Börsiteade

Pealkiri

2010 IV quarter and 12 month consolidated interim report (unaudited)

Teade

Nordecon Group publishes its 2010 IV quarter and 12 month consolidated
unaudited interim report 

Tallinn, Estonia, 2011-02-21 16:00 CET (GLOBE NEWSWIRE) --

Correction to the disclosed amounts in preliminary financial results published
on 10 February 2011 

Cash and cash equivalents and short term interest bearing liabilities contained
sums form one of Nordecon Group's unused credit line. The unused facility of
9,793 thousand kroons (626 thousand euros) should not be recognised as a
balance sheet item. The correct cash and cash equivalents and short term
interest bearing liabilities are 91,018 thousand kroons (5,818 thousand euros)
and 272,053 thousand kroons (17,388 thousand euros) respectively. 



Directors' report

The Group's strategy and objectives

The Group's revised strategy for 2010-2013

In July 2010 the board of Nordecon AS (from 1 January 2010, the business name
of the Group's parent company is Nordecon AS) submitted its proposals for
revising the Group's strategy for review and approval by the council. The
council approved the suggested changes at a meeting held on 10 September 2010. 

The board is of the opinion that in forthcoming years, the Group should focus
on its core business in its main market, Estonia, where Nordecon is represented
in almost all construction segments and can rely on extensive local experience.
In order to adapt to changes in the external environment, the Group will have
to continue restructuring its operations, improving profitability by effective
cost management, and creating opportunities for successfully entering the
growth phase of the construction market (also in its target foreign markets). 

According to the board's proposal, until 2013 (inclusive) the Group will focus
on achieving the above. The strategy for the next three years will have to
support the Group's recovery from the slump and prepare ground for seizing the
opportunities provided by the growth of the construction market that is
anticipated to emerge in 2012. 

In the next few years, revenue growth will not be a priority for the Group
because this would assume taking unjustified risks at margins that are
unnaturally low for the construction market. 

Nordecon Group's main strategic objectives until 2013

  -- To complete adjustments to the Group's structure and governance that were
     launched in 2009 in order to secure profitable and rapid growth in the rise
     phase of the market
  -- To operate in Latvia, Lithuania and Belarus on a project basis, assuming
     that this is profitable
  -- To continue buildings construction operations in Ukraine in line with the
     former strategy but to decide the need for revising the strategy in light
     of the current downturn in the Ukrainian construction sector in the first
     quarter of 2011 at the latest
  -- To maintain preparedness for re-launching more active operations in foreign
     markets (as a general contractor) as soon as the situation in the
     construction market has become sufficiently supportive
  -- To penetrate the Finnish concrete works market (as a contractor) through a
     subsidiary in order to support development of the business line
  -- To become the leading construction group in Estonia that earns half of its
     revenue from infrastructure and the other half from buildings construction
     by the end of 2013

The key theme of the strategy for 2010-2013 is “To respond to market change
swiftly and flexibly and to enter the next economic growth cycle successfully” 

Significant changes in the Group's structure in 2010 and 2011

In a meeting held on 10 September 2010, the council of Nordecon AS resolved to
approve the board's proposal for combining Nordecon AS (at the date of the
decision Nordecon International AS), Nordecon Infra AS and Nordecon Ehitus AS
by signing a corresponding merger agreement. 

The board of Nordecon AS made the merger proposal based on its vision of the
changes required in the Group's strategy for 2010-2013. According to the
board's vision, in a situation of declining business volumes the Group should
also redesign and streamline its management model. The merger of the three
companies will provide a shorter and more flexible chain of command and should
yield cost savings of at least 15.6 million kroons (1 million euros) in 2011. 

The companies signed the merger agreement on 4 October 2010. The merger was
approved by the shareholders of Nordecon AS at an extraordinary general meeting
that convened on 19 November 2010. Among other matters, the general meeting
decided to change the company's business name. The new name, Nordecon AS, took
effect as from the entry of the merger in the commercial registry. The merger
entries were made on 31 December 2010. 

After the registration of the merger, Nordecon Infra AS and Nordecon Ehitus AS
were deemed dissolved. As from 2011 their investments in their stand-alone
subsidiaries are held by the combined entity Nordecon AS. The merger did not
change the business profile of the Nordecon construction group that will
continue operating in all its previous operating segments. 



Changes in the Group's business operations in 2010

Changes in the Group's Estonian operations

In 2010, the Group's Estonian operations did not change significantly compared
with 2009. From the beginning of 2010 the Group conducted its core business
through two subgroups - Nordecon Ehitus AS and Nordecon Infra AS - specialising
in buildings and infrastructure construction respectively. No new operating
segments were created. The Group's parent Nordecon AS (formerly Nordecon
International AS) acted mostly as a holding company, providing the Group with
strategic management and intra-Group support services. At the end of 2010,
Nordecon Ehitus AS and Nordecon Infra AS were merged with the parent Nordecon
AS (for further information, refer to the chapter Significant changes in the
Group's structure in 2010 and 2011). The merger did not cause any changes in
the operating segments of Nordecon Group. 

Changes in the Group's foreign operations

Latvia

The Group entered the Latvian market at the beginning of 2007 when the
acquisition of the subsidiary OÜ Kaurits provided it with a stake in a Latvian
associate, SIA Abagars (later renamed Nordecon Infra SIA). In order to avoid
subsequent conflicts of interest, the Group acquired the majority shareholding
in the Latvian entity in May 2008. The core business of the Latvian company was
construction of water and wastewater networks. Business volumes in Latvia grew
swiftly and the company secured and delivered several large public procurement
projects. However, over-rapid growth resulted in an accumulation of operational
risks which in combination with drastic changes in the economic environment
caused the company to incur losses in the second half of 2009. The overall
deterioration in the Latvian economy caused difficulties in collecting payments
from customers including counter-parties related to the state and local
government. 

As a result, in February 2010 the board of Nordecon AS resolved to divest the
Group's entire 56% interest in Nordecon Infra SIA because it was evident that
in the next few years the entity would be operating with a loss. The stake was
sold to an individual (a non-controlling shareholder). After the transaction,
the Group does not have any ownership interests in companies domiciled in
Latvia. The financial aspects of the transaction are described in more detail
in note 4 to the interim financial statements. 

In the forthcoming years, the Group will continue operating in Latvia on a
project basis through its Estonian entities, involving partners where
necessary. However, this assumes the availability of profitable projects. 

