Market announcement

Title

2012 12 months and IV quarter consolidated unaudited interim report

Message

Estonia, Tallinn, 2013-02-14 15:35 CET (GLOBE NEWSWIRE) --


MANAGEMENT REPORT


Overview of the 12 months results

Profitability has improved: net profit in Q4 was EUR 4.42 million (Q3 2012: EUR 
 2.62 million), which shows a positive trend toward increased profitability. The
 profit from sale of Latvian apartments also contributed in the last quarter.   
 The 12-month net profit was EUR 7.63 million (12 months of 2011: net loss of   
 EUR 14.08 million).                                                            
Revenue is up: the revenue for Q4 of 2012 was EUR 71.40 million (Q3 2012: EUR   
 70.87 million), which was EUR 5.47 million higher compared to the results for  
 Q4 in the previous year. The 12-month revenue totalled EUR 249.13 million,     
 which is 13.6% more than the revenue in the same period in the previous year   
 (12 months of 2011: EUR 219.32 million).                                       
Strong cash position: by the end of the reporting period, the group had EUR     
 35.32 million in cash and cash equivalents, EUR 116.93 million in equity (52.0%
 of the balance sheet volume). Comparable data as of 2011 were, respectively EUR
 18.65 million and EUR 109.24 million (49.6% of the balance sheet volume). The  
 group’s net debt was EUR 0.19 million as of 31 December 2012 (31 December 2011:
 EUR 21.69 million; 30 September 2012: EUR 25.94 million).                      
Secured order book is stable: in Q4 of 2012, the group’s companies entered into 
 new contracts worth a volume of EUR 49 million (Q4 2011: EUR 32 million) and   
 the secured order book balance as of 31 December 2012 was EUR 190 million (31  
 December 2011: EUR 166 million).                                               

Background information and major changes introduced in the corporate structure

AS Merko Ehitus is a holding company incorporating construction and real estate
development companies offering integrated construction solutions in Estonia,
Latvia and Lithuania. Major construction companies incorporated under the
holding company include AS Merko Ehitus Eesti (100%), SIA Merks (100%), UAB
Merko Statyba (100%), as well as the AS Merko Ehitus Eesti group companies
Tallinna Teede AS (100%) and AS Merko Infra (100%). 

The Management Board of the holding company AS Merko Ehitus has two members:
Andres Trink and Viktor Mõisja. 

The profiles of the members of the Management Board and Supervisory Board have
been presented in Note 15 to the financial statements, and published, together
with the track record and photographs, on the company’s website at
www.merko.ee. 

On 6 July 2012, AS Merko Ehitus transferred, in connection with review of its
investment strategy, its 25% stake in the reinforced concrete element
manufacturer AS TMB to the company management. 

The changes introduced in the management of SIA Merks, the Latvian-based
subsidiary of AS Merko Ehitus, took effect in September 2012, with the former
Chairman of the Management Board Ivars Geid?ns being appointed a member of the
Supervisory Board of SIA Merks, and the former CFO Oskars Ozoli?š the Chairman
of the Management Board of SIA Merks. The Management Board of SIA Merks will
continue with two members: Oskars Ozoli?š as the chairman and construction
director J?nis Šperbergs as member of the Management Board. The company’s
Supervisory Board will continue with Andres Trink serving as the chairman, and
Tõnu Toomik, Jaan Mäe and Ivars Geid?ns as members. 

In connection with the review of the Lithuanian business strategy, the
Supervisory Board of UAB Merko Statyba decided to end the implementation of
water management projects on the Lithuanian market and focus on the field of
general construction and apartment development. 

In connection with the revising of the Ukrainian market prospects, the
Supervisory Board of AS Merko Ehitus approved, on 4 September 2012, the
management’s proposal for the initiation of the liquidation of the 100%
subsidiary Merko Ukraine LLC. The company has no work-in-progress, contracts
that needed to be served, or employees in Ukraine. 

In December 2012, a 100% subsidiary in Russia was founded and registered, OOO
Lenko Stroi (registry code 1129847028288). The subsidiary was founded through
the 100% Finnish subsidiary Merko Finland OY. The share capital of the new
subsidiary is EUR 4,986. This was a technicality aimed at establishing a legal
platform for operations in Russia. No actual business activity is currently
taking place in Russia. 

