Market announcement
Arco Vara AS
Category
Half-yearly financial report
Attachments
Date
29.08.2008 15:45:12
Title
6 kuu ja teise kvartali 2008 auditeerimata tulemused
Message
I poolaasta äritulud kokku moodustasid 344.8 mln krooni (22.0 mln eurot), mis on 29% vähem kui eelmisel aastal Ärikasum oli -49.2 mln krooni (-3.1 mln eurot), 137.3 mln krooni (8.8 mln eurot) vähem kui eelmisel aastal Puhaskasum oli -44.7 mln krooni (-2.9 mln eurot), 271.9 mln krooni (17.4 mln eurot) vähem kui eelmisel aastal. Omakapital moodustab 56.1% (2007 I pa: 57.6%) bilansimahust. Omakapitali tootlikkus oli -2.2% (2007 I pa: 40.0%). Investeeritud kapitali tootlikkus oli 0.3% (2007 I pa: 21.9%) Ehituslepingute järelejäänud maht oli 338 mln krooni (21.6 mln eurot) võrrelduna 358 mln krooniga (23.0 mln eurot) I. kvartalis I pa jooksul müüdi või broneeriti kortereid ja krunte kokku 78 tükki (2007 I pa: 67 tükki). -------------------------------------------------------------------------------- | | EEK | EEK | EEK | EEK | EUR | EUR | EUR | EUR | -------------------------------------------------------------------------------- | Miljonites | 6 | 6 | Q2 | Q2 | 6 | 6 | Q2 | Q2 | | | kuud | kuud | 2008 | 2007 | kuud | kuud | 2008 | 2007 | | | 2008 | 2007 | | | 2008 | 2007 | | | -------------------------------------------------------------------------------- | Müügitulu ja | 344.8 | 487.6 | 232. | 147.1 | 22.0 | 31.2 | 14.9 | 9.4 | | muu äritulu | | | 9 | | | | | | -------------------------------------------------------------------------------- | Ärikasum | -49.2 | 88.1 | -19. | 15.8 | -3.1 | 5.6 | -1.2 | 1.0 | | | | | 5 | | | | | | -------------------------------------------------------------------------------- | s.h | -16.9 | 55.4 | -4.4 | 6.7 | -1.1 | 3.5 | -0.3 | 0.4 | | kinnisvarainv | | | | | | | | | | esteeringute | | | | | | | | | | ümberhindluse | | | | | | | | | | d | | | | | | | | | -------------------------------------------------------------------------------- | Kasum enne | -33.5 | 237.1 | -17. | 167.7 | -2.1 | 15.2 | -1.1 | 10.7 | | tulumaksu | | | 2 | | | | | | -------------------------------------------------------------------------------- | s.h kasum või | -19.5 | 123.0 | -19. | 7.7 | -1.2 | 7.9 | -1.2 | 0.5 | | kahjum | | | 5 | | | | | | | finantsvarade | | | | | | | | | | võõrandamises | | | | | | | | | | t | | | | | | | | | -------------------------------------------------------------------------------- | Puhaskasum | -44.7 | 227.2 | -28. | 158.1 | -2.9 | 14.5 | -1.8 | 10.1 | | | | | 0 | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | EPS 1 | -0.54 | 3.27 | -0.3 | 2.34 | -0.03 | 0.21 | -0.02 | 0.15 | | (kroonides ja | | | 8 | | | | | | | eurodes) | | | | | | | | | -------------------------------------------------------------------------------- | EPS 2 | -0.54 | 3.27 | -0.3 | 2.34 | -0.03 | 0.21 | -0.02 | 0.15 | | (kroonides ja | | | 8 | | | | | | | eurodes) | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Varad kokku, | 3,267 | 3,334 | | | 208.8 | 213.1 | | | | perioodi lõpu | .0 | .0 | | | | | | | | seisuga | | | | | | | | | -------------------------------------------------------------------------------- | Investeeritud | 3,019 | 2,986 | | | 192.9 | 190.9 | | | | kapital, | .0 | .2 | | | | | | | | perioodi lõpu | | | | | | | | | | seisuga | | | | | | | | | -------------------------------------------------------------------------------- | Neto laenud, | 815.4 | -78.2 | | | 52.1 | -5.0 | | | | perioodi lõpu | | | | | | | | | | seisuga | | | | | | | | | -------------------------------------------------------------------------------- | Omakapital, | 1,832 | 1,921 | | | 117.1 | 122.8 | | | | perioodi lõpu | .7 | .3 | | | | | | | | seisuga | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Laenude | 1.9 | n/a | | | 1.9 | n/a | | | | keskmine | | | | | | | | | | pikkus, | | | | | | | | | | aastad | | | | | | | | | -------------------------------------------------------------------------------- | Laenude | 7.2% | n/a | | | 7.2% | n/a | | | | keskmine | | | | | | | | | | intress, | | | | | | | | | | aastas | | | | | | | | | -------------------------------------------------------------------------------- | ROIC (jooksev | 0.3% | 21.9% | | | 0.3% | 21.9% | | | | 4 kvartalit) | | | | | | | | | -------------------------------------------------------------------------------- | ROE (jooksev | -2.2% | 40.0% | | | -2.2% | 40.0% | | | | 4 kvartalit) | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Töötajate arv | 569 | 574 | | | 569 | 574 | | | | perioodi | | | | | | | | | | lõpul | | | | | | | | | -------------------------------------------------------------------------------- Juhatuse esimehe kommentaarid Makromajanduse ja sektori refinantseerimisrisk iseloomustab järjest rohkem ka Arco Vara teisi koduturge: Ukrainat, Bulgaariat ja Rumeeniat. Võitjaks antud olukorras jäävad head likviidsuspositsiooni omavad ettevõtted. Baltikumi kinnisvarahindades võib toimuda veel korrektsioone, eeskätt puudutab see vähematraktiivsetes piirkondades asuvat või kehvas seisukorras olevat kinnisvara. Arco Vara pikaajaline eesmärk on suurendada kinnisvaraportfelli Ukrainas ning Balkani maades, täna on prioriteediks pigem likviidsuse suurendamine läbi projektide müügi ning kulude kokkuhoiu. Arco Vara kinnisvaraportfellist ligi 75% asub Eestis. Arendusdivisjoni tegevusmõõdikud (planeeringute, ehituste, vakantsuste ja korterimüükide seis) olid I poolaastal positiivsed. Samas võimaldavad töösolevate projektide ehitusetapid müügitulu kajastamise asemel näidata vaid broneerimistasude laekumisi Kontserni bilansis. Arendusdivisjoni tulemuste suur kõikumine kvartalite lõikes on seega oodatav ning oluliste projektide edenemisega võivad järgnevate kvartalite tulemused oluliselt muutuda. Arvestades mitmete oluliste projektide (Tivoli, Ahtri3, Laeva, Bišumuiža 2) arengufaasi ning varade väärtuse kasvu pidurdumist, oli arendusdivisjoni kasumi langus oodatav. I poolaasta tähtsamateks sündmusteks olid: Tivoli, Laeva 2 ja MB-3 planeeringute kehtestamine, Simferopoli projekti investeerimine ja korterimüügi blokktehing Sofias. Teenindusdivisjonile on käesolev aasta keeruline ja vaatamata jätkuvale kulude kokkuhoiule, lõpetab divisjon ärikahjumiga, mis võib ületada isegi 30.0 mln krooni (1.6 mln eurot). Positiivne on Kontserni tugev turupositsioon ning divisjoni tegevusmõõdikud (tehingute ja hindamisaktide arvud), mis on langenud turukeskmisest vähem. Ehitusdivisjoni kasum ning võime võita ehitushankeid keskkonnaehituses nii Eestis kui ka Lätis, kinnitab valitud tegevussuuna õigsust. I poolaastal Eestis ja Lätis võidetud uued hanked on ehitusdivisjoni tulemuste osakaalu grupi tulemustes kasvatanud. Tsiviilehituse ja sisekäibe osakaal ehitusdivisjoni tulemustes on vähenenud. TULUD JA KASUM -------------------------------------------------------------------------------- | | EEK | EEK | EEK | EEK | EUR | EUR | EUR | EUR | -------------------------------------------------------------------------------- | | 6 | 6 | Q2 | Q2 | 6 kuud | 6 kuud | Q2 | Q2 | | | kuud | kuud | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | | | 2008 | 2007 | | | | | | | -------------------------------------------------------------------------------- | miljonit | | | | | | | | | | es | | | | | | | | | -------------------------------------------------------------------------------- | Müügitul | | | | | | | | | | u ja muu | | | | | | | | | | äritulu | | | | | | | | | -------------------------------------------------------------------------------- | Teenindu | 58.6 | 64.8 | 29.4 | 34.6 | 3.7 | 4.1 | 1.9 | 2.2 | | s | | | | | | | | | -------------------------------------------------------------------------------- | Arendus | 139.9 | 382.5 | 110.2 | 87.7 | 8.9 | 24.4 | 7.0 | 5.6 | -------------------------------------------------------------------------------- | Ehitus | 206.1 | 157.4 | 116.6 | 100.2 | 13.2 | 10.1 | 7.5 | 6.4 | -------------------------------------------------------------------------------- | Varahald | 