Börsiteade

Pealkiri

Unaudited consolidated interim accounts for the fourth quarter and twelve months of 2012

Teade

Segments (EURm)    Q4/12  Q4/11   yoy    12m/12  12m/11   yoy  
---------------------------------------------------------------
Supermarkets        86.9   83.0   4.7%    330.0   317.9   3.8% 
Department stores   26.0   25.3   2.9%     86.3    80.5   7.1% 
Cars                 9.8    6.6   48.9%    34.2    20.8   64.8%
Footwear             4.1    4.0   2.6%     14.4    14.0   3.1% 
Real Estate          0.7    0.7   -0.9%     2.9     2.8   2.7% 
---------------------------------------------------------------
Total sales        127.4  119.5   6.6%    467.8   436.0   7.3% 
---------------------------------------------------------------
                                                               
Supermarkets         3.5    4.4  -21.4%     9.0    11.0  -18.0%
Department stores    2.4    2.3   5.0%      3.4     2.8   24.1%
Cars                 0.3    0.3   -9.9%     1.8     1.3   37.9%
Footwear             0.2    0.2   3.5%     -0.1    -0.2  -46.2%
Real Estate          1.9    1.5   23.0%     6.7     6.6   1.2% 
---------------------------------------------------------------
Total net profit     8.2    8.7   -5.7%    20.9    21.5   -3.1%
---------------------------------------------------------------

The consolidated unaudited sales revenue of the Tallinna Kaubamaja Group in
2012 was 467.8 million euros, having grown by 7.3% compared to the result of
2011. In the 4th quarter, the group’s sales revenue was 127.4 million euros,
which is 6.6% more than the sales revenue earned the year before. The Group’s
consolidated unaudited net profit of 2012 was 20.9 million euros, which is 3.1%
less than the net profit of the previous year (21.5 million euros). The Group's
net profit earned in the 4th quarter was 8.2 million euros, having decreased by
5.7% compared to the result of 2011, which was 8.7 million euros. The pre-tax
profit of 2012 was 24.6 million euros, having grown by 0.2% in a year. 

The fourth quarter of the Tallinna Kaubamaja Group was characterised by a
steady growth in sales revenue and the opening of six new stores. In December,
Selver opened two new supermarkets; the KoduSelver, which represents the corner
shop concept, entered the market; and a new Selver gourmet store was opened. In
November 2012 the footwear chain opened Shu stores in Viljandi and Pärnu, and
in December, an ABC King store in Lõunakeskus in Tartu was reopened. In the
fourth quarter of 2012 at almost the same gross margin, the profit earned by
the group was almost 0.5 million euros smaller compared to the fourth quarter
of 2011. The main factors influencing the result were the one-time opening
costs of new stores as well as the 14% increase in heating and energy
expenditure, which is reflected in various operating costs. Wage costs grew due
to the increased number of employees as well as sales result-dependent
performance pay. In the 2012 summary, net profit was also influenced by the
write-off of software that had lost its usefulness in the sum of 0.9 million
euros, recorded in the depreciation of fixed assets. 

The keywords characterising the entire year 2012 were the large-scale launch of
new concepts and the renovation of sales environments. During the last months
of the year, the loyalty programme and bonus system, which was launched in May
2012, gave the group the opportunity to begin group-wide analytical marketing
campaigns by using the purchase potential of loyal customers more efficiently
and finding synergy between different segments. The group also intends to
devote considerable attention to analytical marketing in 2013. In 2013, the
group will focus on improving the profitability of segments and increasing
their competitive strength, but also on making innovations in trade systems and
continuing to improve internal work organisation. 

