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26.02.2008 09:00:00

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AUDITEERIMATA MAJANDUSTULEMUSED, 4. KVARTAL JA 2007. AASTA

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TULEMUSTE LÜHIKOKKUVÕTE, 2007. aasta                                            
- Müügitulu 1 152 miljonit krooni, aastane kasv 28%                             
- Jaemüügi aastane kasv 34%                                                     
- Võrreldavate poodide müügikasv 3%                                             
- Brutomarginaal 55,3%                                                          
- Ärikasum 64,6 miljonit krooni                                                 
- Ärirentaablus 5,6%                                                            
- Puhaskasum 40,8 miljonit krooni                                               
- Puhasrentaablus 3,5%                                                          
- Avatud 24 poodi                                                               
- Müügipinna aastane netokasv 24%                                               

Juhatuse esimees Meelis Milder: „Baltika Grupi 2007. aasta tulemustele hinnangu 
andmiseks tuleb need paigutada Grupi kolmeaastase (2006-2008) strateegia        
konteksti. Strateegia, mille lõppeesmärgid on defineeritud aastaks 2008.        

Kuigi meil ei ole põhjust olla rahul möödunud aasta kasumlikkusega, oleme me    
veendunud, et see „vahepealne“ aasta oli oluline paljude strateegiliste ja      
taktikaliste ülesannete lahendamisel. 2007. aastal muutsime me Ivo Nikkolo      
jaeketi rahvusvaheliseks sisenedes Leedu turule ning lõime Ivo Nikkolole uue    
poekontseptsiooni, mis sai hea vastuvõtu. Turule tulid strateegias kavandatud   
uued tootegrupid: Montoni jalanõud ja teksa-kontseptsioon Spiced M, Mosaic      
täienes lasterõivaste kollektsiooniga, sh esimesest müügipäevast peale väga     
eduka Lotte by Mosaic alambrändiga. Positiivsed arengud toimusid Kesk-Euroopa   
turgudel: meie Poola kauplused jõudsid aasta lõikes esmakordselt kasumisse ning 
me sisenesime Tšehhi turule. Märkimist väärib veel aasta jooksul toimunud       
üleminek uuele ülekontsernilisele infosüsteemile Navision ja kesklinnas         
paiknenud tootmise üleviimine. Kõik need tegevused olid suunatud ettevõtte      
sisulise väärtuse kasvule.                                                      

2007. aastal ilmnesid küll eelneva aasta kiirest laienemisest tingitud          
probleemid suurtel turgudel efektiivsuse juhtimisega, kuid oleme need probleemid
fikseerinud ja tegeleme väga tõsiselt nende lahendamisega. Vene turu            
tulemuslikkuse tõstmisele ei aidanud kindlasti kaasa ka riikidevaheliste        
poliitiliste suhete halvenemine ning tagasilöögid kaubaveo korraldamisel.       

2008. aasta alguse madalast vanade varude tasemest tingitud vähenenud           
müügikäibed jaanuaris on nüüdseks asendunud uue kevadkollektsiooni kasvavate    
müükidega. Prognoosime siiski, et pööre kasumlikkuses on saavutatav teisel      
poolaastal. Oma juubeliaastal - Baltika tähistab sel aastal oma 80-ndat         
sünnipäeva - loodame saavutada käibeks 1,3 miljardit krooni ning liikuda        
brutokasumlikkuses edasi juba saavutatud healt 55,3%-selt tasemelt. Kindlasti   
oleme aga mitte üksnes kaks korda suuremad, kui seda strateegiat alustades, vaid
ka hoopis tugevamad ja targemad järgmist kasvustrateegiat alustama!“            

Baltika Grupi müügitulud kasvasid 2007. aastal 28,0%, kusjuures jaemüügis       
saavutati ­34,1%-ne kasv. Aasta brutorentaabluseks saavutati 55,3% võrreldes    
54,5%-ga 2006. aastal. Grupp teenis 2007. aastal 64,6 miljoni krooni (4,1       
miljoni euro) suuruse ärikasumi ning ärirentaablus ulatus 5,6%-ni. Puhaskasum   
kahanes 53,3% võrra ulatudes 40,8 miljoni kroonini (2,6 miljoni euroni) ning    
puhasrentaablus oli 3,5%.                                                       

Baltika neljanda kvartali konsolideeritud müügitulu oli kokku 307,4 miljonit    
krooni (19,6 miljonit eurot) kasvades eelmise aastaga võrreldes 9,3%, sh        
jaekäive kasvas 14,7%. Neljanda kvartali brutorentaablus oli 58,1% (4 kv 2006:  
57,4%) ning ärirentaablus 3,3% (4 kv 2006: 12,9%). Grupi neljanda kvartali      
puhaskasum ulatus 1,6 miljoni kroonini (0,1 miljoni euroni).                    

MÜÜGITULUD                                                                      
Müük segmenditi                                                                 
--------------------------------------------------------------------------------
| EEK mln        |    4 kv |    4 kv |     +/- |     2007 |     2006 |     +/- |
|                |    2007 |    2006 |         |          |          |         |
--------------------------------------------------------------------------------
| Jaemüük        |   284,6 |   248,1 |   14,7% |    987,3 |    736,4 |   34,1% |
--------------------------------------------------------------------------------
| Hulgimüük      |    22,0 |    29,8 |  -26,3% |    144,7 |    150,6 |   -3,9% |
--------------------------------------------------------------------------------
| Allhange       |     0,3 |       0 |       - |     14,4 |        0 |       - |
--------------------------------------------------------------------------------
| Muu            |     0,6 |     3,3 |  -82,2% |      5,1 |     12,5 |  -59,1% |
--------------------------------------------------------------------------------
| Kokku          |   307,4 |   281,2 |    9,3% |  1 151,5 |    899,5 |   28,0% |
--------------------------------------------------------------------------------

1 EUR = 15,6466 EEK                                                             

JAEMÜÜK                                                                         
Baltika jaemüük kasvas 2007. aastal 34,1% võrra ning ulatus 987,3 miljoni       
kroonini (63,1 miljoni euroni). Võrreldavate poodide müük kasvas samal perioodil
3%. Kiire kasvu tulemusena tõusis jaemüügi osakaal müügituludes 86%-ni võrreldes
82%-ga 2006. aastal.                                                            

2007. aastal jätkus jaeketi laienemine, mille tulemusena Grupi aasta keskmine   
müügipind suurenes 2006. aastaga võrreldes 50%. Samal ajal alanes keskmine      
müügiefektiivsus (müük/m2) 10% võrra. Müügiefektiivsusele avaldab mõju kiire    
laienemine, sest uutel poodidel on suurem pind ning käivitumisperioodil         
tavaliselt madalam müügiefektiivsus. Väljaspool Baltika koduturgu, Balti riike, 
on poodide käivitumisperiood osutunud ka keskmisest pikemaks. 2006. aastal ning 
eriti aasta lõpus avati palju uusi kauplusi Venemaal ja Ukrainas, kus uute      
kaubanduskeskuste käivitumine ja seetõttu ka poodide käivitumine võib võtta     
hinnanguliselt vähemalt 18-24 kuud.                                             

2007. aasta neljandas kvartalis  kasvas jaemüük eelmise aastaga võrreldes 14,7% 
ning oli kokku 284,6 miljonit krooni (18,2 miljonit eurot).                     

POED JA MÜÜGIPIND                                                               
2007. aasta lõpu seisuga oli Baltikal 128 kauplust seitsmes riigis müügipinnaga 
24 290 ruutmeetrit. Aasta jooksul avati 20, suleti neli poodi ning neli poodi   
viidi samas kaubanduskeskuses üle suuremale pinnale. Jaesüsteemi netokasvuks    
kujunes 16 kauplust ja pea 4 700 ruutmeetrit, mille tulemusena suurenes Baltika 
Grupi poolt opereeritav müügipind 2007. aasta jooksul 24% võrra.                

Turgude lõikes avati kõige rohkem uusi poode Leedus - kokku kaheksa. Lätis avati
kolm uut poodi ning neli poodi viidi suuremale pinnale. Nii Ukrainas kui        
Venemaal avati aasta jooksul kolm poodi ning Eestis kaks. Aasta lõpus lisandus  
Grupile uus turg - Tšehhi, kus avati üks kauplus. Sulgemised toimusid Venemaal  
(2) ja Ukrainas (2).                                                            

Poed turgude lõikes                                                             
--------------------------------------------------------------------------------
|                                   |         31.12.2007 |          31.12.2006 |
--------------------------------------------------------------------------------
| Eesti                             |                 30 |                  28 |
--------------------------------------------------------------------------------
| Läti                              |                 16 |                  13 |
--------------------------------------------------------------------------------
| Leedu                             |                 30 |                  22 |
--------------------------------------------------------------------------------
| Ukraina                           |                 22 |                  21 |
--------------------------------------------------------------------------------
| Venemaa                           |                 24 |                  23 |
--------------------------------------------------------------------------------
| Poola                             |                  5 |                   5 |
--------------------------------------------------------------------------------
| Tšehhi                            |                  1 |                   0 |
--------------------------------------------------------------------------------
| Poed kokku                        |                128 |                 112 |
--------------------------------------------------------------------------------
| Müügipind kokku, m2               |             24 290 |              19 594 |
--------------------------------------------------------------------------------

Kõige enam avati eelmisel aastal Montoni ja Mosaici poode. 2007. aasta lõpuks   
oli Baltika jaeketis 52 Mosaici, 50 Montoni, 16 Baltmani, 6 Ivo Nikkolo ja 4    
vabrikupoodi.                                                                   

Neljandas kvartalis avas Baltika neli poodi ning sulges ühe. Teiste hulgas avati
Prahas Palladiumi keskuses Montoni esinduskauplus, mis tähistab Baltika Grupi   
sisenemist Tšehhi turule.                                                       

ÜLEVAADE TURGUDEST                                                              
Kuigi 2007. aasta tõi kaasa majanduskasvu aeglustumise Balti riikides, jätkus   
Baltika jaeturgudel siiski kiire majanduslik areng. Baltika koduturul ehk Balti 
riikides ulatus majanduskasv 2007. aasta kokkuvõttes 7-10%-ni. Balti riigid on  
hetkel aeglustumisfaasis ning läbivad hinnanguliselt majandustsükli põhja 2008. 
aastal. Baltikumi majanduskasvu on viimastel aastatel toitnud sisenõudlus, mis  
on ka majanduskasvu aeglustumise põhjuseks. Laenupakkumise piiramine ja tõusvad 
intressimäärad on põhjustanud tagasihoidlikuma tarbimise ja investeeringute     
kasvu. Analüütikute prognooside kohaselt järgneb tarbimiskasvu tugevnemine ja   
majanduse kosumine Balti riikides hiljemalt 2009. aastal ning edaspidi jätkavad 
Baltimaad kasvamist keskmiselt 6% aastas. Venemaal ja Ukrainas oli 2007. aasta  
majanduskasv samuti tugev - esialgsel hinnangul 7-8% ringis. Ka Venemaal on     
olulisim majanduse ergutaja kodumaine nõudlus, mida stimuleeris kiiresti kasvav 
ehitustegevus, aga ka kaubandus, majutus ja finantssektor. Venemaa majanduse    
lähituleviku väljavaated loetakse positiivseteks ning lähiaastate sisemajanduse 
kogutoodangu kasvuprognoosid ületavad 6%-i. Kõik Baltika jaeturud peaksid       
lähitulevikus jätkama kiiremat kasvu kui nn vana Euroopa.                       

Ida- ja Kesk-Euroopa ning eriti Venemaa pakuvad suurt potentsiaali ning muutuvad
järjest populaarsemateks sihtkohtadeks ka rahvusvahelistele jaekettidele.       
Kinnisvaraarendus- ja konsultatsioonifirma Cushman & Wakefield poolt läbi viidud
2007. aasta rahvusvaheliste jaekaubandusfirmade küsitlus selgitas välja 20      
Euroopa linna, mida loetakse järgneva viie aasta jooksul kõige atraktiivsemateks
laienemise sihtkohtadeks. Nimekirja juhtis Moskva, millele järgnesid Peterburi  
ja Praha. Kõikides nendes linnades on Baltika esindatud. Atraktiivseimate       
sihtkohtade hulka kuulus veelgi linnasid, kus Baltika on oma poed avanud, nagu  
Tallinn, Kiiev, Varssavi, Riia ja Vilnius. Maade lõikes peeti kõige             
atraktiivsemaks sihtkohaks Venemaad.                                            

Venemaa oli 2007. aastal ka Baltika Grupi kõige kiiremini kasvav turg ning      
tõusis 18%-se osakaaluga Grupi suuruselt kolmandaks jaeturuks. Baltika suurimaks
jaeturuks oli 2007. aastal jätkuvalt Eesti. Suuruselt teine turg oli Leedu, mis 
mõne kuu lõikes juba Eestit müügimahult ka edestas. Balti riigid kokku          
moodustasid Grupi 2007. aasta jaemüügist 63% (2006: 66%) ning Venemaa ja Ukraina
34% (2006: 29%).                                                                

Jaemüük turgude lõikes                                                          
--------------------------------------------------------------------------------
| EEK mln            |       2007 |        2006 |       +/- |    Osakaal, 2007 |
--------------------------------------------------------------------------------
| Eesti              |      247,7 |       202,2 |       23% |              25% |
--------------------------------------------------------------------------------
| Läti               |      144,7 |       105,7 |       37% |              15% |
--------------------------------------------------------------------------------
| Leedu              |      231,9 |       178,8 |       30% |              23% |
--------------------------------------------------------------------------------
| Ukraina            |      156,8 |       128,5 |       22% |              16% |
--------------------------------------------------------------------------------
| Venemaa            |      173,7 |        86,7 |      100% |              18% |
--------------------------------------------------------------------------------
| Poola              |       29,8 |        34,5 |      -14% |               3% |
--------------------------------------------------------------------------------
| Tšehhi             |        2,7 |           0 |         - |               0% |
--------------------------------------------------------------------------------
| Kokku              |      987,3 |       736,4 |       34% |             100% |
--------------------------------------------------------------------------------

1 EUR = 15,6466 EEK                                                             

Kõige suurem müügipinna kasv toimus 2007. aastal Lätis ja Leedus. Leedus avati  
kõige rohkem uusi poode - kokku kaheksa, mille tagajärjel müügipind suurenes 43%
võrra. Leedu turule siseneti Ivo Nikkolo kaubamärgiga, mille poed olid siiani   
ainult Eestis. Nüüd on Ivo Nikkolo kauplused ka Vilniuses ja Kaunases. Leedu    
turul jätkatakse laienemist ka 2008. ning 2009. aastal, mil seal valmivad mitmed
uued kaubanduskeskused. Baltika jaemüük ulatus Leedus 2007. aastal 231,9 miljoni
kroonini (14,8 miljoni euroni) kasvades eelmise aastaga võrreldes 30%.          

