Market announcement

Title

Unaudited consolidated interim accounts for the fourth quarter and twelve months of 2020

Message

Segments (EURm)              Q4/20 Q4/19  yoy   12m/20 12m/19  yoy
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 Supermarkets                 143,4 123,0 16,6%   524,4  469,4 11,7%

 Department stores             29,5  32,0 -7,7%    88,1  102,8 -14,3%

 Cars                          25,1  33,5 -25,2%  117,6  130,4 -9,8%

 Footwear                       1,9   2,6 -28,4%    6,7    8,9 -24,4%

 Real Estate                    1,4   1,5 -5,6%     5,1    5,8 -11,2%
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 Total sales                  201,3 192,6  4,5%   741,9  717,2  3,4%
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 Supermarkets                   3,5   5,6 -37,1%   15,5   18,1 -14,1%

 Department stores              1,7   2,4 -26,7%    1,0    3,5 -70,9%

 Cars                           0,4   0,2 60,0%     2,2    4,0 -46,3%

 Footwear                      -0,8  -0,2 284,6%   -2,5   -1,2 111,4%

 Real Estate                    2,6   6,6 -60,2%   10,1   14,7 -31,0%

 IFRS 16                       -0,8  -0,4 101,9%   -2,4   -1,5 62,4%
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 Total profit/loss before tax   6,6  14,1 -53,1%   24,0   37,7 -36,4%
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In  the  fourth  quarter  of  2020, the  consolidated unaudited sales revenue of
Tallinna  Kaubamaja Grupp was 201.3 million euros,  which was 4.5% more than the
sales revenue of the same period in 2019. The sales revenue in the twelve months
was  741.9 million euros,  showing a  growth of  3.4% compared to  the result of
2019, when  the sales revenue was 717.2 million  euros. In the fourth quarter of
2020, the Group's unaudited consolidated net profit was 8.0 million euros, which
was  45.6% weaker than the profit of the comparable period in the previous year.
The Group's net profit in 2020 was 19.5 million euros, which is 38.6% lower than
the  previous year. The pre-tax profit  earned in twelve months was 24.0 million
euros, showing a 36.4% decrease compared to last year.

The  fourth quarter  began in  a relatively  positive economic  environment, but
returned  to caution due to  a steep rise in  the number of coronavirus cases in
November. Stores have remained open, but the customers' purchasing behaviour has
changed  significantly compared  to the  year before.  People visit  stores less
frequently, buy more during one visit, and their shopping carts are dominated by
essential  household goods. For the retail segments of the Group, this has meant
a  decline in  the number  of visits  to the  city centre  stores, as  well as a
significant  decrease in the  sale of fashion  goods, which is  evident from the
weaker  results of the  Kaubamaja department store  and the footwear segment. On
the  other hand, the popularity of the Group's online stores has increased, with
the  sales  volumes  multiplied  in  2020. The  supermarket segment showed great
growth,  supported by  the stores  which were  added by  the acquisition  of ABC
Supermarkets  AS in  spring. In  spite of  the declined  revenues, the car trade
segment  optimised its operations  and was able  to improve its profitability in
the  fourth  quarter.  The  financial  year  has called for unexpected and rapid
changes in the business operations, and the annual profit has been influenced by
several  one-time events or extraordinary expenses. Roughly, 1 million euros was
spent  to ensure the safety of customers  and employees during the spread of the
coronavirus.  In  the  footwear  segment,  the  value  of the ABC King trademark
acquired  during  the  acquisition  of  stores,  was written down by 0.5 million
euros.  In the real estate segment, the profit in the fourth quarter of 2020 was
weaker  in comparison with  the previous year  due to the  sales revenue of 3.8
million  euros earned from one sales transaction involving an immovable property
in  the end of  2019. Net profit decreased  by 2.4 million euros  because of the
calculated  loss from lease  contracts in accordance  with IFRS 16 (in 2019, the
respective  figure was 1.5 million euros). Net profit increased due to an income
tax  adjustment  of  1.4 million  euros  in  2020, as  well as 0.6 million euros
retrospectively for 2019, which were brought about by changes in the calculation
principles  arising  from  the  IFRS  standards  that  entered into force in the
financial  year. Based on the standards, the income statement will now feature a
calculated  amount of income  tax (see Note  1) instead of the  actual amount of
income  tax paid  from distributed  profits, which  was the  standard in Estonia
previously.