Belarus

The Group has signed a contract with a Finnish food industry company for the
construction of a factory in Belarus. The project is performed through the
Group's wholly-held Belarusian subsidiary Eurocon Stroi IOOO whose
establishment was completed in January 2010. At the moment, this is the Group's
only project in Belarus. The Group used a similar strategy, i.e. contracts
tendered by well-known Nordic or Baltic companies, for penetrating the
Ukrainian market more than twelve years ago. The Group is not holding any
negotiations regarding other projects and according to the development strategy
penetrating the Belarusian market more extensively in 2011 is not a priority.
The current year and the above project will serve as a basis for getting to
know the market and conducting further analyses. 

Ukraine

There were no significant changes in the Group's Ukrainian operations compared
with the end of 2009. The Group continued operating in the buildings segment
with a focus on private sector customers. The Group's Ukrainian operations may
change in 2011 because in the first quarter the Group will decide how it will
respond to the slump prevailing in the Ukrainian market. 

Finland

The Group's subsidiary Nordecon Betoon OÜ has been seeking opportunities for
winning concrete works contracts in Finland since the end of 2009. For this, in
the first half of 2010 a Finnish subsidiary, Estcon OY, was acquired from the
parent. The Group undertook the transaction to support the development of its
concrete works business line. 



Financial review

Margins

Nordecon Group ended 2010 with a gross loss of 8.2 million kroons (0.5 million
euros) compared with a gross profit of 136.3 million kroons (8.7 million euros)
earned in 2009. The loss from the Group's operating activities resulted mainly
from the recognition of losses incurred on projects secured before the input
prices started rising as well as adverse weather conditions at the beginning
and end of the year, which had a strong impact on the performance of the road
maintenance units. 

According to management's assessment, continuously fierce competition in the
construction market is keeping the gross margins of secured and new contracts
lower than they would be in a stable market. A slow but steady rise in input
prices means that long-term contracts signed in the previous period will remain
exposed to the risk of loss. The Group recognised all known construction
contract losses in the first half-year and, following a specification of
estimates, some losses also in the fourth quarter. In the second and third
quarter the Group's operating activities generated a profit. Although the
figures did not meet to the Group's profit targets, management believes that
the Group is moving in the right direction for restoring its operational
profitability in 2011 as a whole. Considering the contracts in the Group's
uncompleted portfolio, i.e. the order book figures, the overall trend has
become distinctly positive. 

Unfavourable weather conditions had a two-fold impact on the Group's
operations. On the one hand, during the months of heavy snow it was not
possible to do outdoor work (road and outdoor network construction, etc), which
affected mainly the infrastructure segment, and although there was a kind of
technological standstill the Group continued to incur its fixed costs. On the
other hand, extreme snow conditions affected the results of the road
maintenance contracts because the costs incurred exceeded those of previous
years while underlying revenue remained fixed. For instance, in 2010 the costs
of fuel and road spraying salt were three times larger than those of milder
winters (2006-2007). 

The Group's administrative expenses totalled 76.5 million kroons (4.9 million
euros). Compared with 2009, the Group has cut its administrative expenses by
39%, clearly surpassing the 30% target. As at the reporting date, the ratio of
administrative expenses to revenue was 4.9% (2009: 5.2%). We are pleased to
report that cost-saving measures have yielded good results - despite decreasing
volumes we have been able to maintain the level of administrative expenses
below the target for normal market conditions, i.e. 5% of revenue. 

In the fourth quarter the Group recognised and reported in other operating
expenses exceptional losses from the impairment of trade receivables and
goodwill. Group company Eston Ehitus AS' receivables from counterparties that
had commissioned the construction of Pärnu Keskus (Pärnu Centre) were written
down by 42.4 million kroons (2.7 million euros) because the debtors'
rehabilitation plans were not carried out and bankruptcy proceedings were
instituted against one of the debtors. After the write-down (including the
losses recognised in finance expenses in the third quarter), the Group's
balance sheet includes no more receivables from counterparties to the
construction of Pärnu Keskus or companies related to them. In addition,
goodwill of 4.7 million kroons (0.3 million euros) that had been recorded on
the acquisition of the subsidiary Magasini 29 OÜ was written down in full
because the expected profitability of the entity's real estate development
project had declined compared with the original projections. 

As a result, the Group's operating loss for 2010 amounted to 137.5 million
kroons (8.8 million euros) compared with a loss of 171.3 million kroons (10.9
million euros) for 2009. 

In the third quarter, the Group recognised and reported in finance expenses an
impairment loss of 40.2 million kroons (2.6 million euros) on loans to legal
persons. The write-down concerned loans provided by Eston Ehitus AS to owners
of the companies that had commissioned the construction of Pärnu Keskus. By the
third quarter it had become clear that it was not reasonable to expect that the
persons would regain their solvency. 

In the fourth quarter the Group also recognised and reported in other finance
expenses losses of 26.7 million kroons (1.7 million euros) that resulted from
the realisation of the commitments of the former Latvian subsidiary Nordecon
Infra SIA that were guaranteed by the Group. In combination with other gains
and losses from the sale of the subsidiary in the first quarter of 2010 (sales
gain of 32.6 million kroons/2.1 million euros and write-down of loans,
receivables and goodwill by a total of 16.2 million kroons/1.0 million euros),
the net result of exiting the investment in the Latvian subsidiary was a loss
of 10.3 million kroons (0.7 million euros). 

The Group's net loss for 2010 was 195.7 million kroons (12.5 million euros).
The loss attributable to owners of the parent Nordecon AS amounted to 182.5
million kroons (11.7 million euros). 

Cash flows

In 2010, the Group's operating activities resulted in a net cash outflow of
58.4 million kroons (3.7 million euros) while the comparative period ended in a
net cash inflow of 90.9 million kroons (5.8 million euros). Compared with 2009,
operating cash inflow has been replaced by operating cash outflow. This is
mainly attributable to cyclical fluctuations in project-related cash flows and
the impact of unprofitable projects. The customers' contractual settlement
terms have lengthened (to approx. 60 days) and in the case of some projects
payments have been deferred until 2011. On the other hand, the Group completed
some major projects whose warranty and similar retentions were paid after the
signature of the final delivery documents. In the second half of the year,
operating cash flow was influenced by unprofitable projects whose effect may
also be felt in 2011. To some extent, the negative cash flow may also be
attributed to the Group's decision to pay employee salaries for December 2010
in the same month although usually this is done at the beginning of the next.
Thus payroll expenses for 2010 actually include the remuneration for 13 months.
This was done to mitigate the risks related to the switch-over to the euro, for
example to prevent a situation where owing to a system failure the Group would
not have been able to pay out employee salaries by the date agreed in the
employment contracts. 