6.8 | 6.2 | 3.4 | 3.1 | 0.4 | 0.4 | 0.2 | 0.2 | | us | | | | | | | | | -------------------------------------------------------------------------------- | Eliminee | -66.7 | -123. | -26.8 | -78.5 | -4.3 | -7.9 | -1.7 | -5.0 | | rimised | | 3 | | | | | | | -------------------------------------------------------------------------------- | Müügitul | 344.8 | 487.6 | 232.8 | 147.1 | 22.0 | 31.2 | 14.9 | 9.4 | | u ja muu | | | | | | | | | | äritulu | | | | | | | | | | kokku | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBIT | | | | | | | | | -------------------------------------------------------------------------------- | Teenindu | -20.4 | -9.0 | -10.9 | -5.7 | -1.3 | -0.6 | -0.7 | -0.4 | | s | | | | | | | | | -------------------------------------------------------------------------------- | Arendus | -22.2 | 114.3 | -6.1 | 28.2 | -1.4 | 7.3 | -0.4 | 1.8 | -------------------------------------------------------------------------------- | Ehitus | 4.0 | -3.3 | -0.2 | 3.0 | 0.3 | -0.2 | 0.0 | 0.2 | -------------------------------------------------------------------------------- | Varahald | 2.4 | 2.4 | 1.1 | 0.7 | 0.2 | 0.2 | 0.1 | 0.0 | | us | | | | | | | | | -------------------------------------------------------------------------------- | Eliminee | -1.9 | 1.0 | 2.7 | -4.6 | -0.1 | 0.1 | 0.2 | -0.3 | | rimised | | | | | | | | | -------------------------------------------------------------------------------- | Jagamatu | -11.0 | -17.2 | -5.9 | -5.8 | -0.7 | -1.1 | -0.4 | -0.4 | | d | | | | | | | | | | ärikulud | | | | | | | | | -------------------------------------------------------------------------------- | EBIT | -49.2 | 88.1 | -19.5 | 15.7 | -3.1 | 5.6 | -1.2 | 1.0 | | Kokku | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Finantst | 16.0 | -15.1 | 11.0 | -7.2 | 1.0 | -1.0 | 0.7 | -0.5 | | ulud | | | | | | | | | -------------------------------------------------------------------------------- | Finantsk | -0.4 | 164.0 | -8.7 | 159.1 | 0.0 | 10.5 | -0.6 | 10.2 | | ulud | | | | | | | | | -------------------------------------------------------------------------------- | Tulumaks | -11.2 | -9.9 | -10.8 | -9.6 | -0.7 | -0.6 | -0.7 | -0.6 | | ukulu | | | | | | | | | -------------------------------------------------------------------------------- | Puhaskas | -44.7 | 227.2 | -27.9 | 158.1 | -2.8 | 14.5 | -1.8 | 10.1 | | um | | | | | | | | | -------------------------------------------------------------------------------- Kontserni olulisima tulu teenis ehitusdivisjon, kasvatades divisjoni poolaasta käivet 31% - 206.1 mln kroonini (13.2 mln euroni). Oluline käibe kukkumine oli tingitud arendusdivisjoni tulemusest. Kuigi kortereid ja krunte müüdi või broneeriti kokku 78 (Kolde 27, Madrid 63, Manastirski 2, BM-1 -12 ja MB-5 -2), realiseerub enamus I poolaasta broneeringutest laekuv käive ja brutokasum alles 2009 aasta lõpus, kui Madridi projekt on valminud. Kui eelmise aasta sama perioodi ärikasum oli 88.1 mln krooni (5.6 mln eurot), siis selle aasta esimese poolaastaga tuli vastu võtta ärikahjum -49.2 mln krooni (-3.1 mln eurot). Ärikahjum sisaldab 16.9 mln krooni (1.1 mln eurot) kinnisvarainvesteeringute allahindluste netotulemust. Käesoleval aastal on toimunud Tivoli, MB-3 ja Laeva2 planeeringute kehtestamised, mis mõjutavad oluliselt varade väärtusi. Samas ei saa Tivoli ja MB-3 varasid ümber hinnata, kuna nimetatud projekte kajastab Kontsern soetusmaksumuses. Põhilised finantstulud I poolaastal olid: Intressitulud 23.3 mln krooni (1.5 mln eurot), Kippsala projekti nõude allahindluse tühistamine 25.2 mln krooni (1.6 mln eurot). Põhilised finantskulud I poolaastal olid: AVEC Asset Management AS'i aktsiate võõrandamise kahjum 17.9 mln krooni (1.1 mln eurot), intressikulud 14.5 mln krooni (0.9 mln eurot) ja kahjum valuutakursi muutustest 4.7 mln krooni (0.3 mln eurot). RAHAVOOD -------------------------------------------------------------------------------- | | EEK | EEK | EEK | EEK | EUR | EUR | EUR | EUR | -------------------------------------------------------------------------------- | miljonites | 6 | 6 | Q2 | Q2 | 6 | 6 | Q2 | Q2 | | | kuud | kuud | 2008 | 2007 | kuud | kuud | 2008 | 2007 | | | 2008 | 2007 | | | 2008 | 2007 | | | -------------------------------------------------------------------------------- | Rahavoog | -107 | 23.0 | -73. | -8.5 | -6.8 | 1.5 | -4.7 | -0.5 | | äritegevusest | .0 | | 7 | | | | | | -------------------------------------------------------------------------------- | Rahavoog | -156 | 128.9 | 24.0 | 39.8 | -10.0 | 8.2 | 1.5 | 2.5 | | investeerimis | .6 | | | | | | | | | tegevusest | | | | | | | | | -------------------------------------------------------------------------------- | Rahavoog | -267 | 888.6 | -198 | 952.1 | -17.1 | 56.8 | -12.7 | 60.9 | | finantseerimi | .9 | | .5 | | | | | | | stegevusest | | | | | | | | | -------------------------------------------------------------------------------- | Perioodi | -531 | 1,040 | -248 | 983.4 | -34.0 | 66.5 | -15.9 | 62.9 | | rahavoog | .5 | .5 | .2 | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Raha ja raha | 765. | 58.3 | 481. | 115.4 | 48.9 | 3.7 | 30.8 | 7.4 | | ekvivalendid | 0 | | 7 | | | | | | | perioodi | | | | | | | | | | alguses | | | | | | | | | -------------------------------------------------------------------------------- | Valuutakursi | -0.3 | -0.1 | -0.3 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | mõju | | | | | | | | | -------------------------------------------------------------------------------- | Raha ja raha | 233. | 1,098 | 233. | 1,098. | 14.9 | 70.2 | 14.9 | 70.3 | | ekvivalendid | 2 | .7 | 2 | 8 | | | | | | perioodi | | | | | | | | | | lõpus | | | | | | | | | -------------------------------------------------------------------------------- Äritegevuse negatiivse rahavoo oluline komponent on varude muutus, kus kajastuvad elupindade projektide investeeringud: Kolde 10.0 mln krooni (0.64 mln eurot), BM-1 13.8 mln krooni (0.9 mln eurot), Madrid ja Manastirski kokku 43.2 mln krooni (2.8 mln eurot). Investeerimistegevuse rahavoo olulised negatiivsed komponendid olid: järelmaksuga ostetud tütarettevõtete maksetähtaja saabumine summas ca 44.0 mln krooni (2.8 mln eurot), Ukraina investeeringud summas 79.1 mln krooni (5.1 mln eurot) ja likviidsete vahendite paigutamine Kesko võlakirjadesse summas 126.5 mln krooni (8.1 mln eurot). Lisaks andis Kontsern Ukraina äripartnerile laenu summas 26.0 mln krooni (1.7 mln eurot), ühisettevõtetele anti laene kokku 17.6 mln krooni (1.1 mln eurot). Kuni Ukraina äripartner pole ühiste kavatsuste protokollist tulenevaid nõudeid täitnud ja Arco Vara pole Simferopoli projekti aktsiate omanikuks saanud, on Kontsernil võimalik 12 kuu jooksul tagasi saada kogu Ukraina investeering (aktsiate ettemaks ja antud laen), ehk 105.1 mln krooni (6.9 mln eurot) koos kokku lepitud intressidega. Kui liita raha kontol, Kesko võlakirjad ja nõue Simferopoli projektis äripartneri vastu, siis raha ja 12 kuu jooksul vabastatavate finantsvarade summa on ca 468.1 mln krooni (29.9 mln eurot). Ukraina investeering on kuni aktsiaomanduse saamiseni tagatud AS Ühendatud Kapital garantiiga, mis asub Eestis. Arco Vara likviidsuspositsioon on endiselt kõrge ning juhtkond peab oluliseks säilitada piisavat likviidsuspuhvrit järgnevateks perioodideks, eriti arvestades jätkuvat ebakindlust kapitaliturgudel ja sellest johtuvat refinantseerimisriski. TEENINDUSDIVISION Arco vahendustehingute arv on tõusnud Lätis ning Ukrainas, langenud Eestis ja Leedus. Üüritehingute arv tehingute kogumahus näitab kasvamise tendetsi ja seda eriti Eestis ja Lätis. Turuolukorda arvestades oleme sulgenud I pa jooksul 4 kontorit: Vilnius II, Ogre, Teika ja Varna. Poolaasta lõpus opereerib teenindusdivisjon 26-s asukohas. Suveperioodil ning eriti augustis võib oodata tehingute arvu vähenemist kõigil turgudel. On tõenäoline, et II pa jooksul sulgeme veel vähemalt sama palju kontoreid. Rumeenia ja Bulgaaria turgudel on elukondliku kinnisvara tehingute arv