Market announcement
Arco Vara AS
Category
Other price sensitive information
Date
22.10.2009 09:23:54
Title
Arco Vara transferred holdings in 3 joint ventures and improved liquidity position
Message
On 21 October, Arco Vara transferred its holdings in Tallinna Olümpiapurjespordikeskuse AS, Floriston Grupp OÜ and Arco Ärikeskuse OÜ to enterprises related to Marcel Vichmann and Olav Miil for a total of 172 MEEK (11 MEUR), of which 55 MEEK (3.5 MEUR) is the amount paid for the sales and 117 MEEK (7.5 MEUR) are the payables of the three transferred companies. From the point of view of the group internal liquidity management, the control of financial means of joint ventures is limited and does not allow the Group to fully control its working capital. Due to preparations for the increase in market demand related to the revival of economy, the Group needs finances for financing new residential building projects in Tallinn. In the above joint ventures, neither the detailed plans have not been approved yet nor the building rights required for the development activity established. For a period of 10 years following the exercise of building rights proceeding from the detailed plans to be approved for the plots belonging to the companies, Arco Vara will maintain the right to receive additional returns. As a result of the transaction, the liabilities of the Group decrease by 117 MEEK (7.5 MEUR), assets will be reduced due to transfer of holding by 306 MEEK (19.6 MEUR). The total loss on the transaction amounts to 150 MEEK (9.6 MEUR). Arco Vara has management service agreements with Floriston Grupp OÜ and Arco Ärikeskuse OÜ, and a loan agreement with Snowden OÜ (a 100% subsidiary of Floriston Grupp OÜ). According to article 7.12 of the Tallinn Stock Exchange Requirements for Issuers, it is a substantial transfer. It is not a transaction with a related person for the purposes of the article 7.9 of the Tallinn Stock Exchange Requirements for Issuers, and the members of Arco Vara Management Board and Supervisory Board do not have any other interest in the transactions. Transferred companies Tallinna Olümpiapurjespordikeskuse AS is operating in the field of lease and operation of its own or leased property; owners of the company are 50% Arco Investeeringute AS (a 100% subsidiary of Arco Vara) and 50% Regati Valduse OÜ. Manager of the company is Urmas Lind, members of the Supervisory Board: Heigo Metsoja, Veiko Taevere, Ivar Lindpere, Urmas Uustal, Aivar Tuulberg and Andres Toome Floriston Grupp OÜ is operating in the field of lease and operation of its own or leased property; owners of the company are 50% Arco Vara AS and 50% Ärimaja AS. Manager of the company is Urmas Lind, the company has no Supervisory Board. Arco Ärikeskuse OÜ is operating in the field of lease and operation of its own or leased property; owners of the company are 50% Arco Investeeringute AS and 50% Aberdeen OÜ. Manager of the company is Urmas Lind, the company has no Supervisory Board. Cost and conditions of transactions Arco Vara transferred 100% of its holdings in Tallinna Olümpiapurjespordikeskuse AS and Arco Ärikeskuse OÜ, which made up 50% of the holding or share capital of both companies, and 75% of its holding in Floriston Grupp OÜ, which made up 37.5% of the holding of the company. Arco Vara will maintain a 12.5% holding in Floriston Grupp OÜ. The cost of the 50% sales of Tallinna Olümpiapurjespordikeskuse AS is 37.5 MEEK (2.4 MEUR) and the payment due dates are 22.10.2009 and 19.12.2009. The cost of the 37.5% sales of Floriston Grupp OÜ is 5.5 MEEK (0.35 MEUR) and the payment due date is 22.10.2009. The cost of the 50% sales of Arco Ärikeskuse OÜ is 12 MEEK (0.77 MEUR) and the payment due date is 27.11.2009. The 50% Arco Vara holding in Arco Ärikeskuse OÜ is transferred at the consent of AS DnB Nord Bank. The Arco Vara claim against Snowden OÜ (a 100% subsidiary of Floriston Grupp) in the amount of 30 MEEK (1.9 MEUR) will remain valid and combined mortgages will be established to the plots in the ownership of Snowden OÜ to guarantee the claim. Economic results of companies to be transferred Tallinna Olümpiapurjespordikeskuse AS -------------------------------------------------------------------------------- | in EEK (thousands) | in EUR (thousands) | -------------------------------------------------------------------------------- | | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | | -------------------------------------------------------------------------------- | Turnover | 27 | 24 | 22 744 | 1 756 | 1 566 | 1 454 | | | | 481 | 495 | | | | | | -------------------------------------------------------------------------------- | Net profit/loss | 8 218 | 11 | 260 | 525 | 724 | 16 633 | | | | | 335 | 248 | | | | | -------------------------------------------------------------------------------- | Dividends per | 0 | 0 | 0 | 0 | 0 | 0 | | | share | | | | | | | | -------------------------------------------------------------------------------- | Basic and diluted | 0,22 | 0,3 | 0,55 | 0,014 | 0,019 | 0,035 | | | earnings/loss per | | | | | | | | | share | | | | | | | | -------------------------------------------------------------------------------- Floriston Grupp OÜ -------------------------------------------------------------------------------- | in EEK (thousands) | in EUR (thousands) | -------------------------------------------------------------------------------- | | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | -------------------------------------------------------------------------------- | Turnover | 6 772 | 5 530 | 11 266 | 433 | 353 | 720 | -------------------------------------------------------------------------------- | Net profit/loss | 44 | -93 | 203 | 2 833 | -5 971 | 13 008 | | | 322 | 430 | 526 | | | | -------------------------------------------------------------------------------- | Dividends per | 0 | 0 | 0 | 0 | 0 | 0 | | share | | | | | | | -------------------------------------------------------------------------------- | Basic and | 22161 | -4671 | 101763 | 1 416,346 | -2 | 6 | | diluted | | 5 | | | 985,633 | 503,841 | | earnings/loss | | | | | | | | per share | | | | | | | -------------------------------------------------------------------------------- Arco Ärikeskuse OÜ -------------------------------------------------------------------------------- | in EEK (thousands) | in EUR (thousands) | -------------------------------------------------------------------------------- | Arco Ärikeskuse | 2008 | 2007 | 2006 | 2008 | 2007 | 2006 | | OÜ | | | | | | | -------------------------------------------------------------------------------- | Turnover | 13 | 13 | 12 821 | 849 | 861 | 819 | | | 288 | 477 | | | | | -------------------------------------------------------------------------------- | Net profit/loss | -13 | 44 | 14 341 | -867 | 2 833 | 917 | | | 558 | 333 | | | | | -------------------------------------------------------------------------------- | Dividends per | 1 080 | 1 600 | 0 | 69 | 102 | 0 | | share | | | | | | | -------------------------------------------------------------------------------- | Basic and | -6779 | 22167 | 7170 | -433 | 1 416 | 458 | | diluted | | | | | | | | earnings/loss | | | | | | | | per share | | | | | | | -------------------------------------------------------------------------------- Annual reports of disposed companies -------------------------------------------------------------------------------- | TALLINNA | EEK | EEK | EUR | EUR | | OLÜMPIAPURJESPORDIKESKU | | | | | | SE AS | | | | | -------------------------------------------------------------------------------- | BALANCE SHEET 31.12 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Cash | 8 548 063 | 5 072 799 | 546 321 | 324 211 | -------------------------------------------------------------------------------- | Receivables | 3 969 629 | 1 467 565 | 253 706 | 93 794 | -------------------------------------------------------------------------------- | Deferred income | 718 921 | 75 775 | 45 947 | 4 843 | -------------------------------------------------------------------------------- | Total current assets | 13 23 613 | 6 616 139 | 84 594 | 422 848 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Investment property1 | 511 879 | 511 879 | 32 715 071 | 32 715 071 | | | 636 | 636 | | | -------------------------------------------------------------------------------- | Property, plant and | 250 980 | 321 073 | 16 041 | 20 520 | | equipment | | | | | -------------------------------------------------------------------------------- | Total non-current | 512 130 | 512 200 | 32 731 112 | 32 735 592 | | assets | 616 | 709 | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 525 367 | 518 816 | 33 577 086 | 33 158 440 | | | 229 | 848 | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | | | -------------------------------------------------------------------------------- | Liabilities | | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Loans and borrowings | 4 552 480 | 4 456 948 | 290 957 | 284 851 | -------------------------------------------------------------------------------- | Liabilities | 5 605 586 | 2 393 259 | 358 262 | 152 957 | -------------------------------------------------------------------------------- | Deferred income | 665 382 | 1 032 707 | 42 526 | 66 002 | -------------------------------------------------------------------------------- | Total current | 10 823 448 | 7 882 914 | 691 744 | 503 810 | | liabilities | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | | | -------------------------------------------------------------------------------- | Long-term loan | 65 219 980 | 69 772 460 | 4 168 316 | 4 459 273 | | liabilities | | | | | -------------------------------------------------------------------------------- | Miscellaneous long-term | 14 151 | 70 566 | 904 | 4 510 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total non-current | 65 243 131 | 69 843 026 | 4 169 796 | 4 463 783 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total liabilities | 76 057 579 | 77 725 940 | 4 860 965 | 4 967 593 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Equity | | | | | -------------------------------------------------------------------------------- | Share capital | 166 192 | 166 192 | 10 621 605 | 10 621 605 | | | 000 | 000 | | | -------------------------------------------------------------------------------- | Own shares | -110 000 | -110 000 | -7 030 281 | -7 030 281 | | | 000 | 000 | | | -------------------------------------------------------------------------------- | Share premium | 235 | 235 | 15 | 15 | -------------------------------------------------------------------------------- | Statutory capital | 2 842 529 | 2 842 529 | 181 671 | 181 671 | | reserve | | | | | -------------------------------------------------------------------------------- | Retained earnings | 390 274 | 382 056 | 24 943 111 | 24 417 838 | | | 886 | 144 | | | -------------------------------------------------------------------------------- | Total equity | 449 309 | 441 090 | 28 716 120 | 28 190 847 | | | 650 | 908 | | | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | 525 367 | 518 816 | 33 577 086 | 33 158 440 | | EQUITY | 229 | 848 | | | -------------------------------------------------------------------------------- 1 Arco Vara has assessed investment property on a more conservative basis and the 100% value of the Tallinna Olümpiapurjespordikeskuse AS property as of 31.12.2008 is 298,212,000 EEK (19,059,220 EUR). 2 Supervisory Board signatures are missing on the Tallinna Olümpiapurjespordikeskuse AS 2008 annual report -------------------------------------------------------------------------------- | TALLINNA | EEK | EEK | EUR | EUR | | OLÜMPIAPURJESPORDIKESKUS | | | | | | E AS | | | | | -------------------------------------------------------------------------------- | Income statement | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- | | | (adjusted) | | | -------------------------------------------------------------------------------- | Sales revenue | 27 481 299 | 24 494 979 | 1 756 375 | 1 565 514 | -------------------------------------------------------------------------------- | Other operating income | 101 028 | 142 963 | 6 457 | 9 137 | -------------------------------------------------------------------------------- | Goods, raw material, | - 6 203 161 | -5 328 498 | -396 454 | -340 553 | | material and services | | | | | -------------------------------------------------------------------------------- | Other operating costs | -780 261 | -880 917 | -49 868 | -56 301 | -------------------------------------------------------------------------------- | Personnel expenses | -3 474 986 | -3 404 273 | -222 092 | -217 573 | -------------------------------------------------------------------------------- | Depreciation of fixed | -365 267 | -310 573 | -23 345 | -19 849 | | assets | | | | | -------------------------------------------------------------------------------- | Other operating expenses | -4 431 030 | -17 421 | -283 194 | -1 113 | -------------------------------------------------------------------------------- | EBIT | 12 327 622 | 14 696 260 | 787 879 | 939 262 | -------------------------------------------------------------------------------- | Financial items | -4 108 880 | -3 361 555 | -262 605 | -214 843 | -------------------------------------------------------------------------------- | Profit / loss for the | 8 218 742 | 11 334 705 | 52 525 | 724 420 | | financial year | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | TALLINNA | EEK | EEK | EUR | EUR | | OLÜMPIAPURJESPORDIKESKUSE | | | | | | AS | | | | | -------------------------------------------------------------------------------- | Cash flow statement | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from operating | | | | | | activities | | | | | -------------------------------------------------------------------------------- | EBIT | 12 327 622 | 14 696 260 | 787 879 | 939 262 | -------------------------------------------------------------------------------- | Adjustment of EBIT | 4 716 173 | 310 573 | 301 418 | 19 849 | -------------------------------------------------------------------------------- | Change in assets and | -3 145 210 | -264 569 | -201 016 | -16 909 | | prepayments | | | | | -------------------------------------------------------------------------------- | Change in payables and | 2 788 587 | 53 687 | 178 223 | 3 431 | | prepayments | | | | | -------------------------------------------------------------------------------- | Net