Investing activities generated a net inflow of 10.0 million kroons (0.6 million
euros) compared with a net outflow of 54.0 million kroons (3.5 million euros)
for 2009. A significant proportion of cash outflows from investing activities
(9.6 million kroons/0.6 million euros) is attributable to the disposal of the
subsidiary Nordecon Infra SIA and the discontinuance of its consolidation. A
significant proportion of cash inflows resulted from the disposal of property,
plant and equipment and investment properties that generated receipts of 24.4
million kroons (1.6 million euros). 

Financing activities resulted in a net cash outflow of 85.9 million kroons (5.5
million euros) compared with an outflow of 116.9 million kroons (7.5 million
euros) in 2009. The internal structure of financing cash flows has remained
stable. The Group is raising slightly less debt capital than is required for
settling its existing loan liabilities on a timely basis. 



Key financial figures and ratios

Figure / ratio                                  12M 2010    12M 2009    12M 2008
Weighted average number of shares             30,756,728  30,756,728  30,756,728
Earnings per share (in kroons)                     -5.93       -1.49        4.73
Earnings per share (in euros)                      -0.38       -0.10        0.30
Revenue growth                                    -35.6%      -37.5%        3.1%
Average number of employees                          726       1,128       1,232
Revenue per employee (in thousands of              2,145       2,144       3,140
kroons)                                                                         
Revenue per employee (in thousands of euros)         137         137         201
Personnel expenses to revenue                      14.6%       15.0%       12.7%
Administrative expenses to revenue                  4.9%        5.2%        4.7%
EBITDA1 (in thousands of kroons)                 -83,437       4,308     281,161
EBITDA1 (in thousands of euros)                   -5,333         275      17,969
EBITDA margin                                      -5.4%        0.2%        7.3%
Gross margin                                       -0.5%        5.6%        9.3%
Operating margin                                   -8.8%       -5.2%        5.4%
Operating margin excluding gains on asset          -9.2%       -5.4%        5.3%
sales                                                                           
Net margin                                        -12.6%       -3.7%        4.4%
Return on invested capital                        -15.5%       -4.1%       19.1%
Return on assets                                   -8.3%       -6.0%        9.1%
Return on equity                                  -31.9%      -11.4%       20.5%
Equity ratio                                       37.1%       37.1%       36.5%
Gearing                                            42.2%       26.4%       18.2%
Current ratio                                       1.45        1.47        1.33
As at 31 December                                   2010        2009        2008
Order book (in thousands of kroons)            1,382,124   1,530,661   2,220,748
--------------------------------------------------------------------------------
Order book (in thousands of euros)                88,334      97,827     141,932
1 On calculating EBITDA, non-cash expenses include depreciation and
amortisation as well as impairment losses on goodwill. 



Earnings per share (EPS) = net profit       Net margin = net profit for the     
attributable to equity holders of the       period / revenue                    
parent / weighted average number of shares  Return on invested capital = (profit
outstanding                                 before tax + interest expense) / the
Revenue per employee = revenue / average    period's average (interest-bearing  
number of employees                         liabilities + equity)               
Personnel expenses to revenue = personnel   Return on assets = operating profit 
expenses / revenue                          / the period's average total assets 
Administrative expenses to revenue =        Return on equity = net profit for   
administrative expenses / revenue           the period / the period's average   
EBITDA = earnings before interest, taxes,   total equity                        
depreciation and amortisation               Equity ratio = total equity / total 
EBITDA margin = EBITDA / revenue            equity and liabilities              
Gross margin = gross profit / revenue       Gearing = (interest-bearing         
Operating margin = operating profit /       liabilities - cash and cash         
revenue                                     equivalents) / (interest bearing    
Operating margin excluding gains on asset   liabilities + equity)               
sales = (operating profit - gains on sale   Current ratio = total current assets
of property, plant and equipment - gains    / total current liabilities         
on sale of real estate) / revenue                                               
                                           -------------------------------------


Performance by geographical market

In 2010, revenues earned outside Estonia accounted for around 6% of the Group's
total revenue. In 2009, the contribution of foreign markets was around 14%. The
decrease results from the Group's decision to sell its Latvian operations in
2010. In addition, in contrast to 2009 in 2010 the Group did not earn any
revenue in Lithuania. The proportion of the Group's Ukrainian revenues has
remained stable compared with the previous year. 

           12M 2010  12M 2009  12M 2008
Estonia       94.3%     85.7%     80.3%
Ukraine        2.4%      2.7%     11.4%
Lithuania        0%      0.4%      2.4%
Latvia           0%     11.2%      5.9%
Belarus        2.9%        0%        0%
Finland        0.4%        0%        0%
In the reporting period, the Group started performing a project-based
construction contract in Belarus whose revenues accounted for around 3% of the
Group's total revenue. The project in Belarus will continue until the end of
the first half of 2011. Finnish revenues result from subcontracts for the
delivery of concrete works. 

Revenue distribution between different geographical segments is a consciously
deployed strategy by which the Group avoids excessive reliance on a single
market. Although in the long-term perspective the Group's strategy foresees
increasing foreign operations, in the short-term perspective the Group will
focus on the Estonian market and seizing opportunities in an environment that
it knows best and that entails comparatively fewer identified market risks. The
Group's vision of its future activities in foreign markets is described in the
chapter Outlooks of the Group's geographical markets. 

Performance by business line

The core business of Nordecon Group is general contracting and project
management in buildings and infrastructure construction. The Group is involved,
among other things, in the construction of commercial and industrial buildings
and facilities, road construction and maintenance, environmental engineering,
concrete works and real estate development. 

Consolidated revenue for 2010 amounted to 1,557.0 million kroons (99.5 million
euros), a 36% decrease from the 2,418.9 million kroons (154.6 million euros)
generated in 2009. Above all, the downturn is attributable to a significant
decline in the demand for construction services in all of the Group's markets
and, in the first quarter, an exceptionally snowy and cold winter that had the
strongest impact on the Infrastructure segment where most of the work is done
outdoors. In addition, the absolute revenue figure was influenced by stiff
competition that continues to lower prices in the construction market where the
Group has been trying to avoid going along with underbidding aimed at winning
major but excessively risky long-term contracts. 

