Börsiteade

Pealkiri

Consolidated interim report for Q4 and 12 months of 2009

Teade

Business results                                                                

Q4 followed after the high season in Q2 and Q3 and the business results were in 
line with the management expectations. Q4 2009 sales from continuing operations 
demonstrated a 20.8% seasonal decrease as compared to Q3 2009 and 22.6% decrease
as compared to the respective period in the previous year.                      

Major markets showed signs of stabilization although signs of growth are still  
lacking. Local currencies, including Ukrainian Hryvnia, have stabilized against 
EUR and USD. Russian rouble strengthened against EUR and USD. The opinion of the
management of the Group is that after a significant drop in 2008 the markets    
have entered into the stabilization phase and that consumers have adjusted their
purchasing patterns to the new market conditions; however, based on Q4 2009     
sales level the management does not foresee significant growth of sales in 2010 
limiting the expectation to 5-8% growth for 2010.                               

In Q4 2009 retail operations in Belarus demonstrated an increase of 44.0% in    
local currency terms and a decrease of 0.6% in EUR terms as compared to Q4 2008.
The Group saw a like-for-like increase in retail sales in Russia of 5.8% in     
local currency terms and a decrease of 12.4% in EUR terms as compared to the    
respective period in 2008. Lauma Lingerie's sales in the Baltic countries       
decreased by 50.5 % as compared to Q4 2008.                                     

At the end of the reporting period the Group and its franchising partners       
operated over 310 Milavitsa and other lingerie outlets, including 64 stores     
operated directly by the Group and the rest by franchising partners. The Group's
retail focus has been shifted towards the promotion and support of franchising  
in cooperation with existing and new partners. In Q4 2009, the Group continued  
restructuring its own retail business in Russia and the Baltics.                

Financial performance                                                           

The Group's sales from continuing operations amounted to EEK 1,158,537 thousand 
(EUR 74,044 thousand) in 2009, representing a 26.7% decline as compared to the  
previous year. Overall wholesale sales from continuing operations decreased by  
26.8% and retail sales from continuing operations presented a decrease of 24.4%.
The proportion of retail sales in total sales increased by 0.7% and reached     
23.3% of total sales in 2009. The Group's sales from continuing operations in Q4
2009 amounted to EEK 260,438 thousand (EUR 16,645 thousand), a decrease of 22.6%
as compared to the previous year.                                               

The Group's gross margin from continuing operations in 2009 increased and was   
43.5%, as compared to 41.0% in the previous year. One-off adjustments related to
restructuring of Russian operations increased cost of goods sold in 2009 and    
amounted to EEK 6,572 thousand (EUR 420 thousand). As the result, normalized    
gross margin amounted to 44.0% demonstrating a slight increase in profitability 
as compared to 2008. This positive effect was observed in Q2 and Q3 2009 mainly 
due to the increased sales prices in key markets and the beneficial impact of   
the devaluation of Belarusian Rouble on production costs.                       

The consolidated operating profit from continuing operations amounted to EEK    
60,443 thousand (EUR 3,863 thousand), representing a 17.0% increase compared to 
the year 2008. The consolidated operating margin from continuing operations was 
5.2% (3.3% in 2008). The operating profit and the operating margin were         
adversely influenced by one-off expenses in 2009 and 2008.                      

In 2009, the Group continued with the restructuring of Russian retail           
operations. One-off expenses related to the restructuring of Russian operations 
in 2009 amounted to EEK 53,167 thousand (EUR 3,398 thousand), including EEK     
13,863 thousand (EUR 886 thousand) in Q1 2009, EEK 18,353 thousand (EUR 1,173   
thousand) in Q2 2009, EEK 7,072 thousand (EUR 452 thousand) in Q3 2009 and EEK  
13,879 thousand (EUR 887 thousand) in Q4 2009 and partially related to          
initiatives started in prior periods. The Group will finalize closing or        
transfer of inefficient stores to franchise partners in H1 2010. Restructuring  
provisions to cover future restructuring losses related to Russian retail chain 
amounted to EEK 2,425 thousand (EUR 155 thousand) as at 31 December 2009. The   
operating loss of the Russian retail operations in 2009 was EEK 103,440 thousand
(EUR 6,611 thousand), including one-off expenses amounting to EEK 53,167        
thousand (EUR 3,398 thousand).                                                  

Loan receivable in the amount of EEK 20,356 thousand (EUR 1,301 thousand) was   
fully provided based on the management's assessment of the recoverability of the
loan in Q1 2009. The expenses related to the provision have been recognized in  
other operating expenses from continuing operations in 2009. The management will
continue actions to recover the loan balance.                                   

In total one-off continuing operating losses related to the restructuring of    
Russian operations and the provisioning of a loan amounted to EEK 73,523        
thousand (EUR 4,699 thousand) in 2009 (total normalization adjustments amounted 
to EEK 83,130 thousand (EUR 5,313 thousand) in 2008). As the result,            
consolidated normalised operating profit from continuing operations amounted to 
EEK 133,966 thousand (EUR 8,562 thousand) for the year 2009, representing a 0.6%
decline as compared to 2008. The consolidated normalised operating margin from  
continuing operations reached 11.6% (8.5% in 2008).                             

On 30 June 2009 the Group closed the transaction for the sale of all shares in  
PTA Grupp AS (“PTA”) held by the Group to PTA Holding OÜ for total consideration
of EEK 15,224 thousand (EUR 973 thousand), including EEK 7,401 thousand (EUR 473
thousand) paid upon closing by way of taking over certain liabilities of the    
Group and the remaining part of the purchase price being payable in cash by 31  
December 2011 at the latest and carrying interest until full payment. The       
transaction resulted in a EEK 23,845 thousand (EUR 1,524 thousand) loss in the  
consolidated results of the Group in 2009 (Note 15). Further details of the     
transaction are provided in section ‘Key events'. In accordance with the        
requirements of the International Financial Reporting Standards PTA operations  
(apparel business line) are now regarded as discontinued operations for the     
purposes of financial reporting. Accordingly, PTA's financial performance is not
consolidated in sales and expenses, but instead the consolidated loss from PTA's
business operations in the amount of EEK 12,189 thousand (EUR 779 thousand) for 
the 6 months' period ended 30 June 2009 and the loss generated by the sales     
transaction are recorded separately in the consolidated income statement as a   
loss from discontinued operations in the total amount of EEK 36,034 thousand    
(EUR 2,303 thousand).                                                           

Consolidated net profit from foreign exchange rate fluctuations amounted to EEK 
15,208 thousand (EUR 972 thousand) in 2009. SP ZAO Milavitsa accrued a foreign  
exchange gain in the amount of EEK 37,356 thousand (EUR 2,388 thousand) that was
caused partially by EUR-denominated intra-Group trading in Q1 2009, while       
Russian operations suffered a loss from foreign exchange rate fluctuations.     
Starting from April 2009, all trading to Russia is Russian Rouble denominated to
minimise unrealized foreign exchange gains and losses within the Group.         