In October 2012, the shareholders of OÜ Unigate signed a notarized plan for a
division under which registered immovable property with natural conservation
restrictions were separated from OÜ Unigate and distributed among the owners
equally. AS Merko Ehitus founded two 100% subsidiaries in order to receive the
five immovables arising from the transaction: Väike-Paekalda OÜ and
Suur-Paekalda OÜ. 

In 2012, the business strategy of AS Merko Ehitus subsidiary companies focused
on improving profitability, enhancing the efficiency of the cost base and
strengthening the long-term liquidity position, concentrating on general
contracting and real estate development at the domestic markets of Estonia,
Latvia and Lithuania. 

In 2012, the activities of AS Merko Ehitus were recognized in the form of the
following prizes: 

International Olympic Committee (ROK) prize - Sport and the environment

At a gala evening taking place on 27 December 2012, the foundation behind
Estonian recreational trails won an International Olympic Committee (ROK) prize
- Sport and the environment. The foundation, SA Eesti Terviserajad (Estonian
Recreational Trails), is the initiative of three companies – Merko Ehitus,
Eesti Energia and Swedbank – for creating and improving Estonian trails and
sports opportunities in natural settings. The goal of the joint venture is to
support development of Estonian recreational trails to ensure that the public
has free of charge access to places where they can exercise and play sports
throughout the year. From 2004 to 2012, over EUR 23 million had been invested
into the development of recreational trails, and among others contributors
include SA Eesti Terviserajad, local governments, the Ministry of Culture and
the European Union. Across Estonia, pro and amateur sportsmen and -women have
close to 90 trails – 750 km worth of maintained and mostly illuminated trails. 

The Entrepreneurship Award 2012

AS Merko Ehitus was granted the most competitive enterprise award in the field
of construction at the Entrepreneurship Award competition organised by
Enterprise Estonia, the Estonian Chamber of Commerce and the Estonian
Employers’ Confederation. 

Euromoney – Real Estate Survey 2012

In its real estate market survey for 2012, Euromoney – the international
financial journal with a history of more than 40 years – declared AS Merko
Ehitus Estonia’s best developer. The Real Estate Survey 2012 is the eighth
survey conducted by Euromoney with the aim of ranking the best in real estate
on the basis of the market data, as well as the assessments of developers,
counsellors, business customers, investors and banks. 


Business activities

Key financial indicators (in millions of euros):

                                                 12m  12m 2011  Q4 2012  Q4 2011
                                                2012                            
Revenue                                                                         
Estonia                                        202,1     162,2     49,3     55,1
Latvia                                          38,3      41,8     19,4      9,9
Lithuania                                        8,7      15,3      2,7      0,9
Revenue total                                  249,1     219,3     71,4     65,9
                                            ------------------------------------
                                            ------------------------------------
                                                                                
Operating profit (EBIT)                          7,4    (13,3)      4,4    (6,6)
                                                                                
                                            ------------------------------------
attributable to equity holders of the            7,6    (14,1)      4,4    (6,8)
 parent                                                                         
attributable to non-controlling interest       (0,0)     (0,1)      0,1    (0,0)
Net profit                                       7,6    (14,2)      4,5    (6,8)
                                            ------------------------------------
                                            ------------------------------------
                                                                                
Earnings per share (EPS), in euros              0,43    (0,80)     0,25   (0,38)
                                            ------------------------------------
                                            ------------------------------------
                                                                                
Cash and cash equivalents at the end of period  35,3      18,5     35,3     18,5
                                               ---------------------------------

Merko Ehitus generated a total of EUR 249.1 million in revenue in 12 months of
2012, including the EUR 71.4 million generated in the fourth quarter. 81.1% of
the revenue was generated in Estonia, 15.4% in Latvia and 3.5% in Lithuania.
The consolidated revenue grew by 13.6%, compared to 12 months of 2011. This can
mainly be attributed to the increase in the revenue generated from engineering
projects in Estonia and apartment projects in all three Baltic counties. A bulk
of the revenue generated from the construction sector can be attributed to
projects co-financed by the European Structural Funds. 

A total of 235 apartments were sold in 12 months of 2012 at the total value of
EUR 25.0 million (w/o VAT) (159 apartments and EUR 18.2 million in 12 months of
2011). In the last quarter, 116 apartments were sold for a total price of EUR
12.3 million (not including VAT) compared to 46 sold apartments in Q4 2011. In
the fourth quarter, a 115-unit apartment building in Riga on Skanstese street
and a 68-flat apartment in Vilnius on Mokslinink? street were completed. At the
end of the period, the Merko Ehitus group’s inventory consisted of a total of
155 completed but not yet sold apartments (55 in Estonia, 47 in Latvia and 53
in Lithuania). 