The Group aims to maintain the revenues generated by its business segments
(Buildings and Infrastructure) in balance as this helps disperse risks and
provides a more solid foundation under stressed circumstances when one segment
experiences shrinkage. In view of estimated demand for apartments, in
subsequent years the proportion of housing construction revenue will remain
within the strategic 20% limit. 

Segment revenue

In 2010, the Group's infrastructure construction revenues exceeded those of
buildings construction. Considering that for some time most of the construction
market tenders have been related to infrastructure (primarily projects financed
with the support of the state and the EU structural funds) and that the
majority of contracts in the Group's order book belong to the Infrastructure
segment, this was to be expected. However, the revenues of the segments are
practically equal because the Group's active buildings construction contracts
have a shorter term than those of infrastructure construction. Infrastructure
contracts have a longer term (e.g. road maintenance contracts) and their
contribution to realised revenue is relatively smaller. It is quite clear that
in the near future the contribution of the Infrastructure segment will exceed
that of Buildings. 

In 2010 the Buildings and Infrastructure segments generated revenue of 715.5
million kroons (45.7 million euros) and 810.8 million kroons (51.8 million
euros) respectively. The corresponding figures for 2009 were 1,055.4 million
kroons (67.4 million euros) and 1,339.2 million kroons (85.6 million euros). 

Revenue distribution between segments *

Business segments  12M 2010  12M 2009  12M 2008
Buildings               49%       45%       63%
Infrastructure          51%       55%       37%
* In connection with the entry into force of IFRS 8 Operating Segments, the
Group has changed segment reporting in its financial statements. In Directors'
report the Ukrainian and Belarusian buildings segment and the EU buildings
segment which are disclosed separately in the financial statements are
presented as a single segment. In addition, the segment information presented
in Directors' report does not include the disclosures on “other segments” that
are presented in the financial statements. 

Revenue distribution within segments

Distribution of projects within the Buildings segment has changed significantly
compared with a year ago as well as with historical annual averages. There are
two main reasons for this. The scarcity of projects forces companies to compete
in all market segments and the number of contracts awarded is small compared
with bids made. Such a situation does not allow concentrating on a specific
business area. Another important factor is the general economic environment.
During the past year, private companies' investments in commercial and
industrial buildings and facilities have been almost nonexistent while local
governments' investments in schools, nursery schools and public buildings have
increased, partly thanks to the support received from the EU structural funds.
The proportion of industrial buildings in the Group's portfolio is large mainly
because of the ongoing construction of the Ahtme peak load boiler plant. The
Group builds apartment buildings for external customers as a general
contractor, not a developer. 

Revenue distribution within the Buildings segment  12M 2010  12M 2009  12M 2008
Commercial buildings                                    36%       66%       59%
Industrial and warehouse facilities                     19%       10%       16%
Public buildings                                        35%       18%       14%
Apartment buildings                                     10%        6%       11%
As anticipated, in 2010 almost two thirds of the revenue generated by the
Infrastructure segment is attributable to road construction and maintenance.
The construction of other engineering facilities (mostly water and wastewater
networks) is an area where the Group has won many tenders and their proportion
is expected to remain relatively large also next year. The contribution of
environmental engineering projects (e.g. the closure of landfills) has remained
stable compared with 2009. However, hydraulic engineering that depends heavily
on Estonian ports' investment policies plummeted to an all-time low in 2010. 

Revenue distribution within the Infrastructure       12M 2010  12M2009  12M 2008
segment                                                                         
Road construction and maintenance                         64%      49%       45%
Specialist engineering (including hydraulic                1%      12%       24%
engineering)                                                                    
Other engineering                                         26%      31%       25%
Environmental engineering                                  9%       8%        6%


Order book

At 31 December 2010, the Group's order book stood at 1,382.1 million kroons
(88.3 million euros), 10% down from the 1,530.7 million kroons (97.8 million
euros) posted a year ago. Over the past quarters, the decline in the Group's
order book has notably decelerated and the forward order book has levelled off
at around 1,350 to 1,500 million kroons (86 to 95 million euros). 

                                      12M2010   12M 2009   12M 2008
Order book, in thousands of kroons  1,382,124  1,530,661  2,220,748
Order book, in thousands of euros      88,334     97,827    141,932
At 75% the Infrastructure segment continues to account for a major proportion
of the Group's total order book (2009: 74%). 

The value of the order portfolio has decreased due to the downturn in the
construction market. In a situation where the decrease in input prices has
ceased or turned to a rise in almost all areas of the construction sector, the
Group's management continues to focus on improving the profitability of the
contract portfolio rather than increasing its size or growth rate. 

Between the reporting date (31 December 2010) and the date of release of this
report, Group companies have been awarded additional construction contracts of
approximately 101.8 million kroons (6.5 million euros). 



People

Staff and personnel expenses

At the end of 2010, the Group (including the parent and the subsidiaries)
employed, on average, 726 people including around 345 engineers and technical
personnel (ETP). A significant one-off decrease in the number of staff is
attributable to the divestment of the Latvian subsidiary Nordecon Infra SIA in
the first quarter of 2010. At the beginning of 2010, the Nordecon Infra SIA
subgroup employed over 160 people. In addition to disposals of companies, the
number of staff has decreased on account of downsizing (lay-offs and
termination of contracts). The decrease in personnel has decelerated and the
Group's management believes that in 2011 there will be no need for any major
staffing cuts. Headcount should remain stable although it will be influenced by
additional seasonal labour hired for the second and third quarters and the size
of new contracts secured by the Group. 

Average number of the Group's employees (including the parent and its
subsidiaries): 

               12M 2010  12M 2009  12M 2008
ETP                 345       467       511
Workers             381       611       721
Total average       726     1,128     1,232
The Group's personnel expenses for 2010 including all associated taxes totalled
226.8 million kroons (14.5 million euros), a 38% decrease compared with the
363.5 million kroons (23.2 million euros) incurred in 2009. 

Personnel expenses have declined on account of downsizing and the cutting of
basic salaries. In 2009, employee salaries were lowered at all Group entities;
the average pay-cut for engineers and technical personnel was 15%. The
performance pay of project staff that is linked to the projects' profit margins
has also dropped. 

