Börsiteade

Pealkiri

AS Ekspress Grupp: Consolidated Interim Report for the First Quarter of 2013

Teade

Tallinn, Estonia, 2013-05-03 14:53 CEST (GLOBE NEWSWIRE) --


In the 1st quarter of this year, the Group earned a net profit of EUR 633
thousand as compared to EUR 179 thousand earned a year before. Sales totalled
EUR 13.8 million and were 3% lower than last year. EBITDA was 7% lower than in
the 1st quarter of 2012 and we ended the quarter with a profit of EUR 1.5
million. Sales and EBITDA expectations were 2% and 9% higher, respectively, but
the quarterly net profit remained at the budgeted level. 

The keywords that characterise the quarterly result are the unexpected weakness
of export markets of printing services that started in the second week of
February, the deferred income of different cooperation projects of Delfi
Lithuania and allowance for old receivables.  As we managed to offset the fall
in EBITDA with lower interest expenses, we are satisfied with the net profit
result. 

A change in the breakdown of Group’s EBITDA between different segments in the
1st quarter reveals that against the backdrop of deferred income of online
media and the temporary decline in printing services, the result of the
periodicals segment improved from last year and the share of EBITDA of
periodicals in the Group’s EBITDA increased from 1% last year to 12% this year. 

The better-than-expected result of the periodicals’ segment was partly due to
the DVD series ended in the first quarter of the year, which was sold together
with daily Eesti Päevaleht and which improved the results of the book publisher
Hea Lugu and that of AS Eesti Ajalehed. The segment was also supported by the
better-than-expected result of Express Post, the home delivery service of
periodicals. It was a challenging quarter for newspaper and magazine
publishing. While Lithuania reduced the VAT on periodicals and staff cuts also
helped to improve the company’s result as compared to the year before, in
Estonia all periodicals suffered from the unexpected downturn of the
advertising market. The Estonian publisher of magazines reached the advertising
revenue of the previous year only in the last month of the quarter, and it was
challenging also for daily and weekly newspapers. The revenue base was
maintained by subscriptions that remain stable. Readership and advertising
revenues of digital newspapers continue their stable growth. 

In the online segment, Delfi Latvia managed to exceed last year’s profit.
Despite 7% sales growth, the profit of Delfi Estonia remained below last year’s
level. Taking into account the low sales and profit targets in the 1st quarter,
the difference in absolute figures is actually insignificant. The result was
primarily impacted by the charges related to the termination of some employment
and service contracts, and the expansion of the editorial office in 2012 as a
result of which on the other hand helped the weekly number of unique users of
delfi.ee to exceed that of postimees.ee by more than 100 thousand since the
final weeks of the quarter. The biggest impact factors behind the financial
result of Delfi Lithuania were the deferral of income of some cooperation
projects to the second quarter and allowance for old receivables derived from
higher advertising revenues in the last quarter of 2012. Since the management
considers both factors as a delay in collection of income and not default, it
is expected that these setbacks will be offset over the next quarters of the
year. 

In the printing services segment, the company’s revenue base was impacted by
the slowdown in the export markets in the middle of the quarter. The reaction
to this has been problematic for the company due to the production capacity
constraints that do not enable it to prepare for a sudden decline in the orders
of regular customers. According to the company’s management, there are also
price pressures in different export markets. Regardless of the shortfall in
sales, the company managed to meet its EBITDA target in the final month of the
quarter and is optimistic about the next quarter. 

In the second quarter of the year 2013, we expect revenue to remain at the last
year’s level, EBITDA to decrease by about 7% as compared to the year before,
but net profit to increase by 30%. The most significant negative factor is the
shortfall in advertising revenue of periodicals; moreover, until the launch of
a new DVD series, the segment’s result will also be affected by the ending of
the series in the first quarter. In the online segment, we expect to maintain
EBITDA at last year’s level, but at a slightly lower margin due to the costs
related to the launch of several new projects and content production costs
incurred last year which we intend to optimise. In the printing services
segment we expect the profit to remain at last year’s level. Significantly
lower interest expenses than last year will contribute to net profit growth. 

