Market announcement

Title

AS Ekspress Grupp: Consolidated Interim Report for the Second Quarter and First Half-Year of 2015

Message

Tallinn, Estonia, 2015-07-31 15:21 CEST (GLOBE NEWSWIRE) --


In the 2nd quarter of 2015, the Group’s EBITDA totalled EUR 1.5 million and net
profit totalled EUR 0.5 million. The quarter’s result was impacted by the
extraordinary loss of EUR 1.1 million related to the arrangement of the
exhibition of the voyage of M/S Titanic. After elimination of this one-off loss
from the Group’s result, its EBITDA from the main operations totalled EUR 2.6
million and net profit totalled EUR 1.6 million in the 2nd quarter. As compared
to the same period last year, EBITDA and net profit from the main operations
were 11.7% and 14.6% lower, respectively. On a normalised basis, the Group’s
EBITDA from the main operations in the first half of the year was 6.4% lower
and net profit was 9.3% lower than last year. We failed to match the last
year’s result in the main operations primarily due to weaker profit of the
printing company and Lithuanian media company. These figures also include 50%
of the results of our joint ventures. 

The loss related to Titanic exhibition was caused by extremely weak ticket
sales. As compared to the exhibition arranged in Tallinn, the number of tickets
sold per capita was five times lower in Riga than in Tallinn. Wishing to repeat
the success of Titanic exhibition in other cities in the Baltics, we had prior
to the exhibition in Riga also acquired the rights to arrange the same
exhibition in Vilnius. However, due to the failure of Riga’s exhibition we
decided to waive this right. Already paid license fee was not refunded, but we
concluded an agreement which will partially compensate the fee paid if the
owner of the exhibition is able to fill the vacant period. The Group’s results
of operations in the 2nd quarter  include the loss of exhibitions in Riga and
Vilnius in the total amount of EUR 1.1 million. 

After elimination the loss of EUR 1.1 million from the entertainment business,
in the 2nd quarter the EBITDA of the Group’s subsidiaries calculated under the
equity method was 16% lower and revenue was almost 10% lower than a year ago. 

The printing services company Printall continues to be impacted by the unstable
economic situation in Russia and the economic sanctions imposed against the
country. The latter have negatively impacted the exports of the Scandinavian
printing industry, resulting in lower revenue from Russia and a major price
pressure in the region. In the 2nd quarter, Printall’s revenue decreased by 11%
and EBITDA by 17% which is similar to the result posted in the 1st quarter. The
situation is expected to slightly improve in the autumn due to the new
customers obtained and extension of product range of current customers. 

The media segment in Estonia and Latvia posted strong revenue growth in the 2nd
quarter. In the first half of the year, Delfi Lithuania was still under
pressure due the effects of the adoption of the euro which affected consumption
and advertising sales. According to the data of market research companies, the
volume of internet adverting sales has decreased by almost 15% in the first
five months of 2015 while online sales of Delfi Lithuania have increased by 2%
as compared to the first half of last year. Since June the local internet
market has started to recover, which enabled the company to increase its online
revenues 15% compared to June last year. The same trend seems to continue at
the beginning of second half of the year. The Lithuanian magazine market is in
a modest downward trend in advertising sales, single copy sales as well as
subscriptions revenue. 

Delfi Estonia managed to increase its advertising revenue by 18%, exceeding the
growth in the online market as a whole. The 2nd quarter of the current year was
the best quarter ever in terms of advertising sales for Delfi Estonia. The
strong result is result of a good work by the sales team and the fast-growing
mobile phone market. Exclusive reports and articles have helped Delfi to
attract a record high number of users and widen the gap with the competitors
which has also helped the sales team. Eesti Ajalehed increased its advertising
revenue by 3%. Positive surprises included advertising revenue growth of Eesti
Päevaleht which got a boost following the merger with Delfi sales team. Single
copy sales and subscription revenue of Eesti Ajalehed have also increased by 1%
and 6%, respectively. The growth in the number of digital subscribers has
stabilised in the 2nd quarter and totals about 12 thousand both for Eesti
Päevaleht and Eesti Ekspress. The decline in the circulation of printed
newspapers is offset by the increase in the cover price. While Delfi and Eesti
Ajalehed have functioned as one organisation from the beginning of the year,
the legal merger will be completed on 1 July. The companies will continue to
operate under the trademark and name of Ekspress Meedia. 

Delfi Latvia has managed to successfully launch its topical portals and this
has helped to increase both the number of users as well as advertising revenue.
Revenue grew by 21% as compared to the same period last year. The growth of
Delfi is much faster as compared to the Latvian internet market as a whole.
Delfi Latvia achieved a new record high number of users totaaling 890 thousand
in May. 

With regard to joint ventures, AS SL Õhtuleht succeeded in increasing its
advertising revenue by 5% in the 2nd quarter, primarily due to the growth in
online advertising revenue. Subscription revenue also posted a strong result
(8%). EBITDA growth got a significant boost from the lower printing price set
last summer. Advertising sales were volatile for AS Ajakirjade Kirjastus in the
2nd quarter. April and June were very positive months, while sales fell in May.
In total, advertising revenue decreased by 2% year-on-year. Subscription
revenue also fell while retail sales remained stable. EBITDA growth was
primarily impacted by lower printing costs, similarly to SL Õhtuleht. Although
revenue of AS Express Post keeps increasing, pressure on wages in this sector
has a negative impact on the profit. 

The EBITDA of the subsidiaries in the media segment remained at the same level,
although revenue increased by almost 7%. The EBITDA of the media segment with
joint ventures was almost 6% better as compared to the same period last year. 

We expect a more positive result in the third quarter as compared to the first
half of the year. In the printing services segment, fierce price competition
continues in the Scandinavian market, but the closing of printing companies in
this region may present additional opportunities for Printall to procure new
works. We are more optimistic about the prospects of the media segment,
primarily in Lithuania. In the 3rd quarter, we will continue more extensive
development of the discount offer portal Zave, with the goal of providing a new
innovative tool for retailers to communicate with their customers. Based on the
above, in the 3rd quarter we expect consolidated revenue to increase by ca 5%,
but EBITDA and net profit to remain the same as last year. These figures also
include 50% of the results of our joint ventures. 

Our mission remains to offer new and interesting experiences both on paper and
in digital media, without ever compromising on news quality, choice of topics
and journalistic objectivity. 

The company’s goal is to be a truly modern media company with a strong foothold
in all markets where actively present, with a leading position in online media. 

FINANCIAL INDICATORS AND RATIOS – joint ventures consolidated 50%             
line-by-line 

Starting from 2014, in consolidated financial reports 50% joint ventures are
recognised under the equity method, in compliance with international financial
reporting standards (IFRS). In its monthly reports, the management has
continued to monitor the Group’s performance on a basis of proportional
consolidation of joint ventures and the syndicated loan contract also
determines the calculation of some loan covenants by proportional
consolidation. For the purpose of clarity, the management report shows two sets
of indicators: one where joint ventures are consolidated line-by-line 50% as
previously and the other where joint ventures are recognised under the equity
method and their net result is presented as financial income in one line. 





