Börsiteade

Pealkiri

Unaudited consolidated interim accounts for the third quarter and first nine months of 2012

Teade

Segments (EURm)    Q3/12  Q3/11   yoy    9m/12  9m/11   yoy  
-------------------------------------------------------------
Supermarkets        81.8   81.6   0.2%   243.1  234.9   3.5% 
Department stores   20.2   18.9   6.8%    60.3   55.2   9.1% 
Car trade            9.0    5.3   70.5%   24.5   14.2   72.1%
Footwear trade       3.8    3.8   -0.1%   10.4   10.0   3.3% 
Real Estate          0.7    0.7   1.6%     2.1    2.1   4.0% 
-------------------------------------------------------------
Total sales        115.5  110.3   4.7%   340.4  316.5   7.6% 
-------------------------------------------------------------
                                                             
Supermarkets         3.8    5.1  -25.0%    5.6    6.6  -15.8%
Department stores    0.5    0.5   7.7%     1.0    0.5  119.6%
Car trade            0.6    0.4   48.9%    1.5    1.0   51.2%
Footwear trade       0.0    0.0     -     -0.3   -0.4   22.2%
Real Estate          2.2    1.7   27.1%    4.8    5.1   -5.4%
-------------------------------------------------------------
Total net profit     7.1    7.7   -7.3%   12.7   12.8   -1.3%
-------------------------------------------------------------



The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group in the
first nine months of 2012 was 340.4 million euros, having increased by 7.6%
compared to the nine months of 2011. In the third quarter, the Group’s sales
revenue reached 115.5 million euros, exceeding the sales revenue of a year
earlier by 4.7%. The Group’s consolidated unaudited net profit of the first 9
months of 2012 was 12.7 million euros, which is 1.3% less than the net profit
of the same period of the previous year (12.8 million euros). The Group's net
profit earned in the 3rd quarter was 7.1 million euros, having decreased by
7.3% compared to the corresponding result of 2011, which was 7.7 million euros.
The pre-tax profit of the first 9 months was 16.4 million euros, having grown
by 3.5% in a year. The net profit of the first 9 months was influenced by the
write-off of commercial software that had lost its usefulness – in the sum of
0.9 million euros, which was recorded in the depreciation of fixed assets. 

For this year, the Tallinna Kaubamaja Group has planned and partially already
executed the modification and expansion of its sales spaces. In March, the
Department store opened an extensively renovated women's department and
children's department in Tallinn, whilst Saku Selver was opened and a renewed
partner loyalty program Partner card was launched in May. An ABC footwear store
was reopened in Pärnu in July, a new I.L.U. beauty store was opened in Tartu in
August, and in September, Selver opened a new gourmet store in downtown
Tallinn. There are plans to open several Selver and footwear stores at the end
of the year. The division of the department stores, the central kitchen and the
security functions into new subsidiaries to make the management structure of
the Group more transparent and competitive was the most significant internal
reorganisation for the Group undertaken in the 3rd quarter. The divisions were
approved at the extraordinary general meeting of shareholders held on August
21, 2012, and were completed on 1 October 2012. The development activities
resulted in the increase of investments and one-time operational expenditure,
which in turn influenced the results of the Group in the 3rd quarter. The
renewed loyalty programme, warmly welcomed by our customers, gives them
additional bonus points for their Partner card purchases in the amount of 1% of
the purchase sum. During the period when the customers collect such bonus
points, the turnover and margin of the Group decrease to the same extent. The
expected positive impact on the economic results of the Group becomes apparent
once the bonus points are put to use. The growing popularity of the Partner
card allows the realization of the program’s positive impact in the form of
increased sales revenue, and the best time for that is probably the end of the
year. 