The following table lists the apartment projects in progress:

                      Town    Completion time  No of apartments
Räägu 9              Tallinn    2013 spring           20       
Eha 4 / Paldiski 17  Tallinn    2013 summer           27       
Vaarika 5             Tartu     2013 summer           15       
Pallasti 46, 48, 50  Tallinn    2013 autumn           69       
Grostonas 17          Riga      2013 autumn           62       
Tedre 55             Tallinn    2014 spring           47       
Total                                                 240      
                                              -----------------

In addition, the construction activity on 311 apartments from 2007 and 2011 has
been frozen. 

The real estate market has become more selective – key aspects considered in
the evaluation of risks prior to the launch of each project is the location,
scale of development, design solutions and the target group. Considering the
low mortgage interest rates and the limited supply on the new apartments market
in the last three years, demand and transaction activity on the apartment
market has grown moderately. 

In 12 months of 2012, the group earned a gross profit from development and
construction activity of EUR 17.9 million (12 months of 2011: EUR 3.6 million).
The impact of seasonal factors in construction on the 12-month results for 2012
were insignificant compared to that of previous years. Considering the fact
that Q3 is generally the most active construction period in the annual cycle,
it nevertheless proved possible in the Q4 to increase the revenue compared to
that of the previous quarter – by EUR 0.5 million. Sales of apartments in the
amount of EUR 12.3 million gave a boost in this direction. The said sales made
up 49.0% of the annual apartment sales. Primarily due to the above-mentioned
result, the quarterly sales were 8.3% higher than last year in the same period.
New and profitable projects and sales of apartment developments in Q4 have led
to a positive gross profit trend compared to the same period the previous year.
In addition, positive influence stems from the fact that the losses from
problematic projects were already recognized in previous periods. For the same
reasons, the gross profit margin has improved by 8.8% (12 months of 2012: 7.2%)
compared to the 12 months of 2011 (-1.6%). In light of the ever more
competitive construction sector, it is a major challenge for subsidiaries in
the field of construction to maintain their gross margin at the same level. 

The consolidated earnings before taxes (EBT) for the 12 months of 2012 amounted
to EUR 7.9 million and net profit to EUR 7.6 million, compared to the negative
EBT of EUR 14.0 million and net loss of EUR 14.1 million for the 12 months of
2011. 

The group posted a net profit of EUR 4.4 million in the fourth quarter of 2012,
compared to the EUR 6.8 million net loss for the fourth quarter of 2011. The
result in the final quarter of 2011 was most impacted by impairment of
inventories by EUR 6.0 million. 

As at 31 December 2012, secured order book amounted to EUR 190 million,
compared to the EUR 166 million as at 31 December 2011. The group does not
include residential building projects developed by the group and development of
investment property in the order book. 

A total of EUR 247 million worth of new contracts (without sold apartments)
were concluded in 12 months of 2012, compared to the EUR 168 million in the
same period last year. The largest construction agreements concluded in fourth
quarter of 2012 have been brought out below: 

Contracts                                                                 Cost  
                                                                          in    
                                                                        million 
                                                                        of euros
Construction of Vääna-Jõesuu water- and sewer pipelines, part 2 and       14.6  
 part 3                                                                         
The design and construction work for the Narva-Jõesuu public water        8.8   
 supply and sewerage pipelines, their renovation and expansion, part            
 1 and part 2                                                                   
Riga Technical University, Faculty of Electronics and                     6.6   
 Telecommunication                                                              
The design and construction work for the Tõrva public water supply        5.6   
 and sewerage pipelines                                                         

Although the share of public procurements was still predominant among
construction contracts in 2012, the private customer segment became more active
in the construction markets of all three Baltics. With the current EU financial
framework period ending, a certain drop in the volume of public procurements
can be forecasted starting in the latter half of 2013. As a result, it will be
a challenge in its own right to keep the volume of new construction agreements
at the 2012 level. 

The group has improved on its financial resources. As at the end of the
reporting period the Merko Ehitus group’s financial resources amounted to EUR
35.3 million, compared to the EUR 18.7 million in the same period last year. 