The  most important development activities in the financial quarter included the
transfer  of the  stores which  had been  operating under the Comarket trademark
under  the Selver  ABC trademark,  and developments  in the  picking and packing
solutions  of online stores. The production plant  of Kulinaaria is being set up
and  the existing production plant is  being renovated; renovations are expected
to be completed in the beginning of 2021. Several developments have already been
completed in the financial year. The Selver store in Võru was successfully moved
to  the new  location in  the Kagukeskus  shopping mall  in March.  Selver fully
renovated  the Suurejõe Selver store in Pärnu  and the Mustakivi Selver store in
Tallinn.  In Haapsalu, the sales area of the Rannarootsi Selver was expanded. In
July,  Selver opened  a new  store at  the WOW  mall in  Saaremaa. In  the third
quarter, the footwear segment opened online stores of ABC KING and SHU. E-Selver
expanded its home delivery services to Ida-Viru County, Jõgeva County, and Põlva
County.  By the end of the year, the  service area of e-Selver covered twelve of
the fifteen Estonian counties. In the car trade segment, the showroom in Tallinn
was  renovated into a modern Peugeot showroom  and service centre and a separate
bodyworks  building  was  opened  with  the  most modern equipment in the Baltic
region.

Selver supermarkets

The  consolidated sales revenue of the  supermarkets business segment was 524.4
million  euros in  2020, increasing by  11.7% in comparison  with last year. The
consolidated  sales revenue  was 143.4 million  euros in  the fourth  quarter of
2020, increasing  by  16.6% in  comparison  with  the  same period of last year.
Disregarding  the ABC Supermarket stores which  were added, the growth of fourth
quarter  of the  segment amounted  to 7.0%. In  2020, the monthly  average sales
revenue  of goods  per square  metre of  selling space  was 0.39 thousand euros,
increasing  by 3.2% compared to last year. In the fourth quarter, same indicator
per  square metre  was 0.41 thousand  euros, increasing  by 2.0% compared to the
same  period last year.  The average sales  revenue per square  metre of selling
space  of comparable  stores was  0.40 thousand euros  in 2020 and 0.42 thousand
euros,  on average,  in the  fourth quarter  of 2020, growing  by 5.2% and 4.2%
respectively,  compared to the year before. In 2020, 40.8 million purchases were
made from the stores, which was 1.1% higher than in the reference year.

In  the  fourth  quarter  of  2020, the  pre-tax  profit  was 3.5 million euros,
dropping  by  2.1 million  euros  in  comparison  with  the same period the year
before. The consolidated pre-tax profit of the segment was 15.5 million euros in
2020, decreasing  by 2.5 million euros  in comparison with  the year before; the
net  profit was 14.0 million euros, decreasing  by 2.0 million euros compared to
the  year before. As of  1 June, the results of  the supermarket segment include
the results of ABC Supermarkets, which was acquired by a purchase transaction in
spring.  The  profit  was  earned  thanks  to  the  increased sales revenue, the
investments made in increasing the efficiency of daily processes, and the warmer
beginning to the winter, which enabled saving on administrative expenses. In the
first quarter, the SelveEkspress service was expanded to all Selver stores which
had  been  opened  by  that  point,  which  had  a positive effect on the labour
efficiency.  The  economic  results  have  been  significantly  impacted  by the
emergency  situation  which  was  established  due  to COVID-19 in spring, which
considerably  increased the company's expenses  on personal protective equipment
and  reshaped  the  customers'  purchase  behaviour  and consumption habits. The
spread  of the virus has steeply increased the demand in the area of e-commerce.
The  results of  2020 were also  influenced by  the one-time expenses which were
related to the purchase transactions of ABC Supermarkets, as well as by the one-
time expenses on the renovation of the stores.

In  the financial year, Selver thoroughly renovated the Suurejõe Selver store in
Pärnu  and the Merimetsa and Mustakivi Selver stores in Tallinn. The stores were
closed  to  customers  during  the  renovation  works.  The  sales  area  of the
Rannarootsi  Selver  in  Haapsalu  was  expanded.  In  Võru, Selver moved to new
premises  at the Kagukeskus shopping mall. In July, Selver opened a new store at
the  WOW mall in Saaremaa.  Due to the emergency  situation, the Sepapaja Selver
and  the Puhvet café at the Kadaka  Selver were temporarily closed. The assembly
and delivery volumes of e-Selver have been growing rapidly. The e-Selver service
area  includes all of Harju  and Tartu County, Hiiu  County, Saare County, Järva
County,  Rapla  County,  Lääne  County,  Jõgeva County, Põlva County, Lääne-Viru
County,  Ida-Viru County, and a large part of Pärnu County and Lääne County. The
e-commerce  volume  of  Selver  increased  2.5 times  in the year. In the second
quarter,  Selver acquired  the shares  of ABC  Supermarkets. By the acquisition,
Selver  improved the availability of its service  via a wider network of stores,
and  thereby increased  its market  share. The  process of transferring Comarket
stores  under the  trademark of  Selver ABC  was launched  in October, which was
accompanied  by  one-time  expenses  on  equipment  and inventory, as well as by
closing  the stores for customers for a few  days. Selver ABC is a new format of
small  stores which was  created by Selver  in 2020. Nine former Comarket stores
were opened as Selver ABC stores in the fourth quarter.