Tugevaimat jaemüügi kasvu Balti riikide hulgas näitas Läti, kus jaemüük suurenes
37% võrra 144,7 miljoni kroonini (9,3 miljoni euroni). Lätis avati kolm uut     
poodi ning neli poodi viidi üle suuremale pinnale. Kuna kõik uued poed on       
suurema pinnaga kui vanad, siis kasvas müügipind Lätis koguni 73% võrra.        
Peamiselt said suurema pinna Montoni poed, mis annab võimaluse pakkuda          
klientidele kaubamärgi kollektsiooni täisvalikut. Riias asub nüüd ka Baltika    
Grupi suurim - 603-ruutmeetrine Montoni - pood. Riia on Baltikumi suurim linn,  
mis on nüüd Baltika kaubamärkidega paremini kaetud ning poed konkurentsis       
paremini nähtavad. Aasta lõpus siseneti Lätis ka uude linna, Valmierasse, kus   
avati kaks kauplust.                                                            

Eestis ulatus jaemüük 2007. aastal 247,7 miljoni kroonini (15,8 miljoni euroni) 
kasvades eelmise aastaga võrreldes 23%. Aasta jooksul avati kaks uut poodi,     
sealhulgas Ivo Nikkolo uue kontseptsiooniga kauplus Tallinnas Viru Keskuses.    

Venemaal kasvas Baltika Grupi jaemüük 2007. aastal 100% võrra 173,7 miljoni     
kroonini (11,1 miljoni euroni). Jaemüügi kiire kasv tulenes Venemaal 2006.      
aastal toimunud suurest müügipinna laienemisest. Kuna uute poodide              
käivitumisperiood osutus keskmisest pikemaks, siis keskenduti 2007. aastal      
põhiliselt olemasolevate poodide müügiefektiivsuse tõstmisele. Aasta jooksul    
avati kolm poodi ning suleti kaks. 2008. aastal jätkub kaupluste võrgu          
korrastamine. Edaspidi keskendutakse Venemaal laienemisel kahele kaubamärgile,  
Montonile ja Mosaicile ning põhiliselt suurlinnadele, Moskvale ja Peterburile.  
Siiski lisandub 2008. aastal uue linnana Venemaal Kaliningrad. Kuigi Baltika    
arenguid Venemaa turul takistas 2007. aastal Eesti ja Vene riikide suhete       
poliitiline jahenemine aprillis, on Venemaa turul tulevikus jaekaubanduse       
seisukohalt väga suur potentsiaal. Venemaa on lähiaastatel Euroopa atraktiivseim
sihtkoht rahvusvahelistele jaekettidele, sest turu maht on suur ning tarbimine  
tõusuteel.                                                                      

Ukrainas kasvas Baltika jaemüük 2007. aastal 22% ulatudes 156,8 miljoni kroonini
(10,0 miljoni euroni). Seoses poliitiliselt ebastabiilse olukorraga ja kõrge    
inflatsiooniga oli areng aeglasem. Kuna regioonid on sellises olukorras         
nõrgemad, siis on ka mõju Baltika müügile tuntav, sest pealinnas Kiievis on     
Grupil suhteliselt vähem poode - kuus poodi 22-st Ukrainas asuvast poest. Seda  
põhjusel, et Kiievis pole viimastel aastatel avatud ühtegi uut tänapäevast      
arvestatava suurusega ostukeskust. Samuti ei avatud 2007. aastal tugevaid       
kaubanduskeskusi Grupi huviorbiidis olevates teistes Ukraina linnades. Kokku    
avas Baltika 2007. aastal Ukrainas kolm poodi ning sulges kaks, mille tagajärjel
jäi Grupi müügipind aasta jooksul praktiliselt samaks. 2008. aastal muutub      
olukord keskuste arendamise osas paremaks ning on võimalus mõned uued poed      
avada.                                                                          

Poola turul jätkusid 2006. aastal alguse saanud positiivsed arengud. Turu       
kogumüük vähenes 2007. aastal ebaefektiivsete poodide sulgemise tõttu 14% võrra,
kuid võrreldavate poodide müük kasvas samal perioodil 8%. Kokku oli Poola       
jaemüük 2007. aastal 29,8 miljonit krooni (1,9 miljonit eurot). Uusi poode aasta
jooksul ei avatud. Poola turul keskendutakse edasisele efektiivsuse tõstmisele. 

2007. aastal lisandus Baltikale uus jaeturg - Tšehhi. Praha kesklinnas          
Palladiumi keskuses avati oktoobri lõpus 500-ruutmeetrise müügipinnaga Montoni  
esinduspood. Palladium on Praha uusim ostu- ning ärikeskus. Tšehhi on väga      
konkurentsitihe turg, kuid Montoni algus on olnud edukas - avatud pood kuulub   
müügimahult Grupi kümne parima poe hulka. Järgnevatel aastatel on plaanis       
Tšehhis järk-järgult laieneda. 2008. aastal on plaanis avada Tšehhis kaks       
kauplust.                                                                       

ÜLEVAADE BRÄNDIDEST                                                             
Brändide lõikes moodustab kõige suurema osa Baltika jaemüügist Montoni          
kaubamärk, mille osakaal tõusis 2007. aastal 55%-ni. Mosaici müük moodustas     
Grupi jaemüügist 31% ja Baltman 9%. 2006. aasta septembris omandatud kaubamärgi 
Ivo Nikkolo müük moodustas jaemüügist 3%. Ülejäänud 2% jaemüügist andsid        
põhiliselt vabrikupoed.                                                         

Monton                                                                          
2007. aastal sai Montoni kaubamärk viie aastaseks. Selle ajaga on Monton        
kasvanud edukaks rahvusvaheliseks moebrändiks. 2007. aastal ulatus Montoni      
jaemüük 543 miljoni kroonini (34,7 miljoni euroni) kasvades eelmise aastaga     
võrreldes 41% ning olles sellega Baltika kõige suurema kasvuga bränd nii müügi  
kui jaepinna lõikes. Peamine müügikasv tuli Venemaalt, mis tõusis aastaga       
Montoni suurimaks turuks ning edestas varem suurimateks jaeturgudeks olnud      
Leedut ja Eestit. Aastaga lisandus Montoni jaeportfelli kümme uuendatud         
jaekeskkonnaga kauplust, kasvatades kaubamärgi poodide arvu 2007. aasta lõpuks  
50-le.                                                                          

2007. aastal tõi Monton turule kaks uut tootegruppi. Aasta teisel poolel lisati 
kollektsiooni jalanõud ning lansseeriti teksabrändi Spiced M kollektsioon.      
Esimest piloot-hooaega jalanõude müügis võib lugeda igati õnnestunuks, mil saadi
ka väärtuslik kogemus tulevasteks hooaegadeks. Edukalt jätkus ka 2006. aastal   
turule toodud pesu ja rannarõivaste müük, mis 2007. aastal kahekordistus. Need  
numbrid tõestavad, et Monton suudab edukalt turule tuua uusi tootegruppe ning   
kliendid võtavad need kiirelt omaks.                                            

Lisaks trendikatele toodetele püüab Monton klientidele pakkuda ka head          
teenindust, mugavat ostukeskkonda ning innovaatilist kommunikatsiooni. Montoni  
poekeskkondade uuendamisel loodi 2007. aastal Baltika sisekujundajate poolt     
põnevaid lahendusi. Innovaatilisi turunduslahendusi võib aga mainida mitmeid -  
juunis tõi Monton müügile meeste aluspüksid spetsiaalse kondoomitaskuga,        
augustis avati Montoni teksanäitus ja oktoobris said kliendid imetleda taevas   
pildistatud moefotosid.                                                         

Montoni 2008. aasta peamisteks eesmärkideks on jätkata kasumlikku laienemist,   
panna uued tootegrupid efektiivselt tööle ning muuta brändisisene töö veel      
efektiivsemaks ja tulemuslikumaks.                                              

Mosaic                                                                          
2007. aasta kujunes Mosaici brändile korrastumise aastaks. Veebruaris täitus    
Mosaici esimene tegevusaasta peale nimevahetust ning sellega oli kätte jõudnud  
aeg täpsustada brändi suundumused. Kõige olulisem samm oli brändi               
repositsioneerimine - brändi fokusseeriti täpsemalt sihtkliendi vajadustele.    

Mosaici jaemüük ulatus 2007. aastal 311 miljoni kroonini (19,9 miljoni euroni)  
kasvades aastaga 29%. Müügikasvu tagasid nii kaupluste arvu suurenemine kui ka  
põhikollektsioonide arendused ning lasterõivaste turuletoomine. Suurim kasv     
toimus Mosaici meestekollektsiooni müügis, mis näitas, et planeeritud           
kollektsiooni arengusuund on end ka kliendi silmis õigustanud.                  

2007. aasta aprillis toodi Mosaici kaubamärgi all turule lasterõivad. Aasta     
lõpuks opereeriti lasteriietega 11 suuremas poes peamiselt Balti turul.         
Lastekollektsiooni osatähtsuseks Mosaici müügis kujunes esimesel aastal 2%, mis 
eeldab järgnevatel aastatel olulist kasvu. Koos lasterõivaste lansseerimisega   
toodi turule ka lastekollektsiooni alambränd Lotte by Mosaic, kuhu kuuluvad     
Eestis ülipopulaarse multifilmitegelase Lotte nimega rõivad ja aksessuaarid     
lastele. Lotte by Mosaic kollektsiooni tooted on saanud väga positiivse         
vastuvõtu just Eesti turul. Edaspidi on eesmärgiks võetud kasvatada antud       
kollektsiooni müüki ka Lätis ja Leedus.                                         

2007. aastal avati Baltika jaeturgudel kokku üheksa uut Mosaici poodi, mis      
tõstis poodide arvu 52-le. Lähtuvalt brändi kasvust ning poekeskkonna arengust  
on uued kauplused suuremad võimaldades kollektsiooni kliendile paremini         
esitleda.                                                                       

2008. aasta eesmärgiks on arendada välja Mosaici uus poekeskkond, mis aitab     
brändil tugevdada oma positsiooni rahvusvahelises moekaubanduses. Oluline       
tähelepanu on suunatud Mosaici lasterõivaste kollektsiooni ning sealhulgas Lotte
by Mosaic kollektsiooni edasiarendamisele.                                      

Baltman                                                                         
Baltman on Baltika pikima ajalooga bränd, mille eesmärgiks on areneda koos      
kliendiga. 2007. aastal ulatus Baltmani jaemüük 92 miljoni kroonini (5,9 miljoni
euroni) ning kasvas eelmise aastaga võrreldes 14%. Aasta jooksul avati kaks uut 
poodi Leedus ning aasta lõpuks oli Baltmanil 16 kauplust.                       

2007. aastal pöörati tootearenduse seisukohalt erilist tähelepanu Baltmani      
ülikondade sobivusele erinevatele figuuritüüpidele ning laiendati pakkumist     
eelkõige nooremale kliendile. Erilise tähelepanu all olid kvaliteetne sisetöö ja
viimistlusmaterjalid. Väga hästi on meeste poolt vastu võetud uued innovaatilise
kangaviimistlusega, nano-viimistlusega, travel sarja tooted. 2007. aastal       
alustati ka temperatuuritundlikust klimeo kangast ülikondade turundamist.       

Baltmani eesmärk on olla mitte ainult rõivapood, vaid täita kõikidel turgudel   
ärirõivaste konsultandi usaldusväärset rolli. 2008. aastal töötatakse selle     
nimel, et jätkuks Baltmani kollektsiooni kvalitatiivne areng - märksõnadeks on  
siinkohal innovaatilisus, efektiivsus ja usaldusväärsus.                        

Ivo Nikkolo                                                                     
2007. aasta oli Ivo Nikkolo esimene täisaasta Baltika Grupi koosseisus ning     
kaubamärgi jaemüügiks kujunes 25 miljonit krooni (1,6 miljonit eurot). Brändi   
eesmärgiks oli välja töötada rahvusvaheliselt läbilöögivõimeline kollektsioon.  
Kuna premium segmendis, kuhu Ivo Nikkolo kuulub, on väga oluline tagada         
tipptasemel toodete kvaliteet, siis pöörati suurt tähelepanu naiste formaalsete 
rõivaste arendusele rakendades olemasolevat Baltika tootmisbaasi, parimate      
kangatootjate kvaliteetseid kangaid ning disainerite brändiomast käekirja.      

2007. aastal kujunes oluliseks Ivo Nikkolo poodide avamine väljaspool Eestit.   
Kolmest uuest kauplusest avati kaks Leedus ja üks Eestis. Kõik poed avati       
Baltika poolt spetsiaalselt Ivo Nikkolo jaoks välja töötatud uue                
poekontseptsiooniga, mis sarnaneb pigem lounge´ile kui poele. Eesmärgiks on     
pakkuda klientidele mugavat ja meeleolukat ostukeskkonda tähtsustades eriti     
kliendikeskset teenindust. Tallinnas Viru Keskuses avatud Ivo Nikkolo kauplus   
leidis keskuse üürnike esinduse poolt äramärkimist kui Viru Keskuse kõige       
kliendisõbralikum ostukeskkond.                                                 

2008. aastal jätkub Ivo Nikkolol töö kollektsiooniga. Kõrge kvaliteet ja        
disainerlik käekiri jõukohase hinnaga kasvatavad kindlasti Ivo Nikkolo brändi   
austajate hulka.                                                                

HULGIMÜÜK                                                                       
Baltika kollektsioonide hulgimüük moodustas Grupi müügituludest 2007. aastal 13%
ning ulatus 144,7 miljoni kroonini (9,3 miljoni euroni) vähenedes eelmise       
aastaga võrreldes 3,9% võrra. Hulgimüügi vähenemine oli planeeritud ning see oli
seotud konservatiivsema müügipoliitikaga Vene hulgipartnerile. Baltika üks      
suurimaid hulgimüügipartnereid on Vene ettevõte, mis opereerib Siberi ja Uurali 
piirkonnas ligikaudu 30 Baltika kaubamärke müüvat poodi. Teised                 
hulgimüügipartnerid on kaubamajad Soomes ja Baltikumis, nagu Stockmann ja       
Tallinna Kaubamaja Grupp. Kaubamajadele müüakse hulgi peamiselt Mosaici,        
Baltmani ja Ivo Nikkolo kollektsioone, kusjuures Mosaici kaubamärk moodustab    
poole kogu Baltika hulgimüügist. Montonit müüakse hulgi ainult Venemaa          
äripartnerile.                                                                  

Neljas kvartal on sesoonselt madal hulgimüügiperiood. Kvartali hulgimüük oli    
kokku 22,0 miljonit krooni (1,4 miljonit eurot) ning selle osakaal kogumüügis   
7%. Eelmise aastaga võrreldes vähenes hulgimüük aasta viimases kvartalis 26,3%. 