In 2010, the remuneration of the members of the council of Nordecon AS
including associated social security charges amounted to 1,436 thousand kroons
(92 thousand euros). The corresponding figure for 2009 was also 1,436 thousand
kroons (92 thousand euros). The remuneration of the members of the board of
Nordecon AS including social security charges totalled 3,120 thousand kroons
(199 thousand euros) compared with 3,254 thousand kroons (208 thousand euros)
for 2009. The remuneration of the board has decreased because in the
comparative period the board had more members, on average, than in the
reporting period. 

Changes on the board of Nordecon AS

Due to the contraction of the Group's foreign operations, Priit Tiru who was
responsible for coordinating the Group's foreign operations and strategic
management of the buildings construction division was recalled from the board
of Nordecon AS early based on a council resolution effective as of 1 November
2010. 

In connection with the merger of Nordecon AS with its subsidiaries Nordecon
Infra AS and Nordecon Ehitus AS, the council appointed to the board of the
merged entity new members who took office in January 2011. Jaano Vink continues
as chairman of the board. The new board members are Avo Ambur, Marko Raudsik
and Erkki Suurorg who all have long-term experience in the construction sector
as well as in Nordecon Group. 



Outlooks of the Group's geographical markets

Estonia

According to the assessment of the Group's management, in 2011 the Estonian
construction market will be influenced by the following factors: 

  -- Total demand in the construction market will remain heavily dependent on
     public procurement tenders and projects performed with the support of the
     European Union funds. Project initiation success depends on the
     administrative capabilities of the central and local government which have
     improved compared with previous periods but are still of unreliable
     quality. The construction market has bottomed out, the sharpest downturn
     having ended with 2010. In 2011 construction volumes will remain comparable
     to the previous year, particularly in the field of infrastructure
     construction. There are opportunities for growth in the buildings
     construction segment through the return of private sector customers
     (including foreign investors). However, this is not yet an indication of
     demand recovering to a level where all currently operating construction
     companies could secure sufficient business.
  -- Market consolidation will continue owing to the contraction in volumes in
     2008-2010. In the past two years, the construction market has been deserted
     by many medium-sized and small real estate development and buildings
     construction companies that were unable to respond to market changes
     sufficiently quickly or had taken excessive real estate risks. In 2011, the
     number of construction companies will continue decreasing primarily because
     rising input prices are rendering the performance of contracts in the
     portfolios of companies that have survived a fall in market and
     construction prices too unprofitable for those that have not noticed the
     trend or have deliberately ignored it due to cash flow problems. In that
     context, the greatest risk will be the liquidity risk.
  -- Both active projects and those secured in 2011 will be significantly
     influenced by various terms and conditions including long settlement terms
     dictated by customers.
  -- Construction contracts' profit margins will remain under pressure from
     continuously fierce competition and rising input prices. In addition,
     companies will continue challenging the results of poorly prepared public
     procurement tenders, which will cause time and financial costs for all
     involved. It will be increasingly important to meet all the requirements
     outlined in the public procurement tenders.
  -- The situation in the labour market has stabilised and construction workers'
     outflow to the Scandinavian countries will not increase significantly.
     Companies have adapted to the situation and in 2011 the base wages paid by
     construction companies that have to maintain a cost-saving regime are not
     expected to increase.
  -- The post-depression macroeconomic and construction market indicators will
     continue to improve. As a result, the banks will be increasingly ready to
     grant private-sector customers new investment loans and, in the case of a
     suitable risk profile, also funding for real estate development. The
     investments made with the involvement of banks are not going to trigger
     major growth in market volumes but they will give a much-needed signal of
     the stabilisation of the investment climate, creating a basis for more
     visible market growth in 2012.



Nordecon Group's main operational objectives for 2011

In 2011 Nordecon Group will focus on raising profitability compared with 2010
by: 

  -- Vigorously improving the efficiency of the various aspects of the Group's
     core operations
  -- Maintaining strict control over fixed costs in order to be able to face an
     extended recession if necessary
  -- Keeping up the team spirit and dedication of the Nordecon people

Latvia and Lithuania

In February 2010, the Group sold its stake in the loss-generating Latvian
entity Nordecon Infra SIA whose core business was construction of water and
sewerage networks. According to the Group's assessment, the Latvian
construction market will continue to be hampered by abrupt adjustment to the
recessionary environment also in 2011. Therefore, in the next few years the
Group will continue operating in Latvia on a project basis, through its
Estonian entities, involving partners where necessary. Continuation of
project-based business assumes the availability of profitable projects. The
decision does not change the Group's strategic objectives in the Latvian
construction market, i.e. the objective of conducting future operations in the
Latvian market through local subsidiaries. 

Recent economic developments in Lithuania have been similar to the ones in the
other Baltic countries. Slowdown in investment, both in the public and private
sectors, and similar factors have had a direct impact on the construction
market. The commercial and residential construction markets (the Group as a
general contractor not a developer) have contracted visibly and the launch of
any new private sector projects in the near future is unlikely. 

In response to this, the operations of the Lithuanian-based Nordecon Statyba
UAB have been essentially suspended and the Group is monitoring the market
situation. The temporary suspension of operations does not cause any major
costs for the Group. The Group's management does not exclude the possibility
that the Lithuanian operations will remain suspended through 2011. The decision
does not change the Group's strategic objectives in the Lithuanian construction
market, i.e. the objective of conducting future operations in the Lithuanian
market through local subsidiaries. 

Ukraine

In Ukraine, the Group will continue mainly as a general contractor and project
manager in the construction of commercial buildings and production facilities.
In 2009, the number of projects started in the buildings construction segment
decreased substantially. In 2010 the market did not recover. This implies,
above all, the need for tight cost control in 2011. 

Activities on development projects that require major investment have been
suspended to minimise the risks until the situation in the Ukrainian and global
financial markets eases up (the Group has currently an interest in two
development projects that have been conserved). 

The main risks in the Ukrainian market are connected with the low
administrative efficiency of the central and local government and the judicial
system, inflation, and the availability of quality construction inputs. Demand
is mainly undermined by the customers' lack of financing. To date, the
fluctuation of the local currency against the euro has stabilised and the
Group's exposure to market-based currency risk has decreased considerably. It
is also clear that the political climate has stabilised after the important
presidential elections, which might pave the way for an improvement in the
general economic climate. This, in turn, would revive investment by local and
foreign companies who account for a significant proportion of the Group's
customers in the Ukrainian market. Still, the political situation has not
stabilised as rapidly as anticipated and private sector customers have not
started investing in projects where the Group has competitive advantages.
Therefore, the Group is planning to make a decision regarding its further
activities in Ukraine in the first quarter of 2011. If the prospects of the
local construction market and the Group's target customer groups are not clear
by that time, the operations of the Ukrainian entity may be suspended for 2011
and the Group will continue to monitor the situation with minimal costs. There
is currently no scenario under which the Group would exit the Ukrainian market
for good. 