Supermarkets

The consolidated sales revenue of the business segment of supermarkets and the
segment’s sales revenue earned in Estonia in the nine months of 2012 were 243.1
million euros, having grown by 3.5% compared to the year before. The
consolidated sales revenue and the sales revenue earned in Estonia in the 3rd
quarter were 81.8 million euros, which is 0.2% higher than the result of the
same period of the previous year. The consolidated pre-tax profit of the
supermarket segment earned in the first 9 months of 2012 was 8.4 million euros,
which is 13.2% smaller than the profit of the previous comparable period. Net
profit was earned in the sum of 5.6 million euros, which is 15.8% smaller than
the net profit of the previous comparable period. The consolidated pre-tax
profit and net profit of the 3rd quarter was 3.8 million euros, having
decreased by 25.0% compared to the period of a year before in both respects.
The pre-tax profit earned in Estonia during the first 9 months was 10.1 million
euros, 4.4 million euros of which was earned in the 3rd quarter. The profit
deviations compared to the period of a year earlier were -11.1% and -22.3%
respectively. The Estonian net profit of the supermarket segment earned in the
first 9 months was 7.3 million euros, having decreased by 12.4% compared to the
corresponding reference period. The net profit of 4.4 million euros earned in
the 3rd quarter made up 77.7% of the profit earned a year earlier. The pre-tax
loss and net loss earned in Latvia in the first 9 months was 1.8 million euros,
of which the share of the 3rd quarter was 0.6 million euros. The loss remained
at the same level as the previous year, changing by +0.3% and +2.1%
respectively. Business activities in Latvia have been frozen. 

The profit earned in Selvers in Estonia was positively influenced by
cost-effective activities. In addition, the income tax paid on dividends was
7.6% lower than the year before. Compared to last year, the shaping of the
profit of the first 9 months of this year was influenced by greater
depreciation costs and operational expenditure caused by renovation works
undertaken in four stores during the previous year, the introduction of the
SelveEkspress purchasing system (which is new in Estonia) in four stores during
the previous and current year, the creation of the Selveri Pagarid bakery
concept completed in the 1st quarter of this year, and the opening of the Saku
Selver and Selver gourmet stores. As a result of the above, 2011 and 2012 have
seen a larger volume of investments and operational expenditure than the
previous years. In June of this year the decision was made to replace
commercial software – as a result, software investments in the sum of 0.9
million euros were written off. 

A Selver store in Narva was closed in July 2011. In May this year, Selver
opened one new supermarket-type store in Saku, and in September, a new store
for gourmet goods in downtown Tallinn. In the end of this year, Selver will
open another 4 stores: supermarkets in Rapla and in the Vahi quarter of Tartu,
a home store in Pääsküla, Tallinn and a second store for gourmet goods in
Solaris Keskus, Tallinn. Selver plans to continue active expansion in 2013.
Lease contracts, according to which, Selver is going to open at least 3
additional supermarkets, have been entered into. As of the end of September
2012, the Selver chain includes 36 stores with a sales space of 71.2 thousand
square metres. 

Department stores

The sales revenue of the business segment of department stores in the first 9
months of 2012 was 60.3 million euros, having grown by 9.1% compared to the
same period of the previous year. Of that sum, 20.2 million euros of sales
revenue was earned in the third quarter; the sales revenue was 6.8% higher than
the revenue of the 3rd quarter of 2011. The profit of department stores in the
first nine months of 2012 was 1.0 million euros, exceeding the result of the
year before by 0.5 million euros. The profit of the 3rd quarter was 0.5 million
euros, which exceeded the profit of 2011 by 7.7%. In the 3rd quarter, the
results of Department store segment were affected by the temporary adjustment
of traffic management on the street in front of the Tallinn department store in
summer 2012. The sales revenue in the 3rd quarter was influenced by renovation
works in the Tartu department store – in August, a new Women’s footwear
department was opened instead of the former Sports department, and the Beauty
and Women’s department was expanded in September. The sales revenue of the
first 9 months was affected by the extensive renovation works in the Women's
and Children's World of Tallinna Kaubamaja, which lasted from mid-January to
March. 

The sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. beauty
stores, was 2.7 million euros in the first nine months of 2012, having grown by
33.3% compared to the same period of the year before. Of that sum, the sales
revenue of the 3rd quarter was 1.0 million euros, which was 23.9% higher than
the sum earned in the respective period of 2011. The net loss of the I.L.U.
chain in the first nine months was 0.4 million euros, which is 0.05 million
euros less than in the same period the year before. The loss of the 3rd quarter
was 0.5 million euros, which was 9 thousand euros smaller than the loss
suffered in 2011. 

Car Trade

The sales revenue of the car trade segment earned in the first nine months of
2012 without inter-segment transactions was 24.5 million euros, thus exceeding
the revenue of the same period of the year before by 72.1%. The sales revenue
of the third quarter in the sum of 9.0 million euros was greater than the
revenue of the year before by 70.5%. The segment earned a profit 1.5 million
euros in nine months, of that, 0.6 million was generated in the 3rd quarter.
The respective profits of 2011 were 1.0 million euros and 0.4 million euros.
The turnover growth is rooted in the successful sales of new KIA models such as
the Cee’d, Rio and Optima, and the continuing great demand for the crossover
SUV KIA Sportage. The sales of KIA in the Baltics have been remarkable,
increasing in a year by more than 120% in Estonia, 90% in Latvia and 53% in
Lithuania, thus effortlessly winning the first place among other brands. In the
first 9 months of 2012, a total of 1,386 vehicles were sold in the vehicle
segment, i.e. 628 vehicles more than the year before during the same period. In
the 4th quarter, the sales volume should once again increase thanks to the
arrival of the new Sorento. In addition, the vehicle segment of Tallinna
Kaubamaja was supplemented by obtaining the sales of the Opel and Cadillac
models sold by Viking Motors AS in the beginning of July this year. 34 Opel and
Cadillac models were sold in the 3rd quarter. The volume of the sales of spare
parts and services provided by Viking Motors AS in the Tallinn and Harju County
market is also important. In addition, the purchase of Viking Motors AS gave us
an opportunity to offer car body repair work for KIA clients, for whom the
services had previously been outsourced. In addition, the sales of used KIA
passenger cars increased thanks to the modern sales area for used cars located
at Tammsaare tee 51. The sales revenue of Viking Motors in the 3rd quarter of
this year was 1.2 million euros. 

Footwear trade

The turnover of the footwear trade segment in the first nine months of 2012 was
10.4 million euros, having grown by 3.3% in a year. In the 3rd quarter, the
turnover was 3.8 million euros, which is 0.1% less compared to the same period
of 2011. The decrease in sales revenue in the 3rd quarter was caused by a drop
in the number of stores – compared to the 3rd quarter of 2011, business
activities in Latvia had been terminated by the 3rd quarter of this year and
the 3 stores operating in Latvia had been closed. The increase in the turnover
of comparable stores was 10% per 9 months and 3% in the 3rd quarter. The loss
of the first nine months was 0.3 million euros, which has decreased by
approximately 0.1 million euros compared to the same period of the previous
accounting year. In the 3rd quarter of year 2012 as well as in the 3rd quarter
in 2011, the Footwear trade segment loss remained at zero. On July 5, an ABC
King store was reopened in the Pärnu Kaubamajakas. The opening of the Viljandi
Shu and the second Shu store in Pärnu is planned to take place in November
2012; the opening of a new ABC King store in Tartu Lõunakeskus is planned for
December. 