Corporate income tax from continuing operations amounted to EEK 54,888 thousand 
(EUR 3,508 thousand) against EEK 87,777 (EUR 5,610 thousand) in the previous    
year and effective tax rate for the Group decreased significantly, though still 
remaining high. In Q4 2009 the Group recognized a deferred tax asset in its     
largest subsidiary in the amount of EEK 18,119 thousand (EUR 1,158 thousand) and
fully provided a deferred tax asset in a Russian retail company in the amount of
EEK 8,574 thousand (EUR 548 thousand). Income tax expense in 2009 was higher    
than anticipated due to taxable foreign exchange gains of SP ZAO Milavitsa.     
However, high overall effective tax rate is the temporary result of the loss    
making subsidiaries' net loss position for the reporting period, non-tax        
deductable one-off expenses discussed above and other non-tax deductable        
expenses in Belarus (mainly employee remuneration).                             

For the year 2009, consolidated net loss from continuing operations attributable
to equity holders amounted to EEK 2,582 thousand (EUR 165 thousand), compared to
net loss of EEK 111,091 thousand (EUR 7,100 thousand) in 2008 (Note 10); net    
margin from continuing operations attributable to equity holders was -0.2% (up  
from a negative margin of 7.0% in 2008). In Q4 2009, consolidated net profit    
from continuing operations attributable to equity holders amounted to EEK 5,100 
thousand (EUR 326 thousand) and demonstrated a considerable growth compared to  
the loss of EEK 157,984 (EUR 10,097 thousand) in the previous year; net margin  
from continuing operations attributable to equity holders was 2.0% against      
negative margin of 46.9% in Q4 2008.                                            

Consolidated normalised net profit from continuing operations attributable to   
equity holders (excluding one-off expenses in the amount of EEK 73,523 thousand 
(EUR 4,699 thousand)) amounted to EEK 64,387 thousand (EUR 4,115 thousand),     
compared to net loss of EEK 31,415 thousand (EUR 2,008 thousand) in 2008        
(one-off expenses in 2008 amounted to EEK 83,130 thousand (EUR 5,313 thousand));
normalised net margin from continuing operations was 5.6% (-2.0% in 2008).      

In 2009, the Group's return on equity was negative and amounted to -6.8% (-17.3%
in 2008) and return on assets was -3.8% (-10.4% in 2008).                       

Financial position                                                              

As of 31 December 2009 consolidated assets amounted to EEK 850,423 thousand (EUR
54,352 thousand) representing a decrease of 29.6% as compared to the position as
of 31 December 2008. The value of total asset base in EUR terms was             
significantly impacted by the devaluation of the Belarusian Rouble which        
depreciated against the Euro by 33.4% in 2009, decreasing the value of assets   
based in Belarus in EUR terms. Furthermore, due to the closing of the PTA sales 
transaction on 30 June 2009 and UAB “Linret LT” in November 2009, the financial 
position of PTA and UAB “Linret LT” are not consolidated as of 31 December 2009,
causing a further decrease in the assets of the Group.                          

Property, plant and intangibles balances decreased by EEK 132,448 thousand      
(EUR 8,465 thousand) as compared to 31 December 2008, the key reason being the  
impact of the foreign exchange rate in the amount of EEK 60,102 thousand (EUR   
3,841 thousand) and the sale of PTA and UAB “Linret LT” in the amount of EEK    
25,674 thousand (EUR 1,641 thousand).                                           

Trade receivables decreased by EEK 36,395 thousand (EUR 2,326 thousand) as      
compared to 31 December 2008 and amounted to EEK 131,618 thousand (EUR 8,412    
thousand) as of 31 December 2009. Payment discipline of key customers in Russia 
improved during 2009. Inventory balance decreased by EEK 168,123 thousand (EUR  
10,745 thousand) and amounted to EEK 266,289 thousand (EUR 17,019 thousand) as  
of 31 December 2009. This was partially related to the disposal of PTA; however,
a major decrease was achieved through changes in the production planning to     
adjust to the new level of the working capital resulting from decreased sales   
volumes and through the devaluation of the Belarusian Rouble which depreciated  
against the Euro by 33.4% in 2009, decreasing the value of inventories based in 
Belarus in EUR terms.                                                           

Foreign exchange fluctuations also left a negative impact on the Group's equity,
in the form of a negative change in currency translation reserve in the amount  
of EEK 128,453 thousand (EUR 8,209 thousand) for the year. On the overall basis,
equity attributable to equity holders decreased by EEK 151,391 thousand (EUR    
9,675 thousand) and amounted to EEK 489,856 thousand (EUR 31,308 thousand) as of
31 December 2009.                                                               

Current liabilities decreased by EEK 186,532 thousand (EUR 11,922 thousand) in  
2009, in line with management expectations.                                     

The liquidity position of the Group improved in 2009 with respect to the total  
balance of borrowings and related maturities. Current and non-current loans and 
borrowings decreased by EEK 106,209 thousand (EUR 6,788 thousand) to EEK 28,242 
thousand (EUR 1,805 thousand) as of 31 December 2009. Loans received and loans  
repaid in 2009 amounted to EEK 102,609 thousand (EUR 6,558 thousand) and EEK    
177,338 thousand (EUR 11,334 thousand) respectively, including finance lease    
liabilities repaid in the amount of EEK 13,722 thousand (EUR 877 thousand). PTA 
loan balance in the amount of EEK 31,606 thousand (EUR 2,020 thousand) was      
eliminated from the consolidated financial position as the result of the PTA    
sales transaction. However, as at the date of disposal PTA had two loans and an 
overdraft from Danske Bank A/S Estonian branch outstanding which were secured by
a surety provided by SFG. The surety agreement was not terminated after the PTA 
sales transaction and the balance of loans and credit line amounted to EEK      
23,423 thousand (EUR 1,497 thousand) as of 31 December 2009; however, the       
liability of the Group to Danske Bank A/S Estonian branch is in turn secured by 
a commercial pledge over PTA's assets. In January 2010 a credit line facility of
Lauma Lingerie with Unicredit Bank in Latvia was prolonged, decreasing the      
available facility's limit with the bank from EEK 21,905 thousand (EUR 1,400    
thousand) to EEK 17,211 thousand (EUR 1,100 thousand) until 31 March 2010 and to
EEK 15,647 thousand (EUR 1,000 thousand) until 30 April 2010. Information on the
maturity of current borrowings is presented in Note 8 to the summarized         
financial statements.                                                           

Tax liabilities and other payables, including payables to employees, amounted to
EEK 45,461 thousand (EUR 2,905 thousand). Provisions amounted to EEK 26,724     
thousand (EUR 1,708 thousand) as of 31 December 2009 and included provisions for
the restructuring of Russian retail operations in the amount of EEK 2,425       
thousand (EUR 155 thousand).                                                    

Sales from continuing operations                                                

Women's apparel operations were fully divested as of 31 December 2009 after the 
sale of PTA at the end of H1 2009 and are no longer part of continuing          
operations of the Group. Continuing operations include design, production and   
sale of women lingerie.                                                         