Department stores

In 2020, the Kaubamaja department stores business segment earned a sales revenue
of 88.1 million euros, which is 14.3% less than previous year. The average sales
revenue of the Kaubamaja department stores per square metre of selling space was
0.3 thousand  euros per month in the twelve months, which is 17.3% lower than in
the  same period  last year.  In the  fourth quarter,  the sales  revenue of the
Kaubamaja  department  stores  was  29.5 million  euros,  which is 7.7% lower in
comparison  with the same result  of the year before.  The pre-tax profit of the
Kaubamaja department stores in 2020 was 1.0 million euros, showing a decrease of
70.9% in  the year-on-year comparison. In the fourth quarter, the pre-tax profit
of  the Kaubamaja department stores was  1.7 million euros, which is 26.7% lower
in comparison with the same result of the year before.

The  sales result of  the Kaubamaja department  stores in 2020 was influenced by
the  emergency situation declared  by the Government  of the Republic of Estonia
due  to the pandemic in  the first quarter, which  resulted in a decrease in the
number  of visitors to the Kaubamaja department stores from the middle of March.
On  27 March, the Government of  the Republic of Estonia  ordered the closing of
all  shopping malls and Kaubamaja also closed all selling spaces of manufactured
goods  in  Tallinn  and  Tartu.  Only  the  grocery  stores  remained  open. The
department  stores were  fully reopened  on 11 May.  In the fourth quarter, when
Estonia was hit by the second wave of the coronavirus, shopping centres remained
open, but the number of visitors decreased considerably.

The spread of the virus has significantly changed customers' purchase behaviour.
Even more value is placed on quality and such products are sought and purchased.
Customers  have remained more modest in  purchasing fashion goods, but household
goods  have  been  very  popular.  Redesigned  Kodumaailm with a new concept was
opened in the department store in Tallinn in autumn, which had a positive impact
on  the sales results. Kodumaailm achieved its best result in the last ten years
in  2020. Ilumaailm's 'Ilu  Aeg' campaign  in autumn  was the most successful in
recent years. On the other hand, due to its central location, Tallinna Kaubamaja
has  been strongly affected  by the significantly  lower number of tourists, the
lower number of people working in the offices in the city centre, as well as the
general  decline in the visitation of the  city centre, especially in the summer
period,  which has had  a negative impact  on the sales  result of the 2020. The
online  store of  Kaubamaja grew  by 123% in  the year,  but this  has failed to
compensate for the decline in the sales of the physical department stores.

In  the fourth quarter of 2020, the sales  revenue of OÜ TKM Beauty Eesti, which
operates I.L.U. cosmetics stores, was 1.7 million euros, which is 4.2% more than
in  the same period  of 2019. The profit  in the fourth  quarter was 0.1 million
euros, which was 33.0% higher than the profit in the comparable period in 2019.
The  sales revenue of 2020 was 5.0 million euros, which is 0.8% more than 2019.
The  profit of 2020 was 0.1 million euros,  which is 0.2 million euros more than
in  the  2019. Key  activities  of  2020 were  updating  the  product selection,
development  of the sales and service processes  of the online store, and active
digital  marketing. The  COVID-19 crisis had  a negative  impact on the customer
flows  and sales  results of  the stores  in shopping  malls, but the remarkable
growth of the online store enabled to finish the year with expected results.

Car trade

The  sales revenue of  the car trade  segment was 117.6 million  euros in 2020,
which  was 9.8% less than the sales revenue  of 2019. The sales revenue for KIAs
decreased  by 31.1%. The  sales revenue  of 25.1 million  euros of  the fourthly
quarter  of 2020 was 25.2% less than the sales revenue of the same period in the
year  before, whereas the sales revenue  for KIAs decreased by 39.7%. Throughout
twelve  months, a  total of  4,846 new vehicles  were sold,  952 of them  in the
fourth  quarter. The  net profit  of the  segment in 2020 was 1.8 million euros,
which was 1.5 million euros less than the profit of the year before. The pre-tax
profit  of the segment in 2020 was 2.2 million euros, which is 1.9 million euros
less  than the profit of 2019. The pre-tax profit of the fourth quarter of 2020
was  0.4 million euros, which is  0.1 million euros more than  the profit of the
same period of the year before.