langenud, samas ei ole toimunud olulist hindade korrektsiooni. Sealsete ning Ukraina turgude ostujõuline elanikkond lükkab kallinenud laenuhinna ja likviidsusprobleemide kartuses ostuotsuseid edasi. ARENDUSDIVISION Kinnisvaratehingute arvu langus Baltikumis avaldas enim mõju Läti arendusdivisjoni ettevõttele, kus I poolaastal loobus 14 Kontserni klienti broneeringust Bišumuižas 1 projektis. Teistel turgudel ei ole kliendid broneeringutest Kontserni arendusprojektides loobunud. Langus Lätis kompenseeriti kasvuga Tallinnas ja Sofias. Kolde projektis Tallinnas müüsime või broneerisime kokku 27 korterit, Sofias 65 korterit, s.h kaks broneeringut projektis „Manastirski“. Madridi projektis Sofias on 61% korteritest broneeritud, kusjuures Kontsern refinantseeris projekti võõrvahendid soodsamatel tingimustel, võimaldades Kontsernil osa projekti investeeritud omakapitali vabastada. Sofias asuvas teises projektis „Manastirski“ lõpetati ümberprojekteerimine, viidi läbi ehituskonkurss ning alustati eelmüügiga. Põhiline mure on endiselt maaportfelli refinantseerimisrisk projektides, kus arendust ei ole veel alustatud. Likviidsusriski maandamiseks kavatseb divisjon agressiivselt tegeleda mõne olulise projekti müügiga ning teha soodsad müügikampaaniad MB-1, Kolde ja Merivälja 2 projektides. I pa müüdi Kuressaare ärimaja, mille müügihind oli 30 mln krooni (1.9 mln eurot). 2007. aasta lõpus loobus Kontsern Kippsala projektist, kuna müüja ei suutnud tagada detailplaneeringu kehtestamist. Vastavalt algsele müügilepingule oli müüjal kohustus ettemaks koos intressidega Kontsernile tagastada. Seisuga 30.06.2008 on algsest ettemaksust (58,9 miljonit krooni (3,8 miljonit eurot)) tagastatud 46,9 miljonit krooni (3 miljonit eurot). Järelejäänud nõude osas on sõlmitud maksegraafik koos intresside maksmisega. Suurimaks Kontserni uusarenduseks on kaubanduskeskuse arendusprojekt Ukrainas Simferopolis. Projektiga seoses on Kontsern teinud ettemaksu projektettevõttes 50%-lise osaluse omandamiseks. Kontserni likviidsust silmas pidades on oluline mainida, et kuni aktsiate omandi üleminekuni on Kontserni tütarettevõttel Arco Investeeringute AS-l võimalus kogu investeering 12 kuu jooksul koos intressidega tagasi saada. Vastavalt sõlmitud lepingutele on müüjal kohustus tasuda saadud ettemaksult intresse 6% kuni 12% aastas. Tagasimakse on garanteeritud AS Ühendatud Kapitali garantiiga. Arendusdivisjonis töötab 30.06.2008 seisuga kokku 49 inimest (30.06.2007: 61 inimest). Projektide kohta leiate lisainfot: www.arcorealestate.com/arendus EHITUSDIVISION Ehitustellimuste vähenemine elukondliku kinnisvara sektoris on Kontserni hinnangul langetanud elukondliku kinnisvara ehitushindu ca 15 - 20%. Seetõttu on ehitusdivisjon võitnud II kvartalis hankeid vaid keskkonnaehituses ning mitte ühtegi tsiviilehituses. Suuremad ettevõtted konkureerivad nüüd ka väiksematel hangetel, kus Arco Ehitus seniajani oma positsiooni kindlalt tundis. Positiivne on meie Läti tütarettevõte saavutatud positsioon, et ta võib osaleda riigihangetel. Esimene võidetud konkurss oli I kvartalis veepuhastusjaama rauaeraldusjaama projekteerimiseks ning ehitamiseks Lätis Ogre külas mahus 48.5 mln krooni (3.1 mln eurot). Teises kvartalis sõlmiti uusi ehituslepinguid ainult Eestis ning 98.0 mln krooni (6.3 mln euro) väärtuses. I poolaasta lõpu seisuga on ehituslepingute järelejäänud maht 338 mln krooni (21.6 mln eurot). I poolaasta kontsernisisene müügitulu moodustas kogutuludest 20%. Divisjonis töötab kokku 181 inimest (2007 I pa: 150). Konsolideeritud kasumiaruanne -------------------------------------------------------------------------------- | | I poolaasta | I poolaasta | II kvartal | II kvartal | | | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | EEK tuhandetes | | | | | -------------------------------------------------------------------------------- | Müügitulu teenuste | 222,890 | 135,621 | 134,199 | 81,783 | | müügist | | | | | -------------------------------------------------------------------------------- | Müügitulu kaupade | 90,589 | 277,137 | 71,759 | 39,794 | | müügist | | | | | -------------------------------------------------------------------------------- | Müügitulu kokku | 313,479 | 412,758 | 205,958 | 121,577 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Müüdud toodangu kulu | -262,733 | -301,237 | -176,406 | -74,840 | -------------------------------------------------------------------------------- | Brutokasum | 50,746 | 111,521 | 29,552 | 46,737 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Muud äritulud | 31,342 | 74,819 | 26,948 | 25,563 | -------------------------------------------------------------------------------- | Turustuskulud | -9,238 | -12,875 | -4,566 | -5,310 | -------------------------------------------------------------------------------- | Üldhalduskulud | -72,913 | -64,132 | -38,840 | -32,742 | -------------------------------------------------------------------------------- | Muud ärikulud | -49,105 | -21,195 | -32,592 | -18,496 | -------------------------------------------------------------------------------- | Ärikasum | -49,168 | 88,138 | -19,498 | 15,752 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Finants- ja | 31,569 | 173,044 | 17,558 | 162,874 | | investeerimistegevus | | | | | | e tulud | | | | | -------------------------------------------------------------------------------- | Finants- ja | -15,929 | -24,115 | -15,228 | -10,947 | | investeerimistegevus | | | | | | e kulud | | | | | -------------------------------------------------------------------------------- | Kasum enne tulumaksu | -33,528 | 237,067 | -17,168 | 167,679 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Tulumaksukulu | -11,155 | -9,904 | -10,788 | -9,616 | -------------------------------------------------------------------------------- | Puhaskasum | -44,683 | 227,163 | -27,956 | 158,063 | -------------------------------------------------------------------------------- | s.h vähemusosanikele | 7,246 | 5,182 | 8,688 | -419 | | kuuluv puhaskasum | | | | | -------------------------------------------------------------------------------- | s.h Arco Vara AS | -51,929 | 221,981 | -36,644 | 158,482 | | aktsionäridele | | | | | | kuuluv puhaskasum | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Puhaskasum aktsia | | | | | | kohta (kroonides) | | | | | -------------------------------------------------------------------------------- | - tava | -0.54 | 3.27 | -0.38 | 2.34 | -------------------------------------------------------------------------------- | - lahustatud | -0.54 | 3.27 | -0.38 | 2.34 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | I poolaasta | I poolaasta | II kvartal | II kvartal | | | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | EUR tuhandetes | | | | | -------------------------------------------------------------------------------- | Müügitulu teenuste | 14,245 | 8,668 | 8,577 | 5,227 | | müügist | | | | | -------------------------------------------------------------------------------- | Müügitulu kaupade | 5,790 | 17,712 | 4,586 | 2,543 | | müügist | | | | | -------------------------------------------------------------------------------- | Müügitulu kokku | 20,035 | 26,381 | 13,163 | 7,770 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Müüdud toodangu kulu | -16,792 | -19,253 | -11,274 | -4,783 | -------------------------------------------------------------------------------- | Brutokasum | 3,243 | 7,127 | 1,890 | 2,987 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Muud äritulud | 2,003 | 4,782 | 1,722 | 1,634 | -------------------------------------------------------------------------------- | Turustuskulud | -590 | -823 | -292 | -339 | -------------------------------------------------------------------------------- | Üldhalduskulud | -4,660 | -4,099 | -2,482 | -2,093 | -------------------------------------------------------------------------------- | Muud ärikulud | -3,138 | -1,355 | -2,083 | -1,182 | -------------------------------------------------------------------------------- | Ärikasum | -3,141 | 5,633 | -1,245 | 1,007 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Finants- ja | 2,018 | 11,060 | 1,122 | 10,410 | | investeerimistegevuse | | | | | | tulud | | | | | -------------------------------------------------------------------------------- | Finants- ja | -1,018 | -1,541 | -973 | -700 | | investeerimistegevuse | | | | | | kulud | | | | | -------------------------------------------------------------------------------- | Kasum enne tulumaksu | -2,142 | 15,152 | -1,096 | 10,717 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Tulumaksukulu | -713 | -633 | -689 | -615 | -------------------------------------------------------------------------------- | Puhaskasum | -2,854 | 14,519 | -1,785 | 10,102 | -------------------------------------------------------------------------------- | s.h vähemusosanikele | 463 | 331 | 555 | -27 | | kuuluv puhaskasum | | | | | -------------------------------------------------------------------------------- | s.h Arco Vara AS | -3,319 | 14,187 | -2,342 | 10,129 | | aktsionäridele kuuluv | | | | | | puhaskasum | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Puhaskasum aktsia | | | | | | kohta (eurodes) | | | | | -------------------------------------------------------------------------------- | - tava | -0.03 | 0.21 | -0.02 | 0.15 | -------------------------------------------------------------------------------- | - lahustatud | -0.03 | 0.21 | -0.02 | 0.15 | -------------------------------------------------------------------------------- Konsolideeritud bilanss -------------------------------------------------------------------------------- | | EEK | EEK | EUR | EUR | -------------------------------------------------------------------------------- | | 30.06.20 | 31.12.200 | 30.06.200 | 31.12.200 | | | 08 | 7 | 8 | 7 | -------------------------------------------------------------------------------- | tuhandetes | | | | | -------------------------------------------------------------------------------- | Raha ja raha ekvivalendid | 233,158 | 765,008 | 14,902 | 48,893 | -------------------------------------------------------------------------------- | Finantsinvesteeringud | 136,858 | 78,595 | 8,747 | 5,023 | -------------------------------------------------------------------------------- | Nõuded | 315,169 | 297,189 | 20,143 | 18,994 | -------------------------------------------------------------------------------- | Ettemakstud kulud | 13,502 | 10,450 | 863 | 668 | -------------------------------------------------------------------------------- | Varud | 1,237,23 | 1,148,433 | 79,074 | 73,398 | | | 8 | | | | -------------------------------------------------------------------------------- | Bioloogilised varad | 7,887 | 8,360 | 504 | 534 | -------------------------------------------------------------------------------- | Käibevara kokku | 1,943,81 | 2,308,035 | 124,233 | 147,510 | | | 2 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Finantsinvesteeringud | 235 | 48,515 | 15 | 3,101 | -------------------------------------------------------------------------------- | Nõuded | 172,972 | 40,124 | 11,055 | 2,564 | -------------------------------------------------------------------------------- | Kinnisvarainvesteeringud | 975,173 | 999,999 | 62,325 | 63,912 | -------------------------------------------------------------------------------- | Materiaalne põhivara | 149,256 | 141,863 | 9,539 | 9,067 | -------------------------------------------------------------------------------- | Immateriaalne põhivara | 25,588 | 25,505 | 1,635 | 1,630 | -------------------------------------------------------------------------------- | Põhivara kokku | 1,323,22 | 1,256,006 | 84,569 | 80,274 | | | 4 | | | | -------------------------------------------------------------------------------- | VARAD KOKKU | 3,267,03 | 3,564,041 | 208,802 | 227,784 | | | 6 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Laenukohustused | 609,610 | 753,077 | 38,961 | 48,130 | -------------------------------------------------------------------------------- | Võlad | 171,283 | 223,591 | 10,947 | 14,290 | -------------------------------------------------------------------------------- | Ettemaksed | 72,576 | 47,216 | 4,638 | 3,018 | -------------------------------------------------------------------------------- | Eraldised | 5,031 | 3,468 | 322 | 222 | -------------------------------------------------------------------------------- | Lühiajalised kohustused kokku | 858,500 | 1,027,352 | 54,868 | 65,660 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Laenukohustused | 566,591 | 600,938 | 36,212 | 38,407 | -------------------------------------------------------------------------------- | Võlad | 9,186 | 4,607 | 587 | 294 | -------------------------------------------------------------------------------- | Edasilükkunud | 68 | 1,321 | 4 | 84 | | tulumaksukohustus | | | | | -------------------------------------------------------------------------------- | Eraldised | 0 | 251 | 0 | 16 | -------------------------------------------------------------------------------- | Pikaajalised kohustused kokku | 575,845 | 607,117 | 36,803 | 38,801 | -------------------------------------------------------------------------------- | KOHUSTUSED KOKKU | 1,434,34 | 1,634,469 | 91,671 | 104,461 | | | 5 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Aktsiakapital | 952,842 | 952,842 | 60,898 | 60,898 | -------------------------------------------------------------------------------- | Ülekurss | 712,514 | 712,514 | 45,538 | 45,538 | -------------------------------------------------------------------------------- | Kohustuslik reservkapital | 31,463 | 20,084 | 2,011 | 1,284 | -------------------------------------------------------------------------------- | Muud reservid | 101 | 37 | 6 | 2 | -------------------------------------------------------------------------------- | Jaotamata kasum | 118,362 | 218,830 | 7,565 | 13,986 | -------------------------------------------------------------------------------- | Emaettevõtte omanikele kuuluv | 1,815,28 | 1,904,307 | 116,018 | 121,708 | | omakapital kokku | 2 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Vähemusosalusele kuuluv | 17,409 | 25,265 | 1,113 | 1,615 | | omakapital | | | | | -------------------------------------------------------------------------------- | Omakapital kokku | 1,832,69 | 1,929,572 | 117,131 | 123,323 | | | 1 | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | KOHUSTUSED JA OMAKAPITAL | 3,267,03 | 3,564,041 | 208,802 | 227,784 | | KOKKU | 6 | | | | -------------------------------------------------------------------------------- Heigo Metsoja CFO +372 6144 654 heigo.metsoja@arcovara.ee http://www.arcorealestate.com
Title
Unaudited results for the 6 months and Q2 of 2008
Message