The construction market of a country with a population of around 46 million
will offer excellent business opportunities also in the future. The Group's key
success factor is relatively little competition among project management
companies (the Group offers flexible construction management in combination
with European practices and competencies) compared with the real needs of a
normally functioning construction market. The Group's management is confident
that the current crisis in the Ukrainian construction market and economy as a
whole will transform local understanding and expectations of general
contracting and project management in the construction business. In the
long-term perspective, the new thinking will improve also the Group's position. 

Belarus

The Belarusian business environment has some similarities to the Ukrainian one
but with a discernible temporal shift. Conducting business is undermined by
bureaucracy, complex taxation principles and various constraints on the
provision of cross-border services. However, the potential of the Belarusian
construction market is comparable to the Ukrainian one. There is demand for new
buildings, the state has started to permit more direct foreign investment and
there are no contemporarily managed construction companies in the market.
Despite this, in 2011 the Group intends to do business in Belarus on a project
basis (particularly through the ongoing project) in order to learn about local
construction and post-construction requirements, regulations and practices. If
the outcomes of the active project do not outweigh the risks, the Group does
not rule out the possibility of discontinuing its Belarusian operations. 

Finland

In Finland, the Group provides only subcontracting services in the field of
concrete works. This is an area where Estonian companies still have an edge
over local entities thanks to lower labour costs. The Finnish concrete works
market allows the Group to compete for selected projects (the main criteria are
location and duration of the project). In 2011 demand for subcontracted
concrete works should remain stable. Nevertheless, the Group will maintain a
rational approach and will avoid taking excessive risks in Finland. The Group
is not planning to expand its operations into other segments of the Finnish
construction services market (general contracting, project management, etc). 



Description of the main risks

Business risks

Management believes that in the near future the main business risk will be
stiff competition that induces construction companies to bid unreasonably low
prices in a situation where input prices have started rising and may cause
steep losses. The situation is aggravated by the fact that the need for winning
contracts that would cover fixed costs and overheads at a level ensuring normal
operating capacities is increasing. The Group's management expects to mitigate
the risks by tight cost control and effective cost cutting as well as thorough
analyses of new projects. 

To mitigate the risks arising from the seasonal nature of the construction
business (primarily the weather conditions during the winter months), the Group
has acquired road maintenance contracts that generate year-round business. In
addition, Group companies are constantly seeking new technical solutions that
would allow working more efficiently under changeable weather conditions. 

To manage their daily construction risks, Group companies purchase Contractors'
All Risks insurance. Depending on the nature of the project, both general frame
agreements and special project-specific contracts are used. In addition, as a
rule, subcontractors are required to secure the performance of their
obligations with a bank guarantee issued for the benefit of a Group company. To
remedy builder-caused deficiencies which may be detected during the warranty
period, all Group companies create warranties provisions. At 31 December 2010,
the provisions (including current and non-current ones) totalled 20.8 million
kroons (1.3 million euros). At 31 December 2009, the corresponding figure was
17.4 million kroons (1.1 million euros). 

Credit risk

For credit risk management, a potential customer's settlement behaviour and
creditworthiness are analysed already in the tendering stage. Subsequent to the
signature of a contract, the customer's settlement behaviour is monitored on an
ongoing basis from the making of an advance payment to adherence to the
contractual settlement schedule, which usually depends on the documentation of
the delivery of work performed. We believe that the system in place allows us
to respond to customers' settlement difficulties with sufficient speed. At the
end of the reporting period, our customers' settlement behaviour was good in
the current economic situation; however, there were also some large problem
customers. The proportion of overdue receivables has increased, which heightens
the risk of future credit losses. In accordance with the Group's accounting
policies, all receivables that are more than 180 days overdue or in respect of
which no additional settlement agreements have been reached are recognised as
an expense. 

In 2010, expenses from write-down of receivables totalled 41.5 million kroons
(2.7 million euros) compared with 42.0 million kroons (2.7 million euros) in
2009. 99% of the figure is attributable to the impairment of receivables
related to the Pärnu Keskus project. There were practically no write-downs
involving other projects. In addition, in connection with the problems of the
Pärnu Keskus project, loans to legal persons were written down by 40.2 million
kroons (2.6 million euros). After the above write-downs, the Group has no more
receivables related to the Pärnu Keskus project. 

Liquidity risk

Free funds are placed in overnight or fixed-interest term deposits with the
largest banks in the markets where the Group operates. To ensure timely
settlement of liabilities, approximately two weeks' working capital is kept in
current accounts or overnight deposits. Where necessary, overdraft facilities
are used. At the reporting date, the Group's current assets exceeded its
current liabilities 1.45-fold (31 December 2009: 1.47-fold) and available cash
funds totalled 91.0 million kroons (5.8 million euros) (31 December 2009: 225.3
million kroons / 14.4 million euros). 

Interest rate risk

The Group's interest-bearing liabilities to banks have mainly fixed interest
rates. Finance lease liabilities have floating interest rates and are linked to
EURIBOR. At 31 December 2010, the Group's interest-bearing loans and borrowings
totalled 541.6 million kroons (34.6 million euros), a 15.7 million kroon (1
million euro) decrease year-over-year. Interest expense for 2010 amounted to
15.6 million kroons (1 million euros). Compared with 2009, interest expense has
contracted by 11 million kroons (0.7 million euros), primarily on account of a
decrease in loans and borrowings. 

The Group's interest rate risk results mainly from two factors: an increase in
the base rate for floating interest rates (EURIBOR) and insufficient operating
cash flow that may render the Group unable to settle its interest expense. The
first factor is mitigated by fixing, where possible, the interest rates of
liabilities during the period of low market interest rates. The realisation of
the cash flow risk depends on the success of operating activities. The Group
does not use derivatives to hedge the interest rate risk. 

Currency risk

As a rule, construction contracts and subcontractors' service contracts are
made in the currency of the host country: in euros (EUR), in Ukrainian hryvnas
(UAH) and in Belarusian rubles (BYR). In connection with shrinkage in
operations in Latvia and Lithuania, the currency risks of those countries are
no longer relevant. Services purchased from other countries are mostly priced
in euros, which does not constitute a currency risk for the Group's Estonian
entities. 