Supermarkets

The consolidated sales revenue of the supermarket business segment and the
sales revenue earned in Estonia in 2012 was 330.0 million euros, having
increased by 3.8% compared to the previous year. Of that, the consolidated
sales revenue of the 4th quarter and the sales revenue earned in Estonia was
86.9 million euros, which shows an increase of 4.7% compared to the same period
of the previous year. Compared to 2011, the Selver chain grew by one
supermarket opened in May in Saku and one gourmet store opened in October in
Tallinna Kaubamaja. In November, another gourmet store was opened in the
Solaris Centre in Tallinn. Furthermore, another three Selver stores were added
to the Selver chain in the end of the 4th quarter. December saw the opening of
two supermarkets – the Vahi Selver in Tartu and a Selver in Rapla – and one
convenient store Koduselver in Tallinn. Opening new stores in the end of the
4th quarter did not have a significant impact on the sales results of the
entire Selver chain as of yet. The larger share of campaigns, incl. campaigns
directed at loyal customers, has had a positive effect on the increase of an
average purchase. In addition, the turnover seen during the Christmas and
end-of-the-year period was greater than the average increase in turnover in
2011. The renewed loyalty programme and the efforts made to improve service
quality made further contributions to the increase of the sales revenue. The
peculiarities of the renewed loyalty programme will have an impact on sales
revenue, since the bonus points awarded to customers decrease the sales revenue
in accounting terms. Compared to the previous year, the growth of the sales
revenue has been positively influenced by increasing competition in the retail
trade market, where competitors opened more new stores in both 2011 and 2012.
New stores inevitably bring about the division of customers among stores. 

The consolidated pre-tax profit of supermarkets in 2012 was 11.8 million euros,
having decreased by 15.8% in relation to the comparable period. The net profit
was 9.0 million euros, having decreased by 18.0% in relation to the comparable
period. The consolidated pre-tax profit and net profit of the 4th quarter was
3.5 million euros, indicating a 21.4% decrease in both compared to the period
of a year before. The pre-tax profit earned in Estonia in 2012 was 14.2 million
euros, 4.1 million euros of which was generated in the 4th quarter. The profit
biases compared to the period of a year before were -13.4% and -18.8%,
respectively. The net profit earned in Estonia in 2012 was 11.4 million euros,
having decreased by 14.8% in relation to the comparable reference period. The
net profit of the 4th quarter was 4.1 million euros, which made up 81.2% of the
profit earned a year before. No sales revenue from goods was generated in
Latvia in 2012. The pre-tax loss and net loss earned in Latvia in 2012 was 2.3
million euros, 0.6 million euros of which were incurred in the 4th quarter. The
loss remained on the level of the year earlier, changing -0.6% and +1.4%,
respectively. Business activities in Latvia are frozen. 

Selver’s profit in Estonia has been positively influenced by increased labour
efficiency, which was achieved by reviewing the employees’ work processes and
introducing a multifunctional organisation of work. In addition, the income tax
paid on dividends was 7.6% lower this year than the year before. Compared to
the year before, this year’s profit was influenced by the increase in
depreciation costs and operating costs, which were caused by the renovation of
four stores carried out during last year; the introduction of the novel
SelveEkspress shopping system in four stores in 2011 and in three stores in
2012; the creation of the Selver Bakeries concept, which was completed in the
1st quarter of 2012 and resulted in taking over the baking stalls of stores;
the opening of four new Selver stores and two Selver gourmet stores. Pursuant
to the above, the amount spent on investments and operating costs in 2011 and
2012 was higher than during previous years. In addition, results were
influenced by the launching costs of the loyalty programme, which was renewed
in May 2012, and the volume of marketing campaigns, which had increased
compared to the previous year. In June 2012 it was decided to replace IT
software, which resulted in the write-off of software investments in the sum of
0.9 million euros. 

The plans for 2013 foresee continued active expansion. Lease contracts have
been entered into for four new stores, which are to be opened in 2013. It is
likely that more new stores will be added. As of the end of December 2012 the
chain of Selver stores included 38 Selver stores and two gourmet stores. The
selling space of the stores as of the end of 2012 was 73.1 thousand square
meters. 