Performance indicators – joint        Q2      Q2  Change      Q2      Q2      Q2
 ventures consolidated  50% (EUR    2015    2014     %      2013    2012    2011
 thousand)                                                                      
--------------------------------------------------------------------------------
For the period                                                                  
---------------------------------                                        -------
Sales                             15 998  16 007      0%  15 115  15 763  14 963
--------------------------------------------------------------------------------
                                 ----------------------------------------       
EBITDA                             1 488   2 935    -49%   2 384   2 525   2 025
---------------------------------                                        -------
EBITDA margin (%)                   9.3%   18.3%           15.8%   16.0%   13.5%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Operating profit                     745   2 180    -66%   1 742   1 670   1 136
---------------------------------                                        -------
Operating margin (%)                4.7%   13.6%           11.5%   10.6%    7.6%
--------------------------------------------------------------------------------
Interest expenses                  (146)   (181)     19%   (178)   (553)   (576)
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Net profit/(loss) for the period     481   1 858    -74%   1 398     972     396
---------------------------------                                        -------
Net margin (%)                      3.0%   11.6%            9.3%    6.2%    2.6%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Return on assets ROA (%)            0.6%    2.4%            1.8%    1.2%    0.5%
---------------------------------                                        -------
Return on equity ROE (%)            1.0%    4.2%            3.3%    2.5%    1.0%
--------------------------------------------------------------------------------
Earnings per share (EPS)            0.02    0.06            0.05    0.03    0.01
--------------------------------------------------------------------------------







Performance indicators  - joint      1st     1st  Change     1st     1st     1st
 ventures consolidated  50% (EUR    Half    Half     %      Half    Half    Half
 thousand)                          year    year            year    year    year
                                    2015    2014            2013    2012    2011
--------------------------------------------------------------------------------
For the period                                                                  
---------------------------------                                        -------
Sales                             30 178  30 773     -2%  28 925  29 982  28 109
--------------------------------------------------------------------------------
                                 ----------------------------------------       
EBITDA                             3 005   4 389    -32%   3 888   4 140   3 420
---------------------------------                                        -------
EBITDA margin (%)                  10.0%   14.3%           13.4%   13.8%   12.2%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Operating profit*                  1 507   2 871    -48%   2 582   2 426   1 691
---------------------------------                                        -------
Operating margin* (%)               5.0%    9.3%            8.9%    8.1%    6.0%
--------------------------------------------------------------------------------
Interest expenses                  (320)   (357)     10%   (374)      (1      (1
                                                                    041)    135)
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Net profit /(loss) for the         1 037   2 361    -56%   2 036   1 151     241
 period*                                                                        
---------------------------------                                        -------
Net margin* (%)                     3.4%    7.7%            7.0%    3.8%    0.9%
--------------------------------------------------------------------------------
Net profit for the period in the   1 037   2 361    -56%   2 036   1 151   1 781
 financial statements (incl.                                                    
 impairments and gain on change                                                 
 of ownership interest)                                                         
---------------------------------                                        -------
Net margin (%)                      3.4%    7.7%            7.0%    3.8%    6.3%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Return on assets ROA (%)            1.3%    3.1%            2.6%    1.4%    2.1%
---------------------------------                                        -------
Return on equity ROE (%)            2.2%    5.5%            4.9%    3.0%    4.7%
--------------------------------------------------------------------------------
Earnings per share (EPS)            0.03    0.08            0.07    0.04    0.06
--------------------------------------------------------------------------------



* The results exclude one-off gains in relation to the acquisition of Eesti
Päevalehe AS in 2011. 



Balance sheet– joint ventures consolidated      30.06.2015  31.12.2014  Change %
 50%                                                                            
(EUR thousand)                                                                  
--------------------------------------------------------------------------------
As of the end of the period                                                     
-----------------------------------------------                        ---------
Current assets                                      14 205      15 189       -6%
-----------------------------------------------                        ---------
Non-current assets                                  63 619      65 665       -3%
-----------------------------------------------                        ---------
Total assets                                        77 824      80 854       -4%
--------------------------------------------------------------------------------
                                               ------------------------         
incl. cash and bank                                  4 461       6 788      -34%
-----------------------------------------------                        ---------
incl. goodwill                                      39 432      39 432        0%
--------------------------------------------------------------------------------
                                               ------------------------         
Current liabilities                                 14 708      14 110        4%
-----------------------------------------------                        ---------
Non-current liabilities                             16 108      19 569      -18%
-----------------------------------------------                        ---------
Total liabilities                                   30 816      33 679       -9%
--------------------------------------------------------------------------------
                                               ------------------------         
incl. borrowings                                    19 792      24 592      -20%
-----------------------------------------------                        ---------
Equity                                              47 008      47 175        0%
--------------------------------------------------------------------------------







Financial ratios (%) – joint ventures consolidated  50%  30.06.2015  31.12.2014
-------------------------------------------------------------------------------
Equity ratio (%)                                            60%         58%    
--------------------------------------------------------            -----------
Debt to equity ratio (%)                                    42%         52%    
--------------------------------------------------------            -----------
Debt to capital ratio (%)                                   25%         27%    
--------------------------------------------------------            -----------
Total debt /EBITDA ratio                                    2.64        2.61   
--------------------------------------------------------            -----------
Debt service coverage ratio                                 1.55        1.90   
--------------------------------------------------------            -----------
Liquidity ratio                                             0.97        1.08   
-------------------------------------------------------------------------------





FINANCIAL INDICATORS AND RATIOS – joint ventures recognised                    
  under the equity method 

Performance indicators – joint        Q2      Q2  Change      Q2      Q2      Q2
 ventures under the equity          2015    2014     %      2013    2012    2011
 method (EUR thousand)                                                          
--------------------------------------------------------------------------------
For the period                                                                  
---------------------------------                                        -------
Sales (only subsidiaries)         13 765  13 764      0%  12 998  13 570  12 837
--------------------------------------------------------------------------------
                                 ----------------------------------------       
EBITDA (only subsidiaries)         1 113   2 664    -58%   2 196   2 345   1 806
---------------------------------                                        -------
EBITDA margin (%)                   8.1%   19.4%           16.9%   17.3%   14.1%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Operating profit (only               429   1 936    -78%   1 576   1 516     951
 subsidiaries)                                                                  
---------------------------------                                        -------
Operating margin (%)                3.1%   14.1%           12.1%   11.2%    7.4%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Interest expenses (only            (130)   (181)     28%   (178)   (553)   (577)
 subsidiaries)                                                                  
---------------------------------                                        -------
Profit of joint ventures by          225     190     18%      82      64      90
 equity method                                                                  
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Net profit for the period            481   1 858    -74%   1 398     972     396
---------------------------------                                        -------
Net margin (%)                      3.5%   13.5%           10.8%    7.2%    3.1%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Return on assets ROA (%)            0.6%    2.5%            1.8%    1.2%    0.5%
---------------------------------                                        -------
Return on equity ROE (%)            1.0%    4.2%            3.3%    2.5%    1.0%
--------------------------------------------------------------------------------
Earnings per share (EPS)            0.02    0.06            0.05    0.03    0.01
--------------------------------------------------------------------------------