Car  supply  chain  disruptions  have  hampered  the  delivery  of new vehicles,
resulting  in a decline in  the Group's automotive sales  in the fourth quarter.
Sales  were possible  to some  extent thanks  to the  stock in trade, which had,
however,  been below the normal level throughout  all of 2020. The result of the
car   trade  segment  was  improved  by  follow-up  services,  i.e.  by  vehicle
maintenance  and repair services, where  the turnover increased. The investments
and changes made in the course of 2020 were finalised and launched. The showroom
at  51 Tammsaare tee in Tallinn was reorganised  into a new, modern showroom and
service  centre  and  a  new  separate  bodyworks department was opened. Another
success which can be highlighted is the fact that the Shkoda business in Riga had
been  launched as planned  by the end  of the year,  in spite of the complicated
year.  The factories and  importers are hoping  to resume the  deliveries of new
vehicles in 2021.

Footwear trade

The  sales revenue of the footwear  segment was 6.7 million euros in 2020, which
is  24.4% less than  in 2019. The  loss of  2020 was 2.5 million euros, which is
1.3 million euros more than in the year before. Writing down of the value of the
ABC  King brand influenced the result in the extent of 0.5 million euros. In the
fourth  quarter, the  sales revenue  was 1.9 million  euros, which is 28.4% less
than  during the same  period in 2019. The  loss in the  fourth quarter was 0.8
million euros.

The  results of 2020 were  significantly affected by  the coronavirus crisis and
the modest customer flows in the shopping centres resulting from said crisis, as
well  as by a general lower interest in fashion goods. The SHU store in Haapsalu
was  closed in  September, while  the SHU  store in  Jõhvi was  moved to another
location,  which has more perspective. Taking  into consideration the changes in
consumer  behaviour and the development of e-commerce, online stores of ABC KING
and SHU were developed and opened to customers in the middle of September.

Real estate

The  sales revenue earned in the real  estate segment outside the Group was 5.1
million  euros in 2020. Sales revenue decreased  by 11.2% in comparison with the
previous  year. The sales  revenue earned in  the segment outside  the Group was
1.4 million  euros in  the fourth  quarter. During  the reference  period, sales
revenue  decreased by 5.6%. The pre-tax profit earned in the real estate segment
was  10.1 million  euros  in  2020. Compared  to  the  reference  period, profit
decreased  by 31.0%. The pre-tax profit of the segment in the fourth quarter was
2.6 million  euros, which is 60.2% less than during the same period in 2019. The
main  reason for the decline  in profit was the  one-time sales revenue from the
sale of an immovable property with residential property development potential in
Tallinn in the end of 2019 reported in the reference data.

The  sales revenue earned in  the segment outside the  Group decreased by 19% in
the  first six months due to the  emergency situation declared by the Government
of  the  Republic  of  Estonia  and  due  to the 1.5-month compulsory closure of
department  stores. In the second  half of the year,  however, the sales revenue
recovered  and the sales  revenue earned in  the segment outside  the Group only
dropped by 3%. As a responsible and caring lessor, the segment has been flexible
in  its rental relationships.  The lockdown period  had a greater  effect on the
Tartu  Kaubamaja shopping centre, where the  attendance of the mall decreased by
27% over  the year. The emergency situation only  had a short-term effect on the
Viimsi  shopping centre and the attendance of  the centre decreased by less than
10% over  the year. The success of  the centres arises from rapid implementation
of the measures to stop the spread of the virus. Measures were immediately taken
to  ensure the safety of  both customers and employees.  Within the segment, the
Latvian  real estate company improved its results. The company is renting a new,
fully functional Shkoda showroom, which is the most modern in Eastern Europe, and
a  used vehicle  showroom to  the car  trade segment  of the  Group in Riga. The
annual  evaluation of the  fair value of  the real estate  investments which was
conducted  at the end of year did not have a significant impact on the profit of
the segment.

The  coronavirus epidemic will continue to affect  the results of the lessees of
the  shopping centres in the  first half of 2021. As  the economic impact of the
epidemic  is not yet clear, the volumes  of and schedule for future developments
will be adjusted as and when needed.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros?