Revenue and other income for the first half-year totalled 344.8 million kroons (22.0 million euros), 29% down year-over-year. EBIT amounted to -49.2 million kroons (-3.1 million euros), a 137.3 million kroon (8.8 million euro) decrease compared with the EBIT earned in the first half of 2007. Net loss was 44.7 million kroons (2.9 million euros), 271.9 million kroons (17.4 million euros) down from the net profit generated a year ago. Equity ratio was 56.1% (6 months 2007: 57.6%), ROE -2.2% (6 months 2007: 40.0%) and ROIC 0.3% (6 months 2007: 21.9%). Group's order backlog in the construction business stood at 338 million kroons (21.6 million euros) against 358 million kroons (23.0 million euros) in first quarter. During 6 months 78 apartments and plots were sold or reserved compared with 67 last year. -------------------------------------------------------------------------------- | 2007 | EEK | EEK | EEK | EEK | EUR | EUR | EUR | EUR | -------------------------------------------------------------------------------- | In | 6 | 6 | Q2 | Q2 | 6 | 6 | Q2 | Q2 | | million | month | month | 2008 | 2007 | months | months | 2008 | 2007 | | s | s | s | | | 2008 | 2007 | | | | | 2008 | 2007 | | | | | | | -------------------------------------------------------------------------------- | Revenue | 344.8 | 487.6 | 232.9 | 147.1 | 22.0 | 31.2 | 14.9 | 9.4 | | and | | | | | | | | | | other | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- | Operati | -49.2 | 88.1 | -19.5 | 15.8 | -3.1 | 5.6 | -1.2 | 1.0 | | ng | | | | | | | | | | profit | | | | | | | | | | / loss | | | | | | | | | -------------------------------------------------------------------------------- | Includi | -16.9 | 55.4 | -4.4 | 6.7 | -1.1 | 3.5 | -0.3 | 0.4 | | ng net | | | | | | | | | | gain / | | | | | | | | | | loss on | | | | | | | | | | fair | | | | | | | | | | value | | | | | | | | | | adjustm | | | | | | | | | | ents to | | | | | | | | | | investm | | | | | | | | | | ent | | | | | | | | | | propert | | | | | | | | | | y | | | | | | | | | -------------------------------------------------------------------------------- | Profit | -33.5 | 237.1 | -17.2 | 167.7 | -2.1 | 15.2 | -1.1 | 10.7 | | / loss | | | | | | | | | | before | | | | | | | | | | tax | | | | | | | | | -------------------------------------------------------------------------------- | Includi | -19.5 | 123.0 | -19.5 | 7.7 | -1.2 | 7.9 | -1.2 | 0.5 | | ng net | | | | | | | | | | gain / | | | | | | | | | | loss on | | | | | | | | | | the | | | | | | | | | | divestm | | | | | | | | | | ent of | | | | | | | | | | financi | | | | | | | | | | al | | | | | | | | | | assets | | | | | | | | | -------------------------------------------------------------------------------- | Net | -44.7 | 227.2 | -28.0 | 158.1 | -2.9 | 14.5 | -1.8 | 10.1 | | profit | | | | | | | | | | / loss | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | EPS 1 | -0.54 | 3.27 | -0.38 | 2.34 | -0.03 | 0.21 | -0.02 | 0.15 | | (in | | | | | | | | | | kroons | | | | | | | | | | and | | | | | | | | | | euros) | | | | | | | | | -------------------------------------------------------------------------------- | EPS 2 | -0.54 | 3.27 | -0.38 | 2.34 | -0.03 | 0.21 | -0.02 | 0.15 | | (in | | | | | | | | | | kroons | | | | | | | | | | and | | | | | | | | | | euros) | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Total | 3,267 | 3,334 | | | 208.8 | 213.1 | | | | assets | .0 | .0 | | | | | | | | at | | | | | | | | | | period | | | | | | | | | | end | | | | | | | | | -------------------------------------------------------------------------------- | Investe | 3,019 | 2,986 | | | 192.9 | 190.9 | | | | d | .0 | .2 | | | | | | | | capital | | | | | | | | | | at | | | | | | | | | | period | | | | | | | | | | end | | | | | | | | | -------------------------------------------------------------------------------- | Net | 815.4 | -78.2 | | | 52.1 | -5.0 | | | | loans | | | | | | | | | | at | | | | | | | | | | period | | | | | | | | | | end | | | | | | | | | -------------------------------------------------------------------------------- | Equity | 1,832 | 1,921 | | | 117.1 | 122.8 | | | | at | .7 | .3 | | | | | | | | period | | | | | | | | | | end | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Average | 1.9 | n/a | | | 1.9 | n/a | | | | loan | | | | | | | | | | term | | | | | | | | | | (in | | | | | | | | | | years) | | | | | | | | | -------------------------------------------------------------------------------- | Average | 7.2% | n/a | | | 7.2% | n/a | | | | interes | | | | | | | | | | t rate | | | | | | | | | | of | | | | | | | | | | loans | | | | | | | | | | (per | | | | | | | | | | year) | | | | | | | | | -------------------------------------------------------------------------------- | ROIC | 0.3% | 21.9% | | | 0.3% | 21.9% | | | | (rollin | | | | | | | | | | g 4 | | | | | | | | | | quarter | | | | | | | | | | s) | | | | | | | | | -------------------------------------------------------------------------------- | ROE | -2.2% | 40.0% | | | -2.2% | 40.0% | | | | (rollin | | | | | | | | | | g 4 | | | | | | | | | | quarter | | | | | | | | | | s) | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Number | 569 | 574 | | | 569 | 574 | | | | of | | | | | | | | | | staff | | | | | | | | | | at | | | | | | | | | | period | | | | | | | | | | end | | | | | | | | | -------------------------------------------------------------------------------- Comments by the CEO Macroeconomic and refinancing risks characterize more and more also other markets than Baltics: Ukraine, Bulgaria and Romania. Under the circumstances, strong liquidity is the key for becoming a winner in this situation. The Baltic prices have not bottomed out - less attractively located and lower quality properties will see further price adjustment. Although according to Arco's long-term strategy we intend to increase our exposure in Urkaine and Balkan region, today the main goal is to increase group's liquidity by selling cost cutting sales of some major projects. 75% of Arco's real estate portfolio is based in Estonia. Development divisions' performance indicators (planning, construction, vacancies and apartment sales) for the first six months were positive, but the current stages of the projects allow recognising only liabilities for reservation fees received, not sales revenues. The results of the Development division are subject to significant fluctuations and the figures for the following quarters may prove radically different as the projects progress. Taken into account the development phase (Tivoli, Ahtri3, Laeva, BM-2 etc.) and less asset value growth, the results of the divison were expected to be poor. Highlights of the period included adoption of detailed plans for Tivoli, Laeva 2 and MB-3 properties, investment in the Simferopol project and an apartment sales block deal in Sofia. The year has been most depresseing for our service divison and despite cost cutting and closure of some offices the division may end the year even with operating losses up to 30.00 mln kroons (1.6 million euros). However, the Group's market position is strong and the division's performance indicators (number of transactions and valuations) have deteriorated less than the market's average. The Construction division continues turning a profit and has been able to win environmental engineering tenders in both Estonia and Latvia. The winning of new construction contracts in Estonia and Latvia has increased the division's contribution to the Group's overall results. The decline in the civil engineering business and the number of internal contracts indicates that the shift in focus was justified. REVENUE AND PROFIT -------------------------------------------------------------------------------- | | EEK | EEK | EEK | EEK | EUR | EUR | EUR | EUR | -------------------------------------------------------------------------------- | | 6 | 6 | Q2 | Q2 | 6 | 6 | Q2 | Q2 | | | month | month | 2008 | 2007 | months | months | 2008 | 2007 | | | s | s | | | 2008 | 2007 | | | | | 2008 | 2007 | | | | | | | -------------------------------------------------------------------------------- | In | | | | | | | | | | million | | | | | | | | | | s | | | | | | | | | -------------------------------------------------------------------------------- | Revenue | | | | | | | | | | and | | | | | | | | | | other | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- | Service | 58.6 | 64.8 | 29.4 | 34.6 | 3.7 | 4.1 | 1.9 | 2.2 | -------------------------------------------------------------------------------- | Develop | 139.9 | 382.5 | 110.2 | 87.7 | 8.9 | 24.4 | 7.0 | 5.6 | | ment | | | | | | | | | -------------------------------------------------------------------------------- | Constru | 206.1 | 157.4 | 116.6 | 100.2 | 13.2 | 10.1 | 7.5 | 6.4 | | ction | | | | | | | | | -------------------------------------------------------------------------------- | Asset | 6.8 | 6.2 | 3.4 | 3.1 | 0.4 | 0.4 | 0.2 | 0.2 | | managem | | | | | | | | | | ent | | | | | | | | | -------------------------------------------------------------------------------- | Elimina | -66.7 | -123. | -26.8 | -78.5 | -4.3 | -7.9 | -1.7 | -5.0 | | tions | | 3 | | | | | | | -------------------------------------------------------------------------------- | Total | 344.8 | 487.6 | 232.8 | 147.1 | 22.0 | 31.2 | 14.9 | 9.4 | | revenue | | | | | | | | | | and | | | | | | | | | | other | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Operati | | | | | | | | | | ng | | | | | | | | | | profit | | | | | | | | | | / loss | | | | | | | | | -------------------------------------------------------------------------------- | Service | -20.4 | -9.0 | -10.9 | -5.7 | -1.3 | -0.6 | -0.7 | -0.4 | -------------------------------------------------------------------------------- | Develop | -22.2 | 114.3 | -6.1 | 28.2 | -1.4 | 7.3 | -0.4 | 1.8 | | ment | | | | | | | | | -------------------------------------------------------------------------------- | Constru | 4.0 | -3.3 | -0.2 | 3.0 | 0.3 | -0.2 | 0.0 | 0.2 | | ction | | | | | | | | | -------------------------------------------------------------------------------- | Asset | 2.4 | 2.4 | 1.1 | 0.7 | 0.2 | 0.2 | 0.1 | 0.0 | | managem | | | | | | | | | | ent | | | | | | | | | -------------------------------------------------------------------------------- | Elimina | -1.9 | 1.0 | 2.7 | -4.6 | -0.1 | 0.1 | 0.2 | -0.3 | | tions | | | | | | | | | -------------------------------------------------------------------------------- | Unalloc | -11.0 | -17.2 | -5.9 | -5.8 | -0.7 | -1.1 | -0.4 | -0.4 | | ated | | | | | | | | | | expense | | | | | | | | | | s | | | | | | | | | -------------------------------------------------------------------------------- | Total | -49.2 | 88.1 | -19.5 | 15.7 | -3.1 | 5.6 | -1.2 | 1.0 | | operati | | | | | | | | | | ng | | | | | | | | | | profit | | | | | | | | | | / loss | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Interes | 16.0 | -15.1 | 11.0 | -7.2 | 1.0 | -1.0 | 0.7 | -0.5 | | t | | | | | | | | | | income | | | | | | | | | | and | | | | | | | | | | expense | | | | | | | | | -------------------------------------------------------------------------------- | Other | -0.4 | 164.0 | -8.7 | 159.1 | 0.0 | 10.5 | -0.6 | 10.2 | | finance | | | | | | | | | | income | | | | | | | | | | and | | | | | | | | | | expense | | | | | | | | | -------------------------------------------------------------------------------- | Income | -11.2 | -9.9 | -10.8 | -9.6 | -0.7 | -0.6 | -0.7 | -0.6 | | tax | | | | | | | | | | expense | | | | | | | | | -------------------------------------------------------------------------------- | Net | -44.7 | 227.2 | -27.9 | 158.1 | -2.8 | 14.5 | -1.8 | 10.1 | | profit | | | | | | | | | | / loss | | | | | | | | | | for the | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- The bulk of the Group's revenue was generated by the Construction division which increased half-year sales by 31% to 206.1 million kroons (13.2 million euros). The plunge in sales may be attributed to the underperformance of the Development division. Although 78 apartments or plots were reserved (Kolde 27, Madrid 63, Manastirski 2, BM-1 -12 and MB-5 -2), most of related revenue and gross profit will realise at the end of 2009 when the Madrid project is completed. Compared with the first half of 2007 when we earned an EBIT of 88.1 million kroons (5.6 million euros), the first six months of 2008 brought an operating loss of 49.2 million kroons (3.1 million euros). Consolidated operating loss includes 16.9 million kroons (1.1 million euros) representing net loss on fair value adjustments to investment property. Although in the reporting period detailed plans were adopted for the Tivoli, MB-3 and Laeva (a development which increases the value of the properties significantly), the assets cannot be revalued because they are carried at cost. Finance income resulted mainly from interest income of 23.3 million kroons (1.5 million euros) and the reversal of an impairment loss of 25.2 million kroons (1.6 million euros) recognised for a receivable related to the Kippsala project. The main sources of finance expense were the disposal of shares in AVEC Asset Management which resulted in a loss of 17.9 million kroons (1.1 million euros), interest expense of 14.5 million kroons (0.9 million euros) and foreign exchange losses of 4.7 million kroons (0.3 million euros). CASH FLOWS -------------------------------------------------------------------------------- | | EEK | EEK | EEK | EEK | EUR | EUR | EUR | EUR | -------------------------------------------------------------------------------- | In | 6 | 6 | Q2 | Q2 | 6 | 6 | Q2 | Q2 | | millio | month | month | 2008 | 2007 | months | months | 2008 | 2007 | | ns | s | s | | | 2008 | 2007 | | | | | 2008 | 2007 | | | | | | | -------------------------------------------------------------------------------- | Cash | -107. | 23.0 | -73.7 | -8.5 | -6.8 | 1.5 | -4.7 | -0.5 | | flows | 0 | | | | | | | | | from | | | | | | | | | | operat | | | | | | | | | | ing | | | | | | | | | | activi | | | | | | | | | | ties | | | | | | | | | -------------------------------------------------------------------------------- | Cash | -156. | 128.9 | 24.0 | 39.8 | -10.0 | 8.2 | 1.5 | 2.5 | | flows | 6 | | | | | | | | | from | | | | | | | | | | invest | | | | | | | | | | ing | | | | | | | | | | activi | | | | | | | | | | ties | | | | | | | | | -------------------------------------------------------------------------------- | Cash | -267. | 888.6 | -198.5 | 952.1 | -17.1 | 56.8 | -12.7 | 60.9 | | flows | 9 | | | | | | | | | from | | | | | | | | | | financ | | | | | | | | | | ing g | | | | | | | | | | activi | | | | | | | | | | ties | | | | | | | | | -------------------------------------------------------------------------------- | Net | -531. | 1,040 | -248.2 | 983.4 | -34.0 | 66.5 | -15.9 | 62.9 | | cash | 5 | .5 | | | | | | | | flow | | | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Cash | 765.0 | 58.3 | 481.7 | 115.4 | 48.9 | 3.7 | 30.8 | 7.4 | | and | | | | | | | | | | cash | | | | | | | | | | equiva | | | | | | | | | | lents | | | | | | | | | | at | | | | | | | | | | beginn | | | | | | | | | | ing of | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- | Effect | -0.3 | -0.1 | -0.3 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | | of | | | | | | | | | | exchan | | | | | | | | | | ge | | | | | | | | | | rate | | | | | | | | | | fluctu | | | | | | | | | | ations | | | | | | | | | -------------------------------------------------------------------------------- | Cash | 233.2 | 1,098 | 233.2 | 1,098. | 14.9 | 70.2 | 14.9 | 70.3 | | and | | .7 | | 8 | | | | | | cash | | | | | | | | | | equiva | | | | | | | | | | lents | | | | | | | | | | at end | | | | | | | | | | of | | | | | | | | | | period | | | | | | | | | -------------------------------------------------------------------------------- The main component of negative operating cash flow was the increase in inventories where are recorded investments in residential projects: Kolde 10.0 million kroons (0.64 million euros), BM-1 13.8 million kroons (0.9 million euros), Madrid and Manastirski in total 43.2 million kroons (2.8 million euros). The main components of negative investment cash flows were: major payables came due in amount of 44.0 million kroons (2.8 million euros), Ukraine investement 79.1 million kroons (5.1 million euros) and investments of liquid assets to Kesko's short-term bonds for 126.5 million kroons (8.1 million euros). In addition the Group granted debt to our Ukraine partner in amount of 26.0 million kroons (1.7 milllion euros) and to joint ventures 17.6 million kroons (1.1 million euros). Until the Ukraine partner hasen't fulfilled conditions precedent according to Leter of Intent and Arco is not the legal owner of 50% of the shares in project company, the Group can call back the prepayment and subordinated loans in amount of 105.1 million kroons (6.9 million euros) and receive the money and corresponding interests in 12 months. If we add Group's cash account, Kesko's short-term bonds and Ukraine receivable then cash