Sales by business segments                                                      

--------------------------------------------------------------------------------
|       | 2009  | 2008  | Chang | 2009   | 2008   | Change | 2009    | 2008    |
|       | EEK   | EEK   | e EEK | EUR    | EUR    | EUR    | percent | percent |
|       | thous | thous | thous | thousa | thousa | thousa | age     | age     |
|       | and   | and   | and   | nd     | nd     | nd     | from    | from    |
|       |       |       |       |        |        |        | sales   | sales   |
--------------------------------------------------------------------------------
| Whole | 869,6 | 1,188 | -318, | 55,583 | 75,936 | -20,35 | 75.1%   | 75.2%   |
| sale  | 85    | ,139  | 454   |        |        | 3      |         |         |
--------------------------------------------------------------------------------
| Retai | 270,2 | 357,3 | -87,0 | 17,275 | 22,841 | -5,566 | 23.3%   | 22.6%   |
| l     | 95    | 84    | 89    |        |        |        |         |         |
--------------------------------------------------------------------------------
| Other | 18,55 | 34,86 | -16,3 | 1,186  | 2,228  | -1,042 | 1.6%    | 2.2%    |
| opera | 7     | 0     | 03    |        |        |        |         |         |
| tions |       |       |       |        |        |        |         |         |
--------------------------------------------------------------------------------
| Total | 1,158 | 1,580 | -421, | 74,044 | 101,00 | -26,96 | 100.0%  | 100.0%  |
|       | ,537  | ,383  | 846   |        | 5      | 1      |         |         |
--------------------------------------------------------------------------------

Sales by markets                                                                

In 2009, the Group focused mainly on the Baltic, Russian, Belarusian and        
Ukrainian markets.                                                              

Total sales by markets                                                          

--------------------------------------------------------------------------------
|       | 2009  | 2008  | Chang | 2009   | 2008   | Change | 2009    | 2008    |
|       | EEK   | EEK   | e EEK | EUR    | EUR    | EUR    | percent | percent |
|       | thous | thous | thous | thousa | thousa | thousa | age     | age     |
|       | and   | and   | and   | nd     | nd     | nd     | from    | from    |
|       |       |       |       |        |        |        | sales   | sales   |
--------------------------------------------------------------------------------
| Russi | 677,4 | 898,5 | -221, | 43,295 | 57,426 | -14,13 | 58.5%   | 56.9%   |
| a     | 20    | 21    | 101   |        |        | 1      |         |         |
--------------------------------------------------------------------------------
| Belar | 306,0 | 361,1 | -55,1 | 19,558 | 23,083 | -3,525 | 26.4%   | 22.9%   |
| us    | 16    | 69    | 53    |        |        |        |         |         |
--------------------------------------------------------------------------------
| Ukrai | 61,74 | 100,2 | -38,5 | 3,946  | 6,409  | -2,463 | 5.3%    | 6.3%    |
| ne    | 1     | 79    | 38    |        |        |        |         |         |
--------------------------------------------------------------------------------
| Balti | 54,65 | 114,6 | -59,9 | 3,493  | 7,326  | -3,833 | 4.7%    | 7.3%    |
| cs    | 4     | 27    | 73    |        |        |        |         |         |
--------------------------------------------------------------------------------
| Other | 58,70 | 105,7 | -47,0 | 3,752  | 6,761  | -3,009 | 5.1%    | 6.6%    |
| marke | 6     | 87    | 81    |        |        |        |         |         |
| ts    |       |       |       |        |        |        |         |         |
--------------------------------------------------------------------------------
| Total | 1,158 | 1,580 | -421, | 74,044 | 101,00 | -26,96 | 100.0%  | 100.0%  |
|       | ,537  | ,383  | 846   |        | 5      | 1      |         |         |
--------------------------------------------------------------------------------

The majority of lingerie sales revenue in 2009 in the amount of EEK 677,420     
thousand (EUR 43,295 thousand) was generated in the Russian market, accounting  
for 58.5% of all lingerie sales in 2009 as compared to EEK 898,521 thousand (EUR
57,426 thousand) in 2008. Sales in Russia comprise both retail sales and        
wholesale. The second largest region for lingerie sales was Belarus, where sales
reached EEK 306,016 thousand (EUR 19,558 thousand), contributing 26.4% of       
lingerie sales (both retail and wholesale) as compared to EEK 361,169 thousand  
(EUR 23,083 thousand) in 2008.                                                  

Although still affected by the economic situation and the devaluation of the    
local currencies, sales in the major markets demonstrated positive trend in     
terms of pieces sold in Q4 2009 as compared to the respective period in 2008. As
the result, in the Group's largest subsidiary SP ZAO Milavitsa, sales in Q4 2009
improved in volume terms as compared to Q4 2008; however, sales decreased in    
monetary terms due to increased proportion of cheaper products in the sales and 
additional discounts introduced in H2 2009. In Q4 2009 the Group suffered from  
customer traffic slowdown attributable in part to swine flue worries and a      
relatively cold winter.                                                         

Wholesale operations improved during the year as many of the Group's Russian and
Ukrainian wholesale partners realized their excess stock levels reducing them to
the normal operational levels after being overstocked in 2008 after a sharp     
decrease in demand caused by the overall economic crisis.                       

Decrease in sales in Belarus was lower as compared to sales trends in Russia,   
Ukraine and the Baltic countries, leading to the growing share of the Belarusian
market in the total sales in 2009 as compared to the previous year. This is an  
effect of the more stable economic situation in Belarus compared to the         
neighboring countries as well as the tight control over distribution that the   
Group has developed in the country.                                             

A number of actions have been introduced to the market including additional     
marketing activities in Belarus, Ukraine and Russia and supportive measures in  
the opening of new franchised stores. Dealers and distributors were motivated to
increase their sales activities in the exchange for favorable pricing           
opportunities.                                                                  

A new order processing and reservation system introduced by Milavitsa at the end
of Q2 allowed trading partners broader access to the Group's stock, speedier    
packing and delivery. As the result Milavitsa managed to reach 2008 sales level 
in terms of units sold during summer months and exceed last year's level in Q4  
2009.                                                                           

Changes in the top management of the Group's Russian operations took place in   
the second half of 2009 in order to execute a new sales strategy in that core   
market and improve corporate governance of the Russian subsidiaries of the      
Group. Changes in the sales strategy were introduced to the trading partners in 
late September and later developed and presented to the trading partners in     
December. The Group targets increased control over its distribution and intends 
to adjust its organizational structure accordingly.                             

In terms of lingerie brands, the sales of “Milavitsa” core brand accounted for  
74.4% of total lingerie sales revenue in 2009 (2008: 76.1%) and amounted to EEK 
848,139 thousand (EUR 54,206 thousand). The sales of “Lauma Lingerie” core brand
accounted for 5.3% of total lingerie sales (2008: 5.7%) and amounted to EEK     
60,412 thousand (EUR 3,861 thousand). Other brands such as “Alisee”, “Aveline”, 
“Hidalgo” and “Laumelle” comprised 20.3% of total lingerie sales in 2009 (2008: 
18.2%), amounting to EEK 231,429 thousand (EUR 14,791 thousand) mainly due to   
the growth of sales of lower priced goods under “Aveline” brand.                

