DIRECTORS' REPORT
Eesti Ehitus is a group of construction companies whose core business is general
contracting and project management. Group entities are involved in the
construction of buildings and civil engineering in Estonia, Latvia, Lithuania
and Ukraine. In addition, in Estonia our companies act as independent
contractors in road construction and maintenance, environmental engineering, the
assembly of reinforced concrete elements, and the performance of cast-on-site
concrete works. The parent of the Group is AS Eesti Ehitus, a company registered
and located in Tallinn, Estonia. Since 18 May 2006, the parent company's shares
have been quoted in the main list of the NASDAQ OMX Tallinn Stock Exchange.
Our mission
We are committed to providing premier value added design and construction
services by creating a successful partnership with our customers.
We seek to add value to the company by motivating our employees and providing
them with clear development opportunities and a contemporary work environment.
Our vision
We strive to be a construction group which can always surpass the customer's
expectations.
Shared values
Quality
We are professionals - we apply appropriate and effective construction
techniques and technologies and observe generally accepted quality standards. We
provide our customers with integrated cost efficient solutions. We are
environmentally aware and operate sustainably. We value our employees by
providing them with a modern work environment which encourages creativity and a
motivation system which fosters initiative.
Reliability
We always keep our promises and honour our agreements. We act openly and
transparently. We consistently support and promote the best construction
practices. We do not take risks at the expense of our customers.
Innovation
We are innovative and creative engineers. We take maximum advantage of the
benefits offered by information technology. We inspire our employees to grow
through continuous training and balanced career opportunities.
Eesti Ehitus Group as at 30 June 2008
The unaudited consolidated financial statements for six months ended 30 June
2008 comprise the parent and the parent's interests in following Group entities.
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| Direct and indirect ownership interests of AS Eesti | |
| Ehitus: | |
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| Company | 30 June 2008 | 30 June | 31 December |
| | | 2007 | 2007 |
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| AS Linnaehitus | Estonia | 100.0% | 100.0% | 100.0% |
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| AS ASPI | Estonia | 100.0% | 100.0% | 100.0% |
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| AS Järva Teed | Estonia | 100.0% | 100.0% | 100.0% |
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| OÜ Hiiu Teed | Estonia | 100.0% | 100.0% | 100.0% |
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| Estcon OY | Finland | 100.0% | 100.0% | 100.0% |
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| OÜ EE Ressursid | Estonia | 100.0% | 100.0% | 100.0% |
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| UAB Eurocon LT | Lithuania | 70.0% | 100.0% | 70.0% |
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| OÜ Kaurits | Estonia | 66.0% | 52.0% | 52.0% |
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| Infra Ehitus OÜ | Estonia | 66.0% | 52.0% | 52.0% |
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| OÜ Eurocon | Estonia | 63.0% | 64.0% | 64.0% |
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| Eurocon Ukraine | Ukraine | 63.0% | 61.4% | 61.4% |
| LLC | | | | |
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| TOV Eurocon West | Ukraine | 63.0% | 61.4% | 61.4% |
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| Instar Property | Estonia | 63.0% | 0% | 0% |
| OÜ | | | | |
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| TOV Instar | Ukraine | 63.0% | 0% | 0% |
| Property | | | | |
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| TOV Bukovina | Ukraine | 62.4% | 60.8% | 60.8% |
| Developments | | | | |
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| SIA Abagars | Latvia | 56.0% | 34.3% | 34.3% |
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| SIA Vides Tikli | Latvia | 56.0% | 34.3% | 34.3% |
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| OÜ Mapri Projekt | Estonia | 52.0% | 52.0% | 52.0% |
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| AS Eston Ehitus | Estonia | 52.0% | 0.0% | 52.0% |
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| OÜ DSN | Estonia | 43.6% | 0.0% | 34.3% |
| Ehitusmasinad | | | | |
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| TOV V.I. Center | Ukraine | 32.8% | 32.0% | 32.0% |
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| TOV EA Reng | Ukraine | 32.1% | 31.3% | 31.3% |
| Proekt | | | | |
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| TOV Technopolis-2 | Ukraine | 31.5% | 30.7% | 30.7% |
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| P/S BKT | Latvia | 28.0% | 17.2% | 17.2% |
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| OÜ Kastani | Estonia | 26.0% | 26.0% | 26.0% |
| Kinnisvara | | | | |
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| OÜ Sepavara | Estonia | 26.0% | 0% | 26.0% |
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| OÜ Kalda Kodu | Estonia | 22.9% | 0% | 22.9% |
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| TOV Passage | Ukraine | 17.0% | 55.3% | 17.8% |
| Theatre | | | | |
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| OÜ Crislivnica | Estonia | 17.7% | 0% | 17.7% |
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| AS E-Trading | Estonia | 6.2% | 0% | 6.2% |
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| TOV European | Ukraine | 0% | 0% | 6.1% |
| House* | | | | |
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| TOV Baltik | Ukraine | 0% | 30.7% | 30.7% |
| Development | | | | |
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| TOV Eurobeton | Ukraine | 0% | 30.7% | 0% |
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* Based on a preliminary agreement already signed, either the whole company or a
part of it has been recognised as a non-current asset held for sale (see Changes
in the Group's structure in the first half of 2008 in the Directors' report and
note 5 to the consolidated financial statements).