Performance indicators – joint       1st     1st  Change     1st     1st     1st
 ventures under the equity          Half    Half     %      Half    Half    Half
 method (EUR thousand)              year    year            year    year    year
                                    2015    2014            2013    2012    2011
--------------------------------------------------------------------------------
For the period                                                                  
---------------------------------                                        -------
Sales (only subsidiaries)         25 858  26 498     -2%  24 811  25 748  23 986
--------------------------------------------------------------------------------
                                 ----------------------------------------       
EBITDA (only subsidiaries)         2 351   3 993    -41%   3 612   3 893   3 101
---------------------------------                                        -------
EBITDA margin (%)                   9.1%   15.1%           14.6%   15.1%   12.9%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Operating profit* (only              972   2 529    -62%   2 354   2 236   1 447
 subsidiaries)                                                                  
---------------------------------                                        -------
Operating margin* (%)               3.8%    9.5%            9.5%    8.7%    6.0%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Interest expenses (only            (285)   (357)     20%   (374)      (1      (1
 subsidiaries)                                                      042)    140)
---------------------------------                                        -------
Profit of joint ventures by          419     288     45%     146     104     160
 equity method                                                                  
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Net profit for the period*         1 037   2 361    -56%   2 036   1 151     241
---------------------------------                                        -------
Net margin* (%)                     4.0%    8.9%            8.2%    4.5%    1.0%
--------------------------------------------------------------------------------
Net profit for the period in the   1 037   2 361    -56%   2 036   1 151   1 781
 financial statements (incl.                                                    
 impairments and gain on change                                                 
 of ownership interest)                                                         
---------------------------------                                        -------
Net margin (%)                      4.0%    8.9%            8.2%    4.5%    7.4%
--------------------------------------------------------------------------------
                                 ----------------------------------------       
Return on assets ROA (%)            1.4%    3.2%            2.7%    1.5%    2.1%
---------------------------------                                        -------
Return on equity ROE (%)            2.2%    5.5%            4.9%    3.0%    4.7%
--------------------------------------------------------------------------------
Earnings per share (EPS)            0.03    0.08            0.07    0.04    0.06
--------------------------------------------------------------------------------



* The results exclude one-off gains in relation to the acquisition of Eesti
Päevalehe AS in 2011. 





Balance sheet– joint ventures under equity        30.06.2015  31.12.2014  Change
 method (EUR thousand)                                                       %  
--------------------------------------------------------------------------------
As of the end of the period                                                     
-------------------------------------------------                        -------
Current assets                                        11 702      12 303     -5%
-------------------------------------------------                        -------
Non-current assets                                    62 436      64 292     -3%
-------------------------------------------------                        -------
Total assets                                          74 138      76 595     -3%
--------------------------------------------------------------------------------
                                                 ------------------------       
incl. cash and bank                                    3 298       5 275    -37%
-------------------------------------------------                        -------
incl. goodwill                                        38 153      38 153      0%
--------------------------------------------------------------------------------
                                                 ------------------------       
Current liabilities                                   12 426      11 481      8%
-------------------------------------------------                        -------
Non-current liabilities                               14 704      17 939    -18%
-------------------------------------------------                        -------
Total liabilities                                     27 130      29 420     -8%
--------------------------------------------------------------------------------
                                                 ------------------------       
incl. borrowings                                      18 542      23 152    -20%
-------------------------------------------------                        -------
Equity                                                47 008      47 175      0%
--------------------------------------------------------------------------------







Financial ratios (%) – joint ventures under the equity    30.06.2015  31.12.2014
 method                                                                         
--------------------------------------------------------------------------------
Equity ratio (%)                                             63%         62%    
---------------------------------------------------------            -----------
Debt to equity ratio (%)                                     39%         49%    
---------------------------------------------------------            -----------
Debt to capital ratio (%)                                    24%         27%    
---------------------------------------------------------            -----------
Total debt /EBITDA ratio                                     2.97        2.93   
---------------------------------------------------------            -----------
Debt service coverage ratio                                  1.41        1.77   
---------------------------------------------------------            -----------
Liquidity ratio                                              0.94        1.07   
--------------------------------------------------------------------------------



Cyclicality

All operating areas of the Group are characterised by cyclicality and
fluctuation, related to the changes in the overall economic conditions and
consumer behaviour. The Group’s revenue can be adversely affected by an
economic slowdown or recession. It can appear in lower advertising costs in
retail but also in  preferences of other advertising channels for example
preference of internet rather than print media. Revenues can also be affected
by changes in consumption habits of retail consumers like following current
news in news portals versus reading printed newspapers, preference of the
younger generation to use mobile devices and other communication channels, etc. 

Seasonality

The revenue from the Group’s advertising sales as well as in the printing
services segment is impacted by major seasonal fluctuations. The level of both
types of revenue is the highest in the 2nd and 4th quarter of each year and the
lowest in the 3rd quarter. Revenue is higher in the 4th quarter because of
higher consumer spending during the Christmas season, accompanied by the
increase in advertising expenditure. Advertising expenditure is usually the
lowest during the summer months, as well as during the first months of the year
following Christmas and New Year’s celebrations. Book sales are the strongest
in the last quarter of the year. Subscriptions and retail sales of periodicals
do not fluctuate as much as advertising revenue. However the summer period is
always more quiet and at the beginning of the school year in September there is
an increase in subscriptions and retail sale which usually continues until next
summer holiday period. 



Formulas used to calculate financial ratios                                     
--------------------------------------------------------------------------------
- 
EBITDA margin (%)   EBITDA/sales x 100                                          
--------------------------------------------------------------------------------
Operating margin*   Operating profit*/sales x100                                
 (%)                                                                            
--------------------------------------------------------------------------------
Net margin* (%)     Net profit*/sales x100                                      
--------------------------------------------------------------------------------
Net margin (%)      Net profit /sales x100                                      
--------------------------------------------------------------------------------
Earnings per share  Net profit / average number of shares                       
--------------------------------------------------------------------------------
Equity ratio (%)    Equity / (liabilities + equity) x100                        
--------------------------------------------------------------------------------
Debt to equity      Interest bearing liabilities /equity x 100                  
 ratio (%)                                                                      
--------------------------------------------------------------------------------
Debt to capital     Interest bearing liabilities – cash and cash equivalents    
 ratio (%)           (net debt)/(net debt +equity) x 100                        
--------------------------------------------------------------------------------
Total debt/EBITDA   Interest bearing borrowings /EBITDA                         
 ratio                                                                          
--------------------------------------------------------------------------------
Debt service        EBITDA/loan and interest payments for the period            
 coverage ratio                                                                 
--------------------------------------------------------------------------------
Liquidity ratio     Current assets / current liabilities                        
--------------------------------------------------------------------------------
Return on assets    Net profit /average assets x 100                            
 ROA (%)                                                                        
--------------------------------------------------------------------------------
Return on equity    Net profit /average equity x 100                            
 ROE (%)                                                                        
--------------------------------------------------------------------------------



* The results exclude one-off gains in relation to the acquisition of Eesti
Päevalehe AS in 2011. 