Wholesale                                                                       

In 2009, wholesale revenue amounted to EEK 869,685 thousand (EUR 55,583         
thousand), representing 75.1% of the Group's total revenue (2008: 75.2%). The   
main wholesale regions were Russia, Belarus, Ukraine and the Baltic States.     
Gradual improvements in sales were observed already in Q2 2009. Furthermore, the
second half of 2009 demonstrated an increase in lingerie wholesale revenue of   
5.6% as compared to the first half of 2009 as many of the Milavitsa's Russian   
and Ukrainian wholesale partners had adjusted their working capital levels to   
the new market and trading circumstances caused by the crisis at the end of     
2008. Most of the lingerie wholesale partners are located in Russia, a key      
market for the Group.                                                           

A new channel of distribution was introduced in Ukraine by Milavitsa in late    
2008 and early 2009. The channel allowed the Group to offset the sharp decrease 
in sales caused by the economic crisis and the inability of the old distribution
network to address the new circumstances. Although still below the 2008 level,  
sales in the Ukrainian market demonstrated positive trends in Q2 and Q3 2009. Q4
2009, however, saw a slowdown in Ukrainian sales caused by the difficult        
economic situation in the country, flue quarantine in some shopping centres and 
pre-election uncertainty.                                                       

Lauma Lingerie experienced a sharp reduction in sales in their major markets    
being affected by the crisis to a greater extent due to its higher pricing      
positioning and inability of the distribution partners to meet current market   
conditions. Certain changes in the management of the company were made to       
address the market realities. Lauma Lingerie is in the process of implementing a
revised sales strategy for its core markets including Russia, Ukraine and the   
Baltics.                                                                        

Retail operations                                                               

Total lingerie retail sales of the Group in 2009 amounted to EEK 270,295        
thousand (EUR 17,275 thousand), representing a 24.4% decrease as compared to    
2008.                                                                           

Lingerie retail operations were conducted in Latvia, Russia, Belarus, and       
Lithuania. At the end of 2009 the Group operated 64 own retail outlets with a   
total area of 5,523 square meters. Additionally as of 31 December 2009 there    
were more than 250 Milavitsa branded shops operated by Milavitsa trading        
partners in Russia, Belarus, Ukraine, Moldavia, Kazakhstan, Uzbekistan,         
Kirgizstan, Latvia, Romania, Azerbaijan, Armenia, Portugal and Cyprus, of which 
10 shops were opened in Q4.                                                     

In 2009 17 new own lingerie stores were opened, including 12 under Milavitsa    
name in Belarus, 2 stores under Lauma Lingerie brand name in Latvia, 1 under    
Yamamay and 2 under Jockey brand names in Lithuania. Yamamay and Jockey shops   
along with other shops in Lithuania were subsequently sold as a result of the   
disposal by the Group of all its shares in UAB “Linert LT” in November 2009.    
Further details of the transaction are provided in section ‘Key events'.        
Additionally, 33 underperforming stores were closed: 13 PTA stores, 15 Oblicie  
stores and 3 Milavitsa stores in Russia, 2 Milavitsa stores in Belarus. 18      
Oblicie stores in Russia were rebranded to Milavitsa.                           

Number of own stores as at:                                                     

--------------------------------------------------------------------------------
|                         | 31.12.2009              | 31.12.2008               |
--------------------------------------------------------------------------------
| Latvia                  | 5                       | 3                        |
--------------------------------------------------------------------------------
| Poland                  | 0                       | 7                        |
--------------------------------------------------------------------------------
| Belarus                 | 38                      | 28                       |
--------------------------------------------------------------------------------
| Russia                  | 21                      | 52                       |
--------------------------------------------------------------------------------
| Lithuania               | 0                       | 16                       |
--------------------------------------------------------------------------------
| Total stores            | 64                      | 106                      |
--------------------------------------------------------------------------------
| Total sales area, sq m  | 5,523                   | 9,549                    |
--------------------------------------------------------------------------------

In Belarus, two ineffective stores were closed and 12 new Milavitsa stores were 
opened, adding to the growth of the retail sales in the country. A number of    
sales promotions were conducted in the Milavitsa retail chain. Own retail       
operations in Belarus remain one of the key priorities for the Group's further  
sales development in Belarus.                                                   
In the Baltics, retail sales decreased by 31.4% as compared to 2008, amounting  
to EEK 19,214 thousand (EUR 1,228 thousand). The decision to divest the Group's 
retail subsidiary in Lithuania was taken in H2 2009 due to adverse current      
market situation and its prospects.                                             

In respect of lingerie retail in Russia the strategic decision to shift focus   
from own retail chain towards the development of Milavitsa franchise network was
made in H2 2009 to terminate the loss making own retail operations in Russia. As
the result, the Group's own Oblicie stores were rebranded to Milavitsa and a    
transfer of stores to Milavitsa trading partners was commenced while            
non-performing stores are being closed. Certain structural and management       
changes have been made in the Group's Russian operations (including the         
establishment of a separate franchise department and the recruitment of the new 
experienced general manager) to implement the selected strategy.                

Own stores by concept                                                           

--------------------------------------------------------------------------------
| Market     | Milavitsa  | Oblicie    | Lauma      | Total      | Sales area, |
|            | stores     | stores     | Lingerie   |            | sq m        |
|            |            |            | stores     |            |             |
--------------------------------------------------------------------------------
| Belarus    | 38         | 0          | 0          | 38         | 3,411       |
--------------------------------------------------------------------------------
| Russia     | 19         | 2          | 0          | 21         | 1,754       |
--------------------------------------------------------------------------------
| Latvia     | 0          | 0          | 5          | 5          | 358         |
--------------------------------------------------------------------------------
| Total      | 57         | 2          | 5          | 64         | 5,523       |
--------------------------------------------------------------------------------

Discontinued operations                                                         

Discontinued operations' results include operations of PTA (apparel business    
line) for 6 months' period ended 30 June 2009. Results of PTA operations are    
presented in the consolidated income statement as a single line item under ‘Loss
from discontinued operations'.                                                  

Production, sourcing, purchasing and logistics                                  

Due to increased uncertainty in the marketplace and sharply falling demand in Q4
2008 and Q1 2009 the Group's manufacturing companies reduced their production   
and purchasing volumes in 2009. In addition, adjustments in the production      
planning process were made to adjust for changing circumstances. For example,   
the Group's largest production subsidiary SP ZAO Milavitsa switched from        
quarterly production planning to monthly planning. As the result of the         
adjustments in production and sourcing volumes as well as in the production     
planning process, the Group was able to decrease inventories to normal levels.  
Consequently, the Group's working capital position has improved significantly.  