cash used in | 16 687 172 | 14 795 951 | 1 066 505 | 945 634 | | operating activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from investing | | | | | | activity | | | | | -------------------------------------------------------------------------------- | Acquisition of intangible | -295 174 | 0 | -18 865 | 0 | | assets | | | | | -------------------------------------------------------------------------------- | Acquisition of investment | - 4 354 504 | -4 679 636 | -278 304 | -299 083 | | property | | | | | -------------------------------------------------------------------------------- | Interest received | 472 968 | 394 673 | 30 228 | 25 224 | -------------------------------------------------------------------------------- | Net cash used in / from | - 4 176 710 | - 4 284 | -266 940 | -273 859 | | investing activities | | 963 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing | | | | | | activities | | | | | -------------------------------------------------------------------------------- | Proceeds from loans | 0 | 75 000 000 | 0 | 4 793 374 | | received | | | | | -------------------------------------------------------------------------------- | Repayment of loans | - 4 007 112 | -2 555 649 | -256 101 | -163 336 | -------------------------------------------------------------------------------- | Repayment of financial | -451 474 | -558 266 | -28 854 | -35 680 | | lease principal | | | | | -------------------------------------------------------------------------------- | Purchase of own shares | 0 | -110 000 | 0 | -7 030 | | | | 000 | | 281 | -------------------------------------------------------------------------------- | Interest paid | -4 578 250 | -3 756 229 | -292 604 | -240 067 | -------------------------------------------------------------------------------- | Net cash used in / from | -9 036 836 | -41 870 | -577 559 | -2 675 | | financing activities | | 144 | | 990 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | NET CASH FLOW | 3 473 626 | -31 359 | 222 005 | -2 004 | | | | 156 | | 215 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents | 5 072 799 | 36 399 260 | 324 211 | 2 326 337 | | at beginning of period | | | | | -------------------------------------------------------------------------------- | Decrease / increase in | 3 473 626 | -31 359 | 222 005 | -2 004 | | cash and cash equivalents | | 156 | | 215 | -------------------------------------------------------------------------------- | Effect of exchange rate | 1 638 | 33 695 | 105 | 2 154 | | fluctuations | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents | 8 548 063 | 5 072 799 | 546 321 | 324 211 | | at end of period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | FLORISTON GRUPP OÜ | EEK | EEK | EUR | EUR | -------------------------------------------------------------------------------- | BALANCE SHEET 31.12 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Cash | 7 527 876 | 5 814 964 | 481 119 | 371 644 | -------------------------------------------------------------------------------- | Receivables | 1 350 012 | 1 267 885 | 86 281 | 81 033 | -------------------------------------------------------------------------------- | Deferred income | 3 592 | 32 223 | 230 | 2 059 | -------------------------------------------------------------------------------- | Inventories1 | 52 680 019 | 50 915 | 3 366 867 | 3 254 069 | | | | 109 | | | -------------------------------------------------------------------------------- | Total current assets | 61 561 499 | 58 030 | 3 934 497 | 3 708 805 | | | | 181 | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Non-current receivables | 50 186 470 | 67 350 | 3 207 500 | 4 304 462 | | | | 195 | | | -------------------------------------------------------------------------------- | Investment property2 | 244 306 876 | 259 640 | 15 614 055 | 16 594 020 | | | | 000 | | | -------------------------------------------------------------------------------- | Total non-current | 294 493 346 | 326 990 | 18 821 555 | 20 898 482 | | assets | | 195 | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 356 054 845 | 385 020 | 22 756 052 | 24 607 287 | | | | 376 | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Loans and borrowings | 39 762 785 | 145 370 | 2 541 306 | 9 290 859 | | | | 360 | | | -------------------------------------------------------------------------------- | Liabilities | 9 215 938 | 5 587 349 | 589 006 | 357 097 | -------------------------------------------------------------------------------- | Deferred income | 69 139 | 56 400 | 4 419 | 3 605 | -------------------------------------------------------------------------------- | Total current | 49 047 562 | 151 014 | 3 134 711 | 9 651 561 | | liabilities | | 109 | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Non-current liabilities | | | | | -------------------------------------------------------------------------------- | Long-term loan | 55 974 721 | 27 300 | 3 577 436 | 1 744 788 | | liabilities | | 000 | | | -------------------------------------------------------------------------------- | Miscellaneous long-term | 76 740 | 72 740 | 4 905 | 4 649 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total non-current | 56 051 461 | 27 372 | 3 582 341 | 1 749 437 | | liabilities | | 740 | | | -------------------------------------------------------------------------------- | Total liabilities | 105 099 023 | 178 386 | 6 717 052 | 11 400 998 | | | | 849 | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Equity | | | | | -------------------------------------------------------------------------------- | Holding | 40 000 | 40 000 | 2 556 | 2 556 | -------------------------------------------------------------------------------- | Statutory capital | 4 000 | 4 000 | 256 | 256 | | reserve | | | | | -------------------------------------------------------------------------------- | Retained earnings | 250 911 822 | 206 589 | 16 036 188 | 13 203 477 | | | | 527 | | | -------------------------------------------------------------------------------- | Total equity | 250 955 822 | 206 633 | 16 039 000 | 13 206 289 | | | | 527 | | | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | 356 054 845 | 385 020 | 22 756 052 | 24 607 287 | | EQUITY | | 376 | | | -------------------------------------------------------------------------------- 1,2 Arco Vara has assessed inventories and investment property on a more conservative basis and the 100% value of Floriston Grupp OÜ inventories as of 31.12.2008 is 7,932,401 kroons (506,973 EUR), and the value of investment property 162,456,000 kroons (10,382,830 EUR). -------------------------------------------------------------------------------- | Floriston Grupp OÜ | EEK | EEK | EUR | EUR | -------------------------------------------------------------------------------- | Income statement | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales revenue | 6 771 844 | 5 530 330 | 432 800 | 353 453 | -------------------------------------------------------------------------------- | Cost of sales | -1 133 965 | -1 484 788 | -72 474 | -94 895 | -------------------------------------------------------------------------------- | Gross profit | 5 637 879 | 4 045 542 | 360 326 | 258 557 | -------------------------------------------------------------------------------- | | | | 0 | 0 | -------------------------------------------------------------------------------- | Selling and | 0 | | 0 | 0 | | distribution costs | | | | | -------------------------------------------------------------------------------- | Administrative expenses | -1 277 572 | -66 000 | -81 652 | -4 218 | -------------------------------------------------------------------------------- | Other operating income | 1 890 | -1 638 939 | 121 | -104 747 | -------------------------------------------------------------------------------- | Other operating | -15 924 227 | 749 461 | -1 017 744 | 47 899 | | expenses | | | | | -------------------------------------------------------------------------------- | EBIT | -11 526 030 | -41 874 | -736 648 | -2 676 267 | | | | 480 | | | -------------------------------------------------------------------------------- | Other financial items | 55 884 325 | -54 645 | 3 571 659 | -3 492 456 | | | | 063 | | | -------------------------------------------------------------------------------- | Profit / loss before | 44 322 295 | -93 429 | 2 832 711 | -5 971 232 | | tax | | 479 | | | -------------------------------------------------------------------------------- | Net profit of financial | 44 322 295 | -93 429 | 2 832 711 | -5 971 232 | | year | | 479 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Floriston Grupp OÜ | EEK | EEK | EUR | EUR | -------------------------------------------------------------------------------- | Cash flow statement | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from | | | | | | operating activities | | | | | -------------------------------------------------------------------------------- | EBIT | 44 322 295 | -93 429 | 2 832 711 | -5 971 | | | | 479 | | 232 | -------------------------------------------------------------------------------- | Interest income and | -5 198 069 | 11 431 387 | -332 217 | 730 599 | | expense | | | | | -------------------------------------------------------------------------------- | Gains and losses from | -668 503 | -7 312 172 | -42 725 | -467 333 | | TEV sales | | | | | -------------------------------------------------------------------------------- | Impairment of financial | -50 516 783 | 15 156 690 | -3 228 | 968 689 | | assets | | | 611 | | -------------------------------------------------------------------------------- | Exchange gains and | 5 895 | 9 065 | 377 | 579 | | losses | | | | | -------------------------------------------------------------------------------- | Profit/loss from | 15 333 124 | 41 860 000 | 979 965 | 2 675 342 | | investment property | | | | | | revaluation | | | | | -------------------------------------------------------------------------------- | Change in assets and | -1 891 255 | 32 607 102 | -120 873 | 2 083 974 | | prepayments | | | | | -------------------------------------------------------------------------------- | Change in payables and | 3 482 685 | 423 505 | 222 584 | 27 067 | | prepayments | | | | | -------------------------------------------------------------------------------- | Net cash used in | 4 869 389 | 746 098 | 311 211 | 47 684 | | operating activities | | | | | -------------------------------------------------------------------------------- | | | | 0 | 0 | -------------------------------------------------------------------------------- | Cash flows from | | | 0 | 0 | | investing activity | | | | | -------------------------------------------------------------------------------- | Sales of subsidiaries | 700 000 | 7 366 500 | 44 738 | 470 805 | -------------------------------------------------------------------------------- | Cash in subsidiaries | 0 | -51 536 | 0 | -3 294 | | sold | | | | | -------------------------------------------------------------------------------- | Proceeds from sale of | 81 673 621 | 0 | 5 219 896 | 0 | | other financial assets | | | | | -------------------------------------------------------------------------------- | Interest received | 344 427 | 238 017 | 22 013 | 15 212 | -------------------------------------------------------------------------------- | Net cash used in / from | 82 718 048 | 7 552 981 | 5 286 647 | 482 723 | | investing activities | | | | | -------------------------------------------------------------------------------- | | | | 0 | 0 | -------------------------------------------------------------------------------- | Cash flow from financing | | | 0 | 0 | | activities | | | | | -------------------------------------------------------------------------------- | Proceeds from loans | 69 325 471 | 1 071 400 | 4 430 705 | 68 475 | | received | | | | | -------------------------------------------------------------------------------- | Repayment of loans and | -148 849 440 | -5 154 691 | -9 513 | -329 445 | | financial lease | | | 213 | | -------------------------------------------------------------------------------- | Change in overdraft | 0 | - 7 173 | 0 | -458 | -------------------------------------------------------------------------------- | Interest paid | -6 344 661 | -8 819 050 | -405 498 | -563 640 | -------------------------------------------------------------------------------- | Net cash used in / from | -85 868 630 | -12 909 | -5 488 | -825 068 | | financing activities | | 514 | 006 | | -------------------------------------------------------------------------------- | | | | 0 | 0 | -------------------------------------------------------------------------------- | NET CASH FLOW | 1 718 807 | -4 610 435 | 109 852 | -294 661 | -------------------------------------------------------------------------------- | | | | 0 | 0 | -------------------------------------------------------------------------------- | Cash and cash | 5 814 964 | 10 434 464 | 371 644 | 666 884 | | equivalents at beginning | | | | | | of period | | | | | -------------------------------------------------------------------------------- | Decrease / increase in | 1 718 807 | -4 610 435 | 109 852 | -294 661 | | cash and cash | | | | | | equivalents | | | | | -------------------------------------------------------------------------------- | Effect of exchange rate | - 5 895 | -9 065 | -377 | -579 | | fluctuations | | | | | -------------------------------------------------------------------------------- | Cash and cash | 7 527 876 | 5 814 964 | 481 119 | 371 644 | | equivalents at end of | | | | | | period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ARCO ÄRIKESKUSE OÜ | EEK | EEK | EUR | EUR | -------------------------------------------------------------------------------- | BALANCE SHEET 31.12 | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Cash | 216 682 | 473 611 | 13 849 | 30 269 | -------------------------------------------------------------------------------- | Receivables | 557 219 | 659 516 | 35 613 | 42 151 | -------------------------------------------------------------------------------- | Deferred income | 9 655 | 8 831 | 617 | 564 | -------------------------------------------------------------------------------- | Total current assets | 783 556 | 1 141 958 | 50 078 | 72 984 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Investment property1 | 170 614 604 | 189 200 | 10 904 261 | 12 092 084 | | | | 000 | | | -------------------------------------------------------------------------------- | Property, plant