 Key financial indicators and ratios

(EUR thousand)                               Q1      Q1  Change      Q1  Q1 2010
                                           2013    2012     %      2011         
--------------------------------------------------------------------------------
For the period                                                                  
Sales                                    13 809  14 219     -3%  13 146   11 658
Gross margin                              2 813   2 799      1%   2 617    2 065
EBITDA*                                   1 503   1 614     -7%   1 394      733
Operating profit*                           840     755     11%     554    (101)
Profit/(loss) from continuing               633     179    254%   (155)  (1 131)
 operations                 for the                                             
 period *                                                                       
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EBITDA margin* (%)                        10.9%   11.4%           10.6%     6.3%
Operating margin* (%)                      6.1%    5.3%            4.2%    -0.9%
Net margin* (%)                            4.6%    1.3%           -1.2%    -9.7%
--------------------------------------------------------------------------------
Gain related to acquisition of 50%            0       0      0%   1 540        0
 ownership in Eesti Päevalehe AS**                                              
--------------------------------------------------------------------------------
Net profit/(loss) from continuing           633     179    254%   1 385  (1 131)
 operations for the period as reported                                          
 in the financial statements                                                    
--------------------------------------------------------------------------------
Net profit/(loss) for the period as         633     179    254%   1 385    (768)
 reported                                                                       
in the financial statements                                                     
--------------------------------------------------------------------------------
Net margin (%)                             4.6%    1.3%           10.5%    -6.6%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ROA (%)                                    0.8%    0.2%            1.6%    -0.9%
ROE (%)                                    1.5%    0.5%            3.8%    -2.7%
--------------------------------------------------------------------------------
Earnings per share (EPS)                   0.02    0.01            0.05   (0.04)
--------------------------------------------------------------------------------

*The results exclude impairment of goodwill and trademarks, and the net
extraordinary gain in relation to the acquisition of an additional ownership
interest in Eesti Päevalehe AS (see below). 

**In the 1st quarter of 2011, an additional 50% ownership interest in Eesti
Päevalehe AS was acquired. The transaction was accounted for in two parts:
firstly, as the sale of the current 50% ownership interest on which the net
extraordinary gain totalled EUR 1 540 thousand and secondly, as the acquisition
of the wholly-owned subsidiary. 



Balance sheet (EUR thousand)  31.03.2013  31.12.2012  Change%
-------------------------------------------------------------
As of the end of the period                                  
Current assets                    11 780      13 545     -13%
Non-current assets                66 290      66 754      -1%
Total assets                      78 070      80 299      -3%
-------------------------------------------------------------
-------------------------------------------------------------
Current liabilities               13 036      14 967     -13%
Non-current liabilities           23 322      24 233      -4%
Total liabilities                 36 358      39 200      -7%
-------------------------------------------------------------
Equity                            41 712      41 099       1%
-------------------------------------------------------------



Financial ratios (%)         31.03.2013  31.12.2012
---------------------------------------------------
Equity ratio (%)                53%         51%    
Debt to equity ratio (%)        65%         70%    
Debt to capital ratio (%)       37%         38%    
Total debt/EBITDA ratio         3.5         3.6    
Debt service coverage ratio     1.74        1.52   
Liquidity ratio                 0.90        0.90   
---------------------------------------------------