SEGMENT OVERVIEW

From the 3rd quarter of 2014, when the Group’s Lithuanian subsidiaries were
merged, the Group’s activities are divided into the media segment, printing
services segment and entertainment segment launched this year. Previously, the
entities of the media segment were divided into online media and periodicals
segments. 

The segments’ EBITDA does not include intragroup management fees, and
impairment of goodwill and trademarks. Volume-based and other fees payable to
advertising agencies have not been deducted from the advertising sales of
segments, because the management monitors gross advertising sales. Discounts
and rebates are deducted from the Group’s sales and are included in the
combined line of eliminations. 

Key financial data of the segments Q2 2011-2015



(EUR thousand)                         Sales                     Sales          
--------------------------------------------------------------------------------
                              Q2 2015  Q2 2014  Change  Q2 2013  Q2 2012      Q2
                                                   %                        2011
--------------------------------------------------------------------------------
media segment (by equity        7 984    7 492      7%    6 751    7 040   6 511
 method)                                                                        
-----------------------------                  --------                  -------
incl. revenue from all          4 102    3 730     10%    3 257    2 984   2 551
 digital and online channels                                                    
-----------------------------                  --------                  -------
printing services segment       6 386    7 210    -11%    7 131    7 482   6 998
-----------------------------                  --------                  -------
entertainment segment             392        -       -        -        -       -
-----------------------------                  --------                  -------
corporate functions               488      423     15%      385      279      48
-----------------------------                  --------                  -------
intersegment eliminations     (1 485)  (1 361)     -9%  (1 270)  (1 231)   (720)
--------------------------------------------------------------------------------
TOTAL GROUP by equity method   13 765   13 764      0%   12 998   13 570  12 837
--------------------------------------------------------------------------------
media segment by               10 507    9 950      6%    9 082    9 443   8 796
 proportional consolidation                                                     
--------------------------------------------------------------------------------
incl. revenue from all          4 385    3 963     11%    3 422    3 158   2 711
 digital and online channels                                                    
--------------------------------------------------------------------------------
printing services segment       6 386    7 210    -11%    7 131    7 482   6 998
--------------------------------------------------------------------------------
entertainment segment             392        -       -        -        -       -
--------------------------------------------------------------------------------
corporate functions               488      423     15%      385      279      48
--------------------------------------------------------------------------------
intersegment eliminations     (1 775)  (1 576)          (1 483)  (1 441)   (879)
--------------------------------------------------------------------------------
TOTAL GROUP by proportional    15 998   16 007      0%   15 115   15 763  14 963
 consolidation                                                                  
--------------------------------------------------------------------------------







(EUR thousand)                           EBITDA                   EBITDA        
--------------------------------------------------------------------------------
                                Q2 2015      Q2   Change    Q2        Q2      Q2
                                           2014     %      2013     2012    2011
--------------------------------------------------------------------------------
media segment by equity method    1 256   1 261       0%     800     956     472
-------------------------------                 ---------                -------
media segment by proportional     1 631   1 532       6%     989   1 138     691
 consolidation                                                                  
-------------------------------                 ---------                -------
printing services segment         1 271   1 537     -17%   1 599   1 563   1 551
-------------------------------                 ---------                -------
entertainment segment           (1 129)       -        -       -       -       -
-------------------------------                 ---------                -------
corporate functions               (285)   (134)    -113%   (204)   (175)   (221)
-------------------------------                 ---------                -------
intersegment eliminations             0       0        -       1       1       3
--------------------------------------------------------------------------------
TOTAL GROUP by equity method      1 113   2 664     -58%   2 196   2 345   1 806
--------------------------------------------------------------------------------
TOTAL GROUP by proportional       1 488   2 935     -49%   2 384   2 525   2 025
 consolidation                                                                  
--------------------------------------------------------------------------------







EBITDA margin                        Q2 2015  Q2 2014  Q2 2013  Q2 2012  Q2 2011
--------------------------------------------------------------------------------
media segment by equity method           16%      17%      12%      14%       7%
------------------------------------                                    --------
media segment by proportional            16%      15%      11%      12%       8%
 consolidation                                                                  
------------------------------------                                    --------
printing services segment                20%      21%      22%      21%      22%
--------------------------------------------------------------------------------
TOTAL GROUP by equity method              8%      19%      17%      17%      14%
--------------------------------------------------------------------------------
TOTAL GROUP by proportional               9%      18%      16%      16%      14%
 consolidation                                                                  
--------------------------------------------------------------------------------





Key financial data of the segments 1st half year 2011-2015



(EUR thousand)                      Sales                        Sales          
--------------------------------------------------------------------------------
                         1st Half   1st Half   Change      1st      1st      1st
                        year 2015  year 2014     %        Half     Half     Half
                                                          year     year     year
                                                          2013     2012     2011
--------------------------------------------------------------------------------
media segment (by          14 565     13 906       5%   12 674   12 673   11 739
 equity method)                                                                 
-----------------------                      ---------                  --------
incl. revenue from all      7 437      6 517      14%    5 727    5 217    4 447
 digital and online                                                             
 channels                                                                       
-----------------------                      ---------                  --------
printing services          12 704     14 272     -11%   13 749   14 858   13 467
 segment                                                                        
-----------------------                      ---------                  --------
entertainment segment         453          -        -        -        -        -
-----------------------                      ---------                  --------
corporate functions           960        844      14%      740      420       74
-----------------------                      ---------                  --------
intersegment              (2 823)    (2 524)     -12%  (2 353)  (2 202)  (1 295)
 eliminations                                                                   
--------------------------------------------------------------------------------
TOTAL GROUP by equity      25 858     26 498      -2%   24 811   25 748   23 986
 method                                                                         
--------------------------------------------------------------------------------
media segment by           19 469     18 588       5%   17 044   16 300   17 320
 proportional                                                                   
 consolidation                                                                  
--------------------------------------------------------------------------------
incl. revenue from all      7 936      6 949      14%    6 022    5 528    4 736
 digital and online                                                             
 channels                                                                       
--------------------------------------------------------------------------------
printing services          12 704     14 272     -11%   13 749   14 858   13 467
 segment                                                                        
--------------------------------------------------------------------------------
entertainment segment         453          -        -        -        -        -
--------------------------------------------------------------------------------
corporate functions           960        844      14%      740      420       74
--------------------------------------------------------------------------------
intersegment              (3 408)    (2 931)  (2 752)  (2 608)  (1 596)  (2 752)
 eliminations                                                                   
--------------------------------------------------------------------------------
TOTAL GROUP by             30 178     30 773      -2%   28 925   29 982   28 109
 proportional                                                                   
 consolidation                                                                  
--------------------------------------------------------------------------------