The total volume of production in SP ZAO Milavitsa amounted to 14,303 thousand  
pieces in 2009, representing a 24.3% decrease as compared to the previous year. 
The total production volumes in Lauma Lingerie amounted to 660 thousand pieces  
in 2009, showing a decrease of 65.3% as compared to the previous year. In broad 
terms, the utilisation of own production capacities in SP ZAO Milavitsa remained
at the level of 2008, while outsourced production capacities were the major     
source for the production output decrease. However, at the end of 2009 the      
number of cooperation partners for outsourced production in Q4 2009 increased by
30% compared to Q3 2009 with majority of new contracts concluded in late        
December 2009 in order to prepare for the increased production volumes in 2010. 

In respect of logistics, the implementation of a supply chain management system 
on the basis of IFS software application is in process is planned to be         
finalised in H1 2010.                                                           

Investment                                                                      

In 2009, the Group's investments in continuing operations totalled EEK 22,750   
thousand (EUR 1,454 thousand) with investments into retail amounting to EEK     
6,478 thousand (EUR 414 thousand). Other investments were made in equipment and 
facilities to maintain effective production.                                    

Personnel                                                                       

At the end of December 2009, the Group employed 3,164 employees including 472 in
retail and 1,992 in production. The rest were employed in wholesale,            
administration and support operations. The average number of employees in 2009  
was 3,085.                                                                      

Total salaries and wages in 2009 amounted to EEK 262,597 thousand (EUR 16,783   
thousand). The remuneration of the members of the Management Board totalled EEK 
10,092 thousand (EUR 645 thousand). The members of the Management Board also    
serve as executives for the Group's subsidiaries.                               

Key Events in 2009                                                              

Changes in significant shareholdings                                            

The shareholders' register of SFG includes all legal owners of the shares but   
does not necessarily reflect the allocation of voting rights among shareholders.
However, shareholders must notify SFG of changes in allocation of voting rights 
where a shareholder increases or reduces its participation above or below 5, 10,
15, 20, 25 or 50 per cent, 1/3 or 2/3 of all votes represented by shares. Based 
on such notifications, SFG identifies the persons holding significant           
shareholdings.                                                                  

Based on the aforementioned notifications received up to date, the following    
persons held significant shareholdings in SFG based on notifications up to date:

Mr. Toomas Tool held 9,810,983 shares (24.52% of all votes) as of 28 December   
2009;                                                                           
Mr. Stephan David Balkin held 8,000,000 shares (20% of all votes) as of 23      
December 2009;                                                                  
Funds managed by Pioneer Pekao Investment Management SA held 2,065,529 shares   
(10.16% of all votes) as of 14 August 2009.                                     

During Q4 2010, the shareholding of SIA Alta Capital Partners reduced below 5%  
of all votes to 1,864,286 shares (4.66% of all votes based on notification from 
3 February 2010) and shareholdings of Mr. Toomas Tool and Mr. Stephan David     
Balkin increased as indicated above.                                            

Changes in the top management of the Group's Russian operations                 

Within the fourth quarter of 2009 Nikolay Dolgiy was appointed the general      
manager for both of the Group's largest Russian subsidiaries - ZAO “STK         
Milavitsa” and ZAO “Linret”. Mr. Dolgiy (33) is a skilled manager with over 10  
years' experience in managerial positions, primarily in the field of retail.    
From August 2009, Mr. Dolgiy worked as the first deputy general manager of STK  
responsible for sales. This appointment marked the completion of the            
restructuring of the Group's Russian operations.                                

Restructuring of Russian Retail Operations                                      

In December 2009 an action plan was approved for the restructuring of the       
Group's loss-making retail operations in Russia. The plan included the transfer 
of Milavitsa retail outlets to franchise partners and the closing of inefficient
stores. Other cost-cutting measures under the action plan included the          
optimisation of the office and warehouse lease expenses and a reduction in the  
number of employees. The decision to switch to the franchise business model in  
Russia followed similar reorganization measures in Poland and Lithuania.        

Sale of UAB “Linret LT”                                                         

In November 2009 the Group closed the sale of all its shares in UAB Linret LT.  
Linret LT was a Lithuanian retail subsidiary, operating 14 retail outlets.      

Linret LT was engaged primarily in the distribution of Lauma Lingerie and       
Milavitsa goods in Lithuania through retail chain under Amadea Line brand and   
also operated franchised stores under Jockey and Yamamay brands. Linret LT made 
a loss of EEK 9,278 thousand (EUR 593 thousand) in the first ten months of 2009.
Taking into account the decrease in consumer demand in Lithuania, and the       
overall state of the Lithuanian economy, the management was of the opinion that 
it was unlikely that Linret LT will become profitable in 2010 or will generate  
positive cash flows in the observable future.                                   

Taking into account the total investment of SFG in Linret LT, the transaction   
generated an accounting profit of approximately EEK 782 thousand (EUR 50        
thousand). The transaction is also expected to have a positive contribution to  
the Group's financial performance in the future as the result of discontinuing  
of loss-making operations. The Group intends to continue the shift to franchise 
operations in Baltics under Lauma Lingerie brand.                               
Sale of PTA Grupp AS                                                            

On 30 June 2009 the Group entered into an agreement for the sale of all shares  
in PTA held by the Group to PTA Holding OÜ for a total consideration of EEK     
15,224 thousand (EUR 973 thousand). The transaction was performed immediately   
upon signing. EEK 7,401 thousand (EUR 473 thousand) was paid on the date of the 
closing of the transaction by way of taking over certain liabilities of the     
Group and EEK 7,823 thousand (EUR 500 thousand) will be paid in cash by 31      
December 2011 at the latest, carrying interest until full payment. The          
obligation to pay the purchase price is secured by a share pledge over 100% of  
all shares in PTA in favour of the Group.                                       

PTA operates in the field of manufacture, retail and wholesale of women's       
apparel under the „PTA“ trademark. With the sale of the apparel business, the   
Group focused on its core business - design, manufacturing and sale of lingerie.
The sale enabled the Group to reallocate financial and managerial resources to  
its core operations and improve the efficiency of management. PTA made a net    
loss of EEK 12,189 thousand (EUR 779 thousand) in 6 months period ended 30 June 
2009.                                                                           
PTA Holding OÜ, the acquirer, is related to Peeter Larin (a member of the       
management board in PTA), who was a member of the management board and is a     
shareholder in PTA Holding OÜ. Therefore, the transaction was made with a       
related party within the meaning of the Tallinn Stock Exchange rules. The       
transaction was not a material transaction with a related party within the      
meaning of the Tallinn Stock Exchange rules.                                    

Changes in the composition of the Management Board                              

In Q1 2009 the Group named Ms. Baiba Gegere as the new Chief Financial Officer  
of the Group and was appointed to the Management Board of SFG by the Supervisory
Board decision adopted on 4 March 2009.                                         

In addition, in Q1 2009 SFG's Supervisory Board removed Mr. Remigiusz Pilat from
the Management Board with immediate effect in connection with the previously    
disclosed changes in the structure of SFG's Polish operations.                  

In Q2 the Supervisory Board of the Group resolved to recall the members of the  
Management Board Mr. Dmitry Podolinski and Mr. Peeter Larin and to appoint Mr.  
Norberto Rodriguez as the new member of the Management Board of the Group. Mr.  
Rodriguez joined the Group's management team as the Chief Logistics Officer in  
October 2007. His main responsibilities include the development and             
implementation of the corporate strategy in logistics. Currently Mr. Rodriguez  
also serves as a Deputy General Director at Milavitsa being responsible for     
logistics, IT, quality management and other business processes.                 