The business of Group entities
The Estonian entities of Eesti Ehitus Group provide services in all business
segments in which the Group is involved. The parent AS Eesti Ehitus, AS
Linnaehitus and AS Eston Ehitus are mainly engaged in general construction
contracting and project management. AS ASPI and its subsidiaries build
environmental structures and roads and provide road maintenance services. In
addition, ASPI group includes companies that rent out construction machinery and
equipment. OÜ Mapri Projekt earns a major share of its revenue from concrete
works and the rest from project management and general contracting.
The Group's Ukrainian subsidiaries operate in the residential and
non-residential segment. The largest Ukrainian subsidiaries Eurocon Ukraine LLC
and TOV Eurocon West build mostly commercial buildings and industrial and
warehouse facilities. EA Reng Proekt TOV provides design services. Other
Ukrainian subsidiaries are involved in the development of real estate and
construction projects in Kiev and Lviv.
The Latvian subsidiary Abagars SIA and its subsidiaries perform infrastructure
projects (such as pipeline construction, etc) in the civil engineering segment.
T
he Lithuanian subsidiary Eurocon LT UAB operates in the residential and
non-residential segment focusing on the construction of residential and
commercial premises.
Changes in the Group's structure in the first half of 2008
Acquisitions of interests and establishment of subsidiaries
On 5 February, OÜ Eurocon acquired a 4 per cent stake in Eurocon Ukraine LLC,
raising its interest in the entity to 100 per cent.
On 12 February, AS Eesti Ehitus acquired a 2.5 per cent stake in OÜ Eurocon from
a minority shareholder, increasing its holding in OÜ Eurocon to 66.5 per cent.
On 18 February, AS Eesti Ehitus' subsidiary OÜ Eurocon established a
wholly-owned subsidiary - Instar Property OÜ. At the date of establishment, the
share capital of Instar Property OÜ was 40,000 kroons (approx. 2,557 euros).
Instar Property OÜ is going to operate as a holding company for the Group's
direct and indirect interests in development projects performed in Ukraine.
On 2 May, AS Eesti Ehitus' wholly-owned subsidiary AS ASPI performed a
transaction with its subsidiary OÜ Kaurits, acquiring a 56 per cent interest in
the Latvian entity SIA Abagars. After the transaction, AS ASPI's direct interest
in SIA Abagars is 56 per cent.
On 19 May, AS ASPI increased its shareholding in OÜ Kaurits by 14 per cent to 66
per cent.
Divestment of interests
On 4 April, AS Eesti Ehitus sold a 4 per cent interest in Eurocon OÜ to a
Ukrainian resident. The transaction was performed by increasing share capital.
On 10 April, AS Eesti Ehitus' subsidiary Eurocon Ukraine LLC divested a 33 per
cent stake in the Ukrainian company TOV Passage Theatre.
On 14 April, Eurocon Ukraine LLC divested a 50 per cent stake in the Ukrainian
company TOV Baltic Development.