(EUR thousand)                       EBITDA                       EBITDA        
--------------------------------------------------------------------------------
                           1st Half     1st Half  Change     1st     1st     1st
                          year 2015    year 2014     %      Half    Half    Half
                                                            year    year    year
                                                            2013    2012    2011
--------------------------------------------------------------------------------
media segment by              1 535        1 599     -4%   1 007   1 148     480
 equity method                                                                  
-----------------------                          --------                -------
media segment by              2 189        1 997     10%   1 283   1 397     798
 proportional                                                                   
 consolidation                                                                  
-----------------------                          --------                -------
printing services             2 432        2 995    -19%   3 013   3 093   3 047
 segment                                                                        
-----------------------                          --------                -------
entertainment segment       (1 105)            -       -       -       -       -
-----------------------                          --------                -------
corporate functions           (511)        (601)     14%   (410)   (349)   (434)
-----------------------                          --------                -------
intersegment                      0            0    -69%       2       1       8
 eliminations                                                                   
--------------------------------------------------------------------------------
TOTAL GROUP by equity         2 351        3 993    -41%   3 612   3 893   3 101
 method                                                                         
--------------------------------------------------------------------------------
TOTAL GROUP by                3 005        4 389    -32%   3 888   4 140   3 420
 proportional                                                                   
 consolidation                                                                  
--------------------------------------------------------------------------------







EBITDA margin             1st Half    1st Half    1st Half   1st Half   1st Half
                         year 2015   year 2014   year 2013  year 2012  year 2011
--------------------------------------------------------------------------------
media segment by               11%         12%          8%         9%         4%
 equity method                                                                  
-----------------------                                               ----------
media segment by               11%         11%          8%         9%         5%
 proportional                                                                   
 consolidation                                                                  
-----------------------                                               ----------
printing services              19%         21%         22%        21%        23%
 segment                                                                        
--------------------------------------------------------------------------------
TOTAL GROUP by equity           9%         15%         15%        15%        13%
 method                                                                         
--------------------------------------------------------------------------------
TOTAL GROUP by                 10%         14%         13%        14%        12%
 proportional                                                                   
 consolidation                                                                  
--------------------------------------------------------------------------------





MEDIA SEGMENT

The media segment includes Delfi operations in Estonia, Latvia and Lithuania as
well as the parent company Delfi Holding. Until March 2014, it also included
Delfi operations in Ukraine. The media segment also includes AS Eesti Ajalehed
(publisher of Maaleht, Eesti Ekspress and Eesti Päevaleht), book publisher OÜ
Hea Lugu as well as magazine publisher UAB Ekspress Leidyba in Lithuania that
was merged into Delfi Lithuania on 1 July 2014. On 1 July 2015, AS Delfi and AS
Eesti Ajalehed in Estonia were merged into one entity under the name of AS
Ekspress Meedia. 

This segment also includes 50% joint ventures AS SL Õhtuleht (publisher of
Õhtuleht and Linnaleht), magazine publisher AS Ajakirjade Kirjastus and home
delivery company AS Express Post. 

The EBITDA of Delfi Estonia, Latvia and Lithuania are presented before the
trademark royalty fees that were paid to the direct parent company Delfi
Holding until April 2015. In May 2015, Delfi group was restructured, as a
consequence of which Delfi’s local companies are directly owned by AS Ekspress
Grupp. In Latvia and Lithuania, the change in ownership is still in progress.
The new structure will reflect better the actual management structure which has
due to econimical considerations changed over the years. 

News portals owned by the Group



Owner            Portal        Owner              Portal         
-----------------------------------------------------------------
Delfi Estonia    www.delfi.ee  AS Eesti Ajalehed  www.ekspress.ee
-----------------------------------------------------------------
                 rus.delfi.ee                     www.maaleht.ee 
-----------------------------------------------------------------
Delfi Latvia     www.delfi.lv                     www.epl.ee     
-----------------------------------------------------------------
                 rus.delfi.lv                                    
-----------------------------------------------------------------
Delfi Lithuania  www.delfi.lt  AS SL Õhtuleht     www.ohtuleht.ee
-----------------------------------------------------------------
                 ru.delfi.lt                                     
-----------------------------------------------------------------





Classified portals owned by the Group



Owner            Portal       Owner              Portal             
--------------------------------------------------------------------
Delfi Lithuania  www.alio.lt  AS Eesti Ajalehed  www.ej.ee          
--------------------------------------------------------------------
                                                 www.ekspressauto.ee
--------------------------------------------------------------------







(EUR thousand)                                          Sales          
-----------------------------------------------------------------------
                                             Q2 2015  Q2 2014  Change %
-----------------------------------------------------------------------
Delfi Estonia                                  1 647    1 398       18%
-----------------------------------------------------         ---------
Delfi Latvia                                     785      648       21%
-----------------------------------------------------         ---------
Delfi Lithuania (incl. Ekspress Leidyba)       2 136    2 275       -6%
-----------------------------------------------------         ---------
incl. online revenue of Delfi Lithuania        1 578    1 588       -1%
-----------------------------------------------------         ---------
AS Eesti Ajalehed                              3 361    3 076        9%
-----------------------------------------------------         ---------
OÜ Hea Lugu                                      124      182      -32%
-----------------------------------------------------         ---------
Other companies (Delfi Holding)                    -        -         -
-----------------------------------------------------         ---------
Intersegment eliminations                       (69)     (87)       20%
-----------------------------------------------------------------------
TOTAL subsidiaries                             7 984    7 492        7%
-----------------------------------------------------------------------
                                                     ---------         
AS SL Õhtuleht*                                1 074    1 015        6%
-----------------------------------------------------         ---------
AS Ajakirjade Kirjastus*                       1 088    1 120       -3%
-----------------------------------------------------         ---------
AS Express Post*                                 626      607        3%
-----------------------------------------------------         ---------
Intersegment eliminations                      (265)    (285)        7%
-----------------------------------------------------------------------
TOTAL joint ventures                           2 523    2 458        3%
-----------------------------------------------------------------------
TOTAL segment by proportional consolidation   10 507    9 950        6%
-----------------------------------------------------------------------