During the year, the strategic cash position and investment capability of the
AS Merko Ehitus holding company have improved. 

The 12-month cash flow from operating activity was positive at EUR 3.5 million
(12 months of 2011: negative EUR 12.3 million), cash flow from investing
activity was positive at EUR 12.7 million (12 months of 2011: EUR 8.7 million)
and the cash flow from financing activity was positive at EUR 0.7 million (12
months of 2011: EUR 12.1 million). The cash flow from operating activity was
most influenced by the negative change in trade and other receivables related
to operating activity – EUR 8.2 million, by the operating profit of EUR 7.4
million and positive change in trade payables and inventories related to
operating activity – EUR 5.4 million. The group’s cash flows from operating
activity were positive in the last quarter – EUR 19.3 million – compared to the
EUR 9.9 million in Q4 2011. The significantly greater cash inflow in the last
quarter of the year was due to the seasonality of construction activity. It
should still be emphasized in this connection that the share of public sector
orders with a long payment term has increased as a proportion of the group’s
cash flow from operating activity (by contract, an average of 56 days after
evaluation of the work) and there is an additional burden on working capital,
including optimal management of cash flows. To support cash flows arising from
operating activity, the group, in deliberated fashion, brought in additional
external capital, including factoring. At the same time, the debt ratio has
remained at a moderate level (15.8% as of 12 months of 2012). 

The EUR 12.7 million cash flow from investing activities is made up of the
positive EUR 9.9 million of repayment of loans related to the financing of
development activities as well as the EUR 2.8 million generated from the
disposal of the share in AS TMB. Negative cash flows consist of the EUR 1.5
million spent on the acquisition of investment property (mainly the
construction of the court and police department building in Jõgeva). 

The balance of loans received and loans repaid contributed EUR 1.6 million and
the repayment of the finance lease principal EUR 0.9 million to the cash flow
from financing activities. 

The financial ratios of Merko Ehitus for the 12 months of 2012, and the methods
for calculating the financial ratios (per share attributable to equity holders
of the parent company): 

                                              12 months   12 months    12 months
                                                   2012        2011         2010
Net profit margin                   %               3,1        -6,4          0,7
EBT margin                          %               3,2        -6,4          1,0
Operating margin                    %               3,0        -6,1          1,4
Gross profit margin                 %               7,2        -1,6          7,5
EBITDA margin                       %               4,0        -5,0          2,8
ROE                                 %               6,8       -12,2          1,0
ROA                                 %               3,4        -6,6          0,6
Equity ratio                        %              52,0        49,6         63,8
Debt ratio                          %              15,8        18,3         13,2
Current ratio                   multiplier          2,1         2,0          2,7
Quick ratio                     multiplier          1,1         1,0          1,1
General expense ratio               %               4,5         4,6          6,4
Gross remuneration ratio            %               8,3         7,6          9,3
Accounts receivable turnover      days               58          56           46
Accounts payable turnover         days               47          45           40
Revenue per employee            thousand            278         235          208
                                  euros                                         
Average number of employees       people            895         920          809
 (in group)                                                                     

Net profit margin = net profit / revenue
EBT margin = EBT / revenue
Operating profit margin = operating profit / revenue
Gross margin = gross profit / revenue
EBITDA margin = (operating profit + depreciation, amortisation and impairment)
/ revenue 
ROE = rolling 4 last quarter net profit / average equity
ROA = rolling 4 last quarter net profit / average total assets
Equity ratio = equity / total assets
Debt ratio: interest-bearing liabilities / total assets
Current ratio = current assets / current liabilities
Quick ratio = (current assets - inventories) / current liabilities
General expense ratio = general expenses / revenue
Gross remuneration ratio = gross remuneration / revenue
Accounts receivable turnover = average accounts receivable / rolling 4 last
quarter revenue x 365 
Accounts payable turnover = average accounts payable / rolling 4 last quarter
cost of goods sold x 365 
Revenue per employee = revenue / average number of employees


Employees and remuneration

The number of the group’s employees has dropped by 2 in the last 12 months
(-0.2%). As at 31 December 2012, the group had a total of 915 employees
(including fixed-term and part-time employees). The 12-month gross remuneration
for employees in the 12 months of 2012 was EUR 20.7 million, of which the share
of basic wages made up 74.8% and bonuses accounted for 25.2% (12 months of
2011: EUR 16.7 million, basic wages 84.6% and bonuses 15.4%). Gross
remuneration grew 24.0% compared to last year, including basic wage 9.7% and
bonuses 102.4%. 