Sale of Splendo Polska Sp. z o.o.                                               

The closing of the agreement for the sale of the Company's shares (90% of the   
share capital) in Splendo Polska Sp. z o.o., a Polish retail subsidiary         
operating 6 retail outlets, was completed in October 2009. The operating results
of Splendo Polska Sp. z o.o. were not consolidated in the Group's financial     
results in 2009 and a loss related to the transaction was fully provided as of  
31 December 2008.                                                               

Selected financial data                                                         

The Group's operating results are summarised in the following figures and       
ratios:                                                                         

--------------------------------------------------------------------------------
| Key figures and ratios         | 31.12.2009    | 31.12.2008   | Change       |
--------------------------------------------------------------------------------
| Net sales from continuing      | 1,158,537     | 1,580,383    | -421,846     |
| operations (EEK thousand)      |               |              |              |
--------------------------------------------------------------------------------
| Net profit from continuing     | -2,582        | -111,091     | 108,509      |
| operations, attributable to    |               |              |              |
| shareholders (EEK thousand)    |               |              |              |
--------------------------------------------------------------------------------
| Earnings before interest,      | 94,693        | 93,175       | 1,518        |
| taxes and depreciation         |               |              |              |
| (EBITDA) from continuing       |               |              |              |
| operations (EEK thousand)      |               |              |              |
--------------------------------------------------------------------------------
| Earnings before interest and   | 60,443        | 51,649       | 8,794        |
| taxes (EBIT) from continuing   |               |              |              |
| operations (EEK thousand)      |               |              |              |
--------------------------------------------------------------------------------
| Net sales from continuing      | 74,044        | 101,005      | -26,961      |
| operations (EUR thousand)      |               |              |              |
--------------------------------------------------------------------------------
| Net profit from continuing     | -165          | -7,100       | 6,935        |
| operations, attributable to    |               |              |              |
| shareholders (EUR thousand)    |               |              |              |
--------------------------------------------------------------------------------
| Earnings before interest,      | 6,052         | 5,955        | 97           |
| taxes and depreciation         |               |              |              |
| (EBITDA) from continuing       |               |              |              |
| operations (EUR thousand)      |               |              |              |
--------------------------------------------------------------------------------
| Earnings before interest and   | 3,863         | 3,301        | 562          |
| taxes (EBIT) from continuing   |               |              |              |
| operations (EUR thousand)      |               |              |              |
--------------------------------------------------------------------------------
| Operating margin from          | 5.2%          | 3.3%         | -            |
| continuing operations, %       |               |              |              |
--------------------------------------------------------------------------------
| Net margin from continuing     | -0.2%         | -7.0%        | -            |
| operations attributable to     |               |              |              |
| equity holders, %              |               |              |              |
--------------------------------------------------------------------------------
| ROA, %                         | -3.8%         | -10.4%       | -            |
--------------------------------------------------------------------------------
| ROE, %                         | -6.8%         | -17.3%       | -            |
--------------------------------------------------------------------------------
| Earnings per share (EPS), in   | -0.97         | -2.97        | -            |
| EEK                            |               |              |              |
--------------------------------------------------------------------------------
| Earnings per share (EPS), in   | -0.06         | -0.19        | -            |
| EUR                            |               |              |              |
--------------------------------------------------------------------------------
| Current ratio                  | 2.8           | 2.1          | -            |
--------------------------------------------------------------------------------
| Quick ratio                    | 1.6           | 1.1          | -            |
--------------------------------------------------------------------------------

Underlying formulas:                                                            
Operating margin from continuing operations = operating profit from continuing  
operations / sales revenue                                                      
Net margin from continuing operations = net profit from continuing operations   
attributable to equity holders of the parent / sales revenue                    
ROA (return on assets) = net profit attributable to equity holders of the parent
/ average total assets                                                          
ROE (return on equity) = net profit attributable to equity holders of the parent
/ average equity attributable to equity holders of the parent                   
EPS (earnings per share) = net profit attributable to equity holders of the     
parent / weighted average number of ordinary shares                             
Current ratio = current assets / current liabilities                            
Quick ratio = (current assets - inventories) / current liabilities              

Consolidated statement of financial position                                    
Unaudited                                                                       