Department stores

The sales revenue of the department store business segment in 2012 was 86.3
million euros, having grown by 7.1% compared to the previous year. The sales
revenue earned in the 4th quarter was 26.0 million euros, which was 2.9% higher
than the revenue earned in the 4th quarter of 2011. In 2012, the month’s
average sales revenue of department stores per one square metre of selling
space was 0.29 thousand euros, which is 8.9% more than in 2011. The summarised
sales revenue of 2012 was negatively impacted by extensive renovation works
carried out in the Women’s and Children’s Departments of Tallinna Kaubamaja
since mid-January to March and the renovation works done in the Women’s, Beauty
and Shoe Departments of Tartu Kaubamaja in the 3rd quarter. On the other hand,
the thorough reorganisation of sales spaces has in conclusion increased the
sales efficiency of the department stores. The updated selection of brands in
the Women’s Department as well as ongoing marketing activities have
considerably (by 11%) increased the number of young (below 35) loyal customers.
The improved inclusion of young customers was also one of the main goals of
updating our visual identity during 2012 and the introduction of a new
advertising language. The launch of the new internal training system and
constant focus on the improvement of service quality during the year have
increased the average purchase amount by 7.1%, and also improved service
indicators. The net-profit of department stores in the 2012 was 3.4 million
euros, exceeding the result of the year before by 24.1%. The business profit of
the department store segment was 3.1 million euros, having grown by 26.7%
compared to the previous year. The net-profit of the 4th quarter was 2.4
million euros, which exceeded the profit of 2011 by 5%. 

The sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. beauty
stores, was 4.1 million euros in 2012, having increased by 28.3% compared to
2011. Of that, the sales revenue earned in the 4th quarter was 1.4 million
euros, which was 20.1% more than the result achieved during the same period in
2011. The net loss of the I.L.U. chain in the 2012 was 0.4 million euros, which
is 0.1 million euros smaller than the loss of 2011. The net loss in the 4th
quarter of 2012 amounted to 0.007 million euro, which is 0.26 million euros
smaller compared to the 4th quarter of the previous year. 

Car Trade

The sales revenue of the car trade segment earned in the 2012 without
inter-segment transactions was 34.2 million euros, thus exceeding the revenue
of the same period of the year before by 64.8%. The sales revenue of the fourth
quarter in the sum of 9.8 million euros was greater than the revenue of the
year before by 48.9%. The sales of the Opel and Cadillac models sold by Viking
Motors AS, which were added to the vehicle segment in July 2012 reached 32 in
the 4th quarter. The sales revenue of Viking Motors in the 4th quarter of this
year was 1.6 million euros. The segment earned a profit 1.8 million euros in
2012, of that, 0.3 million was generated in the 4th quarter. The respective
profits of 2011 were 1.3 million euros and 0.3 million euros. 

Footwear trade

The turnover of the footwear segment in 2012 was 14.4 million euros, having
increased by 3.1% by the end of the year. In the 4th quarter, the turnover was
4.1 million euros, which is 2.6% higher than the result achieved during the
same period in 2011. The loss of 2012 was 0.1 million euros, which has
decreased by approximately 0.1 million euros compared to the same period of the
previous accounting year. In the 4th quarter of year 2012 the Footwear trade
segment earned 0.2 million euros profit and it increased by 3.5% compared to
the 4th quarter of 2011. Three new stores were opened in the 4th quarter of
2012. As of the end of December, Suurtüki NK OÜ owns 16 stores and ABC King AS
owns 10 stores. Plans for February 2013 include opening a Shu store in the
shopping centre Tsentraal in Jõhvi. 