In June, Eurocon Ukraine LLC signed an agreement in which it undertook to sell
its entire 10 per cent interest in the Ukrainian company TOV European House. At
the date these interim financial statements are authorised for issue, the
investment in TOV European House is carried as a non-current asset held for sale
(see note 5 to the consolidated financial statements).
In June, Eurocon Ukraine LLC sold a 30 per cent stake in the Ukrainian company
TOV Passage Theatre which had already been classified as a non-current asset
held for sale. After the transaction, Eurocon Ukraine LLC's interest in TOV
Passage Theatre is 27 per cent.
Financial review
Margins
Eesti Ehitus Group ended the first six months of 2008 with a gross profit of
238.7 million kroons (15.3 million euros), a 10.4 per cent improvement on the
216.3 million kroons (13.8 million euros) earned a year ago.
Consolidated net profit for the period amounted to 110.8 million kroons (7.1
million euros). Compared with the 129.9 million kroons (8.3 million euros)
generated in the first half of 2007 net profit has decreased by 14.8 per cent,
mainly on account of non-operating items such as financial income and expenses
and income tax expense on the record dividends distributed for the prior
financial years.
As anticipated, margins were influenced by keen competition and rapid
deceleration in the growth of the Estonian economy which triggered a slowdown in
the construction market. Although gross margin for the first half-year was 12.8
per cent against 14.2 per cent a year ago, it is important to note that gross
profit increased and the margin remained strong in the context of the industry.
Owing to operating and non-operating developments (including growth in dividend
tax expense), operating and net margin dropped to 7.8 per cent and 5.9 per cent
respectively (2007: 9.6 per cent and 8.6 per cent).
Despite the growth of the Group and high inflation, administrative expenses have
not increased significantly. At period end, the ratio of administrative
expenses to revenue was 5.0 per cent (2007: 4.6 per cent), referring to
effective cost management in the context of the industry. The Group's position
is to try to maintain the ratio at a similar level also in subsequent periods.
Cash flows
The Group's net operating cash flow for the first half-year was positive at 107
million kroons (6.8 million euros) while the corresponding figure for the prior
year was negative at 75 million kroons (4.8 million euros). Operating cash flow
has improved, above all, thanks to an increase in receipts from customers
including settlements received on the completed contracts.
Compared with the first half of 2007, net outflow from investing activities
increased from 1.6 million kroons (0.1 million euros) to 130 million kroons (8.3
million euros). Payments made for acquisition of subsidiaries including business
combinations of prior periods accounted for 215 million kroons (13.8 million
euros) of outflow while inflow comprised mainly loan settlements and proceeds
from disposal of associates.
Financing activities generated net inflow of 109 million kroons (7.0 million
euros), mainly through borrowing. Compared with the first half of 2007, net loan
proceeds and repayments increased by 174 million kroons (11.1 million euros).
The largest one-off outflow resulted from the distribution of dividends which at
104 million kroons (6.6 million euros) were two times larger than in the prior
financial year.
In the first half of 2008, the Group's cash and cash equivalents increased by 86
million kroons (5.5 million euros); in the first half of 2007 cash and cash
equivalents decreased by 85 million kroons (5.4 million euros). At 30 June 2008,
the Group's cash and cash equivalents stood at 321.8 million kroons (20.6
million euros) against 70.9 million kroons (4.5 million euros) at 30 June 2007.