--------------------------------------------------------------------------------
|            |            | 31.12.2009 | 31.12.2008 | 31.12.2009 | 31.12.2008  |
|            |            | EEK        | EEK        | EUR        | EUR         |
|            |            | thousand   | thousand   | thousand   | thousand    |
--------------------------------------------------------------------------------
| ASSETS     |            |            |            |            |             |
--------------------------------------------------------------------------------
| Non-curren |            |            |            |            |             |
| t assets   |            |            |            |            |             |
--------------------------------------------------------------------------------
| Property,  | 1          | 168,248    | 293,530    | 10,753     | 18,760      |
| plant and  |            |            |            |            |             |
| equipment  |            |            |            |            |             |
--------------------------------------------------------------------------------
| Intangible | 2          | 8,919      | 16,085     | 570        | 1,028       |
| assets     |            |            |            |            |             |
--------------------------------------------------------------------------------
| Investment |            | 20,090     | 23,141     | 1,284      | 1,479       |
| property   |            |            |            |            |             |
--------------------------------------------------------------------------------
| Investment |            | 2,175      | 2,879      | 139        | 184         |
| s in       |            |            |            |            |             |
| equity     |            |            |            |            |             |
| accounted  |            |            |            |            |             |
| investees  |            |            |            |            |             |
--------------------------------------------------------------------------------
| Available- |            | 5,664      | 8,716      | 362        | 557         |
| for-sale   |            |            |            |            |             |
| financial  |            |            |            |            |             |
| assets     |            |            |            |            |             |
--------------------------------------------------------------------------------
| Other long | 5          | 28,039     | 26,051     | 1,792      | 1,665       |
| term       |            |            |            |            |             |
| receivable |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Total      |            | 233,135    | 370,402    | 14,900     | 23,673      |
| non-curren |            |            |            |            |             |
| t assets   |            |            |            |            |             |
--------------------------------------------------------------------------------
| Current    |            |            |            |            |             |
| assets     |            |            |            |            |             |
--------------------------------------------------------------------------------
| Inventorie | 3          | 266,289    | 434,412    | 17,019     | 27,764      |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Prepaid    |            | 30,135     | 57,689     | 1,926      | 3,687       |
| taxes      |            |            |            |            |             |
--------------------------------------------------------------------------------
| Trade      | 4          | 131,618    | 168,013    | 8,412      | 10,738      |
| receivable |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Other      | 5          | 18,260     | 46,658     | 1,167      | 2,982       |
| receivable |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Prepayment | 6          | 9,529      | 49,209     | 609        | 3,145       |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Cash and   | 7          | 153,931    | 82,129     | 9,838      | 5,249       |
| cash       |            |            |            |            |             |
| equivalent |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Assets     |            | 7,526      | 0          | 481        | 0           |
| classified |            |            |            |            |             |
| as held    |            |            |            |            |             |
| for sale   |            |            |            |            |             |
--------------------------------------------------------------------------------
| Total      |            | 617,288    | 838,110    | 39,452     | 53,565      |
| current    |            |            |            |            |             |
| assets     |            |            |            |            |             |
--------------------------------------------------------------------------------
| TOTAL      |            | 850,423    | 1,208,512  | 54,352     | 77,238      |
| ASSETS     |            |            |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIE |            |            |            |            |             |
| S AND      |            |            |            |            |             |
| EQUITY     |            |            |            |            |             |
--------------------------------------------------------------------------------
| Equity     |            |            |            |            |             |
--------------------------------------------------------------------------------
| Share      |            | 400,000    | 400,000    | 25,565     | 25,565      |
| capital    |            |            |            |            |             |
--------------------------------------------------------------------------------
| Share      |            | 223,293    | 223,293    | 14,271     | 14,271      |
| premium    |            |            |            |            |             |
--------------------------------------------------------------------------------
| Own shares |            | -7,041     | -7,041     | -450       | -450        |
--------------------------------------------------------------------------------
| Statutory  |            | 1,046      | 1,046      | 67         | 67          |
| capital    |            |            |            |            |             |
| reserve    |            |            |            |            |             |
--------------------------------------------------------------------------------
| Translatio |            | -186,539   | -58,086    | -11,922    | -3,713      |
| n reserve  |            |            |            |            |             |
--------------------------------------------------------------------------------
| Retained   |            | 59,097     | 82,035     | 3,777      | 5,243       |
| earnings   |            |            |            |            |             |
--------------------------------------------------------------------------------
| Total      | 11         | 489,856    | 641,247    | 31,308     | 40,983      |
| equity     |            |            |            |            |             |
| attributab |            |            |            |            |             |
| le to      |            |            |            |            |             |
| equity     |            |            |            |            |             |
| holders of |            |            |            |            |             |
| the parent |            |            |            |            |             |
--------------------------------------------------------------------------------
| Non-contro |            | 136,141    | 141,977    | 8,701      | 9,074       |
| lling      |            |            |            |            |             |
| interest   |            |            |            |            |             |
--------------------------------------------------------------------------------
| Total      |            | 625,997    | 783,224    | 40,009     | 50,057      |
| equity     |            |            |            |            |             |
--------------------------------------------------------------------------------
| Non-curren |            |            |            |            |             |
| t          |            |            |            |            |             |
| liabilitie |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Loans and  | 8          | 4,052      | 18,197     | 259        | 1,163       |
| borrowings |            |            |            |            |             |
--------------------------------------------------------------------------------
| Deferred   |            | 0          | 201        | 0          | 13          |
| tax        |            |            |            |            |             |
| liabilitie |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Other      |            | 1,455      | 1,314      | 93         | 84          |
| liabilitie |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Provisions |            | 0          | 125        | 0          | 8           |
--------------------------------------------------------------------------------
| Total      |            | 5,507      | 19,837     | 352        | 1,268       |
| non-curren |            |            |            |            |             |
| t          |            |            |            |            |             |
| liabilitie |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Current    |            |            |            |            |             |
| liabilitie |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Loans and  | 8          | 24,190     | 116,254    | 1,546      | 7,430       |
| borrowings |            |            |            |            |             |
--------------------------------------------------------------------------------
| Trade      |            | 123,999    | 167,951    | 7,925      | 10,734      |
| payables   |            |            |            |            |             |
--------------------------------------------------------------------------------
| Corporate  |            | 3,552      | 4,006      | 227        | 256         |
| income tax |            |            |            |            |             |
| liability  |            |            |            |            |             |
--------------------------------------------------------------------------------
| Other tax  |            | 24,831     | 18,150     | 1,587      | 1,160       |
| liabilitie |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Deferred   |            | 0          | 0          | 0          | 0           |
| tax        |            |            |            |            |             |
| liability  |            |            |            |            |             |
--------------------------------------------------------------------------------
| Other      | 9          | 14,270     | 27,584     | 912        | 1,763       |
| payables   |            |            |            |            |             |
--------------------------------------------------------------------------------
| Provisions |            | 26,724     | 70,817     | 1,708      | 4,526       |
--------------------------------------------------------------------------------
| Accrued    |            | 704        | 689        | 45         | 44          |
| expenses   |            |            |            |            |             |
--------------------------------------------------------------------------------
| Deferred   |            | 649        | 0          | 41         | 0           |
| income     |            |            |            |            |             |
--------------------------------------------------------------------------------
| Total      |            | 218,919    | 405,451    | 13,991     | 25,913      |
| current    |            |            |            |            |             |
| liabilitie |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| Total      |            | 224,426    | 425,288    | 14,343     | 27,181      |
| liabilitie |            |            |            |            |             |
| s          |            |            |            |            |             |
--------------------------------------------------------------------------------
| TOTAL      |            | 850,423    | 1,208,512  | 54,352     | 77,238      |
| LIABILITIE |            |            |            |            |             |
| S AND      |            |            |            |            |             |
| EQUITY     |            |            |            |            |             |
--------------------------------------------------------------------------------

Consolidated statement of comprehensive income for 2009                         
Unaudited                                                                       