and potential cash that can be released from financial assets amounts up to 468.1 million kroons (29.9 million euros). Ukraine receivable is quaranteed by one Estonian entity called AS Ühendatud Kapital. Arco management considers that our liquidity position is still good and it's our first priority to ensure that it stays like this, specially under the global capital market turbulence and much higher refinancing risks. SERVICE DIVISION The number of brokerage transactions has dropped in Estonia and Lithuania and risen in Latvia and Ukraine. The proportion of rental transactions in the overall transaction mix will increase, specifically in Estonia and Latvia. Considering the market situation we have closed 4 offices: Vilnius II, Ogre, Teika and Varna. The division operates in 26 offices. During the summer, particularly August, business will slump in all markets. It's probable that in thesecond halv of the year we close at least 4 more offices. The number of housing transactions is shrinking on the Bulgairan and Romanian market, but he price correction hasen't yet taken place. On the Balkans and in Ukraine, people with purchasing power are postponing their transactions due to rising borrowing costs and a fear of a decrease in liquidity. DEVELOPMENT DIVISION Declaine in the number of property deals affected the most our Latvian business, where 14 of our clients considered to be better off by cancelling the pre-booking and losing their downpayment in BM-1 project. On other markets no pre-bookings have been cancelled. Declaine in Latvia is right now compensated by increase in Tallinn and Sofia. In kolde project in Tallinn were sold or booked 27 appartments, in Sofia 65, whereas 2 booking already in Manastirski project. In project “Madrid” in Sofia we have already 61% of residential spaces pre-sold and enabled us to refinance the existing loan facility on more favourable conditions so that some of the equity can be released right now. In the project “Manastirsiki” in Sofia we ended the replanning process and construction tender and started presaels marketing. The main concern of the division is still the refinancing risk of our land bank where are no development activities. In order to minimise the risk the Group considers to sell on of its land markt ptoject and start sales campaign in Kolde, MB-1 and Merivälja 2 projects. In sixt months we have sold one asset for its book value of 30.0 million kroons (1.9 million euros). We have also cancelled “Kippsala” project in Riga ‘cause the seller was not able to produce zoning rights and according to initial sales agreement we had the right to cancel the deal and get back the total amount plus penalties and carrying interest. As of 30.06.2008 the sellesr has paid back from initial outstanding amount (58.9 million kroons (3.8 million euros)) 46.9 million kroons (3.0 million euros). The rest is paid back according to schedule. The biggest new development is retail centre in Simferopol in Urkaine. We have made prepayment for the 50% stake in the project. Considering Group's liquidity position It's important to mention that antil the transfer of the title of the share we have the right to call back the deal and get back the money in 12 months plus carrying interest from 6 to 12% per year. The payament has AS Ühendatud Kapital quarantee. As of 30.06.2008 the divison employs 49 people (30.06.2007: 61 people). Additional info on projects can be found on: www.arcorealestate.com/arendus CONSTRUCTION DIVISION According to management's estimates, the decrease in demand for residential construction services has lowered housing construction prices by around 15-20%. As a result, in the second quarter the Construction division won only environmental engineering contracts and no civil engineering ones. Large companies are elbowing their way to smaller tenders where to date Arco Ehitus has had an edge. On the positive side, our Latvian subsidiary has gained a position that allows participating in public procurement tenders. In the first quarter the subsidiary won a public procurement tender for the design and construction of an iron removal plant at a water treatment facility in the village of Ogre. The size of the contract is 48.5 million kroons (3.1 million euros). In the second quarter the division was awarded construction contracts of 98.0 million kroons (6.3 million euros), all in Estonia. At the end of the reporting period, the division's order backlog was 338 million kroons (21.6 million euros). Intra-group sales accounted for 20% of six-month revenue. During the reporting period, the division employed 181 people (6 months 2007: 150). Condensed consolidated interim income statement -------------------------------------------------------------------------------- | | 6 months | 6 months | Q2 2008 | Q2 2007 | | | 2008 | 2007 | | | -------------------------------------------------------------------------------- | In EEK, thousands | | | | | -------------------------------------------------------------------------------- | Rendering of services | 222,890 | 135,621 | 134,199 | 81,783 | -------------------------------------------------------------------------------- | Sale of goods | 90,589 | 277,137 | 71,759 | 39,794 | -------------------------------------------------------------------------------- | Total revenue | 313,479 | 412,758 | 205,958 | 121,577 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Cost of sales | -262,733 | -301,237 | -176,406 | -74,840 | -------------------------------------------------------------------------------- | Gross profit | 50,746 | 111,521 | 29,552 | 46,737 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Other income | 31,342 | 74,819 | 26,948 | 25,563 | -------------------------------------------------------------------------------- | Selling and distribution | -9,238 | -12,875 | -4,566 | -5,310 | | costs | | | | | -------------------------------------------------------------------------------- | Administrative expenses | -72,913 | -64,132 | -38,840 | -32,742 | -------------------------------------------------------------------------------- | Other expenses | -49,105 | -21,195 | -32,592 | -18,496 | -------------------------------------------------------------------------------- | Operating profit / loss | -49,168 | 88,138 | -19,498 | 15,752 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Finance income | 31,569 | 173,044 | 17,558 | 162,874 | -------------------------------------------------------------------------------- | Finance expenses | -15,929 | -24,115 | -15,228 | -10,947 | -------------------------------------------------------------------------------- | Profit / loss before tax | -33,528 | 237,067 | -17,168 | 167,679 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Income tax expense | -11,155 | -9,904 | -10,788 | -9,616 | -------------------------------------------------------------------------------- | Profit / loss for the | -44,683 | 227,163 | -27,956 | 158,063 | | period | | | | | -------------------------------------------------------------------------------- | Attributable to minority | 7,246 | 5,182 | 8,688 | -419 | | interests | | | | | -------------------------------------------------------------------------------- | Attributable to equity | 51,929 | 221,981 | -36,644 | 158,482 | | holders of the parent | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Earnings per share (in | | | | | | kroons) | | | | | -------------------------------------------------------------------------------- | - Basic | -0.54 | 3.27 | -0.03 | 0.21 | -------------------------------------------------------------------------------- | - Diluted | -0.54 | 3.27 | -0.03 | 0.21 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 6 months | 6 months | | Q2 2008 | Q2 2007 | | | 2008 | 2007 | | | | -------------------------------------------------------------------------------- | In EUR, thousands | | | | | | -------------------------------------------------------------------------------- | Rendering