(EUR thousand)                                         EBITDA          
-----------------------------------------------------------------------
                                             Q2 2015  Q2 2014  Change %
-----------------------------------------------------------------------
Delfi Estonia                                    367      344        7%
--------------------------------------------                  ---------
Delfi Latvia                                      68       83      -18%
--------------------------------------------                  ---------
Delfi Lithuania (incl. Ekspress Leidyba)         440      624      -29%
--------------------------------------------                  ---------
AS Eesti Ajalehed                                376      204       84%
--------------------------------------------                  ---------
OÜ Hea Lugu                                        6       10      -40%
--------------------------------------------                  ---------
Other companies (Delfi Holding)                  (1)      (4)       75%
--------------------------------------------                  ---------
Intersegment eliminations                        (0)        0         -
-----------------------------------------------------------------------
TOTAL subsidiaries                             1 256    1 261        0%
-----------------------------------------------------------------------
                                            ------------------         
AS SL Õhtuleht*                                  166       83      100%
--------------------------------------------                  ---------
AS Ajakirjade Kirjastus*                         127       88       45%
--------------------------------------------                  ---------
AS Express Post*                                  82      100      -18%
--------------------------------------------                  ---------
Intersegment eliminations                        (0)        0     -129%
-----------------------------------------------------------------------
TOTAL joint ventures                             375      271       38%
-----------------------------------------------------------------------
TOTAL segment by proportional consolidation    1 631    1 532        6%
-----------------------------------------------------------------------



*Proportional share of joint ventures



(EUR thousand)                                           Sales                  
--------------------------------------------------------------------------------
                                         1st Half year    1st Half year   Change
                                                  2015             2014        %
--------------------------------------------------------------------------------
Delfi Estonia                                    3 005            2 471      22%
-------------------------------------------------------                 --------
Delfi Latvia                                     1 460            1 141      28%
-------------------------------------------------------                 --------
Delfi Lithuania (incl. Ekspress                  3 875            4 028      -4%
 Leidyba)                                                                       
-------------------------------------------------------                 --------
incl. online revenue of Delfi                    2 787            2 743       2%
 Lithuania                                                                      
-------------------------------------------------------                 --------
Delfi Ukraine                                        0                2    -100%
-------------------------------------------------------                 --------
AS Eesti Ajalehed                                6 113            5 938       3%
-------------------------------------------------------                 --------
OÜ Hea Lugu                                        241              491     -51%
-------------------------------------------------------                 --------
Other companies (Delfi Holding)                      -                -        -
-------------------------------------------------------                 --------
Intersegment eliminations                        (129)            (165)      22%
--------------------------------------------------------------------------------
TOTAL subsidiaries                              14 565           13 906       5%
--------------------------------------------------------------------------------
                                                       -----------------        
AS SL Õhtuleht*                                  2 088            1 964       6%
-------------------------------------------------------                 --------
AS Ajakirjade Kirjastus*                         2 106            2 080       1%
-------------------------------------------------------                 --------
AS Express Post*                                 1 264            1 192       6%
-------------------------------------------------------                 --------
Intersegment eliminations                        (554)            (554)       0%
--------------------------------------------------------------------------------
TOTAL joint ventures                             4 904            4 681       5%
--------------------------------------------------------------------------------
TOTAL segment by proportional                   19 469           18 588       5%
 consolidation                                                                  
--------------------------------------------------------------------------------







(EUR thousand)                                          EBITDA                  
--------------------------------------------------------------------------------
                                         1st Half year    1st Half year   Change
                                                  2015             2014        %
--------------------------------------------------------------------------------
Delfi Estonia                                      461              421      10%
-------------------------------------                                   --------
Delfi Latvia                                       111               19     484%
-------------------------------------                                   --------
Delfi Lithuania (incl. Ekspress                    556              798     -30%
 Leidyba)                                                                       
-------------------------------------                                   --------
Delfi Ukraine                                        0             (51)     100%
-------------------------------------                                   --------
AS Eesti Ajalehed                                  400              338      18%
-------------------------------------                                   --------
OÜ Hea Lugu                                         11               76     -86%
-------------------------------------                                   --------
Other companies (Delfi Holding)                    (4)              (4)       0%
-------------------------------------                                   --------
Intersegment eliminations                          (0)                2        -
--------------------------------------------------------------------------------
TOTAL subsidiaries                               1 535            1 599      -4%
--------------------------------------------------------------------------------
                                     -----------------------------------        
AS SL Õhtuleht*                                    284              114     150%
-------------------------------------                                   --------
AS Ajakirjade Kirjastus*                           200               98     104%
-------------------------------------                                   --------
AS Express Post*                                   170              184      -7%
-------------------------------------                                   --------
Intersegment eliminations                          (0)                3    -100%
--------------------------------------------------------------------------------
TOTAL joint ventures                               654              398      64%
--------------------------------------------------------------------------------
TOTAL segment by proportional                    2 189            1 997      10%
 consolidation                                                                  
--------------------------------------------------------------------------------



*Proportional share of joint ventures

Delfi Estonia

  -- Growth in the number of live webcasts in Delfi TV.
  -- Delfi image campaign was launched to increase awareness of Delfi as the
     fastest news portal and of the option for everyone to participate in news
     production.
  -- Several Delfi sub-sites and topical portals were updated and diversified.
  -- Improvement of the comments section.  
  -- Merger of Delfi and AS Eesti Ajalehed and relocation to a joint office.
  -- Several media partnership cooperation projects in various events and
     projects, such as Jazzkaar, new Estonian children’s movie “Secret Society
     of Soup Town”, Estonian Cancer Society, etc.

Estonian online readership 2014-2015

In the 2nd quarter of 2015, Delfi remains the largest online portal in Estonia.
There have been no major changes in the competitive landscape of online
environments. The number of users who use Delfi with their mobile phones
continues to grow. This in turn will increase the total number of internet
users and lead to a situation where the share of content consumed via mobile
devices will grow. At the end of the quarter, there was a traditional decrease
in the number of users related to the summer period. One of the minor changes
in the 2nd quarter included the sale of Smartad media agency to Modern Times
Group (MTG) that operates under TV3 trademark in Estonia. With this
transaction, MTG continues to expand its operations in the online segment
similarly to other Baltic States. 



Delfi Latvia

  -- Continuation of fast development of Delfi TV and live webcasts.
  -- Another record was achieved in May  – over 890 thousand unique users per
     month.
  -- Launch of the new technology portal www.techlife.lv.
  -- Focus on production of longer original content continued.
  -- Cooking portal www.tasty.lv received a new and more modern design.
  -- Mobile version of the forum of the family and home portal  www.C?lis.lv was
     launched.
  -- New technology (HTML5) of animated banners in mobile devices was used for
     the first time.
  -- Media partner for several concert tours, teams and events.



Latvian online readership 2014-2015

In the 2nd quarter of 2015, the number of readers of the three largest portals
has been relatively stable and there have been no major changes. Inbox.lv
remains the largest internet environment in Latvia and Delfi.lv is the largest
news portal in Latvia. From January 2015, the methodology of Gemius online
survey has changed. The user figures for 2015 include the statistics for the
age group of 7-74. In prior periods, the statics was presented for the age
group of 15-74. 

