 24 738 |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Long-term receivables | 6 900 | 7 230 | 441 | 462 |
--------------------------------------------------------------------------------
| Investments into other | 31 547 | 0 | 2 016 | 0 |
| companies | | | | |
--------------------------------------------------------------------------------
| Investment property | 146 550 | 89 944 | 9 366 | 5 748 |
--------------------------------------------------------------------------------
| Property, plant and | 564 101 | 545 840 | 36 053 | 34 886 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 21 395 | 4 560 | 1 367 | 291 |
--------------------------------------------------------------------------------
| Total non-current assets | 770 493 | 647 574 | 49 243 | 41 388 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 1 145 851 |1 034 633| 73 233 | 66 125 |
| | | | | |
--------------------------------------------------------------------------------
| LIABILITIES AND OWNER'S EQUITY | |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Borrowings | 225 874 | 240 464 | 14 436 | 15 368 |
--------------------------------------------------------------------------------
| Prepayments received from | 8 296 | 27 821 | 530 | 1 778 |
| customers | | | | |
--------------------------------------------------------------------------------
| Accounts payable and other | 238 877 | 286 717 | 15 267 | 18 325 |
| payables | | | | |
--------------------------------------------------------------------------------
| Provisions | 0 | 3 200 | 0 | 205 |
--------------------------------------------------------------------------------
| Total current liabilities | 473 047 | 558 202 | 30 233 | 35 676 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Borrowings | 304 075 | 132 908 | 19 434 | 8 494 |
--------------------------------------------------------------------------------
| Total non-current | 304 075 | 132 908 | 19 434 | 8 494 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 777 122 | 691 110 | 49 667 | 44 170 |
--------------------------------------------------------------------------------
| Minority interest | 59 | 88 | 4 | 6 |
--------------------------------------------------------------------------------
| Owners' equity | | | |
--------------------------------------------------------------------------------
| Share capital | 236 325 | 236 325 | 15 104 | 15 104 |
--------------------------------------------------------------------------------
| Mandatory reserve | 4 020 | 4 020 | 257 | 257 |
--------------------------------------------------------------------------------
| Revaluation reserve | 116 315 | 116 315 | 7 434 | 7 434 |
--------------------------------------------------------------------------------
| Retained earnings | 12 010 | -13 225 | 768 | -845 |
--------------------------------------------------------------------------------
| Total owner's equity | 368 670 | 343 435 | 23 562 | 21 949 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES, MINORITY | 1 145 851 |1 034 633 | 73 233 | 66 125 |
| INTEREST AND OWNER'S EQUITY | | | | |
--------------------------------------------------------------------------------