KASUM                                                                           
2007. aasta oli Baltika Grupi kolmeaastase strateegilise perioodi teine aasta,  
mis järgnes kiirele laienemisele 2006. aastal. Kui vaadelda aasta alguse ja lõpu
seisu, siis suurenes ettevõtte müügipind 2006. aastal hüppeliselt, seda eriti   
viimases kvartalis. Kui aga jälgida Grupi keskmist müügipinda, mida ettevõttel  
tuleb aasta jooksul opereerida ja varudega varustada, siis selle kasv oli 2007. 
aasta lõikes palju suurem (50%) kui 2006. aastal (30%). Sellest tulenevalt      
ilmnevad laienemise mõjud just 2007. aastal.                                    

Kiire laienemise mõjud on järgmised: uute poodide müügiefektiivsus on           
sissetöötatud poodide omast tavaliselt madalam ning suhteliselt palju uusi poode
kaupluste üldises portfellis alandab Grupi keskmist müügiefektiivsust. Lisaks   
mõjutab Baltika keskmist müügiefektiivsust poeformaatide suurenemine. Grupi     
keskmine müügiefektiivsus ehk müük ruutmeetrile kahanes 2007. aastal 10% võrra. 

Samal ajal kajastuvad poodide opereerimiskulud täies mahus, mis avaldab survet  
ettevõtte kasumlikkusele. Baltika Grupp laienes 2006. aastal hüppeliselt Venemaa
ja Ukraina turgudel, kus võrreldes Baltikumiga on uute poodide käivitumisperiood
pikem ning poodide opereerimiskulud kõrgemad. Lisaks otseselt müügipinna        
suurenemisest tulenevast kulude kasvust, kasvasid Grupi keskmised poodide       
opereerimiskulud ruutmeetrile 2007. aastal 7% võrra, sh rendikulud ruutmeetrile 
13% võrra, mis tuleneb Vene jaesüsteemi osakaalu suurenemisest Grupi poodide    
portfellis. Müügipinna suurendamine ei ole üksnes seotud nende pindade          
opereerimiskuludega, vaid vajab ka suuremat meeskonda peakontoris ning jätkuva  
kasvu tagamine nõuab uute projektide finantseerimist.                           

2007. aasta kujunes kohandumise aastaks, mil  keskenduti juba olemasoleva       
jaesüsteemi efektiivsuse tõstmisele. Uute poodide avamise tempo oli mõõdukam,   
sealhulgas vähendati oluliselt uute poodide avamist Venemaal ja Ukrainas, kus   
avati kokku kuus poodi. Balti riigid näitasid tugevat arengut aasta esimesel    
poolel, kuid aasta teine pool tõi kaasa tarbimiskasvu vähenemise, mis mõjutas ka
Baltika müüke neil turgudel. Poola olemasolevates poodides jätkus positiivne    
trend ning aasta kokkuvõttes jõudsid Poola poed kasumisse.                      

2007. aasta kokkuvõttes suutis ettevõte brutomarginaali tõsta 55,3%-ni võrreldes
eelmise aasta 54,5%-se tasemega. Neljanda kvartali brutorentaablus ulatus       
58,1%-ni (4 kv 2006: 57,4%). 2007. aasta brutokasum oli kokku 636,7 miljonit    
krooni (40,7 miljonit eurot) kasvades eelmise aastaga võrreldes 29,8%.          

Turustuskulud kasvasid 2007. aastal 49,1% võrra ning üldhalduskulud suurenesid  
eelmise aastaga võrreldes 26,0%. Üldhalduskulusid suurendasid 2007. aastal ka   
ühekordse iseloomuga tootmise uude vabrikusse ümberkolimise kulud summas 3,82   
miljonit krooni (0,24 miljonit eurot).                                          

2007. aastal avaldasid valuutakursside muutused ettevõttele negatiivset mõju.   
Muud ärikulud sisaldavad 2007. aastal valuutakursside muutusest teenitud        
kahjumit summas 9,94 miljonit krooni (0,64 miljonit eurot). 2006. aastal saadi  
valuutakursside muutustest kahjumit 4,71 miljonit krooni (0,30 miljonit eurot). 

Baltika ärikasum sisaldab 2007. aastal muude äritulude all ka tulusid kinnisvara
müügist ja ümberhindlusest summas 25,12 miljonit krooni (1,61 miljonit eurot).  
Esimeses kvartalis teeniti hoonestusõiguse ja logistikakeskuse müügist tulu     
16,22 miljonit krooni (1,04 miljonit eurot). Kolmandas ja neljandas kvartalis   
saadi tulu kinnisvara ümberhindlusest vastavalt 6,77 miljonit krooni (0,43      
miljonit eurot) ning 2,13 miljonit krooni (0,14 miljonit eurot). 2006. aastal   
saadi kinnisvara müügist ja ümberhindlusest tulu 11,89 miljonit krooni (0,76    
miljonit eurot).                                                                

2007. aasta ärirentaabluseks kujunes 5,6% võrreldes 10,8%-ga 2006. aastal. Grupi
2007. aasta ärikasum ulatus 64,6 miljoni kroonini (4,1 miljoni euroni) vähenedes
eelmise aastaga võrreldes 33,7%.                                                

Grupi 2007. aasta finantskulud ulatusid 11,5 miljoni kroonini (0,7 miljoni      
euroni) kasvades aastaga 90,9%. Põhilise osa finantskuludest moodustavad        
intressikulud (9,0 miljonit krooni/0,6 miljonit eurot), mis kasvasid eelmise    
aastaga võrreldes 57,9% võrra. Intressikulude kasv on toimunud nii laenukoormuse
suurenemise kui ka Euribori tõusu tulemusena. Finantskulusid suurendas ka kahjum
valuutakursside muutusest.                                                      

Baltika Grupi 2007. aasta kasum enne tulumaksu ulatus 53,0 miljoni kroonini (3,4
miljoni euroni) vähenedes eelmise aastaga võrreldes 41,9%. Kokku teeniti 2007.  
aastal puhaskasumit (peale makse ja vähemusosalust) 40,8 miljonit krooni (2,6   
miljonit eurot), mis on 53,3% vähem kui eelmisel aastal. 2007. aasta            
puhasrentaabluseks kujunes 3,5% (2006: 9,7%).                                   

Neljanda kvartali puhaskasum oli 1,6 miljonit krooni (0,1 miljonit eurot) ning  
puhasrentaablus 0,5% (4 kv 2006: 11,1%).                                        

2007. aastal oli Baltika omakapitali tootluseks 13,1% (2006: 35,9%) ning Grupi  
koguvarade tootluseks 6,5% (2006: 18,3%).                                       

BILANSS                                                                         
2007. aasta 31. detsembri seisuga ulatus Baltika konsolideeritud bilansimaht    
656,4 miljoni kroonini (41,9 miljoni euroni) kasvades aastaga 10% võrra.        

Grupi nõuded ostjatele vähenesid aasta jooksul 15,3 miljoni krooni (1,0 miljoni 
euro) võrra ulatudes aasta lõpus 71,1 miljoni kroonini (4,5 miljoni euroni).    
Põhiliselt toimus nõuete vähenemine Venemaa partnerile hulgimüügi mahtude       
vähendamise tagajärjel, mida tehti Vene riskide maandamiseks. Ka võlad          
hankijatele vähenesid aastaga 24,2 miljonit krooni (1,5 miljonit eurot) ning    
ulatusid aasta lõpus 72,3 miljoni kroonini (4,6 miljoni euroni).                

Grupi varud ulatusid 2007. aasta lõpus 220,7 miljoni kroonini (14,1 miljoni     
euroni) kasvades aastaga 20,0 miljoni krooni (1,3 miljoni euro) ehk 10% võrra.  
Grupi varude juhtimise efektiivsus jäi aasta jooksul praktiliselt samale        
tasemele - varude käibekordaja oli 5,30 (2006: 5,38).                           

2007. aasta lõpu seisuga ulatusid Grupi võlakohustused 184,5 miljoni kroonini   
(11,8 miljoni euroni), sh olid pangalaenud kokku 145,5 miljonit krooni (9,3     
miljonit eurot). Ülejäänud võlakohustused moodustasid võlakirjad (29,7 miljonit 
krooni/1,9 miljonit eurot) ja kapitalirendi kohustused (9,3 miljonit krooni/0,6 
miljonit eurot). Aasta jooksul on võlakoormus suurenenud 37,1 miljoni krooni    
(2,4 miljoni euro) võrra, kusjuures pangalaenud 40,4 miljonit krooni (2,6       
miljonit eurot). Baltika Grupi laenukoormus on suurenenud seoses jaesüsteemi    
laiendamiseks tehtavate investeeringute ning äritegevuse finantseerimisega.     

Grupi netovõlg (Intressi kandvad võlakohustused-Raha ja pangakontod) oli aasta  
lõpus kokku 153,0 miljonit krooni (9,8 miljonit eurot) ning netovõla suhe       
omakapitali 45,1%. 2006. aasta lõpus oli antud näitaja 44,3%.                   

Baltika Grupi omakapital kasvas 2007. aastal 35,1 miljoni krooni (2,2 miljoni   
euro) võrra ja ulatus aasta lõpu seisuga 339,3 miljoni kroonini (21,7 miljoni   
euroni). Omakapitalis toimusid muudatused seoses aktsiakapitali suurendamisega  
fondiemissiooni teel, mis viidi läbi jaotamata kasumi ja ülekursi arvelt.       
Aktsiakapital suurenes 124,3 miljoni krooni (7,9 miljoni euro) võrra 186,4      
miljoni kroonini (11,9 miljoni euroni).                                         

INVESTEERINGUD                                                                  
2007. aastal ulatusid Baltika Grupi investeeringud 102,9 miljoni kroonini (6,6  
miljoni euroni). 2006. aastal tehti investeeringuid 130,4 miljoni krooni (8,3   
miljoni euro) ulatuses.                                                         

Jaekaubandusse investeeriti 2007. aastal 69,9 miljonit krooni (4,5 miljonit     
eurot), infotehnoloogiasse 13,6 miljonit krooni (0,8 miljonit eurot) ja         
tootmisse 12,8 miljonit krooni (0,8 miljonit eurot). Ühisettevõtte OÜ Baltika   
Tailori 50%-lise osa tagasiostmise maksumuseks kujunes 5,6 miljonit krooni (0,4 
miljonit eurot). Muudeks investeeringuteks kulus 1,0 miljonit krooni (0,1       
miljonit eurot).                                                                

TOOTMINE                                                                        
2007. aasta lõpu seisuga kuulub Baltika Gruppi kaks tootmisettevõtet: OÜ Baltika
Tailor (100%) ja AS Virulane (82,66%). 2007. aastal jätkas Baltika kontrolli    
suurendamist Gruppi kuuluvates tootmisettevõtetes ning ühendas kaks ettevõtet - 
OÜ Baltika Tailori ja AS Elina. Kõrge kvaliteediga, paindlik ja kiire           
reageerimisega tootmine on oluliseks osaks muidu jaekaubandusele keskenduva     
Grupi vertikaalses ärimudelis.                                                  

2007. aasta sügisel valmis Baltika Tailori uus õmblusvabrik. Tegemist on        
Baltimaade moodsaima õmblusvabrikuga, kuna see on projekteeritud just           
õmblusvabriku vajadustest lähtuvalt. Uus vabrik on Grupi viimane osa Tallinna   
kesklinnast Lasnamäe Tööstusparki üle viidud tootmis- ja logistikakompleksist.  
Eelnevalt, 2006. aasta suvel avati samas kohas logistikakeskus, mille           
läbilaskevõime on vanast oluliselt suurem. Uus kompleks, kus logistika ja       
tootmine on omavahel ühendatud, võimaldab Baltikal turu nõudlusele              
efektiivsemalt ja kiiremini vastata.                                            

TÖÖTAJAD                                                                        
Baltika Grupis töötas 2007. aasta lõpu seisuga 1 983 (31. detsember 2006: 1 915)
inimest, sealhulgas jaekaubanduses 986 (857), tootmises 773 (866) ning          
peakontoris 224 (192) inimest. Aasta jooksul suurenes Grupi töötajate arv 68    
võrra. Kõige suurem kasv toimus jaekaubanduses (+129). Samal ajal tootmises     
töötajate arv vähenes seoses uue vabriku käivitamise ja töö ümberkorraldamisega.
Grupi aasta keskmine töötajate arv oli 1 982 (2006: 1 777).                     

2007. aasta lõpu seisuga töötas väljaspool Eestit 40% Grupi töötajatest.        
Töötajate osakaal Eestis on suurem, sest siin asub ettevõtte peakontor ning     
tootmine.                                                                       

Baltika Grupi töötajatele maksti 2007. aastal kokku töötasusid summas 200,1     
miljonit krooni (12,8 miljonit eurot). Nõukogu ja juhatuse liikmete tasud       
ulatusid kokku 4,8 miljoni kroonini (0,3 miljoni euroni).                       

