Börsiteade

Pealkiri

SALES RESULTS FOR THE YEAR 2010 AND THE FOURTH QUARTER

Teade

The non-audited sales revenue of the Tallinna Kaubamaja Group for the year 2010
was 402.8 million euros (6.3 billion kroons), including sales worth 109.8
million euros (1.7 billion kroons) in the fourth quarter. In the year 2009, the
sales revenue was 408.3 million euros (6.4 billion kroons) and 104.4 million
euros (1.6 billion kroons) of it was received in the fourth quarter. During the
year, the sales revenue decreased by 1.3%, but increased by 5.2% in the fourth
quarter. The sales tax, levied in Tallinn since June, reduced the sales revenue
of the year by 1.2 million euros (18.4 million kroons). 



The consolidated sales revenue for the business segment of supermarkets for the
year 2010 was 300.2 million euros (4.7 billion kroons), having dropped by 1.4%
in comparison to the period of the previous year. The sales revenue for the
fourth quarter was 79.2 million euros (1.2 billion kroons), having increased by
2.7% compared to the same period of the previous year. In 2010, the
consolidated sales revenue per square metre of selling space was an average of
364 euros (5.7 thousand kroons) per month, growing by 6.4% compared to 2009. In
the fourth quarter, the sales revenue per square metre of selling space was an
average of 383 euros (6.0 thousand kroons) per month, growing by 13.7% compared
to the same period of the previous year. 

The sales revenue of the business segment of supermarkets in Estonia for the
year 2010 was 300.2 million euros (4.7 billion kroons), exceeding the sales
revenue of the year 2009 by 1.7%. The sales revenue of the fourth quarter
amounted to 79.2 million euros (1.2 billion kroons), exceeding the comparable
period of the previous year by 4.6%. The sales revenue per square metre of
selling space was an average of 364 euros (5.7 thousand kroons) per month in
the year 2010 and 383 euros (6.0 thousand kroons) in the fourth quarter,
indicating a decrease of 0.8% and an increase of 2.4%, respectively, compared
to the same periods of the previous year. In comparable stores, the sales
revenue per a square metre of selling space was an average of 364 euros (5.7
thousand kroons) per month in the year 2010, having dropped by 0.6% compared to
the reference base. In the Selvers located in Estonia, the number of purchases
made in 2010 amounted to 33.3 million, exceeding the number of purchases made
during the period of the previous year by 0.8%. 

The sales results of the year were positively influenced by a rise in the
number of clients, successful marketing activities and sales campaigns. The
average size of the shopping cart has increased. This has been promoted by a
rise in consumer confidence, but also by the overall increase in the price of
food products that has occurred in Estonia. The sales revenue has been
negatively affected by tightened competition in some regions, difference in the
VAT rates of the accounting year and the reference year and the levy of the
sales tax in Tallinn since June. 

As a result of closing its stores in Latvia, Selver did not have any sales
revenue in Latvia in the fourth quarter. In 2010, the sales revenue in Latvia
was 10 thousand euros (0.2 million kroons), compared to the 9.7 million euros
(152.2 million kroons) of the same period of the previous year. 

This year, one new Selver store was opened in Estonia. As of the end of the
year, the Selver chain included 35 stores and a central kitchen. 

In 2010, the sales revenue of the business segment of department stores was
73.7 million euros (1,153.4 million kroons), having decreased by 3.6% compared
to the same period of the previous year. This included the sales revenue of the
fourth quarter, amounting to 22.4 million euros (350.9 million kroons), which
was higher by 2.1% compared to the same period of the previous year. The sales
revenue of the fourth quarter was influenced by the Christmas sales which were
more successful that in the year before and which already started in November.
The reference base for the sales revenue of the year 2010 of the segment of
department stores was influenced by significantly more forceful discount
campaigns in the year 2009. In September 2010, OÜ TKM Beauty Eesti, which
manages the I.L.U. cosmetic stores, opened its fourth I.L.U. store in the
Kristiine Centre. The sales revenue for the chain in the year 2010 amounted to
a total of 2.2 million euros (34.1 million kroons), of which the sales revenue
of the fourth quarter made up 0.8 million euros (12.6 million kroons). During
the comparable periods of the year 2009, the sales revenue was 0.8 million
euros (12.0 million kroons) and 0.5 million euros (7.6 million kroons),
respectively. For the first ten months of 2009, the company operated with one
store, and two more were added in November - in Lõunakeskus Centre in Tartu and
in Rocca Al Mare Centre in Tallinn, respectively. 

The external sales revenue of the real estate business segment was 2.5 million
euros (38.8 million kroons) for the year 2010 and 0.6 million euros (9.6
million kroons) for the fourth quarter. Compared to the same periods of the
previous year, the sales revenue has decreased by 9.0% for the whole year and
7.4% for the fourth quarter. Such a drop was caused by the decrease in rental
activities in Latvia and some lowering of rental prices in Estonia. 

The sales revenue for the vehicle segment in the year 2010, not counting the
transactions between segments, was 13.0 million euros (202.7 million kroons),
remaining 2.5% lower than the same period of the previous year. The sales
revenue for the fourth quarter was 3.5 million euros (54.9 million kroons),
which is 88.5% larger than the sales revenue for the same period of the
previous year. Baltic car market grew by 67% in the fourth quarter. In the
fourth quarter, 216 KIA vehicles were registered in the Baltic States - only 77
KIA vehicles were registered in the same period of the previous year. During
the whole year, 722 KIA vehicles were registered, i.e. 15.4% less than in 2009. 

The consolidated sales revenue for the footwear retail segment in the year 2010
amounted to 13.5 million euros (211.0 million kroons). In comparison to the
year 2009, the sales revenue grew by 17.4%. The sales revenue for the fourth
quarter of the year 2010 was 4.1 million euros (64.0 million kroons), having
increased by 46.9% compared to the same period of the year 2009. The increase
in the turnover of the year 2010 was most promoted by the launching of a new
chain with an affordable price range to the Estonian footwear market - the SHU
chain. Today, the chain operates as many as 12 stores all over Estonia and has
gained the favour of consumers everywhere. Along with ABC King and Nero, it
enables the Kaubamaja Group to offer the largest selection of footwear and
accessories in Estonia, while considering the needs of all consumer segments.
The increase of the turnover in the fourth quarter can be largely attributed to
the successful sale of winter goods. The consumers also welcomed the new autumn
sales campaign in the SHU footwear chain. The opening of new SHU and ABC King
stores in the Tartu Kaubamaja Centre and the extension of Kristiine Centre in
the autumn of 2010 also had an impact on the increase of the turnover. At the
end of the fourth quarter, the Suurtüki stores in DeLange Centre in Pärnu and
Jewe Centre in Jõhvi were closed. As of the end of December, Suurtüki NK
managed 14 stores in Estonia, ABC King managed 11 stores in Estonia and ABC
King SIA managed 3 stores in Latvia. 


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