Share and shareholders

Information on security

ISIN                                         EE3100098328
Short name                              MRK1T
List                                          Baltic Main List
Nominal value                           no par value
Securities issued                       17 700 000
Securities listed                         17 700 000
Date of listing                           11 August 2008

The shares of Merko Ehitus have been listed in the main list of NASDAQ OMX
Tallinn. A total of 1,662 transactions were conducted with the shares of Merko
Ehitus in 12 months of 2012, with 0.94 million shares traded, generating a
turnover of EUR 5.5 million. The lowest share price amounted to EUR 5.37 and
the highest to EUR 7.30 per share. The closing price of the share was EUR 5.90
on 31 December 2012. As at 31 December 2012, the market value of AS Merko
Ehitus amounted to EUR 104 million. 

                                    31.12.2012  31.12.2011  31.12.2010
No. of shares, pcs                  17 700 000  17 700 000  17 700 000
Earnings per share (EPS), in euros        0,43       -0,80        0,07
Equity per share, in euros                6,61        6,17        7,05
P/B (price to book ratio)                 0,89        0,87        1,28

Structure of shareholders as at 31.12.2012

    No. of shares             No. of             % of        No. of  % of shares
                        shareholders     shareholders        shares             
    1 000 001 - …                  1            0,07%    12 742 686       71,99%
  100 001 – 1 000                 10            0,71%     3 079 937       17,40%
              000                                                               
 10 001 – 100 000                 28            1,99%       845 449        4,77%
      1001-10 000                236           16,79%       709 342        4,01%
         101-1000                731           51,99%       300 686        1,70%
            1-100                400           28,45%        21 900        0,13%
            Total               1406             100%    17 700 000         100%
                  --------------------------------------------------------------

Main shareholders of AS Merko Ehitus as at 31.12.2012 and change compared to
previous quarter: 

                                                      No. of       % of   Change
                                                      shares      total         
AS Riverito                                       12 742 686     71,99%        -
ING Luxembourg S.A., clients                         974 126      5,50%        -
Skandinaviska Enskilda Banken Ab, clients            896 864      5,07%     +160
                                                                             000
Firebird Republics Fund Ltd                          302 395      1,71%        -
Gamma Holding OÜ                                     163 256      0,92%     +690
State Street Bank and Trust Omnibus Account a        153 018      0,86%        -
 Fund No OM01                                                                   
SEB Elu- ja Pensionikindlustus AS                    125 520      0,71%        -
Skandinaviska Enskilda Banken Finnish clients        125 191      0,71%        -
Andersson Investeeringud OÜ                          120 015      0,68%   +8 174
AS Midas Invest                                      117 055      0,66%   +4 500
Clearstream Banking Luxembourg S.A. clients          102 497      0,58%     -440


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
unaudited, in thousand euros

                                                                 2012       2011
                                                            12 months  12 months
                                                                                
Revenue                                                       249 131    219 322
Cost of goods sold                                          (231 220)  (222 928)
Gross profit (loss)                                            17 911    (3 606)
                                                                                
Marketing expenses                                            (2 107)    (2 104)
Administrative and general expenses                           (9 173)    (7 910)
Other operating income                                          1 604      1 611
Other operating expenses                                        (834)    (1 308)
Operating profit (loss)                                         7 401   (13 317)
                                                                                
Finance income/costs                                              501      (718)
incl. finance income/costs from investments in associates         163    (1 120)
and joint ventures                                                              
finance income/costs from other long-term investments           1 359        973
interest expense                                              (1 156)    (1 149)
foreign exchange gain                                            (44)        501
other financial income (expenses)                                 179         77
Profit (loss) before tax                                        7 902   (14 035)
Corporate income tax expense                                    (289)      (121)
Net profit (loss) for current period                            7 613   (14 156)
                                                           ---------------------
incl. net profit (loss) attributable to equity holders of       7 627   (14 084)
 the parent                                                                     
net profit (loss) attributable to non-controlling interest       (14)       (72)
                                                                                