PERSPEKTIIVID JA EESMÄRGID 2008. AASTAKS                                        
2008. aasta on Baltika kolme-aastase strateegilise perioodi viimane aasta.      
Strateegia tulemusena oli kavandatud saavutada perioodi lõpuks kiire ja kasumlik
kasv. 2006. aasta alguses fikseeriti 2008. aastaks järgmised finantseesmärgid:  

- müügitulude kahekordistumine võrreldes 2005. aastaga, mis tähendab 1,36       
miljardi kroonise (87 miljoni eurose) müügitulu saavutamist;                    
- brutorentaablus vähemalt 52%;                                                 
- omakapitali tootlus vähemalt 30%.                                             

2008. aasta täiendavateks märksõnadeks on efektiivsuse tõstmine, seda eeskätt   
suurtel turgudel nagu Venemaa ja Ukraina, kiire kasvu taastumine jaesüsteemis   
teisel poolaastal ning kinnisvaraarendus. Tulenevalt ettevõtte praegusest       
arengufaasist võib 2008. aasta jaotada kaheks pooleks, mille eesmärgid ja       
perspektiivid on järgmised:                                                     

1) Müügitulud ja müügipind                                                      
- Esimesel poolaastal on peaeesmärk müügiefektiivsuse tõstmine ning kaupluste   
portfelli korrastamine: nii poodide avamisi kui sulgemisi on kokku 5-6, mistõttu
jääb poolaasta lõpuks Grupi poodide arv 2007. aasta lõpu tasemele, jaemüügi     
kasvuks planeeritakse 10-12%, hulgimüük väheneb võrreldes eelmise aastaga       
15-20%.                                                                         
- Teisel poolaastal on planeeritud jaesüsteemi kiire kasvu taastumine: poodide  
avamisi on kavas 14-18, jaemüügi kasv peaks ulatuma 20-25%-ni, hulgimüük jääb   
eelmise aasta tasemele.                                                         
- 2008. aasta kokkuvõttes on müügitulude eesmärk 1,3 miljardit krooni/83        
miljonit eurot (kasv 13%) ning sellega on 2006. aastal seatud eesmärk           
praktiliselt saavutatud.                                                        
- Grupi poodide arv aasta lõpus ulatub 140-145-ni. Kuigi poodide arv 2008. aasta
lõpus ei vasta täpselt seatud eesmärgile (160+), on uued poed suurema formaadiga
kui 2006. aasta alguses ette nähti ning müügipind vastab ettevõtte seatud       
eesmärgile ulatudes ümmarguselt 28 000 ruutmeetrini.                            
- Jätkates laienemist Kesk- ja Ida-Euroopas teostatakse ettevalmistusi uutele   
turgudele sisenemiseks.                                                         

2) Kasumlikkus                                                                  
- Brutorentaablus jõudis eesmärgiks seatud tasemele juba 2006. aastal (54,5%) ja
jätkas tõusu 2007. aastal (55,3%); ettevõte teeb pingutusi liikuda saavutatud   
kõrgelt tasemelt edasi olukorras, kus sisendhinnad tänu toorainehindade ja      
logistikakulude tõusule kasvavad.                                               
- Seoses planeeritust aeglasema arenguga 2007. aasta teisel ja 2008. aasta      
esimesel poolel, ei ole 2008. aastaks seatud omakapitali tootluse eesmärk       
põhitegevusest saavutatav.                                                      

3) Kinnisvaraarendus                                                            
- 2008. aastal käivitus Baltikale kuuluva Tallinna kesklinna kinnistu (aadressil
Veerenni 24) arendusprojekti esimene etapp, mille lõpp on planeeritud 2009.     
aasta mais. Projekti esimeses etapis toimub vabrikuhoone ümberehitus, mille     
käigus valmib ligi 10 000 ruutmeetrit kontori-, äri- ja teeninduspinda. Baltika 
hõivab valmivast ärikeskusest kuni 4 500 ruutmeetrit (peakontor ja              
kaubanduspinnad). Ülejäänud uued pinnad ning Baltika senise peakontori pinnad   
renditakse välja. Arenduse käigus plaanib ettevõte teenida erakorralist tulu    
seoses kinnistu väärtuse tõusuga.                                               

4) Investeeringud                                                               
- 2008. aasta põhilised investeeringud on planeeritud Baltika ärikeskuse esimese
etapi arendamisse, uute poodide avamisse ja kaubavarude mahu suurendamisse.     

FINANTSTULEMUSTE AVALDAMINE 2008. AASTAL                                        
2008. aastal avaldatakse AS Baltika konsolideeritud finantstulemused järgmistel 
kuupäevadel:                                                                    

2007. a. auditeeritud aastaaruanne	26. märts                                   
2008. a. 1. kvartali tulemused	24. aprill                                     
2008. a. 2. kvartali tulemused	24. juuli                                      
2008. a. 3. kvartali tulemused	23. oktoober                                   

Lisaks avaldab Baltika iga kuu alguses eelmise kuu müügitulemused.              

KONTSERNI PÕHILISED ARVNÄITAJAD (2007)                                          
--------------------------------------------------------------------------------
|                                    |  31.12.2007 |  31.12.2006 |         +/- |
--------------------------------------------------------------------------------
| Müügitulu (EEK mln)                |     1 151,5 |       899,5 |       28,0% |
--------------------------------------------------------------------------------
| Jaemüük (EEK mln)                  |       987,3 |       736,4 |       34,1% |
--------------------------------------------------------------------------------
| Jaemüügi osakaal müügituludes      |         86% |         82% |             |
--------------------------------------------------------------------------------
| Poodide arv                        |         128 |         112 |       14,3% |
--------------------------------------------------------------------------------
| Müügipind (m2)                     |      24 290 |      19 594 |       24,0% |
--------------------------------------------------------------------------------
| Töötajate arv (perioodi lõpp)      |       1 983 |       1 915 |        3,6% |
--------------------------------------------------------------------------------
| Brutorentaablus                    |       55,3% |       54,5% |             |
--------------------------------------------------------------------------------
| Ärirentaablus                      |        5,6% |       10,8% |             |
--------------------------------------------------------------------------------
| Maksueelse kasumi rentaablus       |        4,6% |       10,1% |             |
--------------------------------------------------------------------------------
| Puhasrentaablus                    |        3,5% |        9,7% |             |
--------------------------------------------------------------------------------
| Likviidsuskordaja                  |         1,6 |         1,5 |        6,7% |
--------------------------------------------------------------------------------
| Varude käibekordaja                |        5,30 |        5,38 |       -1,5% |
--------------------------------------------------------------------------------
| Võla ja omakapitali suhe           |       54,4% |       48,5% |             |
--------------------------------------------------------------------------------
| Omakapitali tootlus                |       13,1% |       35,9% |             |
--------------------------------------------------------------------------------
| Koguvarade tootlus                 |        6,5% |       18,3% |             |
--------------------------------------------------------------------------------

1 EUR = 15,6466 EEK                                                             

Suhtarvude valemid                                                              
Brutorentaablus = (Müügitulu-Müüdud kaupade kulu)/Müügitulu                     
Ärirentaablus = Ärikasum/Müügitulu                                              
Maksueelse kasumi rentaablus = Kasum enne tulumaksu/Müügitulu                   
Puhasrentaablus = Puhaskasum (emaettevõtte osa)/Müügitulu                       
Likviidsuskordaja = Käibevara/Lühiajalised kohustused                           
Varude käibekordaja = Müügitulu/Keskmised varud*                                
Võla ja omakapitali suhe = Intressi kandvad võlakohustused/Omakapital           
Omakapitali tootlus = Puhaskasum (emaettevõtte osa)/Keskmine omakapital*        
Koguvarade tootlus = Puhaskasum (emaettevõtte osa)/Keskmised koguvarad*         
*12 kuu keskmine                                                                



KONSOLIDEERITUD KASUMIARUANNE                                                   
(auditeerimata, tuhandetes kroonides)                                           
--------------------------------------------------------------------------------
|                                 |     4 kv |     4 kv |     2007 |      2006 |
|                                 |     2007 |     2006 |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Müügitulu                       |  307 421 |  281 164 |    1 151 |   899 481 |
|                                 |          |          |      520 |           |
--------------------------------------------------------------------------------
| Müüdud kaupade kulu             | -128 816 | -119 869 | -514 839 |  -408 919 |
--------------------------------------------------------------------------------
| Brutokasum                      |  178 605 |  161 295 |  636 681 |   490 562 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turustuskulud                   | -143 016 | -115 433 | -522 620 |  -350 471 |
--------------------------------------------------------------------------------
| Üldhalduskulud                  |  -21 597 |  -11 642 |  -60 911 |   -48 334 |
--------------------------------------------------------------------------------
| Muud äritulud                   |    2 904 |    4 873 |   25 219 |    12 482 |
--------------------------------------------------------------------------------
| Muud ärikulud                   |   -6 707 |   -2 701 |  -13 815 |    -6 907 |
--------------------------------------------------------------------------------
| Ärikasum                        |   10 189 |   36 392 |   64 554 |    97 332 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finantstulud (kulud)            |   -3 587 |   -4 753 |  -11 523 |    -6 037 |
--------------------------------------------------------------------------------
| Finantstulud (kulud)            |        0 |        0 |        0 |      -234 |
| investeeringult                 |          |          |          |           |
| ühisettevõttesse                |          |          |          |           |
--------------------------------------------------------------------------------
| Finantstulud (kulud) muudelt    |        0 |   -1 568 |        0 |       322 |
| investeeringutelt               |          |          |          |           |
--------------------------------------------------------------------------------
|  Intressikulud                  |   -2 579 |   -1 846 |   -9 049 |    -5 730 |
--------------------------------------------------------------------------------
| Kasum (kahjum) valuutakursi     |   -1 000 |   -1 346 |   -2 389 |      -863 |
| muutustest                      |          |          |          |           |
--------------------------------------------------------------------------------
|  Muud finantstulud (kulud)      |       -8 |        7 |      -85 |       468 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Kasum enne maksustamist         |    6 602 |   31 639 |   53 031 |    91 295 |
--------------------------------------------------------------------------------
| Tulumaks                        |   -4 277 |     -244 |   -9 189 |    -3 136 |
--------------------------------------------------------------------------------
| Aruandeperioodi kasum           |    2 325 |   31 395 |   43 842 |    88 159 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Emaettevõtja aktsionäride osa   |    1 643 |   31 075 |   40 773 |    87 376 |
| kasumist                        |          |          |          |           |
--------------------------------------------------------------------------------
| Vähemusosaluse osa kasumist     |      682 |      320 |    3 069 |       783 |
| (kahjumist)                     |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Tava puhaskasum aktsia kohta,   |     0,09 |     1,69 |     2,19 |      4,85 |
| EEK                             |          |          |          |           |
--------------------------------------------------------------------------------
| Lahustatud puhaskasum aktsia    |     0,09 |     1,67 |     2,19 |      4,71 |
| kohta, EEK                      |          |          |          |           |
--------------------------------------------------------------------------------


KONSOLIDEERITUD KASUMIARUANNE                                                   
(auditeerimata, tuhandetes eurodes)                                             
--------------------------------------------------------------------------------
|                                 |     4 kv |     4 kv |     2007 |      2006 |
|                                 |     2007 |     2006 |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Müügitulu                       |   19 648 |   17 970 |   73 596 |    57 487 |
--------------------------------------------------------------------------------
| Müüdud kaupade kulu             |   -8 233 |   -7 661 |  -32 904 |   -26 135 |
--------------------------------------------------------------------------------
| Brutokasum                      |   11 415 |   10 309 |   40 691 |    31 353 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turustuskulud                   |   -9 140 |   -7 378 |  -33 402 |   -22 399 |
--------------------------------------------------------------------------------
| Üldhalduskulud                  |   -1 380 |     -744 |   -3 893 |    -3 089 |
--------------------------------------------------------------------------------
| Muud äritulud                   |      186 |      311 |    1 612 |       798 |
--------------------------------------------------------------------------------
| Muud ärikulud                   |     -429 |     -173 |     -883 |      -441 |
--------------------------------------------------------------------------------
| Ärikasum                        |      651 |    2 326 |    4 126 |     6 221 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finantstulud (kulud)            |     -229 |     -304 |     -736 |      -386 |
--------------------------------------------------------------------------------
| Finantstulud (kulud)            |        0 |        0 |        0 |       -15 |
| investeeringult                 |          |          |          |           |
| ühisettevõttesse                |          |          |          |           |
--------------------------------------------------------------------------------
| Finantstulud (kulud) muudelt    |        0 |     -100 |        0 |        21 |
| investeeringutelt               |          |          |          |           |
--------------------------------------------------------------------------------
|  Intressikulud                  |     -165 |     -118 |     -578 |      -366 |
--------------------------------------------------------------------------------
| Kasum (kahjum) valuutakursi     |      -64 |      -86 |     -153 |       -55 |
| muutustest                      |          |          |          |           |
--------------------------------------------------------------------------------
|  Muud finantstulud (kulud)      |       -1 |        0 |       -5 |        30 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Kasum enne maksustamist         |      422 |    2 022 |    3 389 |     5 835 |
--------------------------------------------------------------------------------
| Tulumaks                        |     -273 |      -16 |     -587 |      -200 |
--------------------------------------------------------------------------------
| Aruandeperioodi kasum           |      149 |    2 007 |    2 802 |     5 634 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Emaettevõtja aktsionäride osa   |      105 |    1 987 |    2 606 |     5 584 |
| kasumist                        |          |          |          |           |
--------------------------------------------------------------------------------
| Vähemusosaluse osa kasumist     |       44 |       19 |      196 |        50 |
| (kahjumist)                     |          |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Tava puhaskasum aktsia kohta,   |     0,01 |     0,11 |     0,14 |      0,31 |
| EUR                             |          |          |          |           |
--------------------------------------------------------------------------------
| Lahustatud puhaskasum aktsia    |     0,01 |     0,11 |     0,14 |      0,30 |
| kohta, EUR                      |          |          |          |           |
--------------------------------------------------------------------------------