Formulas used to calculate the financial ratios                                 
--------------------------------------------------------------------------------
- 
EBITDA margin* (%)      EBITDA* /sales x 100                                    
--------------------------------------------------------------------------------
Operating margin* (%)   Operating profit* /sales x 100                          
--------------------------------------------------------------------------------
Net margin* (%)         Net profit* /sales x 100                                
--------------------------------------------------------------------------------
Net margin (%)          Net profit as per financial statements/sales x 100      
--------------------------------------------------------------------------------
Earnings per share      Net profit/average number of shares                     
--------------------------------------------------------------------------------
Equity ratio (%)        Equity /(liabilities + equity) x 100                    
--------------------------------------------------------------------------------
Debt to equity ratio    Interest bearing liabilities /equity x 100              
 (%)                                                                            
--------------------------------------------------------------------------------
Debt to capital ratio   Interest bearing liabilities – cash and cash equivalents
 (%)                     (net debt)/(net debt+ equity) x 100                    
--------------------------------------------------------------------------------
Total debt/EBITDA       Interest bearing borrowings/EBITDA                      
 ratio                                                                          
--------------------------------------------------------------------------------
Debt service coverage   EBITDA/loan and interest payments for the period        
 ratio (DSCR)                                                                   
--------------------------------------------------------------------------------
Liquidity ratio         Current assets/current liabilities                      
--------------------------------------------------------------------------------
ROA (%)                 Net profit/average assets  x 100                        
--------------------------------------------------------------------------------
ROE (%)                 Net profit/average equity x 100                         
--------------------------------------------------------------------------------

OVERVIEW OF THE SEGMENTS

In 2013 and 2012, the Group operated in the following segments:

-          online media,

-          periodicals (newspapers, magazines and books),

-          printing services.



Key financial data of the segments Q1 2013/2012

                          --------------------------
     (EUR thousand)                  Sales          
--------------------------                          
                                Q1       Q1  Change%
                              2013     2012         
----------------------------------------------------
online media                 2 437    2 187      11%
periodicals                  5 743    5 781      -1%
printing services            6 617    7 376     -10%
corporate functions            355      140     154%
intersegment eliminations  (1 343)  (1 265)      -6%
----------------------------------------------------
TOTAL GROUP                 13 809   14 219      -3%
----------------------------------------------------



                          ------------------------
     (EUR thousand)                 EBITDA        
--------------------------                        
                           Q1 2013     Q1  Change%
                                     2012         
--------------------------------------------------
online media                    84    238     -65%
periodicals                    210     21     900%
printing services            1 414  1 529      -8%
corporate functions          (206)  (174)     -18%
intersegment eliminations        1      0        -
--------------------------------------------------
TOTAL GROUP                  1 503  1 614      -7%
--------------------------------------------------



                  -----------------
EBITDA margin      Q1 2013  Q1 2012
------------------                 
online media            3%      11%
periodicals             4%       0%
printing services      21%      21%
-----------------------------------
TOTAL                  11%      11%
-----------------------------------

The segments’ EBITDA does not include intragroup management fees, and
impairment of goodwill and trademarks. Volume-based and other fees payable to
advertising agencies have not been deducted from the advertising sales of
segments, because the management monitors gross advertising sales. Discounts
and rebates are reduced from the Group’s sales and are included in the combined
line of eliminations. 

News portals owned by the Group

Owner            Portal        Owner              Portal         
-----------------------------------------------------------------
Delfi Eesti      www.delfi.ee  AS Eesti Ajalehed  www.ekspress.ee
-----------------------------------------------------------------
                 rus.delfi.ee                     www.maaleht.ee 
-----------------------------------------------------------------
Delfi Latvia     www.delfi.lv                     www.epl.ee     
-----------------------------------------------------------------
                 rus.delfi.lv  AS SL Õhtuleht     www.ohtuleht.ee
-----------------------------------------------------------------
Delfi Lithuania  www.delfi.lt                                    
-----------------------------------------------------------------
                 ru.delfi.lt                                     
-----------------------------------------------------------------
Delfi Ukraine    www.delfi.ua                                    
-----------------------------------------------------------------



Classified portals owned by the Group

Owner            Portal       Owner              Portal             
--------------------------------------------------------------------
Delfi Lithuania  www.alio.lt  Eesti Ajalehed AS  www.ekspressjob.ee 
--------------------------------------------------------------------
                                                 www.ekspressauto.ee
--------------------------------------------------------------------
                                                 www.hyppelaud.ee   
--------------------------------------------------------------------



Online media segment

The online media segment includes Delfi operations in Estonia, Latvia,
Lithuania and Ukraine as well as the Parent Company Delfi Holding. 