--------------------------------------------------------------------------------
|             |           | 2009 EEK   | 2008 EEK   | 2009 EUR   | 2008 EUR    |
|             |           | thousand   | thousand   | thousand   | thousand    |
|             |           |            | (restated) |            | (restated)  |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing  |           |            |            |            |             |
| operations  |           |            |            |            |             |
--------------------------------------------------------------------------------
| Net sales   | 12        | 1,158,537  | 1,580,383  | 74,044     | 101,005     |
--------------------------------------------------------------------------------
| Costs of    |           | -654,998   | -932,052   | -41,862    | -59,569     |
| goods sold  |           |            |            |            |             |
--------------------------------------------------------------------------------
| Gross       |           | 503,539    | 648,331    | 32,182     | 41,436      |
| Profit      |           |            |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other       |           | 18,995     | 33,625     | 1,214      | 2,149       |
| operating   |           |            |            |            |             |
| income      |           |            |            |            |             |
--------------------------------------------------------------------------------
| Distributio |           | -179,373   | -262,221   | -11,464    | -16,759     |
| n costs     |           |            |            |            |             |
--------------------------------------------------------------------------------
| Administrat |           | -160,002   | -196,255   | -10,226    | -12,543     |
| ive         |           |            |            |            |             |
| expenses    |           |            |            |            |             |
--------------------------------------------------------------------------------
| Other       |           | -122,716   | -171,831   | -7,843     | -10,982     |
| operating   |           |            |            |            |             |
| expenses    |           |            |            |            |             |
--------------------------------------------------------------------------------
| Operating   |           | 60,443     | 51,649     | 3,863      | 3,301       |
| profit      |           |            |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest    |           | -8,246     | -2,832     | -527       | -181        |
| expenses    |           |            |            |            |             |
--------------------------------------------------------------------------------
| Gains/losse |           | 15,208     | -61,851    | 972        | -3,953      |
| s on        |           |            |            |            |             |
| conversion  |           |            |            |            |             |
| of foreign  |           |            |            |            |             |
| currencies  |           |            |            |            |             |
--------------------------------------------------------------------------------
| Other       |           | 9,560      | 6,681      | 611        | 427         |
| financial   |           |            |            |            |             |
| income /    |           |            |            |            |             |
| expenses    |           |            |            |            |             |
--------------------------------------------------------------------------------
| Total       |           | 16,522     | -58,002    | 1,056      | -3,707      |
| financial   |           |            |            |            |             |
| income /    |           |            |            |            |             |
| expenses    |           |            |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of    |           | -313       | 1,752      | -20        | 112         |
| profit of   |           |            |            |            |             |
| equity      |           |            |            |            |             |
| accounted   |           |            |            |            |             |
| investees   |           |            |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit      |           | 76,652     | -4,601     | 4,899      | -294        |
| before      |           |            |            |            |             |
| corporate   |           |            |            |            |             |
| income tax  |           |            |            |            |             |
--------------------------------------------------------------------------------
| Corporate   |           | -54,888    | -87,777    | -3,508     | -5,610      |
| income tax  |           |            |            |            |             |
--------------------------------------------------------------------------------
| Profit from |           | 21,764     | -92,378    | 1,391      | -5,904      |
| continuing  |           |            |            |            |             |
| operations  |           |            |            |            |             |
--------------------------------------------------------------------------------
| Discontinue |           |            |            |            |             |
| d           |           |            |            |            |             |
| operations  |           |            |            |            |             |
--------------------------------------------------------------------------------
| Loss from   |           | -36,034    | -7,870     | -2,303     | -503        |
| discontinue |           |            |            |            |             |
| d operation |           |            |            |            |             |
| (net of     |           |            |            |            |             |
| income tax) |           |            |            |            |             |
--------------------------------------------------------------------------------
| Profit/     |           | -14,270    | -100,248   | -912       | -6,407      |
| (loss) for  |           |            |            |            |             |
| the period  |           |            |            |            |             |
--------------------------------------------------------------------------------
| Profit      |           |            |            |            |             |
| attributabl |           |            |            |            |             |
| e to:       |           |            |            |            |             |
--------------------------------------------------------------------------------
| Owners of   |           | -38,616    | -118,961   | -2,468     | -7,603      |
| the Company |           |            |            |            |             |
--------------------------------------------------------------------------------
| Non-control |           | 24,346     | 18,713     | 1,556      | 1,196       |
| ling        |           |            |            |            |             |
| interest    |           |            |            |            |             |
--------------------------------------------------------------------------------
| Profit for  |           | -14,270    | -100,248   | -912       | -6,407      |
| the period  |           |            |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings    |           |            |            |            |             |
| per share   |           |            |            |            |             |
--------------------------------------------------------------------------------
| Basic       | 10        | -0.97      | -2.97      | -0.06      | -0.19       |
| earnings    |           |            |            |            |             |
| per share   |           |            |            |            |             |
| (EEK/EUR)   |           |            |            |            |             |
--------------------------------------------------------------------------------
| Diluted     | 10        | -0.97      | -2.97      | -0.06      | -0.19       |
| earnings    |           |            |            |            |             |
| per share   |           |            |            |            |             |
| (EEK/EUR)   |           |            |            |            |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing  |           |            |            |            |             |
| operations  |           |            |            |            |             |
--------------------------------------------------------------------------------
| Basic       | 10        | -0.07      | -2.78      | -0.004     | -0.18       |
| earnings    |           |            |            |            |             |
| per share   |           |            |            |            |             |
| (EEK/EUR)   |           |            |            |            |             |
--------------------------------------------------------------------------------
| Diluted     | 10        | -0.07      | -2.78      | -0.004     | -0.18       |
| earnings    |           |            |            |            |             |
| per share   |           |            |            |            |             |
| (EEK/EUR)   |           |            |            |            |             |
--------------------------------------------------------------------------------

Consolidated statement of comprehensive income for 2009                         
Unaudited                                                                       

--------------------------------------------------------------------------------
|            |            | 2009 EEK   | 2008 EEK   | 2009 EUR   | 2008 EUR    |
|            |            | thousand   | thousand   | thousand   | thousand    |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Profit for  |            | -14,270    | -100,248   | -912       | -6,407     |
| the period  |            |            |            |            |            |
--------------------------------------------------------------------------------
| Other       |            |            |            |            |            |
| comprehensi |            |            |            |            |            |
| ve income   |            |            |            |            |            |
--------------------------------------------------------------------------------
| Foreign     |            | -158,525   | 23,840     | -10,131    | 1,523      |
| currency    |            |            |            |            |            |
| translation |            |            |            |            |            |
| differences |            |            |            |            |            |
| for foreign |            |            |            |            |            |
| operations  |            |            |            |            |            |
--------------------------------------------------------------------------------
| Disposal of |            | 16,820     | 0          | 1,075      | 0          |
| subsidiary  |            |            |            |            |            |
--------------------------------------------------------------------------------
| Non-control |            | 0          | 94         | 0          | 6          |
| ling        |            |            |            |            |            |
| interest    |            |            |            |            |            |
| from        |            |            |            |            |            |
| business    |            |            |            |            |            |
| combination |            |            |            |            |            |
--------------------------------------------------------------------------------
| Other       |            | -141,705   | 23,934     | -9,056     | 1,529      |
| comprehensi |            |            |            |            |            |
| ve income   |            |            |            |            |            |
| for the     |            |            |            |            |            |
| period      |            |            |            |            |            |
--------------------------------------------------------------------------------
| Total       |            | -155,975   | -76,314    | -9,968     | -4,878     |
| comprehensi |            |            |            |            |            |
| ve income   |            |            |            |            |            |
--------------------------------------------------------------------------------
| Total       |            |            |            |            |            |
| comprehensi |            |            |            |            |            |
| ve income   |            |            |            |            |            |
| attributabl |            |            |            |            |            |
| e to:       |            |            |            |            |            |
--------------------------------------------------------------------------------
| Owners of   |            | -151,391   | -85,467    | -9,675     | -5,463     |
| the Company |            |            |            |            |            |
--------------------------------------------------------------------------------
| Non-control |            | -4,584     | 9,153      | (293)      | 585        |
| ling        |            |            |            |            |            |
| interest    |            |            |            |            |            |
--------------------------------------------------------------------------------
| Total       |            | -155,975   | -76,314    | -9,968     | -4,878     |
| comprehensi |            |            |            |            |            |
| ve income   |            |            |            |            |            |
--------------------------------------------------------------------------------

 
____________________________
Dmitry Ditchkovsky
Chairman of the Management Board
26 February 2010



 
____________________________
Sergei Kusonski
Member of the Management Board
26 February 2010

 
___________________________
Baiba Gegere
Member of the Management Board
26February 2010


 
___________________________
Norberto Rodriguez
Member of the Management Board
26 February 2010