Delfi Lithuania

  -- New portal www.vyriskai.lt was launched. This portal is dedicated to men
     and includes such themes like leisure, style, hobbies, other practical
     info.
  -- We finalised to build a new video streaming system in cooperation with TEO.
     This solution will help  to maintain about 25-30 thousand video viewers in
     one time. In 2nd quarter DELFI TV had 239 live broadcasts.
  -- Delfi sponsored biggest progress conference in Baltics LOGIN, which also
     had live broadcasting on DELFI TV.
  -- Successful relaunch of a Panele magazine with a new editorial team.



Lithuanian online readership 2014-2015

Delfi.lt remains the largest internet portal in Lithuania. In the 2nd quarter
of 2015, no major changes occurred in the preferences of internet users.
However, there will be new competitors in the market, as  MTG acquired the
products of Tipro group combining several portals and combined them under
tv3.lt. This resulted in the formation of the third largest internet portal
group in Lithuania, with a higher number of users than that of Lrytas.lt. 



Print media in Estonia

Estonian newspaper circulation  2014-2015



Over the long term, the circulation of Estonian newspapers is in a modest
downward trend. The circulation of daily newspapers is decreasing more rapidly,
and that of weekly newspapers less. As of the 2nd quarter of 2015, some changes
have occurred in the market – Õhtuleht has lost its position and became again
the newspaper with the second largest circulation in Estonia. Maaleht continues
to grow its circulation in a stable manner. In addition to these circulation
figures, the Group’s newspapers also have subscribers of digital newspapers,
the total number of whom is approximately 12 thousand for Eesti Päevaleht and
Eesti Ekspress. 



Estonian newspaper readership 2014-2015

Similarly to the newspaper circulation, the number of readers of periodicals is
relatively stable, but decreases by ca 3-5% per year over the long term. Due to
the fact that the readership of digital newspapers is not covered by this
survey, these data do not reflect actual readership figures. The number of
subscribers of the Group’s digital newspapers is approximately 12 thousand for
Eesti Päevaleht and Eesti Ekspress. Therefore, the growth in the number of
readers of digital newspapers is the main focus for the Group’s periodicals.
The competitive situation in the readers’ market has not significantly changed
in 2nd quarter of 2015. Typical of the 2nd quarter, the readership of Õhtuleht
has decreased. On the other hand, the readership of Maaleht has increased and
it is related to the increase in the circulation of Maaleht. The readership of
other newspapers has remained stable. 

PRINTING SERVICES SEGMENT

All printing services of the Group are provided by AS Printall which is one of
the largest printing companies in Estonia. Printall is able to print both
newspapers (coldset) and magazines (heatset). 





(EUR thousand)             Sales          
------------------------------------------
                Q2 2015  Q2 2014  Change %
------------------------------------------
AS Printall       6 386    7 210      -11%
------------------------------------------







(EUR thousand)            EBITDA          
------------------------------------------
                Q2 2015  Q2 2014  Change %
------------------------------------------
AS Printall       1 271    1 537      -17%
------------------------------------------







(EUR thousand)                       Sales                      
----------------------------------------------------------------
                1st Half year 2015  1st Half year 2014  Change %
----------------------------------------------------------------
AS Printall                 12 704              14 272      -11%
----------------------------------------------------------------







(EUR thousand)                       EBITDA                     
----------------------------------------------------------------
                1st Half year 2015  1st Half year 2014  Change %
----------------------------------------------------------------
AS Printall                  2 432               2 995      -19%
----------------------------------------------------------------





Sanctions against Russia and the related decrease in orders and price pressure
in Scandinavia caused sales revenue and EBITDA to fall in the first half of the
year as compared to the year earlier. Due to changes in the political landscape
there have been changes in the structure of export markets where the share of
Russia continues to decrease. The increase of the share of Estonia is primarily
attributable to the  new sheet-fed printing machine installed at the beginning
of 2015, used for printing magazine covers, small-circulation magazines and
advertising products. 

Printing services and the environment

In addition to its very strong financial position, Printall also focuses on
environmentally conscious production.  Printall has been granted ISO 9001
management and ISO 14001 environmental certificates. 

The Minister of the Environment of the Republic of Estonia and the waste
managing company AS Ragn-Sells awarded Printall with the title of the Top
Recycler of the Year, because the company recycles 95% of its waste. 

The Nordic Council of Ministers has awarded Printall with the environmental
label “The Nordic Ecolabel”, used to acknowledge the companies in the Nordic
countries that use environmentally efficient production. Printall also has FSC
and PEFC Chain of Custody (COC) certificates, which the company uses to promote
a green way of thinking in the printing industry. Both of those certificates
indicate compliance with monitoring and product production process requirements
which are issued to businesses that comply with the requirements established by
the FSC (Forest Stewardship Council) and the PEFC (Programme for the
Endorsement of Forest Certification). A business that is issued these
certificates helps to support the environmentally friendly, socially fair and
economically viable management of the world’s forests. 

Printall cares about the environment and uses green energy. The POWERED BY
GREEN certificate is a proof that the company buys electricity, 70% of which
has been generated by renewable sources of energy. 

 Consolidated balance sheet (unaudited)

(EUR thousand)                   30.06.2015  31.12.2014
-------------------------------------------------------
                                ------------           
ASSETS                                                 
--------------------------------            -----------
Current assets                                         
--------------------------------            -----------
Cash and cash equivalents             3 274       3 656
--------------------------------            -----------
Term deposits                            24          19
--------------------------------            -----------
Trade and other receivables           6 287       6 519
--------------------------------            -----------
Corporate income tax prepayment          76          37
--------------------------------            -----------
Inventories                           2 041       2 072
--------------------------------            -----------
Total current assets                 11 702      12 303
-------------------------------------------------------
                                ------------           
Non-current assets                                     
--------------------------------            -----------
Term deposit                              0       1 600
--------------------------------            -----------
Trade and other receivables           1 101       1 170
--------------------------------            -----------
Deferred tax asset                       65          65
--------------------------------            -----------
Investments in joint ventures           641         500
--------------------------------            -----------
Investments in associates               185         164
--------------------------------            -----------
Property, plant and equipment        14 466      14 506
--------------------------------            -----------
Intangible assets                    45 978      46 287
--------------------------------            -----------
Total non-current assets             62 436      64 292
-------------------------------------------------------
TOTAL ASSETS                         74 138      76 595
-------------------------------------------------------
                                ------------           
LIABILITIES                                            
--------------------------------            -----------
Current liabilities                                    
--------------------------------            -----------
Borrowings                            3 838       5 213
--------------------------------            -----------
Trade and other payables              8 518       6 249
--------------------------------            -----------
Corporate income tax payable             70          19
--------------------------------            -----------
Total current liabilities            12 426      11 481
--------------------------------            -----------
Non-current liabilities                                
--------------------------------            -----------
Long-term borrowings                 14 704      17 939
--------------------------------            -----------
Total non-current liabilities        14 704      17 939
-------------------------------------------------------
TOTAL LIABILITIES                    27 130      29 420
-------------------------------------------------------
                                ------------           
EQUITY                                                 
--------------------------------            -----------
Share capital                        17 878      17 878
--------------------------------            -----------
Share premium                        14 277      14 277
--------------------------------            -----------
Treasury shares                       (145)        (64)
--------------------------------            -----------
Reserves                              1 760       1 440
--------------------------------            -----------
Retained earnings                    13 238      13 644
--------------------------------            -----------
TOTAL EQUITY                         47 008      47 175
-------------------------------------------------------
TOTAL LIABILITIES AND EQUITY         74 138      76 595
-------------------------------------------------------