                          ----------------------
     (EUR thousand)                Sales        
--------------------------                      
                              Q1     Q1  Change%
                            2013   2012         
------------------------------------------------
Delfi Estonia                852    799       7%
Delfi Latvia                 520    479       9%
Delfi Lithuania            1 055    889      19%
Delfi Ukraine                 10     14     -29%
other companies                0      6    -100%
intersegment eliminations      0      0        -
------------------------------------------------
TOTAL                      2 437  2 187      11%
------------------------------------------------



                          --------------------
     (EUR thousand)               EBITDA      
--------------------------                    
                             Q1    Q1  Change%
                           2013  2012         
----------------------------------------------
Delfi Estonia              (29)    44    -166%
Delfi Latvia                 38   (6)     733%
Delfi Lithuania              43   169     -75%
Delfi Ukraine              (59)  (67)      12%
other companies              90    98      -8%
intersegment eliminations     1     0        -
----------------------------------------------
TOTAL                        84   238     -65%
----------------------------------------------

The sales growth in the online segment has been strong in the 1st quarter;
however, the focus remains on improving profitability. EBITDA for the 1st
quarter was negatively impacted by the increase in editorial staff, but it has
also improved the quality of our content and attracted unique users. 

In the 1st quarter of 2013, all Delfi portals continued with face-lifts of
their various sections, creation of  new categories and launching cooperation
projects with different partners. 



Delfi Estonia

•        Delfi Eesti continued live broadcasts of sports events (broadcasts of
basketball matches, tennis tournament SEB Tallink Open 2013, etc.) The largest
project was the full-day programme of events dedicated to the 95th anniversary
of the Republic of Estonia. 

•        New categories and sites in the Estonian language version of Delfi,
such as Eesti Laul 2013 (Estonian Song 2013), Eesti Vabariik 95 (Republic of
Estonia 95), Priiuse Põlistamine (Lasting Liberty), Tallinn Music Week 2013,
Spordimelu (Sports World), Motoexotic, Cirque du Soleil, Su nägu kõlab
tuttavalt (Your Face Sounds Familiar), Moodne Kodu (Modern Home). 

•        New photo gallery.

•        New mobile app version mDelfi 5.0.

•        Cooperation projects with TV stations of TV3, Sky Media and Fox.

•        Cooperation project with the Estonian Athletic Association, Estonian
Ski Association, Theatre NO99, Tallinn Music Week, etc. 

In the 1st quarter of 2013, there were no significant changes in the Estonian
internet market. The number of users continues to grow in the autumn and
winter, as in previous years. The market is dominated by two media portals:
Delfi and Postimees. Delfi.ee remains the internet portal with the highest
number of users in Estonia. During the 1st quarter, Delfi increased its gap
with postimees.ee that has been more than 100 thousand weekly users. The number
of users of the online environment of Eesti Päevaleht www.epl.ee is also
growing steadily and is approaching 250 thousand users a week. In connection
with the launch of the new mobile version by www.delfi.ee, the number of mobile
users has doubled in the last six months, although it is still only a tenth of
the total readership. 



Delfi Latvia

•        Launch of a new local news channel, Regional News.

•        Cooperation project with the e-school portal e-klase.lv to attract
younger audience. 

•        Cooperation with women’s portal kasjauns.lv.

•        Launch of a new mobile application version including an upgraded
navigation system and design. 

•        According to the survey carried out by the advertising agency DDB,
Delfi has been the most popular and powerful online brand in Latvia for several
months. 

•        Other cooperation projects:

-     Media partner for the Latvian music awards “The Great Music Award”,

-     Main media partner of European rally championships held in Latvia.

