Börsiteade

Pealkiri

SALES RESULTS FOR 6 MONTHS 2009

Teade

The consolidated unaudited sales revenue of Tallinna Kaubamaja Group for the
first half-year 2009 was 3.2 billion kroons (203.3 million euros), 1.7 billion
kroons (105.8 million euros) of which were earned in the second quarter. The
sales revenue for the first half-year 2008 was 3.0 billion kroons (193.2
million euros). The sales increased by 5.1%. 

The consolidated sales revenue of the supermarket business segment for the
first half-year 2009 was 2.35 billion kroons (149.9 million euros), 21% more
than in the same period last year. In the second quarter of 2009, the
consolidated net sales of Selver were 1.2 billion kroons (77.4 million euros),
an increase of 26% compared to the same period of the previous year. 

The consolidated sales revenue of Selver per retail space square metre was 5.4
thousand kroons a month in the first half-year, a 23% decrease compared to the
same period last year. Comparable store sales per retail space square metre
were 6.0 thousand kroons a month, showing a decrease of 18% from the same
period of the previous year. The overall economic recession, the larger
percentage of special offer products in consumers' market basket as well as in
the assortment of Selver`s marketing campaigns, the lower sales efficiency of
new stores during their launch period, and the reduced sales efficiency in
stores where commercial space was extended in 2008 have had a negative impact
on the sales efficiency of the Selver supermarket chain. In the first half-year
of this year Selver opened two new stores in Estonia, one in Narva and the
other in Kakumäe in Tallinn, and four new stores in Latvia in the following
locations: Kuldiga, Daugavpils, Salaspils, Aizkraukle. The total increase of
retail space in supermarket segment was 7944 square metres in the first half of
2009. In the first half-year, 16.9 million purchases were made in the Selver
chain, 29% more compared to the same period of the previous year. 

In the department store segment, the sales revenue for the first half-year 2009
was 583.3 million kroons (37.3 million euros), falling by 20.4% compared to the
same period last year. In the second quarter the sales revenue accounted for
306.7 million kroons (19.6 million euros), which was lower by 19.7% compared to
the same period a year ago. The sales revenue of department stores per square
metre was 4.1 thousand kroons a month in the first half-year, 23% less than for
the same period last year, which was 5.3 thousand kroons a month. The total
retail space of department store segment, however, has increased by 658 m2,
that is 3% more compared to the same time a year ago. In addition to the
overall reduction of consumption, the sales revenue dropped further due to the
comprehensive renovation commenced in the first quarter in the Beauty
Department (Ilumaailm), the moving of Youth Fashion Department (Noortemaailm),
and the completion of the new Women's Shoe Department (Naiste Kingamaailm) in
March. This year the period of discount sales began earlier than last year,
affecting the second quarter sales revenue, which is why the second quarter
sales revenue decline compared to the previous year was smaller than in the
first quarter. 

The first half-year sales revenue of real estate business segment outside the
Group was 21.8 million kroons (1.4 million euros), a 6.5% year-on-year
increase, including the second quarter sales 10.5 million kroons (0.7 million
euros). In the first half-year, two Selver stores were completed in Latvia:
Salaspils Selver in January and Rezekne Selver in April. 

The sales revenue of the car trading business segment for the first half-year
2009, transactions between segments not included, was 147.7 million kroons (9.4
million euros), which is 53% lower than the revenue in the same period last
year. In the first half-year, altogether 761 cars were sold. At the same time
in 2008, the sales revenue from the sale of 1325 cars was 315.4 million kroons
(20.2 million euros). The sales revenue for the second quarter of 2009 was 84.9
million kroons (5.4 million euros), and altogether 357 cars were sold. The
sales revenue for the same period in 2008 was 179.2 million kroons (11.5
million euros) with 808 cars sold. A continuing steep fall in the car trading
market was seen in the second quarter. In Estonia, 2586 new motor-cars were
registered in the second quarter, which is 66% less than a year ago. In Latvia,
1350 new cars were registered in the second quarter, which constitutes a 77%
market drop, and in Lithuania 1969 new cars were registered, which is 70% less
than a year ago. The decrease in the car market was 66% in Estonia, 78% in
Latvia and 70% in Lithuania. 

The sales revenue from footwear trade in the second quarter of 2009 was 39.6
million kroons (2.5 million euros), and the total result for the first
half-year was 79.9 million kroons (5.1 million euros). The Suurtüki chain,
which was obtained in April last year, generated 16.8 million kroons (1.1
million euros) in sales in the second quarter, a decline of 35.5% compared to
the same period last year when the sales were 26.1 million kroons (1.7 million
euros). At the beginning of June, an ABC King store opened for business in Port
Artur 2 centre in Pärnu, introducing their new concept. This is the first
tangible result of the almost year-long development project, during which a new
concept for ABC King was developed and the 15-year-old visual identity was
renewed. Of the 34 shoe shops belonging to the Group's two shoe shop chains, 28
are located in Estonia and 6 in Latvia. 

The first store of the beauty store chain I.L.U. was opened in the new Pärnu
shopping centre in the second half of March. The store earned a sales revenue
of 2.0 million kroons (0.2 million euros) in the second quarter. The total
sales revenue in the first half-year was 2.5 million kroons (0.2 million
euros). The next I.L.U. beauty store chain store will open their doors in
November in Rocca al Mare and Tartu Lõunakeskus shopping centres. For 2010,
there are plans to open a store in the Kristiine shopping centre, as well as
the first store in Latvia. 

Raul Puusepp
Chairman of the Board
Phone: +372 731 5000