The Group's foreign exchange gains and losses result mainly from its Ukrainian
and Belarusian operations because the Ukrainian and Belarusian national
currency float against the euro. To date, the weakening of the Ukrainian hryvna
against the euro that began in the last quarter of 2008 has ceased. In 2010 the
exchange rate of the Belarusian ruble did not fluctuate significantly. 

The Group's exchange gains and losses for 2010 resulted in a net exchange loss
of 6.2 million kroons (0.4 million euros). In the comparative period, exchange
differences resulted in a net exchange loss of 0.7 million kroons (0 million
euros). 



Condensed consolidated interim statement of financial position

EEK`000                                                 31 Dec 2010  31 Dec 2009
ASSETS                                                                          
--------------------------------------------------------------------------------
Current assets                                                                  
Cash and cash equivalents                                    91,018      225,191
Trade and other receivables                                 486,308      644,704
Prepayments                                                  19,299       30,595
Inventories                                                 392,716      389,328
Non-current assets held for sale                              5,027        4,617
Total current assets                                        994,368    1,294,435
Non-current assets                                                              
Investments in equity accounted investees                     1,542        2,191
Other investments                                               414          414
Trade and other receivables                                  34,711       33,329
Investment property                                          77,135       87,975
Property, plant and equipment                               141,417      204,115
Intangible assets                                           242,296      268,233
Total non-current assets                                    497,515      596,257
                                                                                
TOTAL ASSETS                                              1,491,883    1,890,692
LIABILITIES                                                                     
Current liabilities                                                             
Loans and borrowings                                        272,053      262,959
Trade payables                                              269,991      377,925
Other payables                                               54,585       94,580
Deferred income                                              69,236      136,438
Provisions                                                   18,144       10,364
Total current liabilities                                   684,009      882,266
Non-current liabilities                                                         
Loans and borrowings                                        269,537      294,328
Trade payables                                                4,862        4,846
Other payables                                                    0        1,500
Provisions                                                    6,621        7,041
Total non-current liabilities                               281,020      307,715
TOTAL LIABILITIES                                           965,029    1,189,981
EQUITY                                                                          
Share capital                                               307,567      307,567
Statutory capital reserve                                    40,024       40,012
Translation reserve                                          -3,640       -3,201
Retained earnings                                           162,759      345,280
Total equity attributable to equity holders of the          506,710      689,658
parent                                                                          
Non-controlling interest                                     20,144       11,053
TOTAL EQUITY                                                526,854      700,711
TOTAL LIABILITIES AND EQUITY                              1,491,883    1,890,692


EUR`000                                                 31 Dec 2010  31 Dec 2009
ASSETS                                                                          
--------------------------------------------------------------------------------
Current assets                                                                  
Cash and cash equivalents                                     5,818       14,392
Trade and other receivables                                  31,081       41,204
Prepayments                                                   1,233        1,955
Inventories                                                  25,099       24,883
Non-current assets held for sale                                321          295
Total current assets                                         63,552       82,729
Non-current assets                                                              
Investments in equity accounted investees                        99          140
Other investments                                                26           26
Trade and other receivables                                   2,218        2,130
Investment property                                           4,930        5,623
Property, plant and equipment                                 9,038       13,045
Intangible assets                                            15,486       17,143
Total non-current assets                                     31,797       38,107
TOTAL ASSETS                                                 95,349      120,836
LIABILITIES                                                                     
Current liabilities                                                             
Loans and borrowings                                         17,388       16,806
Trade payables                                               17,256       24,154
Other payables                                                3,489        6,044
Deferred income                                               4,425        8,720
Provisions                                                    1,160          662
Total current liabilities                                    43,718       56,386
Non-current liabilities                                                         
Loans and borrowings                                         17,227       18,811
Trade payables                                                  311          310
Other payables                                                    0           96
Provisions                                                      423          450
Total non-current liabilities                                17,961       19,667
TOTAL LIABILITIES                                            61,679       76,053
EQUITY                                                                          
Share capital                                                19,657       19,657
Statutory capital reserve                                     2,558        2,557
Translation reserve                                            -233         -205
Retained earnings                                            10,402       22,067
Total equity attributable to equity holders of the           32,384       44,077
parent                                                                          
Non-controlling interest                                      1,286          706
TOTAL EQUITY                                                 33,670       44,783
TOTAL LIABILITIES AND EQUITY                                 95,349      120,836


Condensed consolidated interim statement of comprehensive income

EEK`000                                Q4 2010   Q4 2009   12M  2010    12M 2009
Revenue                                379,478   443,158   1,556,989   2,418,880
Cost of sales                         -379,085  -472,075  -1,565,140  -2,282,575
Gross profit / loss                        393   -28,917      -8,151     136,305
                                                                                
Distribution expenses                   -1,834    -2,626      -6,276      -9,416
Administrative expenses                -23,759   -29,288     -76,459    -125,206
Other operating income                   6,454     3,282      14,228      25,592
Other operating expenses               -48,146  -113,798     -60,866    -154,014
Operating loss                         -66,892  -171,347   --137,524    -126,739
                                                                                
Finance income                           3,663    48,848      47,733      86,513
Finance expenses                       -30,515    -8,205     -98,288     -33,934
Net finance income / expense           -26,852    40,643     -50,555      52,579
                                                                                
Share of loss of equity accounted       -3,731    -4,313      -8,098      -7,666
investees                                                                       
                                                                                
Loss before income tax                 -97,475  -135,017    -196,177     -81,826
Income tax expense / income               -648    -1,525         529      -7,618
Loss for the period                    -98,123  -136,542    -195,648     -89,444
                                                                                
Other comprehensive income /                                                    
expense:                                                                        
Exchange differences on translating        -68       569        -440         905
foreign operations                                                              
Total other comprehensive income /         -68       569        -440         905
expense for the period                                                          
TOTAL COMPREHENSIVE EXPENSE FOR THE    -98,191  -135,973    -196,088     -88,539
PERIOD                                                                          
                                                                                
                                                                                
Loss attributable to:                                                           
- Owners of the parent                 -92,910  -111,818    -182,520     -45,740
- Non-controlling interests             -5,213   -24,724     -13,128     -43,704
Loss for the period                    -98,123  -136,542    -195,648     -89,444
                                                                                