The most significant change in the 1st quarter of 2013 was the acquisition of
www.spoki.lv portal by Schibsted Group and its integration into the news portal
www.tvnet.lv. As a result, the number of users of tvnet.lv increased on average
by 50 thousand a month. In terms of the overall internet use, Latvia’s most
popular websites are the e-mail environment Inbox and the social network
Draugiem. Delfi remains the most popular news site in Latvia with the largest
number of users. 



Delfi Lithuania

•        Cooperation project with Nubo TV that allows readers to watch
different TV channels online from a computer. 

•        New e-bookstore got a very good reception.

•        Launch of the English-language version of Delfi Lithuania. Russian and
Polish language portals have been launched some time ago. 

•        Completion of illustrated design of classified ads portal Alio.



Among Lithuanian internet users, Delfi Lithuania remains a clear market leader
and continues to have more than a million unique users a month. From the second
quarter of 2012, Delfi has increased the gap with other portals and Delfi has
more than 200 thousand users more than its closest competitor. In January 2012,
research company Gemius adjusted the overall number of Lithuanian internet
users that reduced the number of users of all internet portals. 



Delfi Ukraine

•        The company continues with the strategy launched last year to offer
easier and more tabloid-like news. 

•        Marketing activities in social media and cooperation projects with
radio and TV channels to improve Delfi’s visibility in the market. 

•        From September 2012 has increased content production of news targeted
at women due to the profile of users of Delfi.ua. 

The Ukrainian internet market operates in a significantly different manner than
that of the Baltic States. As compared to the 1st quarter last year, the number
of users of Delfi.ua has increased by ca 30%. The Ukrainian internet market is
primarily characterised by a constant change of different media publications
and a change of concepts. The market is not yet fully established, and
providers and consumers alike are still developing their preferences. 



Periodicals segment

The periodicals segment includes the publishers of newspapers, magazines and
books. This segment also includes AS Express Post, engaged in home delivery of
periodicals. 



--------------------------                          
     (EUR thousand)                  Sales          
                          --------------------------
                           Q1 2013  Q1 2012  Change%
----------------------------------------------------
AS Eesti Ajalehed            2 615    2 771      -6%
OÜ Hea Lugu                    329      148     122%
AS SL Õhtuleht*                900      911      -1%
AS Ajakirjade Kirjastus*       918      985      -7%
UAB Ekspress Leidyba           628      632      -1%
AS Express Post*               601      595       1%
intersegment eliminations    (248)    (261)       5%
TOTAL                        5 743    5 781      -1%
----------------------------------------------------



                          --------------------------
     (EUR thousand)                 EBITDA          
--------------------------                          
                           Q1 2013  Q1 2012  Change%
----------------------------------------------------
AS Eesti Ajalehed               73       36     103%
OÜ Hea Lugu                     55     (19)     389%
AS SL Õhtuleht*                 35       35       0%
AS Ajakirjade Kirjastus*      (22)     (26)      15%
UAB Ekspress Leidyba           (5)     (63)      92%
AS Express Post*                74       57      30%
intersegment eliminations        0        0        -
TOTAL                          210       21     910%
----------------------------------------------------

*Proportionate share of joint ventures

The 1st quarter of 2013 is characterised by the continued downturn in the print
advertising market. Whereas advertising revenue of magazines returned to the
expected level in March, the situation remains complicated for newspapers,
despite the relatively stable level of circulations and readerships. 

In February the final film in the additional DVD series of 15 films published
by OÜ Hea Lugu for the 100th anniversary of the Estonian film industry came
out. The entire project was very successful for the company and also helped to
increase single-copy sales of Eesti Päevaleht and LP. The number of users of
our digital products continues to grow. 

Estonian newspaper circulation 2012-2013

Circulations of Estonian newspapers remain stable or are slightly decreasing.
The circulation of daily newspapers has been falling more than that of weekly
newspapers. The Estonian market is inevitably following the global trends of
consumers migrating from printed newspapers to digital channels. 