Consolidated statement of comprehensive income (unaudited)

(EUR thousand)                                  Q2      Q2   1st Half   1st Half
                                              2015    2014  year 2015  year 2014
--------------------------------------------------------------------------------
                                           --------                             
Sales revenue                               13 765  13 764     25 858     26 498
-------------------------------------------        -----------------------------
Cost of sales                                  (11     (10   (21 345)   (20 361)
                                              550)    139)                      
-------------------------------------------        -----------------------------
Gross profit                                 2 215   3 625      4 513      6 137
-------------------------------------------        -----------------------------
Other income                                   138     106        246        221
-------------------------------------------        -----------------------------
Marketing expenses                           (579)   (526)    (1 132)      (966)
-------------------------------------------        -----------------------------
Administrative expenses                         (1      (1    (2 603)    (2 778)
                                              314)    242)                      
-------------------------------------------        -----------------------------
Other expenses                                (31)    (27)       (52)       (85)
--------------------------------------------------------------------------------
Operating profit                               429   1 936        972      2 529
--------------------------------------------------------------------------------
                                           --------                             
Interest income                                 11       2         22          3
-------------------------------------------        -----------------------------
Interest expense                             (130)   (181)      (285)      (357)
-------------------------------------------        -----------------------------
Foreign exchange gains/(losses)                (4)     (1)        (4)         35
-------------------------------------------        -----------------------------
Other finance costs                           (15)    (15)       (30)       (30)
-------------------------------------------        -----------------------------
Total finance income/costs                   (138)   (195)      (297)      (349)
-------------------------------------------        -----------------------------
Profit on shares of joint ventures             225     190        419        288
-------------------------------------------        -----------------------------
Profit (loss) on shares of associates           24       3          9        (9)
-------------------------------------------        -----------------------------
Profit before income tax                       540   1 934      1 103      2 459
-------------------------------------------        -----------------------------
Income tax expense                            (59)    (76)       (66)       (98)
--------------------------------------------------------------------------------
Net profit  for the reporting period           481   1 858      1 037      2 361
--------------------------------------------------------------------------------
                                           --------                             
Net profit for the reporting period                                             
 attributable to:                                                               
-------------------------------------------        -----------------------------
Equity holders of the parent company           481   1 858      1 037      2 361
-------------------------------------------        -----------------------------
Other comprehensive income (expense) that                                       
 may be subsequently reclassified to                                            
 profit or loss                                                                 
-------------------------------------------        -----------------------------
Currency translation differences                 0       2          0       (34)
-------------------------------------------        -----------------------------
Total other comprehensive income (expense)       0       2          0       (34)
-------------------------------------------        -----------------------------
Comprehensive income (expense) for the         481   1 860      1 037      2 327
 reporting period                                                               
-------------------------------------------        -----------------------------
Attributable to equity holders of the          481   1 860      1 037      2 327
 parent company                                                                 
-------------------------------------------        -----------------------------
Basic and diluted earnings per share          0.02    0.06       0.03       0.08
--------------------------------------------------------------------------------

Consolidated cash flow statement (unaudited)

(EUR thousand)                                     1st Half year   1st Half year
                                                            2015            2014
--------------------------------------------------------------------------------
Cash flows from operating activities                                            
--------------------------------------------------------------------------------
Operating profit for the reporting year                      972           2 529
--------------------------------------------------------------------------------
                                                 ----------------               
Adjustments for:                                                                
-------------------------------------------------                ---------------
Depreciation, amortisation and impairment                  1 379           1 464
-------------------------------------------------                ---------------
(Gain)/loss on sale and write-down of property,              (3)             (3)
 plant and equipment                                                            
-------------------------------------------------                ---------------
Change in value of share option                               64              68
-------------------------------------------------                ---------------
Cash flows from operating activities:                                           
-------------------------------------------------                ---------------
Trade and other receivables                                  170         (1 909)
-------------------------------------------------                ---------------
Inventories                                                   31             145
-------------------------------------------------                ---------------
Trade and other payables                                     521         (2 298)
-------------------------------------------------                ---------------
Cash generated from operations                             3 134             (4)
-------------------------------------------------                ---------------
Income tax paid                                             (66)           (138)
-------------------------------------------------                ---------------
Interest paid                                              (285)           (357)
--------------------------------------------------------------------------------
Net cash generated from operating activities               2 783           (499)
--------------------------------------------------------------------------------
                                                 ----------------               
Cash flows from investing activities                                            
-------------------------------------------------                ---------------
Term deposit (placement)/release                           1 600               0
-------------------------------------------------                ---------------
Interest received                                             33               3
-------------------------------------------------                ---------------
Purchase of  property, plant and equipment                 (457)           (881)
-------------------------------------------------                ---------------
Proceeds from sale of property, plant and                     16               5
 equipment                                                                      
-------------------------------------------------                ---------------
Loans granted                                                  0            (22)
-------------------------------------------------                ---------------
Loan repayments received                                      73               2
--------------------------------------------------------------------------------
Net cash used in investing activities                      1 254           (893)
--------------------------------------------------------------------------------
                                                 ----------------               
Cash flows from financing activities                                            
-------------------------------------------------                ---------------
Dividend received from joint ventures                        278             203
-------------------------------------------------                ---------------
Finance lease repayments                                    (40)            (34)
-------------------------------------------------                ---------------
Change in use of overdraft                               (1 117)           2 606
-------------------------------------------------                ---------------
Repayments of bank loans                                 (3 458)         (1 831)
-------------------------------------------------                ---------------
Purchase of treasury shares                                 (81)            (28)
--------------------------------------------------------------------------------
Net cash used in financing activities                    (4 419)             917
--------------------------------------------------------------------------------
NET (DECREASE)/INCREASE IN CASH AND CASH                   (382)           (475)
 EQUIVALENTS                                                                    
--------------------------------------------------------------------------------
                                                 ----------------               
Cash and cash equivalents at the beginning of              3 656           2 111
 the year                                                                       
-------------------------------------------------                ---------------
Cash and cash equivalents at the end of the year           3 274           1 636
--------------------------------------------------------------------------------




         Additional information:
         Gunnar Kobin
         Chairman of the Management Board
         GSM: +372 5188111
         e-mail: [email protected]