of services | 14,245 | 8,668 | | 8,577 | 5,227 | -------------------------------------------------------------------------------- | Sale of goods | 5,790 | 17,712 | | 4,586 | 2,543 | -------------------------------------------------------------------------------- | Total revenue | 20,035 | 26,381 | | 13,163 | 7,770 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Cost of sales | -16,792 | -19,253 | | -11,274 | -4,783 | -------------------------------------------------------------------------------- | Gross profit | 3,243 | 7,127 | | 1,890 | 2,987 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Other income | 2,003 | 4,782 | | 1,722 | 1,634 | -------------------------------------------------------------------------------- | Selling and | -590 | -823 | | -292 | -339 | | distribution costs | | | | | | -------------------------------------------------------------------------------- | Administrative expenses | -4,660 | -4,099 | | -2,482 | -2,093 | -------------------------------------------------------------------------------- | Other expenses | -3,138 | -1,355 | | -2,083 | -1,182 | -------------------------------------------------------------------------------- | Operating profit / loss | -3,141 | 5,633 | | -1,245 | 1,007 | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Finance income | 2,018 | 11,060 | | 1,122 | 10,410 | -------------------------------------------------------------------------------- | Finance expenses | -1,018 | -1,541 | | -982 | -700 | -------------------------------------------------------------------------------- | Profit / loss before | -2,142 | 15,152 | | -1,096 | 10,717 | | tax | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Income tax expense | -713 | -633 | | -689 | -615 | -------------------------------------------------------------------------------- | Profit / loss for the | -2,854 | 14,519 | | -1,785 | 10,102 | | period | | | | | | -------------------------------------------------------------------------------- | Attributable to | 463 | 331 | | 555 | -27 | | minority interests | | | | | | -------------------------------------------------------------------------------- | Attributable to equity | -3,319 | 14,187 | | -2,342 | 10,129 | | holders of the parent | | | | | | -------------------------------------------------------------------------------- | | | | | | | -------------------------------------------------------------------------------- | Earnings per share (in | | | | | | | euros) | | | | | | -------------------------------------------------------------------------------- | - Basic | -0.03 | 0.21 | | -0.02 | 0.15 | -------------------------------------------------------------------------------- | - Diluted | -0.03 | 0.21 | | -0.02 | 0.15 | -------------------------------------------------------------------------------- Condensed consolidated interim balance sheet -------------------------------------------------------------------------------- | | EEK | EEK | EUR | EUR | -------------------------------------------------------------------------------- | | 30 June | 31 December | 30 June | 31 December | | | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | In thousands | | | | | -------------------------------------------------------------------------------- | Cash and cash | 233,158 | 765,008 | 14,902 | 48,893 | | equivalents | | | | | -------------------------------------------------------------------------------- | Other financial | 136,858 | 78,595 | 8,747 | 5,023 | | assets | | | | | -------------------------------------------------------------------------------- | Receivables | 315,169 | 297,189 | 20,143 | 18,994 | -------------------------------------------------------------------------------- | Prepayments | 13,502 | 10,450 | 863 | 668 | -------------------------------------------------------------------------------- | Inventories | 1,237,238 | 1,148,433 | 79,074 | 73,398 | -------------------------------------------------------------------------------- | Biological assets | 7,887 | 8,360 | 504 | 534 | -------------------------------------------------------------------------------- | Total current assets | 1,943,812 | 2,308,035 | 124,233 | 147,510 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Other financial | 235 | 48,515 | 15 | 3,101 | | assets | | | | | -------------------------------------------------------------------------------- | Receivables | 172,972 | 40,124 | 11,055 | 2,564 | -------------------------------------------------------------------------------- | Investment property | 975,173 | 999,999 | 62,325 | 63,912 | -------------------------------------------------------------------------------- | Property, plant and | 149,256 | 141,863 | 9,539 | 9,067 | | equipment | | | | | -------------------------------------------------------------------------------- | Intangible assets | 25,588 | 25,505 | 1,635 | 1,630 | -------------------------------------------------------------------------------- | Total non-current | 1,323,224 | 1,256,006 | 84,569 | 80,274 | | assets | | | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 3,267,036 | 3,564,041 | 208,802 | 227,784 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Loans and borrowings | 609,610 | 753,077 | 38,961 | 48,130 | -------------------------------------------------------------------------------- | Payables | 171,283 | 223,591 | 10,947 | 14,290 | -------------------------------------------------------------------------------- | Deferred income | 72,576 | 47,216 | 4,638 | 3,018 | -------------------------------------------------------------------------------- | Provisions | 5,031 | 3,468 | 322 | 222 | -------------------------------------------------------------------------------- | Total current | 858,500 | 1,027,352 | 54,868 | 65,660 | | liabilities | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Loans and borrowings | 566,591 | 600,938 | 36,212 | 38,407 | -------------------------------------------------------------------------------- | Other liabilities | 9,186 | 4,607 | 587 | 294 | -------------------------------------------------------------------------------- | Deferred income tax | 68 | 1,321 | 4 | 84 | | liability | | | | | -------------------------------------------------------------------------------- | Provisions | 0 | 251 | 0 | 16 | -------------------------------------------------------------------------------- | Total non-current | 575,845 | 607,117 | 36,803 | 38,801 | | liabilities | | | | | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 1,434,345 | 1,634,469 | 91,671 | 104,461 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Share capital | 952,842 | 952,842 | 60,898 | 60,898 | -------------------------------------------------------------------------------- | Share premium | 712,514 | 712,514 | 45,538 | 45,538 | -------------------------------------------------------------------------------- | Statutory capital | 31,463 | 20,084 | 2,011 | 1,284 | | reserve | | | | | -------------------------------------------------------------------------------- | Other reserves | 101 | 37 | 6 | 2 | -------------------------------------------------------------------------------- | Retained earnings | 118,362 | 218,830 | 7,565 | 13,986 | -------------------------------------------------------------------------------- | Total equity | 1,815,282 | 1,904,307 | 116,018 | 121,708 | | attributable to | | | | | | equity holders of | | | | | | the parent | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Minority interests | 17,409 | 25,265 | 1,113 | 1,615 | -------------------------------------------------------------------------------- | Total equity | 1,832,691 | 1,929,572 | 117,131 | 123,323 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 3,267,036 | 3,564,041 | 208,802 | 227,784 | | AND EQUITY | | | | | -------------------------------------------------------------------------------- Heigo Metsoja CFO +372 6144 654 heigo.metsoja@arcovara.ee http://www.arcorealestate.com