Total comprehensive expense                                                     
attributable to:                                                                
- Owners of the parent                 -92,978  -111,249    -182,960     -44,835
- Non-controlling interests             -5,213   -24,724     -13,128     -43,704
Total comprehensive expense            -98,191  -135,973    -196,088     -88,539
                                                                                
Earnings per share attributable to                                              
owners of the parent:                                                           
Basic earnings per share (EEK)           -3.02     -3.64       -5.93       -1.49
Diluted earnings per share (EEK)         -3.02     -3.64       -5.93       -1.49


EUR`000                                     Q4 2010  Q4 2009       12M  12M 2009
                                                                  2010          
Revenue                                      24,253   28,323    99,510   154,595
Cost of sales                               -24,228  -30,171  -100,031  -145,883
Gross profit / loss                              25   -1,848      -521     8,711
                                                                                
Distribution expenses                          -117     -168      -401      -602
Administrative expenses                      -1,518   -1,872    -4,887    -8,002
Other operating income                          412      210       909     1,636
Other operating expenses                     -3,077   -7,273    -3,890    -9,843
Operating loss                               -4,275  -10,951    -8,790    -8,100
                                                                                
Finance income                                  234    3,122     3,051     5,529
Finance expenses                             -1,950     -524    -6,282    -2,169
Net finance income / expense                 -1,716    2,598    -3,231     3,360
                                                                                
Share of loss of equity accounted              -238     -276      -518      -490
investees                                                                       
                                                                                
Loss before income tax                       -6,229   -8,629   -12,539    -5,230
Income tax expense / income                     -42      -97        34      -487
Loss for the period                          -6,271   -8,727   -12,505    -5,717
                                                                                
Other comprehensive income / expense:                                           
Exchange differences on translating              -4       36       -28        58
foreign operations                                                              
Total other comprehensive income / expense       -4       36       -28        58
for the period                                                                  
TOTAL COMPREHENSIVE EXPENSE FOR THE PERIOD   -6,275   -8,690   -12,533    -5,659
                                                                                
Loss attributable to:                                                           
- Owners of the parent                       -5,938   -7,147   -11,665    -2,923
- Non-controlling interests                    -333   -1,580      -840    -2,794
Loss for the period                          -6,271   -8,727   -12,505    -5,717
                                                                                
Total comprehensive expense attributable                                        
to:                                                                             
- Owners of the parent                       -5,942   -7,110   -11,693    -2,865
- Non-controlling interests                    -333   -1,580      -840    -2,794
Total comprehensive expense                  -6,275   -8,690   -12,533    -5,659
                                                                                
Earnings per share attributable to owners                                       
of the parent:                                                                  
Basic earnings per share (EUR)                -0.19    -0.23     -0.38     -0.09
Diluted earnings per share (EUR)              -0.19    -0.23     -0.38     -0.09


Condensed consolidated interim statement of cash flows

                                             EEK`000               EUR`000      
                                        12M 2010    12M 2009       12M       12M
                                                                  2010      2009
Cash flows from operating activities                                            
--------------------------------------------------------------------------------
Cash receipts from customers           1,888,836   3,337,467   120,719   213,303
Cash paid to suppliers                -1,650,762  -2,729,303  -105,503  -174,434
VAT paid                                 -61,175     -70,313    -3,910    -4,494
Cash paid to and for employees          -233,969    -427,098   -14,953   -27,296
Income tax paid                           -1,371     -10,858       -88      -694
Net cash used in / from operating        -58,441      99,895    -3,735     6,385
activities                                                                      
                                                                                
Cash flows from investing activities                                            
Acquisition of property, plant and        -3,056      -2,356      -195      -151
equipment                                                                       
Acquisition of intangible assets               0      -7,609         0      -486
Proceeds from sale of property,           13,299       6,328       850       404
plant and equipment and intangible                                              
assets                                                                          
Proceeds from sale of investment          11,100      11,078       709       708
property                                                                        
Acquisition of subsidiaries, net of           27      -6,614         2      -423
cash acquired                                                                   
Disposal of subsidiaries, net of          -9,623         157      -615        10
cash transferred                                                                
Acquisition of associates                    -20      -6,000        -1      -383
Proceeds from disposal of associates           0       6,724         0       430
Acquisition of interests in joint              0     -20,000         0    -1,278
ventures                                                                        
Proceeds from sale of other                    0         275         0        18
investments                                                                     
Loans granted                             -8,583     -80,828      -549    -5,166
Repayment of loans granted                 2,777      29,897       177     1,911
Dividends received                            61          61         4         4
Interest received                          4,042      14,907       258       953
Net cash from / used in investing         10,024     -53,980       640    -3,450
activities                                                                      
                                                                                
Cash flows from financing activities                                            
Proceeds from loans received             107,572     343,242     6,875    21,937
Repayment of loans received             -138,465    -348,364    -8,850   -22,265
Dividends paid                                 0     -31,933         0    -2,041
Payment of finance lease liabilities     -37,230     -51,029    -2,379    -3,261
Interest paid                            -17,554     -28,284    -1,122    -1,808
Other payments made                         -236        -487       -15       -31
Net cash used in financing               -85,913    -116,855    -5,491    -7,469
activities                                                                      
                                                                                
Net cash flow                           -134,330     -70,940    -8,586    -4,534
                                                                                
Cash and cash equivalents at             225,191     296,184    14,392    18,930
beginning of period                                                             
Effect of exchange rate fluctuations         157         -53        12        -3
Decrease in cash and cash               -134,330     -70,940    -8,586    -4,534
equivalents                                                                     
Cash and cash equivalents at end of       91,018     225,191     5,818    14,393
period                                                                          


Nordecon is a group of construction companies whose core business is
construction project management and general contracting in the buildings and
infrastructure segment. Geographically the Group operates in Estonia, Ukraine
and Finland. The parent of the Group is Nordecon AS, a company registered and
located in Tallinn, Estonia. In addition to the parent company, the Group
includes more than 10 subsidiaries. The Group's consolidated revenue for 2009
was €155 million. Currently Nordecon Group employs nearly 700 people. Since 18
May 2006, the company's shares have been quoted in the main list of the NASDAQ
OMX Tallinn Stock Exchange. 


         Raimo Talviste
         Nordecon AS
         Head of Finance and Investor Relations
         Tel: +372 615 4445
         Email: [email protected]
         www.nordecon.com