KONSOLIDEERITUD BILANSS                                                         
(auditeerimata, tuhandetes kroonides)                                           
--------------------------------------------------------------------------------
|                                            |     31.12.2007 |     31.12.2006 |
--------------------------------------------------------------------------------
| VARAD                                      |                |                |
--------------------------------------------------------------------------------
| Käibevara                                  |                |                |
--------------------------------------------------------------------------------
| Raha ja pangakontod                        |         31 494 |         12 584 |
--------------------------------------------------------------------------------
| Nõuded ostjatele                           |         71 148 |         86 402 |
--------------------------------------------------------------------------------
| Muud nõuded ja ettemakstud kulud           |         42 415 |         42 069 |
--------------------------------------------------------------------------------
| Varud                                      |        220 698 |        200 702 |
--------------------------------------------------------------------------------
| Müügiootel põhivara                        |            500 |              0 |
--------------------------------------------------------------------------------
| Käibevara kokku                            |        366 255 |        341 757 |
--------------------------------------------------------------------------------
| Põhivara                                   |                |                |
--------------------------------------------------------------------------------
| Kinnisvarainvesteeringud                   |         11 250 |         23 572 |
--------------------------------------------------------------------------------
| Edasilükkunud tulumaksu vara               |          5 897 |          4 462 |
--------------------------------------------------------------------------------
| Muud pikaajalised finantsvarad             |         11 448 |         11 077 |
--------------------------------------------------------------------------------
| Materiaalne põhivara                       |        203 098 |        166 448 |
--------------------------------------------------------------------------------
| Immateriaalne põhivara                     |         58 409 |         49 074 |
--------------------------------------------------------------------------------
| Põhivara kokku                             |        290 102 |        254 633 |
--------------------------------------------------------------------------------
| VARAD KOKKU                                |        656 357 |        596 390 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KOHUSTUSED JA OMAKAPITAL                   |                |                |
--------------------------------------------------------------------------------
| Lühiajalised kohustused                    |                |                |
--------------------------------------------------------------------------------
| Võlakohustused                             |        100 167 |         88 179 |
--------------------------------------------------------------------------------
| Võlad hankijatele                          |         72 345 |         96 535 |
--------------------------------------------------------------------------------
| Maksuvõlad                                 |         33 065 |         23 006 |
--------------------------------------------------------------------------------
| Viitvõlad                                  |         22 857 |         18 174 |
--------------------------------------------------------------------------------
| Muud lühiajalised kohustused               |          1 097 |          7 022 |
--------------------------------------------------------------------------------
| Lühiajalised kohustused kokku              |        229 531 |        232 916 |
--------------------------------------------------------------------------------
| Pikaajalised kohustused                    |                |                |
--------------------------------------------------------------------------------
| Pikaajalised võlakohustused                |         84 331 |         59 234 |
--------------------------------------------------------------------------------
| Muud pikaajalised kohustused               |          1 074 |              0 |
--------------------------------------------------------------------------------
| Edasilükkunud tulumaksu kohustus           |          2 075 |              0 |
--------------------------------------------------------------------------------
| Pikaajalised kohustused kokku              |         87 480 |         59 234 |
--------------------------------------------------------------------------------
| KOHUSTUSED KOKKU                           |        317 011 |        292 150 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OMAKAPITAL                                 |                |                |
--------------------------------------------------------------------------------
| Aktsiakapital nimiväärtuses                |        186 449 |         62 150 |
--------------------------------------------------------------------------------
| Ülekurss                                   |              0 |         59 088 |
--------------------------------------------------------------------------------
| Reservid                                   |         26 133 |          9 721 |
--------------------------------------------------------------------------------
| Eelmiste perioodide jaotamata kasum        |         67 949 |         73 521 |
--------------------------------------------------------------------------------
| Aruandeperioodi kasum                      |         40 773 |         87 376 |
--------------------------------------------------------------------------------
| Valuutakursi muutuste reserv               |          8 131 |          4 319 |
--------------------------------------------------------------------------------
| Emaettevõtja aktsionäridele kuuluv         |        329 435 |        296 175 |
| omakapital                                 |                |                |
--------------------------------------------------------------------------------
| Vähemusosalus                              |          9 911 |          8 065 |
--------------------------------------------------------------------------------
| OMAKAPITAL KOKKU                           |        339 346 |        304 240 |
--------------------------------------------------------------------------------
| KOHUSTUSED JA OMAKAPITAL KOKKU             |        656 357 |        596 390 |
--------------------------------------------------------------------------------


KONSOLIDEERITUD BILANSS                                                         
(auditeerimata, tuhandetes eurodes)                                             
--------------------------------------------------------------------------------
|                                            |     31.12.2007 |     31.12.2006 |
--------------------------------------------------------------------------------
| VARAD                                      |                |                |
--------------------------------------------------------------------------------
| Käibevara                                  |                |                |
--------------------------------------------------------------------------------
| Raha ja pangakontod                        |          2 013 |            804 |
--------------------------------------------------------------------------------
| Nõuded ostjatele                           |          4 547 |          5 522 |
--------------------------------------------------------------------------------
| Muud nõuded ja ettemakstud kulud           |          2 711 |          2 689 |
--------------------------------------------------------------------------------
| Varud                                      |         14 105 |         12 827 |
--------------------------------------------------------------------------------
| Müügiootel põhivara                        |             32 |              0 |
--------------------------------------------------------------------------------
| Käibevara kokku                            |         23 408 |         21 842 |
--------------------------------------------------------------------------------
| Põhivara                                   |                |                |
--------------------------------------------------------------------------------
| Kinnisvarainvesteeringud                   |            719 |          1 507 |
--------------------------------------------------------------------------------
| Edasilükkunud tulumaksu vara               |            377 |            285 |
--------------------------------------------------------------------------------
| Muud pikaajalised finantsvarad             |            732 |            708 |
--------------------------------------------------------------------------------
| Materiaalne põhivara                       |         12 980 |         10 638 |
--------------------------------------------------------------------------------
| Immateriaalne põhivara                     |          3 733 |          3 136 |
--------------------------------------------------------------------------------
| Põhivara kokku                             |         18 541 |         16 274 |
--------------------------------------------------------------------------------
| VARAD KOKKU                                |         41 949 |         38 116 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KOHUSTUSED JA OMAKAPITAL                   |                |                |
--------------------------------------------------------------------------------
| Lühiajalised kohustused                    |                |                |
--------------------------------------------------------------------------------
| Võlakohustused                             |          6 402 |          5 636 |
--------------------------------------------------------------------------------
| Võlad hankijatele                          |          4 624 |          6 170 |
--------------------------------------------------------------------------------
| Maksuvõlad                                 |          2 113 |          1 470 |
--------------------------------------------------------------------------------
| Viitvõlad                                  |          1 461 |          1 162 |
--------------------------------------------------------------------------------
| Muud lühiajalised kohustused               |             70 |            449 |
--------------------------------------------------------------------------------
| Lühiajalised kohustused kokku              |         14 670 |         14 886 |
--------------------------------------------------------------------------------
| Pikaajalised kohustused                    |                |                |
--------------------------------------------------------------------------------
| Pikaajalised võlakohustused                |          5 390 |          3 786 |
--------------------------------------------------------------------------------
| Muud pikaajalised kohustused               |             69 |              0 |
--------------------------------------------------------------------------------
| Edasilükkunud tulumaksu kohustus           |            133 |              0 |
--------------------------------------------------------------------------------
| Pikaajalised kohustused kokku              |          5 591 |          3 786 |
--------------------------------------------------------------------------------
| KOHUSTUSED KOKKU                           |         20 261 |         18 672 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OMAKAPITAL                                 |                |                |
--------------------------------------------------------------------------------
| Aktsiakapital nimiväärtuses                |         11 916 |          3 972 |
--------------------------------------------------------------------------------
| Ülekurss                                   |              0 |          3 776 |
--------------------------------------------------------------------------------
| Reservid                                   |          1 670 |            621 |
--------------------------------------------------------------------------------
| Eelmiste perioodide jaotamata kasum        |          4 343 |          4 699 |
--------------------------------------------------------------------------------
| Aruandeperioodi kasum                      |          2 606 |          5 584 |
--------------------------------------------------------------------------------
| Valuutakursi muutuste reserv               |            520 |            276 |
--------------------------------------------------------------------------------
| Emaettevõtja aktsionäridele kuuluv         |         21 055 |         18 929 |
| omakapital                                 |                |                |
--------------------------------------------------------------------------------
| Vähemusosalus                              |            633 |            515 |
--------------------------------------------------------------------------------
| OMAKAPITAL KOKKU                           |         21 688 |         19 444 |
--------------------------------------------------------------------------------
| KOHUSTUSED JA OMAKAPITAL KOKKU             |         41 949 |         38 116 |
--------------------------------------------------------------------------------



Ülle Järv                                                                       
Finantsdirektor, Juhatuse liige                                                 
+372 630 2741                                                                   

Lisainformatsioon:                                                              
Triin Palge                                                                     
Investorsuhete juht                                                             
+372 630 2886                                                                   
triin.palge@baltikagroup.com

Pealkiri

UNAUDITED CONSOLIDATED FINANCIAL RESULTS, Q4 AND 2007

Teade

FINANCIAL HIGHLIGHTS, 2007                                                      
- Net sales 1,152 million kroons, up 28% yoy                                    
- Retail sales 34% growth yoy                                                   
- Comparable store sales 3% growth yoy                                          
- Gross margin 55.3%                                                            
- Operating profit 64.6 million kroons                                          
- Operating margin 5.6%                                                         
- Net profit 40.8 million kroons                                                
- Net margin 3.5%                                                               
- Store openings 24                                                             
- Sales area 24% growth yoy                                                     

Chairman of the Management Board Meelis Milder: “Baltika's results for 2007     
should be evaluated in the context of the Group's three-year (2006-2008)        
strategy. A strategy, whose ultimate goals and targets have been set for 2008.  

Although there is no reason to be content with last year's profitability, we are
convinced that the “interim” year was critical in resolving many strategic and  
tactical issues. In 2007, we internationalized the Ivo Nikkolo retail chain by  
penetrating the Lithuanian market and created a new, well-received store concept
for Ivo Nikkolo. In line with the strategy, we launched new product groups:     
Monton footwear and jean concept Spiced M; Mosaic was supplemented with a       
collection of childrenswear including the Lotte by Mosaic sub-brand which was an
instant success. Positive developments took place in the Central European       
markets: for the first time our Polish stores ended the year in a profit and we 
entered the Czech market. Other milestones included group-wide implementation of
the new corporate information system Navision and relocation of our             
manufacturing operations from the centre of Tallinn. All those activities were  
aimed at adding real value to the company.                                      

Although in 2007 efficiency management issues emerged in large markets due to   
rapid expansion in the prior year, the problems have been identified and we are 
putting a lot of effort in resolving them. The profitability of our Russian     
operations was definitely not fostered by the deterioration in Estonian-Russian 
political relations and setbacks in the arrangement of transport.               

To date, January's slow sales which were caused by low inventory balances at the
beginning of 2008 have been replaced by rising sales of the new spring          
collection. Nevertheless, we forecast that an improvement in profitability will 
be achieved in the second half of the year. In our jubilee year - Baltika is    
celebrating its 80th anniversary in 2008 - we expect to generate sales of 1.3   
billion kroons (83 million euros) and to further improve the already fair gross 
margin of 55.3%. We will be not only twice as large as at the adoption of the   
current strategy but also stronger and wiser for implementing the next growth   
strategy!”                                                                      

In 2007, the net sales of Baltika Group grew by 28.0% while retail sales        
improved by 34.1%. The period's gross margin was 55.3% against 54.5% in 2006.   
The Group ended 2007 with a consolidated operating profit of 64.6 million kroons
(4.1 million euros) and an operating margin of 5.6%. Consolidated net profit    
decreased by 53.3% to 40.8 million kroons (2.6 million euros) and the net margin
was 3.5%.                                                                       

Consolidated net sales for the fourth quarter totalled 307.4 million kroons     
(19.6 million euros), up 9.3% yoy, fourth-quarter retail sales improving by     
14.7% yoy. Q4 2007 gross margin was 58.1% (Q4 2006: 57.4%) and operating margin 
3.3% (Q4 2006: 12.9%). Consolidated net profit for the fourth quarter amounted  
to 1.6 million kroons (0.1 million euros).                                      

SALES                                                                           
Sales by segment                                                                
--------------------------------------------------------------------------------
| EEK million    | Q4 2007 | Q4 2006 |     +/- |     2007 |     2006 |     +/- |
--------------------------------------------------------------------------------
| Retail         |   284.6 |   248.1 |   14.7% |    987.3 |    736.4 |   34.1% |
--------------------------------------------------------------------------------
| Wholesale      |    22.0 |    29.8 |  -26.3% |    144.7 |    150.6 |   -3.9% |
--------------------------------------------------------------------------------
| Subcontracting |     0.3 |       0 |     n/a |     14.4 |        0 |     n/a |
--------------------------------------------------------------------------------
| Other          |     0.6 |     3.3 |  -82.2% |      5.1 |     12.5 |  -59.1% |
--------------------------------------------------------------------------------
| Total          |   307.4 |   281.2 |    9.3% |  1,151.5 |    899.5 |   28.0% |
--------------------------------------------------------------------------------

EUR 1 = EEK 15.6466                                                             

RETAIL                                                                          
In 2007, Baltika's retail sales grew 34.1% to 987.3 million kroons (63.1 million
euros), while comparable store sales climbed by 3%. Rapid growth increased the  
proportion of retail revenue in total consolidated revenue to 86% compared with 
82% in 2006.                                                                    

The retail network continued expanding and the annual average sales area grew by
50%. The average sales efficiency (sales per square metre), on the other hand,  
declined by 10%. Efficiency is affected by rapid expansion - new stores have    
more space and in the start-up period their efficiency is generally lower.      
Moreover, outside Baltika's home market, the Baltic countries, the start-up     
periods tend to be longer. In 2006 and particularly at the end of the year many 
new stores were opened in Russia and Ukraine, where the estimated start-up      
periods of new shopping centres and, consequently, new stores range from 18 to  
24 months.                                                                      

Retail sales for the fourth quarter totalled 284.6 million kroons (18.2 million 
euros), a 14.7% improvement on the fourth quarter of 2006.                      

STORES AND SALES AREA                                                           
At the year-end, Baltika had 128 stores in seven countries and a total sales    
area of 24,290 square metres. During the year, 20 stores were opened, four were 
closed and four were relocated to larger premises in the same shopping centre.  
The net growth of the retail system was 16 stores and approximately 4,700 square
metres, a 24% increase in the sales space operated by Baltika Group.            