Key financial figures and ratios
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| Figure / ratio | 6 | 6 | 6 months to | Full year 2007 |
| | months | months | 30 June | |
| | to | to | 2006 | |
| | 30 June | 30 June | | |
| | 2008 | 2007 | | |
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| Weighted average number | 30,756, | 30,756, | 30,756,728* | 30,756,728 |
| of shares | 728 | 728* | | |
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| Earnings per share (in | 3.39 | 4.03 | 1.78 | 8.70 |
| kroons) | | | | |
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| Earnings per share (in | 0.22 | 0.26 | 0.11 | 0.56 |
| euros) | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue growth | 23.1% | 64.0% | 192.3% | 49.9% |
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| Average number of | 1209 | 1113 | 882 | 1103 |
| employees | | | | |
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| Revenue per employee (in | 1,547 | 1,365 | 1,050 | 3,402 |
| thousands of kroons) | | | | |
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| Revenue per employee (in | 98 | 87 | 67 | 217 |
| thousands of euros) | | | | |
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| Personnel expenses to | 12.4% | 11.6% | 11.0% | 12.3% |
| revenue, % | | | | |
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| Administrative expenses | 5.0% | 4.6% | 5.0% | 4.7% |
| to revenue, % | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA (in thousands of | 179,579 | 176,310 | 85,208 | 370,575 |
| kroons) | | | | |
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| EBITDA (in thousands of | 11,477 | 11,268 | 5,446 | 23,684 |
| euros) | | | | |
--------------------------------------------------------------------------------
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| EBITDA margin, % | 9.6% | 11.6% | 9.2% | 9.9% | |
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| Gross margin, % | 12.8% | 14.2% | 9.9% | 13.3% | |
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| Operating margin, % | 7.8% | 9.6% | 7.7% | 8.2% | |
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| Operating margin | 7.6% | 9.2% | 4.9% | 7.8% | |
| excluding gains on asset | | | | | |
| sales, % | | | | | |
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| Net margin, % | 5.9% | 8.6% | 5.8% | 7.7% | |
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| Return on invested | 11.7% | 17.8% | 12.6% | 32.7% | |
| capital, % | | | | | |
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| Return on assets, % | 6.3% | 9.3% | 6.4% | 17.1% | |
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| Return on equity, % | 13.7% | 23.9% | 19.2% | 44.1% | |
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| Equity ratio, % | 33.0% | 33.7% | 27.5% | 36.9% | |
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| Gearing, % | 27.4% | 32.5% | 12.1% | 13.5% | |
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| Current ratio | 1.45 | 1.45 | 1.20 | 1.30 | |
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| As at | 30 June | 30 June | 30 June | 31 December | |
| | 2008 | 2007 | 2006 | 2007 | |
--------------------------------------------------------------------------------
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| Order backlog (in | 3,196,9 | 2,730,8 | 1,987,5 | 2,526,652 | |
| thousands of kroons) | 37 | 13 | 47 | | |
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| Order backlog (in | 204,322 | 174,531 | 127,027 | 161,482 | |
| thousands of euros) | | | | | |
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* For comparability, the weighted average number of shares is the number of
shares after the bonus issues.
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| Earnings per share (EPS) = net | Operating margin excluding gains on |
| profit attributable to equity | asset sales = (operating profit - |
| holders of the parent / weighted | gains on sale of property, plant and |
| average number of shares outstanding | equipment - gains on sale of real |
| Revenue per employee = revenue / | estate) / revenue |
| average number of employees | Net margin = net profit for the |
| Personnel expenses to revenue = | period / revenue |
| personnel expenses / revenue | Return on invested capital = (profit |
| Administrative expenses to revenue = | before tax + interest expense) / the |
| administrative expenses / revenue | period's average (interest-bearing |
| EBITDA = earnings before interest, | liabilities + equity) |
| taxes, depreciation and amortisation | Return on assets = operating profit / |
| EBITDA margin = EBITDA / revenue | the period's average total assets |
| Gross margin = gross profit / | Return on equity = net profit for the |
| revenue | period /the period's average total |
| Operating margin = operating profit | equity |
| / revenue | Equity ratio = total equity / total |
| | equity and liabilities |
| | Gearing = (interest-bearing |
| | liabilities - cash and cash |
| | equivalents) / (interest bearing |
| | liabilities + equity) |
| | Current ratio = total current assets |
| | / total current liabilities |
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Revenue by geographical segments
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| | 6 months | 6 months | 6 months to | Full year |
| | to | to | 30 June | 2007 |
| | 30 June | 30 June | 2006 | |
| | 2008 | 2007 | | |
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| Estonia | 80.1% | 90.0% | 94.3% | 87.9% |
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| Ukraine | 14.9% | 10.0% | 5.7% | 11.6% |
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| Lithuania | 2.2% | 0% | 0% | 0.5% |
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| Latvia | 2.8% | 0% | 0% | 0% |
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Compared with prior periods, we have increased operations in Ukraine, Latvia and
Lithuania - if in the first half of 2007 and full 2007 revenue earned outside
Estonia accounted for around 10 per cent of the total, in the first half of 2008
the figure rose to 20 per cent. Revenue distribution across geographical
segments has been a devised strategy for mitigating the risks arising from
excessive reliance on a single market.