and | 45 082 | 77 951 | 2 881 | 4 982 | | equipment | | | | | -------------------------------------------------------------------------------- | Total non-current | 170 659 696 | 189 277 | 10 907 143 | 12 097 066 | | assets | | 951 | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 171 443 252 | 190 419 | 10 957 221 | 12 170 050 | | | | 909 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Loans and borrowings | 3 821 000 | 3 644 990 | 244 206 | 232 957 | -------------------------------------------------------------------------------- | Liabilities | 1 110 065 | 975 067 | 70 946 | 62 318 | -------------------------------------------------------------------------------- | Deferred income | 42 500 | 42 500 | 2 716 | 2 716 | -------------------------------------------------------------------------------- | Total current | 4 973 565 | 4 662 557 | 317 869 | 297 992 | | liabilities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | | -------------------------------------------------------------------------------- | Long-term loan | 99 307 436 | 102 699 | 6 346 902 | 6 563 721 | | liabilities | | 913 | | | -------------------------------------------------------------------------------- | Miscellaneous long-term | 526 446 | 703 683 | 33 646 | 44 974 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total non-current | 99 833 882 | 103 403 | 6 380 548 | 6 608 694 | | liabilities | | 596 | | | -------------------------------------------------------------------------------- | Total liabilities | 104 807 447 | 108 066 | 6 698 417 | 6 906 686 | | | | 153 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Equity | | | | | -------------------------------------------------------------------------------- | Holding | 90 000 | 90 000 | 5 752 | 5 752 | -------------------------------------------------------------------------------- | Share premium | 16 335 900 | 16 335 900 | 1 044 054 | 1 044 054 | -------------------------------------------------------------------------------- | Statutory capital | 10 000 | 10 000 | 639 | 639 | | reserve | | | | | -------------------------------------------------------------------------------- | Retained earnings | 50 199 905 | 65 917 856 | 3 208 359 | 4 212 919 | -------------------------------------------------------------------------------- | Total equity | 66 635 805 | 82 353 756 | 4 258 804 | 5 263 364 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | 171 443 252 | 190 419 | 10 957 221 | 12 170 050 | | EQUITY | | 909 | | | -------------------------------------------------------------------------------- 1 Arco Vara has assessed investment property on a more conservative basis and the 100% value of the Arco Ärikeskus property as of 31.12.2008 is 134,170,000 kroons (8,575,026 EUR). -------------------------------------------------------------------------------- | ARCO ÄRIKESKUSE OÜ | EEK | EEK | EUR | EUR | -------------------------------------------------------------------------------- | Income statement | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales revenue | 13 287 970 | 13 477 139 | 849 256 | 861 346 | -------------------------------------------------------------------------------- | Cost of sales | -869 582 | -1 505 520 | -55 576 | -96 220 | -------------------------------------------------------------------------------- | Gross profit | 12 418 388 | 11 971 619 | 793 680 | 765 126 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Selling and | -56 665 | -107 400 | -3 622 | -6 864 | | distribution costs | | | | | -------------------------------------------------------------------------------- | Administrative expenses | -890 683 | -466 481 | -56 925 | -29 814 | -------------------------------------------------------------------------------- | Other operating income | 458 081 | 39 313 370 | 29 277 | 2 512 582 | -------------------------------------------------------------------------------- | Other operating | -18 935 029 | -17 919 | -1 210 169 | -1 145 | | expenses | | | | | -------------------------------------------------------------------------------- | EBIT | -7 005 908 | 50 693 189 | -447 759 | 3 239 885 | -------------------------------------------------------------------------------- | Other financial items | -5 977 867 | -5 457 390 | -382 055 | -348 791 | -------------------------------------------------------------------------------- | Profit / loss before | -12 983 775 | 45 235 799 | -829 814 | 2 891 094 | | tax | | | | | -------------------------------------------------------------------------------- | Income tax on dividends | -574 176 | -902 564 | -36 697 | -57 684 | -------------------------------------------------------------------------------- | Net profit of financial | -13 557 951 | 44 333 235 | -866 511 | 2 833 410 | | year | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | ARCO