In terms of markets, the largest number of stores was opened in Lithuania where 
eight new stores were launched. In Latvia, three stores were opened and four    
were relocated. Three new stores were opened in Russia and Ukraine each and two 
in Estonia. At the end of the year, the Group entered a new market - the Czech  
Republic, where one new store was opened. Two stores were closed in both Russia 
and Ukraine.                                                                    

Stores by market                                                                
--------------------------------------------------------------------------------
|                                   |         31.12.2007 |          31.12.2006 |
--------------------------------------------------------------------------------
| Estonia                           |                 30 |                  28 |
--------------------------------------------------------------------------------
| Latvia                            |                 16 |                  13 |
--------------------------------------------------------------------------------
| Lithuania                         |                 30 |                  22 |
--------------------------------------------------------------------------------
| Ukraine                           |                 22 |                  21 |
--------------------------------------------------------------------------------
| Russia                            |                 24 |                  23 |
--------------------------------------------------------------------------------
| Poland                            |                  5 |                   5 |
--------------------------------------------------------------------------------
| Czech Republic                    |                  1 |                   0 |
--------------------------------------------------------------------------------
| Total stores                      |                128 |                 112 |
--------------------------------------------------------------------------------
| Total sales area, m2              |             24,290 |              19,594 |
--------------------------------------------------------------------------------

The largest number of stores was opened under the Monton and Mosaic brands. At  
the end of 2007, Baltika's retail network included 52 Mosaic, 50 Monton, 16     
Baltman, 6 Ivo Nikkolo and 4 factory outlet stores.                             

In the fourth quarter, Baltika opened four stores and closed one. The opening of
a Monton store in the Palladium Centre in Prague marked the Group's entry to the
Czech market.                                                                   

MARKETS                                                                         
Although in 2007 annual economic growth in the Baltic countries slowed a bit,   
Baltika's retail markets sustained rapid development. The GDP growth in the     
Baltic countries amounted to 7-10% in 2007. Baltic economies are currently in a 
cooling phase and are expected to hit the bottom of their economic cycle in     
2008. In the past few years, Baltic economic growth has been fuelled by strong  
domestic demand which is also a reason for the present deceleration. Curbing of 
the generous credit supply and rising interest rates are reducing the growth in 
consumption and investment. According to analysts, Baltic economies will recover
and consumption is going to revive in 2009 at the latest. Thereafter, economic  
growth should level off at around 6% per year. Robust economic growth for 2007  
was also posted by Ukraine and Russia - according to preliminary estimates 7-8%.
Similarly to the Baltics, the main growth driver of Russian economy is domestic 
demand, prompted by a swift rise in the construction, retail, accommodation and 
financial sectors. The Russian economic outlook for the near future remains     
positive and gross domestic product should continue growing at above 6% per     
year. In general, all Baltika's retail markets should continue growing at a     
higher pace than the so-called old Europe.                                      

Thanks to their great potential, Central and Eastern Europe and Russia in       
particular are becoming increasingly popular destinations for international     
retail chains. In 2007, the real estate advisors of Cushman & Wakefield         
undertook research in order to identify international retail companies' 20 most 
attractive European expansion destinations in the next five years. Moscow ranked
first, followed by St Petersburg and Prague. Baltika has secured a foothold in  
all these cities. Other attractive destinations where Baltika is already        
operating include Tallinn, Kiev, Warsaw, Riga and Vilnius. In terms of          
countries, the most attractive destination was Russia.                          

In 2007, Russia was also Baltika's fastest growing market and became the        
third-largest one with 18% of sales. Estonia remained the largest retail market,
followed by Lithuania which in some months already outperformed Estonia. The    
three Baltic countries accounted for 63% of the Group's retail sales (2006: 66%)
and Russia and Ukraine for a combined 34% (2006: 29%).                          

Retail sales by market                                                          
--------------------------------------------------------------------------------
| EEK million        |       2007 |        2006 |       +/- | Percentage, 2007 |
--------------------------------------------------------------------------------
| Estonia            |      247.7 |       202.2 |       23% |              25% |
--------------------------------------------------------------------------------
| Latvia             |      144.7 |       105.7 |       37% |              15% |
--------------------------------------------------------------------------------
| Lithuania          |      231.9 |       178.8 |       30% |              23% |
--------------------------------------------------------------------------------
| Ukraine            |      156.8 |       128.5 |       22% |              16% |
--------------------------------------------------------------------------------
| Russia             |      173.7 |        86.7 |      100% |              18% |
--------------------------------------------------------------------------------
| Poland             |       29.8 |        34.5 |      -14% |               3% |
--------------------------------------------------------------------------------
| Czech Republic     |        2.7 |           0 |       n/a |               0% |
--------------------------------------------------------------------------------
| Total              |      987.3 |       736.4 |       34% |             100% |
--------------------------------------------------------------------------------

EUR 1 = EEK 15.6466                                                             

Sales space grew the most in Latvia and Lithuania. In Lithuania, Baltika opened 
the largest number of new stores (eight), increasing the sales area by 43%, and 
launched its Ivo Nikkolo concept, which was previously operated in Estonia only.
Now there are Ivo Nikkolo stores also in Vilnius and Kaunas. Expansion will     
continue in 2008 and 2009 when several new shopping centres are completed. In   
2007, Baltika's retail sales in Lithuania totalled 231.9 million kroons (14.8   
million euros), a 30% improvement on the prior year.                            

The strongest retail growth in the Baltics was achieved in Latvia where sales   
expanded by 37% to 144.7 million kroons (9.3 million euros). In the Latvian     
market, three stores were opened and four were relocated. Since all stores      
gained in size, the total sales area grew by 73%. Mostly Monton stores were     
transferred to larger premises where a full collection of the line can now be   
offered. Baltika's largest, 603-square metre Monton store is also located in    
Riga. Thanks to the expansion, the biggest city in the Baltics is better covered
with Baltika's brands and the stores are more visible among the competition. At 
the end of the year, the Group opened two stores in yet another Latvian city -  
Valmiera.                                                                       

In Estonia, retail sales amounted to 247.7 million kroons (15.8 million euros), 
up 23% yoy. During the year, two new stores were launched including a           
new-concept Ivo Nikkolo store in Viru Centre in Tallinn.                        

In Russia, Baltika's retail sales grew by 100% to 173.7 million kroons (11.1    
million euros). Rapid growth may be attributed to significant expansion in 2006.
As the start-up periods of new stores proved longer than average, Baltika       
focused on enhancing the efficiency of its existing stores. During the year,    
three stores were opened and two closed. In 2008, Baltika will                  
continue streamlining the store network. Further expansion will be based on two 
brands, Monton and Mosaic, and aimed at two metropolises - Moscow and St        
Petersburg. Despite the above strategy, in 2008 Baltika is going to expand to   
Kaliningrad. Although in 2007 Baltika's development in Russia was hampered by   
political tensions in Russian-Estonian relations, caused by the events in April,
Russia remains a market with huge potential. In the next few years, Russia will 
be the most attractive expansion destination for all major international        
retailers because the market is enormous and consumption is on the rise.        

Baltika's retail sales in Ukraine rose by 22% to 156.8 million kroons (10.0     
million euros). Ukrainian results were adversely affected by the country's      
political instability and high inflation which have cooled consumption outside  
the capital. Only six out of the Group's 22 Ukrainian stores are in Kiev, the   
reason being that in the past few years no large modern shopping centres have   
been opened there. Nor were any attractive shopping centres opened in 2007 in   
other Ukrainian cities targeted by the Group. In 2007, three stores were opened 
and two closed. As a result, the Ukrainian sales area remained practically      
unchanged. In 2008, the development situation is going to improve and the Group 
expects to launch some new stores.                                              

In Poland, the positive developments that began in 2006 continued. Although     
total sales decreased by 14% owing to the closure of inefficient stores,        
comparable store sales improved by 8%. The Group's retail sales in Poland       
totalled 29.8 million kroons (1.9 million euros). No new stores were opened and 
in the forthcoming periods Baltika will focus on improving the efficiency of its
existing stores.                                                                

In 2007, Baltika penetrated a new retail market - the Czech Republic. At the end
of October, a 500-square metre Monton store was launched in the Palladium Centre
in Prague. The centrally located Palladium is the newest shopping and business  
centre in the Czech capital. Competition in the market is strong but Monton has 
got off to a good start - in terms of sales the recently launched store is among
the ten best in the Group. The strategy for the Czech market is gradual         
expansion. Two new store openings are planned for 2008.                         

BRANDS                                                                          
In terms of brands, the largest contributor is Monton which in 2007 accounted   
for 55% of the Group's retail sales. Other major brands, Mosaic and Baltman,    
generated 31% and 9% of retail sales respectively while Ivo Nikkolo which was   
acquired in 2006 accounted for 3%. The remaining 2% was generated by factory    
outlets.                                                                        

Monton                                                                          
In 2007, Monton turned five years old. Within that time, Monton has evolved into
a successful international fashion brand. In 2007, retail sales of Monton       
totalled 543 million kroons (34.7 million euros), up 41% yoy, rendering it the  
Group's fastest growing brand both in terms of sales and retail space. The      
largest sales growth was achieved in Russia which became Monton's largest       
market, outstripping Lithuania and Estonia, the former largest retail markets.  
Over the year, Monton's retail portfolio was supplemented with ten stores with  
an upgraded retail environment, which increased the total number of Monton      
stores to 50.                                                                   

In 2007, Monton launched two new product groups. In the second half of the year,
the collection was supplemented with footwear and the jean brand Spiced M was   
launched. The pilot season in footwear sales was a success, providing valuable  
experience for the future. Sales of lingerie and beachwear, which were launched 
in 2006, doubled. All this shows that Monton can successfully launch new product
groups and its customers accept them readily.                                   

In addition to trendy products, Monton is committed to delivering excellent     
customer care, a relaxing shopping environment, and innovation in communication.
During the year, Baltika's interior designers developed various exciting        
solutions for Monton's retail environment. In June, Monton launched men's       
underpants with a condom pocket, in August a jean exhibition was organised, and 
in October customers could admire fashion photos shot in the sky - all examples 
of innovative marketing solutions.                                              

In 2008, Monton is going to focus on sustaining profitable expansion, improving 
the efficiency of new product groups, and enhancing the efficiency and          
effectiveness of intra-brand efforts.                                           

Mosaic                                                                          
For Mosaic brand, the year 2007 was one of refocusing. The first full year under
the new name ended in February, marking the time for further specifying the     
brand's identity and aims. The most important step was repositioning - the brand
was more clearly focused on the needs of its target customer.                   

In 2007, retail sales of Mosaic totalled 311 million kroons (19.9 million       
euros), a 29% improvement on 2006.  Sales growth stemmed from an increase in the
number of stores, the development of the base collections, and the launch of a  
children's collection. The largest growth occurred in the sales of the men's    
collection, indicating that the direction of the collection has met with the    
customer's approval.                                                            

In April, Mosaic launched childrenswear. By the year-end, the collection was    
available at eleven largest stores, mostly in the Baltic market. Although in the
first year, the children's collection accounted for 2% of Mosaic sales, the     
figure should rise considerably. Together with the children's collection, Mosaic
launched its sub-brand Lotte by Mosaic which includes a range of children's     
clothes and accessories named after the highly popular Estonian cartoon         
character Lotte. The Lotte by Mosaic collection is especially popular in the    
Estonian market but the Group expects to increase sales of the sub-brand also in
Latvia and Lithuania.                                                           

In 2007, Mosaic opened nine new stores taking the total number of stores to 52. 
In view of the growth of the brand and the development of the store environment,
new stores are more spacious, allowing better display of the collections.       

The main objective for 2008 is to develop a new store environment which would   
strengthen the position of the brand in international fashion retailing. The    
main development efforts will be related to the children's collection, including
the Lotte by Mosaic collection.                                                 

Baltman                                                                         
Baltman is Baltika's oldest brand whose motto is to develop with the customer.  
In 2007, retail sales of Baltman amounted to 92 million kroons (5.9 million     
euros), up 14%. During the year, Baltman opened two new stores in Lithuania,    
increasing the total number of its stores to 16.                                

In the area of product development, a lot of effort was put in adjusting        
Baltman's suits to different types of figure and extending the range for the    
younger customer. Special attention was paid to the quality of inside works,    
fabrics and finishing. The travel line with its innovative nano-finishing has   
been extremely well received. In 2007, Baltman also launched suits made of the  
thermo-regulating Klimeo fabric.                                                

Baltman's aim is to be not only a clothes store but also a reliable businesswear
advisor in all the markets where it operates. In 2008, Baltman will focus on    
sustaining the qualitative development of the collection. The keywords will be  
innovation, efficiency and reliability.                                         

Ivo Nikkolo                                                                     
For Ivo Nikkolo, 2007 was the first full year with Baltika Group. Retail sales  
of the brand totalled 25 million kroons (1.6 million euros). The main goal was  
to develop an internationally competitive collection. In the premium segment    
where Ivo Nikkolo is competing, product quality is essential. Therefore, the    
focus was on developing women's formal wear by combining the strengths of       
Baltika's existing production base, quality fabrics by the best manufacturers   
and the designers' brand specific style.                                        

The highlight of the year was the opening of Ivo Nikkolo stores outside Estonia.
Two of the three new stores were opened in Lithuania while one was launched in  
Estonia. All new stores boast a completely new, specially developed retail      
concept, which bears more resemblance to a lounge than a store. The purpose was 
to create a relaxing, attractive, customer-focused atmosphere. The tenants'     
association of Viru Centre named the store opened in Viru Centre, Tallinn the   
most customer-friendly shopping environment in the whole shopping centre.       

In 2008, Ivo Nikkolo will continue developing the collection. Top quality and   
designer style at a reasonable price will undoubtedly increase the brand's      
customer base.                                                                  

WHOLESALE                                                                       
Wholesale of Baltika's collections accounted for 13% of the Group's consolidated
revenue for 2007, yielding 144.7 million kroons (9.3 million euros) and posting 
a 3.9% decrease. The decline in wholesale revenue was planned, stemming from    
stricter sales policy in relations with Baltika's Russian partner. One of       
Baltika's largest wholesale partners is a Russian company which operates        
approximately 30 stores in Siberia and the Ural area which carry Baltika's      
brands. Other wholesale partners include department stores in Finland and the   
Baltic countries, such as Stockmann and Tallinn Department Store Group.         
Department stores are sold mostly Mosaic, Baltman and Ivo Nikkolo collections   
whereas Mosaic accounts for approximately one half of Baltika's wholesale       
revenue. Monton products are sold to the Russian business partner only.         