-------------------------------------------------------------------------------
                             31.12.2020 31.12.2019 adjusted 01.01.2019 adjusted
-------------------------------------------------------------------------------
 ASSETS
-------------------------------------------------------------------------------
 Current assets

 Cash and cash equivalents       32,757              40,629              37,235

 Trade and other receivables     15,894              16,904              16,093

 Inventories                     77,334              78,305              78,212
-------------------------------------------------------------------------------
 Total current assets           125,985             135,838             131,540
-------------------------------------------------------------------------------
 Non-current assets

 Long-term trade and other
 receivables                        335                 114                 113

 Investments in associates        1,712               1,721               1,738

 Investment property             60,347              60,458              59,866

 Property, plant and
 equipment                      388,757             319,192             212,687

 Intangible assets               20,148               4,990               5,133
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 Total non-current assets       471,299             386,475             279,537
-------------------------------------------------------------------------------
 TOTAL ASSETS                   597,284             522,313             411,077
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 LIABILITIES AND EQUITY
-------------------------------------------------------------------------------
 Current liabilities

 Borrowings                      49,402              46,448              26,002

 Trade and other payables       102,841              89,831              90,775

 Deferred tax liabilities         4,408               5,821               6,452
-------------------------------------------------------------------------------
 Total current liabilities      156,651             142,100             123,229
-------------------------------------------------------------------------------
 Non-current liabilities

 Borrowings                     217,349             157,876              68,313

 Provisions for other
 liabilities and charges            277                 322                 370
-------------------------------------------------------------------------------
 Total non-current
 liabilities                    217,626             158,198              68,683
-------------------------------------------------------------------------------
 TOTAL LIABILITIES              374,277             300,298             191,912
-------------------------------------------------------------------------------
 Equity

 Share capital                   16,292              16,292              16,292

 Statutory reserve capital        2,603               2,603               2,603

 Revaluation reserve            102,630              93,496              95,587

 Currency translation
 differences                       -149                -149                -149

 Retained earnings              101,631             109,773             104,832
-------------------------------------------------------------------------------
 TOTAL EQUITY                   223,007             222,015             219,165
-------------------------------------------------------------------------------
 TOTAL LIABILITIES AND
 EQUITY                         597,284             522,313             411,077
-------------------------------------------------------------------------------

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

  -----------------------------------------------------------------------------
                                                                    12 months
                         IV quarter     IV quarter     12 months       2019
                            2020      2019 adjusted      2020        adjusted
  -----------------------------------------------------------------------------
   Revenue                    201,253        192,614       741,938      717,223

   Other operating
   income                         309          4,431         1,285        5,113



   Cost of sales             -147,608       -142,372      -556,712     -535,410

   Other operating
   expenses                   -12,647        -11,435       -44,009      -41,917

   Staff costs                -23,016        -20,448       -78,301      -73,113

   Depreciation,
   amortisation and
   impairment losses           -9,888         -7,685       -35,137      -30,743

   Other expenses                -523           -233        -1,057         -715
  -----------------------------------------------------------------------------
   Operating profit             7,880         14,872        28,007       40,438
  -----------------------------------------------------------------------------
   Finance income                   1              0             2            1

   Finance costs               -1,272           -767        -4,239       -2,982

   Finance income on
   shares of
   associates                      20             29           191          203
  -----------------------------------------------------------------------------
   Profit before tax            6,629        14, 134        23,961       37,660
  -----------------------------------------------------------------------------
   Income tax expense           1,361            561        -4,462       -5,892
  -----------------------------------------------------------------------------
   NET PROFIT FOR THE
   FINANCIAL YEAR               7,990         14,695        19,499       31,768
  -----------------------------------------------------------------------------
   Other comprehensive
   income:

   Items that will not
   be subsequently
   reclassified to
   profit or loss
  -----------------------------------------------------------------------------
   Revaluation of land
   and buildings               11,225              0        11,225            0
  -----------------------------------------------------------------------------
   Other comprehensive
   income for the
   financial year              11,225              0        11,225            0
  -----------------------------------------------------------------------------
   TOTAL COMPREHENSIVE
   INCOME FOR THE
   FINANCIAL YEAR              19,215         14,695        30,724       31,768
  -----------------------------------------------------------------------------
 Basic   and   diluted
 earnings   per  share
 (euros)                         0.20           0.36          0.48 0.78



Raul Puusepp

Chairman of the Board

Phone +372 731 5000