Other comprehensive income (loss)                                               
Currency translation differences of foreign entities               58        354
Comprehensive income (loss) for the period                      7 671   (13 802)
                                                           ---------------------
                                                           ---------------------
incl. net profit (loss) attributable to equity holders of       7 685   (13 730)
 the parent                                                                     
net profit (loss) attributable to non-controlling interest       (14)       (72)
                                                                                
Earnings per share for profit (loss) attributable to             0,43     (0,80)
equity holders of the parent (basic and diluted, in euros)                      


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
unaudited, in thousand euros

                                                                 2012       2011
                                                                   IV         IV
                                                              quarter    quarter
                                                                                
Revenue                                                        71 402     65 931
Cost of goods sold                                           (64 143)   (69 892)
Gross profit (loss)                                             7 259    (3 961)
                                                                                
Marketing expenses                                              (722)      (530)
Administrative and general expenses                           (2 485)    (1 936)
Other operating income                                          1 000      1 024
Other operating expenses                                        (654)    (1 207)
Operating profit (loss)                                         4 398    (6 610)
                                                                                
Finance income/costs                                               40      (293)
incl. finance income/costs from investments in                      -       (14)
 subsidiaries                                                                   
finance income/costs from investments in associates              (26)    (1 277)
and joint ventures                                                              
finance income/costs from other long-term investments             343        973
interest expense                                                (235)      (393)
foreign exchange gain                                            (81)        397
other financial income (expenses)                                  39         21
Profit (loss) before tax                                        4 438    (6 903)
Corporate income tax expense                                     (51)      (117)
Net profit (loss) for current period                            4 489    (6 786)
                                                           ---------------------
                                                           ---------------------
incl. net profit (loss) attributable to equity holders of       4 425    (6 755)
 the parent                                                                     
net profit (loss) attributable to non-controlling interest         64       (31)
                                                                                
Other comprehensive income (loss)                                               
Currency translation differences of foreign entities             (49)        331
                                                                                
Comprehensive income (loss) for the period                      4 440    (6 455)
                                                           ---------------------
                                                           ---------------------
incl. net profit (loss) attributable to equity holders of       4 376    (6 424)
 the parent                                                                     
net profit (loss) attributable to non-controlling interest         64       (31)
                                                                                
Earnings per share for profit (loss) attributable to             0,25     (0,38)
 equity                                                                         
holders of the parent (basic and diluted, in euros)                             


CONSOLIDATED STATEMENT OF FINANCIAL POSITION
unaudited, in thousand euros

                                                       31.12.2012  31.12.2011
ASSETS                                                                       
Current assets                                                               
Cash and cash equivalents                                  35 316      18 510
Short-term deposits                                             -         140
Trade and other receivables                                60 343      64 449
Prepaid corporate income tax                                  478         686
Inventories                                                82 830      87 834
Total current assets                                      178 967     171 619
                                                                             
Non-current assets                                                           
Long-term financial assets                                 24 378      27 051
Deferred income tax assets                                  1 919       1 870
Investment property                                         3 566       2 313
Property, plant and equipment                              14 853      16 057
Intangible assets                                           1 365       1 427
Total non-current assets                                   46 081      48 718
                                                                             
TOTAL ASSETS                                              225 048     220 337
                                                      -----------------------
                                                                             
LIABILITIES AND EQUITY                                                       
Current liabilities                                                          
Borrowings                                                 16 299      16 574
Payables and prepayments                                   63 209      61 635
Short-term provisions                                       6 165       6 781
Total current liabilities                                  85 673      84 990
                                                                             
Non-current liabilities                                                      
Long-term borrowings                                       19 205      23 764
Long-term interest liabilities                                  3           -
Long-term trade payables                                    1 553         790
Deferred corporate income tax liability                       327         131
Long-term provisions                                           20          66
Total non-current liabilities                              21 108      24 751
Total liabilities                                         106 781     109 741
                                                      -----------------------
                                                      -----------------------
                                                                             
Equity                                                                       
Non-controlling interest                                    1 342       1 356
Equity attributable to equity holders of the parent                          
Share capital                                              12 000      12 000
Statutory reserve capital                                   1 200       1 131
Currency translation differences                            (512)       (570)
Retained earnings                                         104 237      96 679
Total equity attributable to equity holders of parent     116 925     109 240
Total equity                                              118 267     110 596
                                                      -----------------------
                                                                             
TOTAL LIABILITIES AND EQUITY                              225 048     220 337
                                                      -----------------------


Signe Kukin
Group CFO
+372 650 1250
[email protected]