The fourth quarter is traditionally slow in the wholesale business. Fourth      
quarter wholesale revenue amounted to 22.0 million kroons (1.4 million euros),  
accounting for 7% of total revenue. Compared with the fourth quarter of 2006,   
wholesale revenue shrank by 26.3%.                                              

EARNINGS AND MARGINS                                                            
The year 2007 was the second one in the Group's three-year strategy period,     
following the rapid expansion of 2006. A comparison of the two years' opening   
and closing figures indicates that in 2006 the Group's sales area expanded      
abruptly, especially in the last quarter. However, the growth in the average    
sales space which has to be operated and supplied with inventories was          
substantially larger in 2007 - 50% against 30% in 2006. Consequently, the       
impacts of expansion were stronger in 2007.                                     

The impacts of rapid expansion are the following: the sales efficiency of new   
stores is usually lower than that of established ones and a relatively large    
proportion of new stores in the overall store portfolio weaken the average sales
efficiency. In addition, Baltika's average sales efficiency is affected by the  
expansion of its store formats. In 2007, the Group's average sales efficiency,  
i.e. sales per square metre declined by 10%.                                    

At the same time, the stores generate full operating expenses, putting pressure 
on the Group's profitability. In 2006, the Group expanded rapidly in the Russian
and Ukrainian markets where the start-up periods of new stores are longer and   
store operating expenses are higher than in the Baltics. In addition to expense 
growth triggered by the enlargement of the Group's sales space, the average     
store operating expenses per square metre grew by 7% (including rental expenses 
per square metre rise of 13%) on account of an increase in the proportion of the
Russian retail system in the Group's store portfolio. An enlargement in sales   
space does not only add to the operating expenses of stores but requires also a 
larger team at the head office while sustained growth assumes constant financing
of new projects.                                                                

2007 proved a year of adjustment as the Group focused on improving the          
efficiency of its existing retail system. New stores were launched at a more    
moderate pace and the number of new stores opened in Russia and Ukraine was     
reduced significantly - to six altogether. The Baltic countries posted strong   
development in the first half of the year but the second half-year brought a    
decrease in the growth of consumption, affecting also Baltika's sales in those  
markets. Existing stores in Poland followed a positive trend, ending the year in
a profit.                                                                       

The Group succeeded in raising the gross margin for 2007 to 55.3% (2006: 54.5%).
The gross margin for the fourth quarter was 58.1% (Q4 2006: 57.4%). Consolidated
gross profit for 2007 amounted to 636.7 million kroons (40.7 million euros), a  
29.8% improvement on the prior year.                                            

Distribution costs for 2007 grew by 49.1% and the period's administrative and   
general expenses by 26.0%. Administrative and general expenses in 2007 included 
also non-recurring costs of 3.82 million kroons (0.24 million euros) incurred in
connection with the relocation of manufacturing operations to a new factory.    

The Group's results were adversely affected by exchange rate fluctuations - the 
period's other operating expenses include foreign exchange losses of 9.94       
million kroons (0.64 million euros). In 2006, foreign exchange losses totalled  
4.71 million kroons (0.30 million euros).                                       

Consolidated operating profit for 2007 includes property divestment and         
revaluation gains of 25.12 million kroons (1.61 million euros) recognised in    
other operating income. In the first quarter, sales of building rights and a    
logistics centre generated gains of 16.22 million kroons (1.04 million euros).  
In the third and fourth quarters, property revaluation gains amounted to 6.77   
million kroons (0.43 million euros) and 2.13 million kroons (0.14 million euros)
respectively. In 2006, property divestment and revaluation gains totalled 11.89 
million kroons (0.76 million euros).                                            

The Group's operating margin for 2007 was 5.6% compared with 10.8% for 2006.    
Consolidated operating profit amounted to 64.6 million kroons (4.1 million      
euros), 33.7% down from the prior year.                                         

Consolidated financial expenses for 2007 totalled 11.5 million kroons (0.7      
million euros), a 90.9% rise on 2006. The largest financial expense item was    
interest expense (9.0 million kroons/0.6 million euros), which increased by     
57.9% yoy. The growth in interest expense may be explained by an increase in the
loan burden as well as a rise in Euribor.  Financial expenses were also         
increased by a change in foreign exchange losses.                               

The Group's profit before income tax amounted to 53.0 million kroons (3.4       
million euros), 41.9% down from 2006. Consolidated net profit for 2007 (profit  
after tax and minority interest) amounted to 40.8 million kroons (2.6 million   
euros), a 53.3% decrease compared with 2006. The Group's net margin for 2007 was
3.5% (2006: 9.7%).                                                              

The fourth quarter ended in a consolidated net profit of 1.6 million kroons (0.1
million euros) and a net margin of 0.5% (Q4 2006: 11.1%).                       

In 2007, the Group's return on equity was 13.1% (2006: 35.9%) and return on     
assets was 6.5% (2006: 18.3%).                                                  

BALANCE SHEET                                                                   
At 31 December 2007, Baltika's consolidated balance sheet total was 656.4       
million kroons (41.9 million euros), a 10% increase yoy.                        

During the year, the Group's trade receivables decreased by 15.3 million kroons 
(1.0 million euros) to 71.1 million kroons (4.5 million euros). The decline     
resulted mainly from a reduction in sales to the Russian wholesale partner, a   
measure adopted for hedging the Russian risks. Supplier payables followed a     
similar trend, declining by 24.2 million kroons (1.5 million euros) to 72.3     
million kroons (4.6 million euros) at the year-end.                             

At 31 December 2007, the Group's inventories totalled 220.7 million kroons (14.1
million euros), up 20.0 million kroons (1.3 million euros) or 10% yoy. Inventory
management efficiency remained almost stable - the period's inventory turnover  
ratio was 5.30 (2006: 5.38).                                                    

At the year-end, the Group's borrowings totalled 184.5 million kroons (11.8     
million euros), including bank loans of 145.5 million kroons (9.3 million       
euros). The remainder of borrowings was made up of bonds (29.7 million          
kroons/1.9 million euros) and finance lease liabilities (9.3 million kroons/0.6 
million euros). During the year, the Group's total debt burden increased by 37.1
million kroons (2.4 million euros); bank loans grew by 40.4 million kroons (2.6 
million euros). Borrowings increased in connection with investments made in the 
expansion of the retail system and the financing of operating activities.       

At 31 December 2007, the Group's net debt (interest-bearing liabilities less    
cash and bank balances) equalled 153.0 million kroons (9.8 million euros) and   
the net debt to equity ratio was 45.1% against 44.3% at the end of 2006.        

In the reporting period, the Group's equity grew by 35.1 million kroons (2.2    
million euros) to 339.3 million kroons (21.7 million euros). The equity         
structure changed in connection with a bonus issue performed to increase share  
capital at the expense of retained earnings and share premium. As a result of   
the bonus issue, share capital increased by 124.3 million kroons (7.9 million   
euros) to 186.4 million kroons (11.9 million euros).                            

INVESTMENTS                                                                     
In 2007, the Group's investments totalled 102.9 million kroons (6.6 million     
euros). The corresponding figure for 2006 was 130.4 million kroons (8.3 million 
euros).                                                                         

Investments in the retail system and information technology amounted to 69.9    
million kroons (4.5 million euros) and 13.6 million kroons (0.8 million euros)  
respectively while investments in manufacturing totalled 12.8 million kroons    
(0.8 million euros). Repurchase of the 50% share in joint venture OÜ Baltika    
Tailor cost 5.6 million kroons (0.4 million euros). Investments in other fixed  
assets amounted to 1.0 million kroons (0.1 million euros).                      

MANUFACTURING                                                                   
At the end of 2007, Baltika Group included two manufacturing companies: OÜ      
Baltika Tailor (100%) and AS Virulane (82.66%). In 2007 Baltika continued       
tightening control over its manufacturing operations and combined two entities -
OÜ Baltika Tailor and AS Elina. Manufacturing characterised by high quality,    
flexibility and prompt response to new requirements is an important part of the 
vertical business model of Baltika Group which is otherwise focused on the      
retail business.                                                                

In autumn 2007, the new sewing factory of Baltika Tailor was completed. Owing to
its special design, the state of the art factory is the most modern sewing      
facility in the Baltics. The sewing factory was the last part of the Group's    
manufacturing and logistics operations which was transferred from Tallinn's city
centre to Lasnamäe Industrial Park in the suburbs of Tallinn. Previously, in the
summer of 2006, a new higher-capacity logistics centre was opened in the new    
location. The new complex where logistics and manufacturing and connected allows
Baltika to respond to changes in market demand with greater speed and           
efficiency.                                                                     

PERSONNEL                                                                       
At the end of 2007, Baltika Group employed 1,983 (31 December 2006: 1,915)      
people, including 986 (857) in the retail system, 773 (866) in manufacturing and
224 (192) at the head office. During the year, the number of employees grew by  
68. The largest growth occurred in the retail system (+129). The number of      
people employed in manufacturing, on the other hand, declined in connection with
the launch of the new factory and the restructuring of manufacturing operations.
The period's average number of employees was 1,982 (2006: 1,777).               

At the end of 2007, 40% of the Group's employees were working outside Estonia.  
The proportion of people employed in Estonia is higher because the head office  
and manufacturing facilities are located here.                                  

The Group's employee remuneration expenses for 2007 totalled 200.1 million      
kroons (12.8 million euros). The remuneration of members of the supervisory     
council and management board amounted to 4.8 million kroons (0.3 million euros).

OUTLOOK AND GOALS FOR 2008                                                      
The year 2008 is the last one in Baltika's three-year strategy period aimed at  
achieving rapid and profitable growth. At the beginning of 2006, the following  
financial targets were set for 2008:                                            

- a two-fold increase on the sales of 2005, i.e. revenue of 1.36 billion kroons 
(87 million euros);                                                             
- gross margin at least 52%;                                                    
- return on equity at least 30%.                                                

Other keywords of 2008 are efficiency improvement, especially in large markets  
such as Russia and Ukraine, restoring rapid growth in the retail system in the  
second half of the year, and real estate development. Because of the company's  
current development phase, the year may be divided into two parts which have the
following goals and prospects:                                                  

1) Sales and sales area                                                         
- The main objectives of the first half-year are to improve sales efficiency and
to streamline the store portfolio. Around five to six stores will be opened and 
closed so that at the end of the period the number of stores will remain similar
to the end of 2007. Retail revenues are expected to increase by 10-12% whereas  
wholesale revenues should decline by 15-20% yoy.                                
- In the second half of the year, rapid retail growth should be restored: the   
Group intends to open 14-18 stores, retail revenues should grow at the rate of  
20-25% and wholesale revenues should remain at the level of the prior year.     
- The revenue target for 2008 is 1.3 billion kroons (83 million euros), up 13%, 
which practically corresponds to the target set in 2006.                        
- At the end of 2008, the number of stores will be 140-145. Although the figure 
does not comply with the target (160+), the new stores have a larger format than
planned at the beginning of 2006 and the 2008 year-end sales area with its      
approximately 28,000 square metres corresponds to the Group's target.           
- While continuing expansion in Central and Eastern Europe, the Group will      
prepare for the penetration of new markets.                                     

2) Profitability                                                                
- The gross margin reached the targeted level (54.5%) in 2006 and continued     
rising in 2007 (55.3%). The Group will focus on improving the margin in a       
situation where input prices are on the rise owing to an increase in raw        
materials prices and logistics expenses.                                        
- Due to slower than expected development in the second half of 2007 and the    
first half of 2008, in the core business the targeted return on equity can not  
be achieved.                                                                    

3) Real estate development                                                      
- In 2008, the Group began developing its city centre property at Veerenni 24,  
Tallinn. In phase I, which should be completed in May 2009, the former factory  
building will be transformed into a business centre with approximately 10,000   
square metres of office, commercial and service space. Baltika will occupy up to
4,500 square metres of the new centre for its head office and retail premises.  
The rest of the space as well as Baltika's current head office will be let. The 
company expects to earn income in connection with an increase in the value of   
the property.                                                                   

4) Investments                                                                  
- According to plan, in 2008 the largest investments will be made in the        
development of phase I in Baltika's business centre, the opening of new stores  
and the increase of inventories.                                                

REPORTING CALENDAR IN 2008                                                      
In 2008, the consolidated financial results of AS Baltika will be published on  
the following dates:                                                            

2007 audited annual report	March 26                                            
2008 Q1 results	April 24                                                     
2008 Q2 results	July 24                                                      
2008 Q3 results	October 23                                                   

In addition, in the beginning of every month the sales results of the preceding 
month will be published.                                                        

KEY FIGURES OF THE GROUP (2007)                                                 
--------------------------------------------------------------------------------
|                                    |  31.12.2007 |  31.12.2006 |         +/- |
--------------------------------------------------------------------------------
| Net sales (EEK million)            |     1,151.5 |       899.5 |       28.0% |
--------------------------------------------------------------------------------
| Retail sales (EEK million)         |       987.3 |       736.4 |       34.1% |
--------------------------------------------------------------------------------
| Share of retail sales in net sales |         86% |         82% |             |
--------------------------------------------------------------------------------
| Number of stores                   |         128 |         112 |       14.3% |
--------------------------------------------------------------------------------
| Sales area (m2)                    |      24,290 |      19,594 |       24.0% |
--------------------------------------------------------------------------------
| Number of employees (end of        |       1,983 |       1,915 |        3.6% |
| period)                            |             |             |             |
--------------------------------------------------------------------------------
| Gross margin                       |       55.3% |       54.5% |             |
--------------------------------------------------------------------------------
| Operating margin                   |        5.6% |       10.8% |             |
--------------------------------------------------------------------------------
| EBT margin                         |        4.6% |       10.1% |             |
--------------------------------------------------------------------------------
| Net margin                         |        3.5% |        9.7% |             |
--------------------------------------------------------------------------------
| Current ratio                      |         1.6 |         1.5 |        6.7% |
--------------------------------------------------------------------------------
| Inventory turnover                 |         5.3 |        5.38 |       -1.5% |
--------------------------------------------------------------------------------
| Debt to equity ratio               |       54.4% |       48.5% |             |
--------------------------------------------------------------------------------
| Return on equity                   |       13.1% |       35.9% |             |
--------------------------------------------------------------------------------
| Return on assets                   |        6.5% |       18.3% |             |
--------------------------------------------------------------------------------