Real Estate

The extra-group sales revenue of the real estate business segment earned in the
first 9 months of 2012 was 2.1 million euros, having grown by 4.0% compared to
the same period of the previous year. The extra-group sales revenue of the real
estate business segment earned in the 3rd quarter of 2012 was 0.7 million
euros, having increased by 1.7% compared to the same period of the previous
year. The increase was mainly due to the rearrangement of the lessees and
rented spaces of Tartu Kaubamaja Kinnisvara OÜ during the first half of the
year 2012. The pre-tax profit of the segment of real estate of the first nine
months was 5.8 million euros and the pre-tax profit of the 3rd quarter was 2.2
million euros. This result exceeded the pre-tax profit of the first nine months
of the year before by 0.7 million euros and the pre-tax profit of the 3rd
quarter by 0.5 million euros, which is based on an increase in sales revenues.
The segment’s net profit of the nine months was 4.8 million euros, which is 0.3
million euros less than the net profit earned year earlier due to the income
tax paid on dividends. The net profit of the 3rd quarter was 2.2 million euros,
which is 0.5 million euros higher than the net profit of the 3rd quarter of
2011. 



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros

                                     30.09.2012  31.12.2011
-----------------------------------------------------------
ASSETS                                                     
-----------------------------------------------------------
Current assets                                             
Cash and bank                             8,091      11,948
Trade receivables                         8,387       9,976
Other short-term receivables                254       9,372
Prepaid taxes and other prepayments         874         959
Inventories                              48,739      41,973
Total current assets                     66,345      74,228
-----------------------------------------------------------
Non-current assets                                         
Receivables and prepayments               1,025       1,041
Investments in associates                 1,620       1,550
Investment property                       3,728       3,566
Property. plant and equipment           187,888     172,272
Intangible assets                        11,411       9,809
Total non-current assets                205,672     188,238
-----------------------------------------------------------
TOTAL ASSETS                            272,017     262,466
-----------------------------------------------------------
                                                           
LIABILITIES AND EQUITY                                     
-----------------------------------------------------------
Current liabilities                                        
Borrowings                                5,977      11,261
Trade payables                           46,760      46,419
Tax liabilities                           3,877       5,038
Other current liabilities                 3,592       4,489
Provisions                                  106         135
Total current liabilities                60,312      67,342
-----------------------------------------------------------
Non-current liabilities                                    
Borrowings                               73,066      55,591
Provisions and prepayments                  609          73
-----------------------------------------------------------
Total non-current liabilities            73,675      55,664
TOTAL LIABILITIES                       133,987     123,006
-----------------------------------------------------------
Equity                                                     
Share capital                            24,438      24,438
Statutory reserve capital                 2,603       2,603
Revaluation reserve                      51,358      52,197
Retained earnings                        59,581      60,333
Currency translation differences             50        -111
TOTAL EQUITY                            138,030     139,460
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TOTAL LIABILITIES AND                   272,017     262,466
EQUITY                                                     
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

                                      III quarter    III    9 months   9 months 
                                         2012      quarter    2012       2011   
                                                    2011                        
--------------------------------------------------------------------------------
                                                            
Revenue                                   115,497  110,287   340,364     316,467
Other operating income                        383      162       633         282
                                                                                
Materials, consumables used and           -86,179  -81,090  -254,058    -234,526
 services                                                                       
Other operating expenses                  -11,126  -10,823   -34,259     -32,809
Staff costs                                -8,472   -7,867   -26,135     -24,843
Depreciation, amortisation and             -2,685   -2,496    -8,794      -7,432
 impairment losses                                                              
Other expenses                                -65      -54      -270        -220
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Operating profit                            7,353    8,119    17,481      16,919
--------------------------------------------------------------------------------
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Finance income                                 21       50       109         181
Finance costs                                -275     -514    -1,263      -1,366
Finance income on shares of                    21       32       100         133
 associates                                                                     
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Profit before tax                           7,120    7,687    16,427      15,867
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Income tax                                      3        0    -3,763      -3,031
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NET PROFIT FOR THE FINANCIAL YEAR           7,123    7,687    12,664      12,836
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Other comprehensive income:                                                     
Currency translation differences               23       -3       161          73
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Other comprehensive income for the             23       -3       161          73
 financial year                                                                 
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TOTAL COMPREHENSIVE INCOME FOR THE          7,146    7,684    12,825      12,909
 FINANCIAL YEAR                                                                 
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         Raul Puusepp
         Chairman of the Board
         Phone +372 731 5000