Estonian newspaper readership 2012-2013

Despite of decreasing circulations there are positive news about the increased
number of readers of printed newspapers by 50 thousand readers in comparison
with the 1st quarter of 2012. The number of readers of Eesti Päevaleht has
increased the most, i.e. 17 thousand readers as compared to the same period
last year. The Group continues to focus on developing digital newspapers, the
number of which is not included in the table above. 



Printing services segment

All printing services of the Group are provided by AS Printall which is one of
the largest printing companies in Estonia. Printall is able to print both
newspapers (cold-set) and magazines (heat-set). 



---------------                          
(EUR thousand)            Sales          
               --------------------------
                Q1 2013  Q1 2012  Change%
-----------------------------------------
AS Printall       6 617    7 376     -10%
-----------------------------------------



               --------------------------
(EUR thousand)           EBITDA          
---------------                          
                Q1 2013  Q1 2012  Change%
-----------------------------------------
AS Printall       1 414    1 529      -8%
-----------------------------------------



Due to operation of heat-set machines at maximum production capacity levels
during the peak seasons, sales growth is getting more difficult to attain.
Lower circulation of newspapers also has a negative impact, as it is getting
more difficult to compensate for the decline in the print volume of cold-set
machines. In the 1st quarter of 2013, total sales fell by 10%; however, the
decline in the sale of printing services excluding the sale of paper was
considerably lower, i.e. 2.3%. The share of group companies in sales is
decreasing and the share of exports is increasing. Most of the volume growth is
generated by printing on heat-set machines, which makes up ca. 85% of total
sales. 

Printing services and the environment

In addition to its very strong financial position, Printall also focuses on
environmentally conscious production. In 2012, Printall was granted ISO 9001
management and ISO 14001 environmental certificates. 

The Minister of the Environment of the Republic of Estonia and the waste
managing company AS Ragn-Sells awarded Printall with the title of the Top
Recycler of the Year, because the company recycles 95% of its waste. 

The Nordic Council of Ministers has awarded Printall with the environmental
label “The Nordic Ecolabel”, used to acknowledge the companies in the Nordic
countries that use environmentally efficient production. Printall also has FSC
and PEFC Chain of Custody (COC) certificates, which the company uses to promote
a green way of thinking in the printing industry. Both of those certificates
indicate compliance with monitoring and product production process requirements
which are issued to businesses that comply with the requirements established by
the FSC (Forest Stewardship Council) and the PEFC (Programme for the
Endorsement of Forest Certification). A business that is issued these
certificates helps to support the environmentally friendly, socially fair and
economically viable management of the world’s forests. 

Printall cares about the environment and uses green energy. The POWERED BY
GREEN certificate is a proof that the company buys electricity, 70% of which
has been generated by renewable sources of energy. 

                                        

Consolidated balance sheet (unaudited)

(EUR thousand)                    31.03.2013  31.12.2012
--------------------------------------------------------
--------------------------------------------------------
ASSETS                                                  
Current assets                                          
Cash and cash equivalents           2 482          3 182
Trade and other receivables         6 754          7 344
Inventories                         2 447          2 922
Total                              11 683         13 448
Non-current assets held for sale       97             97
Total current assets               11 780         13 545
--------------------------------------------------------
--------------------------------------------------------
Non-current assets                                      
Term deposit                           98             98
Trade and other receivables           380            365
Property, plant and equipment      14 494         14 841
Intangible assets                  51 318         51 450
Total non-current assets           66 290         66 754
--------------------------------------------------------
TOTAL ASSETS                       78 070         80 299
--------------------------------------------------------
                                 -----------------------
LIABILITIES                                             
Current liabilities                                     
Borrowings                          3 621          4 347
Trade and other payables            9 415         10 620
Total current liabilities          13 036         14 967
--------------------------------------------------------
--------------------------------------------------------
Non-current liabilities                                 
Long-term borrowings               23 319         24 233
Derivate financial instruments          3              0
Total non-current liabilities      23 322         24 233
--------------------------------------------------------
Total liabilities                  36 358         39 200
--------------------------------------------------------
--------------------------------------------------------
EQUITY                                                  
Share capital                      17 878         17 878
Share premium                      14 277         14 277
Reserves                              740            740
Retained earnings                   8 823          8 190
Currency translation reserve          (6)             14
TOTAL EQUITY                       41 712         41 099
--------------------------------------------------------
TOTAL LIABILITIES AND EQUITY       78 070         80 299
--------------------------------------------------------
                                                        