Business review
The core business of Eesti Ehitus Group is general contracting and construction
management in the construction of buildings and structures. In addition, the
Group is involved in road construction and maintenance, environmental
engineering, concrete works and real estate development.
Consolidated revenue for the first half of 2008 amounted to 1,870.6 million
kroons (119.6 million euros), 23 per cent up on the 1,519.6 million kroons (97.1
million euros) generated in the first half of 2007. Revenue growth has been
supported by the growth of the Group (addition of consolidated entities).
The Group tries to keep the revenues generated by different segments in balance
as this helps disperse risks and provides a more solid foundation under stressed
circumstances. In line with the strategy, the proportion of residential
development revenue is consistently maintained at a relatively low level (at or
below 20 per cent).
The residential and non-residential segment contributed 1,327.6 million kroons
(84.8 million euros) and the civil engineering segment 520.1 million kroons
(33.2 million euros) of total construction contract revenue. The corresponding
figures for the first half of 2007 were 793.2 million kroons and 667.3 million
kroons (50.7 million euros and 42.7 million euros) respectively. The decrease in
the revenue generated by the civil engineering segment results mostly from the
timing of major environmental and port construction projects.
Revenue distribution between the primary segments corresponds to management's
expectations. In the second half-year, the revenues of the civil engineering
segment will increase because of the seasonal nature of road construction
operations and new contracts (see Significant construction contracts signed in
the first half of 2008 in the Directors' report).
In the residential and non-residential segment, revenue distribution has
remained stable with commercial buildings accounting for over 50 per cent of the
segment's revenue. The contribution of residential buildings sub-segment has
decreased in line with changes in the market situation.
In the civil engineering
segment, the contribution of road construction and maintenance has increased
both because of growth in road construction operations and the completion of
several major environmental engineering and port construction projects which in
the first half of 2007 were still in progress.
Revenue by segments
Business segments
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| | 6 | 6 | 6 months to | |
| | months | months | 30 June | |
| | to | to | 2006 | |
| | 30 | 30 | | |
| | June | June | | |
| | 2008 | 2007 | | 2007 |
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| Residential and | 72% | 54% | 62% | 53% |
| non-residential | | | | |
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| Civil engineering | 28% | 46% | 38% | 47% |
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| Revenue distribution in the | 6 | 6 months | 6 months to | 2007 |
| residential and | months | to | 30 June | |
| non-residential segment | to | 30 June | 2006 | |
| | 30 | 2007 | | |
| | June | | | |
| | 2008 | | | |
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| Commercial buildings | 59% | 53% | 47% | 61% |
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| Industrial and warehouse | 20% | 10% | 25% | 11% |
| facilities | | | | |
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| Public buildings | 13% | 20% | 17% | 16% |
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| Residential buildings | 8% | 17% | 11% | 12% |
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--------------------------------------------------------------------------------
| Revenue distribution in the | 6 months | 6 months | 6 months | 2007 |
| civil engineering segment | to | to | to | |
| | 30 June | 30 June | 30 June | |
| | 2008 | 2007 | 2006* | |
--------------------------------------------------------------------------------
| Road construction and | 51% | 30% | - | 41% |
| maintenance | | | | |
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| Port construction | 26% | 28% | - | 33% |
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| Other engineering | 19% | 17% | - | 13% |
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| Environmental engineering | 4% | 25% | - | 13% |
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* In 2006, the civil engineering segment was not divided into sub-segments
Order backlog and significant construction contracts signed in the first half of
2008
Order backlog
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| As at | 30 June | 30 June | 30 June | 31 December |
| | 2008 | 2007 | 2006 | 2007 |
--------------------------------------------------------------------------------
| Order backlog, in | 3,196,93 | 2,730,813 | 1,987,547 | 2,526,652 |
| thousands of kroons | 7 | | | |
--------------------------------------------------------------------------------
| Order backlog, in | 204,322 | 174,531 | 127,027 | 161,482 |
| thousands of euros | | | | |
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At 30 June 2008, the Group's order backlog was 3,197 million kroons (204 million
euros), a 17 per cent improvement on the 2,731 million kroons (175 million
euros) posted a year ago. The growth in order backlog may be attributed to
successful tendering (see Significant construction contracts signed in the first
half of 2008 in the Directors' report) and the addition of consolidated
entities.
