Börsiteade

Pealkiri

SALES RESULTS FOR 9 MONTHS AND III QUARTER OF 2010

Teade

The non-audited sales revenue of Tallinna Kaubamaja Group for the first nine
months of 2010 was 4.6 billion kroons (293.4 million euros), including the
sales in the third quarter that amounted to 1.6 billion kroons (101.0 million
euros). The sales revenue for the first nine months of 2009 totalled to 4.8
billion kroons (303.9 million euros) and in the third quarter to 1.6 billion
kroons (100.3 million euros). In the first nine months, the sales revenue
dropped by 4% but the third quarter staid on 2009 level. The sales tax, levied
in Tallinn since June, reduced the total nine months sales revenue by 9.7
million kroons (0.6 million euros). Compared to the first nine months of 2009,
the turnover tax rates for the financial year and reference year are also
different, but the sales prices in the stores of the group have not been raised
in relation to the taxes. 

The consolidated sales revenue in the business segment of supermarkets for the
first 9 months of 2010 was 3.5 billion kroons (221.1 million euros), of which
the sales revenue of the third quarter amounted to 1.2 billion kroons (76.4
million euros). The sales revenue dropped by 3% compared to the period of first
nine months of 2009 and dropped by 1% compared to the period of third quarter
of 2009.  In the first 9 months, the average monthly consolidated sales revenue
per square metre of the selling space was 5.6 thousand kroons per month,
exhibiting a growth of 4% compared to the same period of the previous year. In
the third quarter, the sales revenue per square metre of the selling space was
5.7 thousand kroons per month, growing by 9% compared to the same period of the
previous year. It was influenced by the low revenue per square metre in the
Latvian stores that have been closed by now. 

The sales revenue of the supermarket segment in Estonia for the first nine
months of 2010 was 3.5 billion kroons (221.4 million euros), increasing by 1%
compared to the same period of the 2009. The sales revenue for the third
quarter was 1.2 billion kroons (76.7 million euros), exceeding the sales
revenue of the same period of the previous year by 3%. In the first nine
months, the sales revenue per square metre of selling space was an average of
5.6 thousand kroons per month in Estonia, exhibiting a drop of 2% compared to
the same period of the previous year.  In the third quarter, the sales revenue
per square metre of selling space was an average of 5.7 thousand kroons per
month, showing a increase of 1% compared to the same period of the previous
year. In comparable stores, the sales revenue per square metre of selling space
for the first nine months was 5.6 thousand kroons, i.e. it dropped by 2% as
compared to the benchmark. In the third quarter in comparable stores, the sales
revenue per square metre of selling space was 5.8 thousand kroons, increasing
by 1% compared to the same period of the previous year. In Selvers located in
Estonia, the number of purchases made in the first nine months of 2010 amounted
to 25.1 million, exceeding the number of purchases made during the earlier
period of the year by 2%. 

The sales results of the 9 months benefitted from successful marketing
activities and a rise in the number of clients. While early this year the
turnover and number of purchases increased, first and foremost, in the stores
of Tallinn, then since the third calendar quarter, the trade has enlivened
beyond Tallinn as well. Aside from the sales revenue of the third quarter, the
number of purchases has been promoted by an increase in the size of the average
shopping basket that has, for the first time after the economic recession,
increased relative to the benchmark period. In the third quarter, the demand
for industrial products also grew compared to the previous year. The formation
of the sales revenue has been adversely affected by the tightened competition
in some regions, increased turnover tax rates and sales tax. 
Due to the closedown of Latvian stores, Selver did not generate any sales
revenue in Latvia in the third quarter. The sales revenue for the first nine
months of 2010 in Latvia amounted to 0.2 million kroons (10 thousand euros)
compared to the 128.3 million kroons (8.2 million euros) earned in the same
period of the previous year. 

The opening of the Rannarootsi Selver this March means that there are now a
total of 35 Selvers in Estonia. 

In the first nine months of 2010, the sales revenue of the business segment of
department stores was 802.7 million kroons (51.3 million euros), dropping by 6%
compared to the same period of the previous year. This included the sales
revenue for the third quarter of 264.9 million kroons (16.9 million euros) that
was 1% lower than revenue of the III quarter of 2009. The last months of the
third quarter indicated signs of substantial progress, though the reference
base for the third quarter was affected by the more forceful discount campaigns
of the previous summer. In the 9 months of 2010, OÜ TKM Beauty Eesti, hitherto
operating three I.L.U. beauty stores, had a sales revenue of 21.5 million
kroons (1.4 million euros), and 7.5 million kroons (0.5 million euros) in the
third quarter. In the reference periods of 2009, there were sales activities
only at the Pärnu I.L.U. store, presenting a sales revenue of 4.4 and 1.9
million kroons (0.3 and 0.1 million euros), respectively. The fourth store of
the I.L.U. chain was opened on September 30 at the Kristiine Centre in Tallinn. 

The first nine months sales revenue of real estate business segment outside the
Group was 29.2 million kroons (1.9 million euros) and in the third quarter
sales was 9.5 million kroons (0.6 million euros). The sales revenue of both
periods dropped by 10% compared to the same periods of the previous year due to
the reduction of renting activities in Latvia. 

The segment of car trade started to liven up in the third quarter. In this
period, a total of 2,580 passenger cars, i.e. more than 31% than a year ago,
were sold in Estonia. In Latvia, the sales grew by 113% equalling to the total
sale of 1,514 cars. In Lithuania, 1,875 cars were sold, i.e. there was a growth
of 22%. During the period, 203 KIA vehicles, i.e. 86% more than a year ago,
were registered in the Baltic states. The sales revenue of the car trade
segment, without inter-segmental transactions, was 147.8 million kroons (9.4
million euros), falling short of the same period of the previous year by 17%.
The sales revenue for the third quarter was 51.0 million kroons (3.3 million
euros), exceeding the respective figure for the same period of the previous
year by 63%. As of 9 months, the market share of KIA vehicles in the Baltic
states was 3%. The launch of Sportage, the new SUV, has been a success and the
market has quickly warmed up to the new model. 
 
The turnover of the footwear retail segment for the first nine months of 2010
was 147.0 million kroons (9.4 million euros), growing by 8% in a year. In the
third quarter, the turnover was 55.2 million kroons (3.5 million euros). The
sales of third quarter increased by 9% compared to the same period of 2009. The
launch of the SHU concept and the innovation of the ABC King stores have been
off to a successful start and are yielding results. The pre-fall sales
campaigns have also represented a major contribution to the increase of the
turnover. New SHU and ABC King stores were opened in the Tartu Kaubamaja
centre. On the last day of the quarter, new SHU and ABC King stores were also
opened in the extension of the Kristiine Centre. In the third quarter, the
Suurtüki store at Maardu Centre and ABC King store at Tasku Centre in Tartu
were closed. As of late September, Suurtüki NK OÜ owns 16 stores in Estonia,
ABC King AS owns 11 stores in Estonia and ABC King SIA owns 3 stores in Latvia. 

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