Consolidated statement of comprehensive income (unaudited)

(EUR thousand)                                                  Q1 2013  Q1 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sales revenue                                                    13 809   14 219
Cost of sales                                                       (10      (11
                                                                   996)     420)
Gross profit                                                      2 813    2 799
Marketing expenses                                                (498)    (469)
Administrative expenses                                         (1 541)  (1 702)
Other income                                                       (28)     (34)
Other expenses                                                       94      161
--------------------------------------------------------------------------------
Operating profit                                                    840      755
--------------------------------------------------------------------------------
                                                               -----------------
Interest income                                                       0        3
Interest expense                                                  (197)    (488)
Foreign exchange gains (losses)                                      16     (44)
Other finance costs                                                (16)     (22)
Net finance cost                                                  (197)    (551)
Profit/(loss) on shares of associates                               (7)     (27)
Profit/(loss) before income tax                                     636      177
Income tax expense                                                  (3)        2
--------------------------------------------------------------------------------
Net profit/(loss) for the reporting period                          633      179
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net profit/(loss) for the reporting period attributable to:                     
Equity holders of the parent company                                633      179
Other comprehensive income/(expense)                                            
Currency translation differences                                   (20)       39
Profit/(loss) on change in value of a hedging instrument              0       62
Total other comprehensive income for the period                    (20)      101
Comprehensive income/(expense) for the reporting period             613      280
 attributable to:                                                               
Equity holders of the parent company                                613      280
Basic and diluted earnings per share                               0.02     0.01
--------------------------------------------------------------------------------

Consolidated cash flow statement (unaudited)

(EUR thousand)                                                  Q1 2013  Q1 2012
--------------------------------------------------------------------------------
Cash flows from operating activities                                            
--------------------------------------------------------------------------------
Operating profit/(loss) for the reporting period                    840      755
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Adjustments for:                                                                
Depreciation, amortisation and impairment                           663      859
Gain (loss) on sale and write-downs of property, plant and          (1)        0
 equipment                                                                      
Cash flows from operating activities:                                           
Trade and other receivables                                         587     (11)
Inventories                                                         475      171
Trade and other payables                                        (1 215)    (684)
Cash generated from operations                                    1 349    1 090
Income tax paid                                                    (15)        0
Interest paid                                                     (197)    (488)
                                                               -----------------
Net cash generated from operating activities                      1 137      602
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from investing activities                                            
Purchase of other financial investments                              15        0
Interest received                                                     0        3
Purchase of  property, plant and equipment                        (187)    (181)
Proceeds from sale of property, plant and equipment                   3        1
Loans granted                                                       (2)      (1)
Loan repayments received                                              2       32
                                                               -----------------
Net cash generated from investing activities                      (199)    (146)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flows from financing activities                                            
Finance lease repayments made                                         0    (388)
Change in use of overdraft                                        (745)      395
Change in use of factoring                                            0      160
Repayments of borrowings                                          (893)  (1 043)
                                                               -----------------
Net cash used in financing activities                           (1 638)    (876)
--------------------------------------------------------------------------------
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS              (700)    (420)
--------------------------------------------------------------------------------
                                                               -----------------
Cash and cash equivalents at the beginning of the period          3 182    2 729
Cash and cash equivalents at the end of the period                2 482    2 309
--------------------------------------------------------------------------------




         Additional information:
         Gunnar Kobin
         Chairman of the Management Board
         GSM: +372 5188111
         e-mail: [email protected]