Significant construction contracts signed in the first half of 2008
--------------------------------------------------------------------------------
| Brief description | Cost | Region | Expected |
| | | | delivery |
| | (EEK '000 / EUR | | |
| | '000) | | |
--------------------------------------------------------------------------------
| Rehabilitation of the Rõhu-Puhja | 92,336 / 5,901 | Estoni | August 2009 |
| section of national road no 92 | | a | |
--------------------------------------------------------------------------------
| Construction of berths no 8 and 9 | 316,363 / | Estoni | May 2009 |
| at Paldiski South Harbour | 20,219 | a | |
--------------------------------------------------------------------------------
| Design and construction of Science | 179,100 / | Estoni | August 2010 |
| Centre AHHAA building | 11,447 | a | |
--------------------------------------------------------------------------------
| Tarmeko KV interior decoration | 63,000 / 4,026 | Estoni | October |
| store in Tartu | | a | 2008 |
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| Väike-Paala business building in | 101,500 / 6,487 | Estoni | May 2009 |
| Tallinn | | a | |
--------------------------------------------------------------------------------
| Design and construction of Mäo | 402,881 / | Estoni | August 2010 |
| overtake on Tallinn-Tartu road | 25,749 | a | |
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| Extension of water and sewerage | 194,242 / | Latvia | December |
| networks in Sempeteris district in | 12,414 | | 2009 |
| Riga | | | |
--------------------------------------------------------------------------------
| Extension of the Lõunakeskus | 284,270 / | Estoni | September |
| shopping centre in Tartu | 18,168 | a | 2009 |
--------------------------------------------------------------------------------
During the preparation of the interim financial statements, i.e. from 1 July to
6 August 2008, the Group was awarded the following major contracts:
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| Brief description | Cost | Region | Expected |
| | | | delivery |
| | (EEK '000 / EUR | | |
| | '000) | | |
--------------------------------------------------------------------------------
| Construction of a leisure and | 112 398 / 7 184 | Ukraine | May 2009 |
| shopping centre in Darnitski | | | |
| district in Kiev | | | |
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| Stage one in the construction of | 279 760 / | Estonia | December |
| Koidula railway border station | 17 880 | | 2010 |
| (joint tender with AS Teede REV-2) | | | |
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People and personnel expenses
In the first half of 2008 the Group employed, on average, 1221 people including
around engineers and technical personnel of 500 people. The proportion of
engineers and technical personnel (ETP) has increased during the past couple of
years due to the growth of the Group and the size of the contracts. We expect
the trend to continue, among other things, because of the Group's growth in
Lithuania, Latvia and Ukraine. Compared with the first half of 2007, the number
of staff has increased by approximately 100, mainly on account of the
transformation of the Latvian entity Abagars SIA into a subsidiary in May 2008
(see Changes in the Group's structure in the first half of 2008 in the
Directors' report).
Number of employees:
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| Period | ETP | Workers | Total average |
--------------------------------------------------------------------------------
| 6 months to 30 | 493 | 716 | 1209 |
| June 2008 | | | |
--------------------------------------------------------------------------------
| 6 months to 30 | 412 | 701 | 1113 |
| June 2007 | | | |
--------------------------------------------------------------------------------
| 6 months to 30 | 316 | 566 | 882 |
| June 2006 | | | |
--------------------------------------------------------------------------------
| Full year 2007 | 425 | 678 | 1103 |
--------------------------------------------------------------------------------
The Group's personnel expenses for the first half of 2008 totalled 232.9 million
kroons (14.9 million euros), a 32 per cent increase on the first half of 2007.