Real Estate

The external sales revenue of the real estate business segment earned in 2012
was 2.9 million euros, having grown by 2.7% compared to the previous year. The
external sales revenue of the real estate business segment earned in the 4th
quarter of 2012 was 0.7 million euros, which indicates a decrease of 0.9%
compared to the same period of the previous year. The increase in revenue that
occurred in the beginning of the year was mainly caused by the reorganisation
of the tenants and leased spaces of Tartu Kaubamaja Kinnisvara OÜ in the first
half of 2012. In the second half of 2012, the group needed to start using some
spaces that were previously rented out for its own purposes; this caused a
slight decrease in the external sales revenue in the end of the year. The
pre-tax profit of the segment of real estate of 2012 was 7.7 million euros and
the pre-tax profit of the 4th quarter was 1.9 million euros. This result
exceeded the pre-tax profit of 2011 by 1.0 million euros and the pre-tax profit
of the 4th quarter by 0.4 million euros, which is based on an increase in sales
revenues. The segment’s net profit of 2012 was 6.7 million euros, which is 0.1
million euros more than the net profit earned year earlier. 



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros

                                      31.12.2012  31.12.2011
------------------------------------------------------------
ASSETS                                                      
------------------------------------------------------------
Current assets                                              
Cash and bank                             13,494      11 948
Trade receivables and prepayments         18,497      20 702
Inventories                               48,264      41 578
Total current assets                      80,255      74 228
------------------------------------------------------------
Non-current assets                                          
Receivables and prepayments                  667       1,041
Investments in associates                  1,628       1,550
Investment property                        3,756       3,566
Property. plant and equipment            190,298     172,272
Intangible assets                         11,236       9,809
Total non-current assets                 207,585     188,238
------------------------------------------------------------
TOTAL ASSETS                             287,840     262,466
------------------------------------------------------------
                                                            
LIABILITIES AND EQUITY                                      
------------------------------------------------------------
Current liabilities                                         
Borrowings                                17,210      11,261
Trade payables and other liabilities      64,151      56,081
Total current liabilities                 81,361      67,342
------------------------------------------------------------
Non-current liabilities                                     
Borrowings                                59,781      55,591
Provisions and prepayments                   519          73
------------------------------------------------------------
Total non-current liabilities             60,300      55,664
TOTAL LIABILITIES                        141,661     123,006
------------------------------------------------------------
Equity                                                      
Share capital                             24,438      24,438
Statutory reserve capital                  2,603       2,603
Revaluation reserve                       51,079      52,197
Retained earnings                         68,066      60,333
Currency translation differences              -7        -111
TOTAL EQUITY                             146,179     139,460
------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY             287,840     262,466
------------------------------------------------------------



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

                                      IV quarter     IV       12      12 months 
                                        2012      quarter   months      2011    
                                                   2011      2012               
--------------------------------------------------------------------------------
                                                           
Revenue                                  127,436  119,510   467,800      435,977
Other operating income                       187      138       820          420
                                                                                
Materials, consumables used and          -93,061  -86,977  -347,119     -321,503
 services                                                                       
Other operating expenses                 -12,983  -11,544   -47,242      -44,353
Staff costs                              -10,241   -9,302   -36,376      -34,145
Depreciation, amortisation and            -2,687   -2,544   -11,481       -9,976
 impairment losses                                                              
Other expenses                              -113     -127      -383         -347
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Operating profit                           8,538    9,154    26,019       26,073
--------------------------------------------------------------------------------
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Finance income                                24       66       133          247
Finance costs                               -384     -531    -1,647       -1,897
Finance income on shares of                   26       17       126          150
 associates                                                                     
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Profit before tax                          8,204    8,706    24,631       24,573
--------------------------------------------------------------------------------
Income tax                                     2       -4    -3,761       -3,035
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NET PROFIT FOR THE FINANCIAL YEAR          8,206    8,702    20,870       21,538
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Other comprehensive income:                                                     
Currency translation differences             -57      442       104          515
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Other comprehensive income for the           -57      442       104          515
 financial year                                                                 
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TOTAL COMPREHENSIVE INCOME FOR THE         8,149    9,144    20,974       22,053
 FINANCIAL YEAR                                                                 
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         Raul Puusepp
         Chairman of the Board
         Phone +372 731 5000