ÄRIKESKUSE OÜ | EEK | EEK | EUR | EUR | -------------------------------------------------------------------------------- | Cash flow statement | 2008 | 2007 | 2008 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flows from | | | | | | operating activities | | | | | -------------------------------------------------------------------------------- | EBIT | -7 005 908 | 50 693 189 | -447 759 | 3 239 885 | -------------------------------------------------------------------------------- | Adjustment of EBIT | 18 618 255 | -39 142 | 1 189 923 | -2 501 | | | | 527 | | 663 | -------------------------------------------------------------------------------- | Change in assets and | 82 836 | -89 828 | 5 294 | -5 741 | | prepayments | | | | | -------------------------------------------------------------------------------- | Change in payables and | -153 831 | 53 489 | -9 832 | 3 419 | | prepayments | | | | | -------------------------------------------------------------------------------- | Net cash used in | 11 541 352 | 11 514 323 | 737 627 | 735 899 | | operating activities | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Cash flows from | | | | | | investing activity | | | | | -------------------------------------------------------------------------------- | Interest received | 7 284 | 34 817 | 466 | 2 225 | -------------------------------------------------------------------------------- | Net cash used in / from | 7 284 | 34 817 | 466 | 2 225 | | investing activities | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Cash flow from financing | | | | | | activities | | | | | -------------------------------------------------------------------------------- | Repayment of loans and | -3 216 467 | -3 339 018 | -205 570 | -213 402 | | financial lease | | | | | -------------------------------------------------------------------------------- | Interest paid | -5 993 474 | -5 461 451 | -383 053 | -349 050 | -------------------------------------------------------------------------------- | Dividends paid | -2 160 000 | -3 200 000 | -138 049 | -204 517 | -------------------------------------------------------------------------------- | Income tax paid | -430 632 | -902 564 | -27 522 | -57 684 | -------------------------------------------------------------------------------- | Net cash used in / from | -11 800 573 | -12 903 | -754 194 | -824 654 | | financing activities | | 033 | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | NET CASH FLOW | -251 937 | -1 353 893 | -16 102 | -86 530 | -------------------------------------------------------------------------------- | | | | 0 | 0 | -------------------------------------------------------------------------------- | Cash and cash | 473 611 | 1 844 460 | 30 269 | 117 882 | | equivalents at beginning | | | | | | of period | | | | | -------------------------------------------------------------------------------- | Decrease / increase in | -251 937 | -1 353 893 | -16 102 | -86 530 | | cash and cash | | | | | | equivalents | | | | | -------------------------------------------------------------------------------- | Effect of exchange rate | -4 992 | -16 956 | -319 | -1 084 | | fluctuations | | | | | -------------------------------------------------------------------------------- | Cash and cash | 216 682 | 473 611 | 13 849 | 30 269 | | equivalents at end of | | | | | | period | | | | | -------------------------------------------------------------------------------- Extract of substantial loans taken by transferred companies -------------------------------------------------------------------------------- | Company | Creditor | Due date | Amount as of | | | | | 30.06.09 | -------------------------------------------------------------------------------- | Floriston Grupp | Arco Vara AS | 31.05.2012 | 10 384 000 | | OÜ | | | | -------------------------------------------------------------------------------- | Floriston Grupp | Arco Vara AS | 23.05.2011 | 11 500 000 | | OÜ | | | | -------------------------------------------------------------------------------- | Floriston Grupp | Ärimaja AS | 31.05.2012 | 10 384 000 | | OÜ | | | | -------------------------------------------------------------------------------- | Floriston Grupp | Ärimaja AS | 23.05.2011 | 11 500 000 | | OÜ | | | | -------------------------------------------------------------------------------- | Floriston Grupp | Swedbank | 26.06.2013 | 31 293 170 | | OÜ | | | | -------------------------------------------------------------------------------- | AS Tallinna | Swedbank | 25.11.2015 | 66 404 784 | | Olümpiapurjespor | | | | | dikeskuse | | | | -------------------------------------------------------------------------------- | Arco Ärikeskuse | DnB Nord Pank | 25.10.2016 | 101 204 210 | | OÜ | | | | --------------------------------------------------------------------------------