EUR 1 = EEK 15.6466                                                             

Definitions of key ratios                                                       
Gross margin = (Net sales-COGS)/Net sales                                       
Operating margin = Operating profit/Net sales                                   
EBT margin = Profit before corporate income tax/Net sales                       
Net margin = Net profit (attributable to parent)/Net sales                      
Current ratio = Current assets/Current liabilities                              
Inventory turnover = Net sales/Average inventories*                             
Debt to equity ratio = Interest-bearing liabilities/Equity                      
Return on equity (ROE) = Net profit (attributable to parent)/Average equity*    
Return on assets (ROA) = Net profit (attributable to parent)/Average total      
assets*                                                                         
*Based on 12-month average                                                      



CONSOLIDATED INCOME STATEMENT                                                   
(unaudited, in EEK thousand)                                                    
--------------------------------------------------------------------------------
|                                |  Q4 2007 |  Q4 2006 |      2007 |      2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales                      |  307,421 |  281,164 | 1,151,520 |   899,481 |
--------------------------------------------------------------------------------
| Cost of goods sold             | -128,816 | -119,869 |  -514,839 |  -408,919 |
--------------------------------------------------------------------------------
| Gross profit                   |  178,605 |  161,295 |   636,681 |   490,562 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution costs             | -143,016 | -115,433 |  -522,620 |  -350,471 |
--------------------------------------------------------------------------------
| Administrative and general     |  -21,597 |  -11,642 |   -60,911 |   -48,334 |
| expenses                       |          |          |           |           |
--------------------------------------------------------------------------------
| Other operating income         |    2,904 |    4,873 |    25,219 |    12,482 |
--------------------------------------------------------------------------------
| Other operating expenses       |   -6,707 |   -2,701 |   -13,815 |    -6,907 |
--------------------------------------------------------------------------------
| Operating profit               |   10,189 |   36,392 |    64,554 |    97,332 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income (expenses)    |   -3,587 |   -4,753 |   -11,523 |    -6,037 |
--------------------------------------------------------------------------------
| Share of joint venture results |        0 |        0 |         0 |      -234 |
--------------------------------------------------------------------------------
| Gains from other investments,  |        0 |   -1,568 |         0 |       322 |
| net                            |          |          |           |           |
--------------------------------------------------------------------------------
|  Interest expenses, net        |   -2,579 |   -1,846 |    -9,049 |    -5,730 |
--------------------------------------------------------------------------------
|  Foreign exchange gains, net   |   -1,000 |   -1,346 |    -2,389 |      -863 |
--------------------------------------------------------------------------------
|  Other financial expenses, net |       -8 |        7 |       -85 |       468 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income tax       |    6,602 |   31,639 |    53,031 |    91,295 |
--------------------------------------------------------------------------------
| Income tax                     |   -4,277 |     -244 |    -9,189 |    -3,136 |
--------------------------------------------------------------------------------
| Net profit                     |    2,325 |   31,395 |    43,842 |    88,159 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit attributable to     |    1,643 |   31,075 |    40,773 |    87,376 |
| equity holders of the parent   |          |          |           |           |
| company                        |          |          |           |           |
--------------------------------------------------------------------------------
| Net profit (loss) attributable |      682 |      320 |     3,069 |       783 |
| to minority shareholders       |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per share, EEK  |     0.09 |     1.69 |      2.19 |      4.85 |
--------------------------------------------------------------------------------
| Diluted earnings per share,    |     0.09 |     1.67 |      2.19 |      4.71 |
| EEK                            |          |          |           |           |
--------------------------------------------------------------------------------


CONSOLIDATED INCOME STATEMENT                                                   
(unaudited, in EUR thousand)                                                    
--------------------------------------------------------------------------------
|                                |  Q4 2007 |  Q4 2006 |      2007 |      2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales                      |   19,648 |   17,970 |    73,596 |    57,487 |
--------------------------------------------------------------------------------
| Cost of goods sold             |   -8,233 |   -7,661 |   -32,904 |   -26,135 |
--------------------------------------------------------------------------------
| Gross profit                   |   11,415 |   10,309 |    40,691 |    31,353 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution costs             |   -9,140 |   -7,378 |   -33,402 |   -22,399 |
--------------------------------------------------------------------------------
| Administrative and general     |   -1,380 |     -744 |    -3,893 |    -3,089 |
| expenses                       |          |          |           |           |
--------------------------------------------------------------------------------
| Other operating income         |      186 |      311 |     1,612 |       798 |
--------------------------------------------------------------------------------
| Other operating expenses       |     -429 |     -173 |      -883 |      -441 |
--------------------------------------------------------------------------------
| Operating profit               |      651 |    2,326 |     4,126 |     6,221 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income (expenses)    |     -229 |     -304 |      -736 |      -386 |
--------------------------------------------------------------------------------
| Share of joint venture results |        0 |        0 |         0 |       -15 |
--------------------------------------------------------------------------------
| Gains from other investments,  |        0 |     -100 |         0 |        21 |
| net                            |          |          |           |           |
--------------------------------------------------------------------------------
|  Interest expenses, net        |     -165 |     -118 |      -578 |      -366 |
--------------------------------------------------------------------------------
|  Foreign exchange gains, net   |      -64 |      -86 |      -153 |       -55 |
--------------------------------------------------------------------------------
|  Other financial expenses, net |       -1 |        0 |        -5 |        30 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income tax       |      422 |    2,022 |     3,389 |     5,835 |
--------------------------------------------------------------------------------
| Income tax                     |     -273 |      -16 |      -587 |      -200 |
--------------------------------------------------------------------------------
| Net profit                     |      149 |    2,007 |     2,802 |     5,634 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit attributable to     |      105 |    1,987 |     2,606 |     5,584 |
| equity holders of the parent   |          |          |           |           |
| company                        |          |          |           |           |
--------------------------------------------------------------------------------
| Net profit (loss) attributable |       44 |       19 |       196 |        50 |
| to minority shareholders       |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per share, EUR  |     0.01 |     0.11 |      0.14 |      0.31 |
--------------------------------------------------------------------------------
| Diluted earnings per share,    |     0.01 |     0.11 |      0.14 |      0.30 |
| EUR                            |          |          |           |           |
--------------------------------------------------------------------------------


CONSOLIDATED BALANCE SHEET                                                      
(unaudited, in EEK thousand)                                                    
--------------------------------------------------------------------------------
|                                            |     31.12.2007 |     31.12.2006 |
--------------------------------------------------------------------------------
| ASSETS                                     |                |                |
--------------------------------------------------------------------------------
| Current assets                             |                |                |
--------------------------------------------------------------------------------
| Cash and bank                              |         31,494 |         12,584 |
--------------------------------------------------------------------------------
| Trade receivables                          |         71,148 |         86,402 |
--------------------------------------------------------------------------------
| Other receivables and prepaid expenses     |         42,415 |         42,069 |
--------------------------------------------------------------------------------
| Inventories                                |        220,698 |        200,702 |
--------------------------------------------------------------------------------
| Non-current assets available for sale      |            500 |              0 |
--------------------------------------------------------------------------------
| Total current assets                       |        366,255 |        341,757 |
--------------------------------------------------------------------------------
| Non-current assets                         |                |                |
--------------------------------------------------------------------------------
| Investment property                        |         11,250 |         23,572 |
--------------------------------------------------------------------------------
| Deferred income tax asset                  |          5,897 |          4,462 |
--------------------------------------------------------------------------------
| Other non-current assets                   |         11,448 |         11,077 |
--------------------------------------------------------------------------------
| Property, plant and equipment              |        203,098 |        166,448 |
--------------------------------------------------------------------------------
| Intangible assets                          |         58,409 |         49,074 |
--------------------------------------------------------------------------------
| Total non-current assets                   |        290,102 |        254,633 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                               |        656,357 |        596,390 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY                     |                |                |
--------------------------------------------------------------------------------
| Current liabilities                        |                |                |
--------------------------------------------------------------------------------
| Borrowings                                 |        100,167 |         88,179 |
--------------------------------------------------------------------------------
| Supplier payables                          |         72,345 |         96,535 |
--------------------------------------------------------------------------------
| Tax liabilities                            |         33,065 |         23,006 |
--------------------------------------------------------------------------------
| Accrued expenses                           |         22,857 |         18,174 |
--------------------------------------------------------------------------------
| Other short-term liabilities               |          1,097 |          7,022 |
--------------------------------------------------------------------------------
| Total current liabilities                  |        229,531 |        232,916 |
--------------------------------------------------------------------------------
| Non-current liabilities                    |                |                |
--------------------------------------------------------------------------------
| Long-term borrowings                       |         84,331 |         59,234 |
--------------------------------------------------------------------------------
| Other long-term liabilities                |          1,074 |              0 |
--------------------------------------------------------------------------------
| Deferred income tax liability              |          2,075 |              0 |
--------------------------------------------------------------------------------
| Total non-current liabilities              |         87,480 |         59,234 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                          |        317,011 |        292,150 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY                                     |                |                |
--------------------------------------------------------------------------------
| Share capital at par value                 |        186,449 |         62,150 |
--------------------------------------------------------------------------------
| Share premium                              |              0 |         59,088 |
--------------------------------------------------------------------------------
| Reserves                                   |         26,133 |          9,721 |
--------------------------------------------------------------------------------
| Retained earnings                          |         67,949 |         73,521 |
--------------------------------------------------------------------------------
| Net profit for the period                  |         40,773 |         87,376 |
--------------------------------------------------------------------------------
| Currency translation reserve               |          8,131 |          4,319 |
--------------------------------------------------------------------------------
| Total equity attributable to equity        |        329,435 |        296,175 |
| holders of the parent                      |                |                |
--------------------------------------------------------------------------------
| Minority interest                          |          9,911 |          8,065 |
--------------------------------------------------------------------------------
| TOTAL EQUITY                               |        339,346 |        304,240 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY               |        656,357 |        596,390 |
--------------------------------------------------------------------------------


CONSOLIDATED BALANCE SHEET                                                      
(unaudited, in EUR thousand)                                                    
--------------------------------------------------------------------------------
|                                            |     31.12.2007 |     31.12.2006 |
--------------------------------------------------------------------------------
| ASSETS                                     |                |                |
--------------------------------------------------------------------------------
| Current assets                             |                |                |
--------------------------------------------------------------------------------
| Cash and bank                              |          2,013 |            804 |
--------------------------------------------------------------------------------
| Trade receivables                          |          4,547 |          5,522 |
--------------------------------------------------------------------------------
| Other receivables and prepaid expenses     |          2,711 |          2,689 |
--------------------------------------------------------------------------------
| Inventories                                |         14,105 |         12,827 |
--------------------------------------------------------------------------------
| Non-current assets available for sale      |             32 |              0 |
--------------------------------------------------------------------------------
| Total current assets                       |         23,408 |         21,842 |
--------------------------------------------------------------------------------
| Non-current assets                         |                |                |
--------------------------------------------------------------------------------
| Investment property                        |            719 |          1,507 |
--------------------------------------------------------------------------------
| Deferred income tax asset                  |            377 |            285 |
--------------------------------------------------------------------------------
| Other non-current assets                   |            732 |            708 |
--------------------------------------------------------------------------------
| Property, plant and equipment              |         12,980 |         10,638 |
--------------------------------------------------------------------------------
| Intangible assets                          |          3,733 |          3,136 |
--------------------------------------------------------------------------------
| Total non-current assets                   |         18,541 |         16,274 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                               |         41,949 |         38,116 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY                     |                |                |
--------------------------------------------------------------------------------
| Current liabilities                        |                |                |
--------------------------------------------------------------------------------
| Borrowings                                 |          6,402 |          5,636 |
--------------------------------------------------------------------------------
| Supplier payables                          |          4,624 |          6,170 |
--------------------------------------------------------------------------------
| Tax liabilities                            |          2,113 |          1,470 |
--------------------------------------------------------------------------------
| Accrued expenses                           |          1,461 |          1,162 |
--------------------------------------------------------------------------------
| Other short-term liabilities               |             70 |            449 |
--------------------------------------------------------------------------------
| Total current liabilities                  |         14,670 |         14,886 |
--------------------------------------------------------------------------------
| Non-current liabilities                    |                |                |
--------------------------------------------------------------------------------
| Long-term borrowings                       |          5,390 |          3,786 |
--------------------------------------------------------------------------------
| Other long-term liabilities                |             69 |              0 |
--------------------------------------------------------------------------------
| Deferred income tax liability              |            133 |              0 |
--------------------------------------------------------------------------------
| Total non-current liabilities              |          5,591 |          3,786 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                          |         20,261 |         18,672 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY                                     |                |                |
--------------------------------------------------------------------------------
| Share capital at par value                 |         11,916 |          3,972 |
--------------------------------------------------------------------------------
| Share premium                              |              0 |          3,776 |
--------------------------------------------------------------------------------
| Reserves                                   |          1,670 |            621 |
--------------------------------------------------------------------------------
| Retained earnings                          |          4,343 |          4,699 |
--------------------------------------------------------------------------------
| Net profit for the period                  |          2,606 |          5,584 |
--------------------------------------------------------------------------------
| Currency translation reserve               |            520 |            276 |
--------------------------------------------------------------------------------
| Total equity attributable to equity        |         21,055 |         18,929 |
| holders of the parent                      |                |                |
--------------------------------------------------------------------------------
| Minority interest                          |            633 |            515 |
--------------------------------------------------------------------------------
| TOTAL EQUITY                               |         21,688 |         19,444 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY               |         41,949 |         38,116 |
--------------------------------------------------------------------------------



Ülle Järv                                                                       
CFO, Member of the Management Board                                             
+372 630 2741                                                                   

Further information:                                                            
Triin Palge                                                                     
Head of investor relations                                                      
+372 630 2886                                                                   
triin.palge@baltikagroup.com