The rise in personnel expenses is attributable to the acquisition of
subsidiaries and the Group's personnel policy.
In the first half of 2008, the remuneration of the Group's council totalled 545
thousand kroons (35 thousand euros) and the remuneration of the Group's board
amounted to 8,257 thousand kroons (528 thousand euros). The corresponding
figures for the first half of 2007 were 540 thousand kroons (35 thousand euros)
and 5,252 thousand kroons (336 thousand euros) respectively.
Share and shareholders
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| ISIN code | EE3100039496 |
--------------------------------------------------------------------------------
| Short name of the security | EEH1T |
--------------------------------------------------------------------------------
| Nominal value | 10.00 kroons / 0.64 euros |
--------------------------------------------------------------------------------
| Total number of securities | 30,756,728 |
--------------------------------------------------------------------------------
| Number of listed securities | 30,756,728 |
--------------------------------------------------------------------------------
| Listing date | 18 May 2006 |
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Shareholder structure
According to the Estonian Central Register of Securities, at 30 June 2008 the
shareholder structure was the following:
--------------------------------------------------------------------------------
| | Number of | Ownership interest |
| | shareholders | (%) |
--------------------------------------------------------------------------------
| Shareholders with interest | 1 | 61.15% |
| exceeding 5% | | |
--------------------------------------------------------------------------------
| Shareholders with interest | 15 | 21.88% |
| between 1% and 5% | | |
--------------------------------------------------------------------------------
| Shareholders with interest below | 1,381 | 16.97% |
| 1% | | |
--------------------------------------------------------------------------------
| Total | 1,397 | 100.00% |
--------------------------------------------------------------------------------
Risks
Business risks
To manage daily construction risks, Group companies purchase Contractors' All
Risks insurance. Depending on the nature of the project, both general frame
agreements and specially tailored 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 AS Eesti
Ehitus. To remedy builder-caused deficiencies which may be detected during the
warranty period, all Group companies create warranty provisions. At the end of
the first six months of 2008, the provisions (including current and non-current
ones) totalled 11.7 million kroons (0.75 million euros). The corresponding
figure for the first half of 2007 was 8 million kroons (0.5 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
conclusion of a contract, customers' 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. As at the
end of the reporting period, our customers' settlement practice was good. In the
first half of 2008, the Group's estimated loss from impaired receivables
amounted to 7 million kroons (0.5 million euros) (2007: 0 kroons / euros).
Liquidity risk
Free funds are placed in overnight or fixed-interest term deposits with the
largest banks in Estonia. 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 (2007: 1.45) and available cash funds totalled 322 million
kroons (20.6 million euros). Together with unused overdraft facilities, the cash
balances provide a sufficient liquidity buffer for completing the operating
cycle in an economic environment which is more uncertain than last year.
Interest rate risk
The loans taken from banks operating in Estonia, Latvia and Ukraine have mainly
fixed interest rates. Finance lease contracts have floating interest rates and
are linked to EURIBOR. Compared with the first half of 2007, the Group's
interest-bearing loan liabilities have increased by 362 million kroons (23
million euros) or 94 per cent and interest expense has grown by 11.2 million
kroons (0.71 million euros) to 18.4 million kroons (1.18 million euros).
Currency risk
As a rule, construction contracts and subcontractors' service contracts are made
in the currency of the host country: in Estonia contracts are made in Estonian
kroons (EEK), in Latvia in Latvian lats (LVL), in Lithuania in Lithuanian litas
(LTL) and in Ukraine in Ukrainian grivnas (UAH). A significant proportion of
services purchased from other countries are priced in euro which does not
constitute a currency risk for the Group's Estonian, Latvian and Lithuanian
entities.
In Ukraine, some materials supply contracts are made in euro. In addition, the
Group's parent AS Eesti Ehitus settles accounts with its Ukrainian subsidiary
Eurocon Ukraine LLC in euros but the volumes are immaterial. The Ukrainian
grivna fluctuates slightly against the US dollar. Therefore, in Ukraine the
fluctuations of the grivna against the euro give rise to a currency risk but
there are almost no reasonable possibilities for hedging the risk in cooperation
with local banks. In the first half of 2008, the Group's foreign exchange loss
from Ukrainian operations amounted to 6.1 million kroons (0.39 million euros), 4
million kroons (0.26 million euros) up on the same period in 2007.
Future outlook
Estonia
We believe that in the construction sector the deceleration in economic growth
will trigger the following trends:
the construction sector will become more dependent on public procurement tenders
and the number and pricing of infrastructure, environmental and other projects
launched with the support of the European Union funds;
the importance of infrastructure projects will increase and, accordingly,
critical success factors will include specialised engineering expertise and the
availability of specialised resources;
housing development and construction volumes will shrink and the number of
related companies will decrease (consolidation). The consolidation process will
heighten competition and exert downward pressure on profit margins;
the past years' labour deficit in the construction sector will decline and
growth in personnel expenses will normalise;
real estate developers' ability to service existing loans and take new ones will
weaken due to a decrease in their creditworthiness. For construction companies,
this may mean an increase in doubtful and irrecoverable receivables;
construction projects' financing schemes will change and additional requirements
to the financing provided by general contractors will impose pressure on the
contractors' liquidity.
We have prepared ourselves for changes in the economic environment by designing
our project portfolio so that our risks would be dispersed between activities
(for a number of years the proportion of residential construction has not
exceeded 20 per cent) and markets (the importance of the Estonian market will
decline as the importance of other markets increases).
Latvia and Lithuania
The Latvian and Lithuanian construction markets are influenced by an economic
environment which is similar to the one prevailing in Estonia. In the near
future, the segments where the Group's subsidiaries are represented will be
subject to the following trends.
In Latvia the volumes of infrastructure projects financed by the state and local
government with the support of EU funding will remain stable or increase.
Construction prices will be affected by high inflation.
Out of the three Baltic countries, Lithuania has the best outlook for economic
growth, which has a direct impact on the development of the construction market.
In the residential and non-residential segment, there are strong prospects for
continuing the construction of apartment houses (as a general contractor not a
developer) as well as commercial and public buildings. The greatest risk is
inflation and its impact on construction prices.
Ukraine
Ukrainian economy should continue growing faster than the Baltic ones. This will
facilitate the development of the local construction market which is currently
concentrated around major cities. In the commercial buildings segment, there
will be strong demand for trading, logistics and office premises.
In Ukraine, we will continue performing development projects which have passed
careful preliminary analysis and are supported by a properly drafted and viable
business plan. In addition, our Ukrainian entities will continue acting as
general contractors in the construction sector.
The main risks in the Ukrainian market are the low administrative efficiency of
the national and local government, the dependence of the Ukrainian currency on
the US dollar, inflation and the availability of quality construction inputs.
Consolidated interim balance sheet
--------------------------------------------------------------------------------
| Unaudited | 30 June | 30 June | 31 December |
| EEK '000 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 321,768 | 70,871 | 236,112 |
--------------------------------------------------------------------------------
| Trade receivables | 440,501 | 511,810 | 511,819 |
--------------------------------------------------------------------------------
| Other receivables and prepayments | 354,171 | 261,793 | 264,551 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1,905 | 1,015 | 1,905 |
--------------------------------------------------------------------------------
| Inventories | 428,925 | 377,859 | 393,529 |
--------------------------------------------------------------------------------
| Non-current assets held for sale | 14,956 | 0 | 43,362 |
--------------------------------------------------------------------------------
| Total current assets | 1,562,226 | 1,223,348 | 1,451,277 |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Long-term investments | 73,326 | 51,082 | 111,686 |
--------------------------------------------------------------------------------
| Investment property | 133,523 | 24,199 | 133,984 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 365,853 | 264,647 | 221,748 |
--------------------------------------------------------------------------------
| Intangible assets | 308,105 | 165,413 | 273,223 |
--------------------------------------------------------------------------------
| Total non-current assets | 880,807 | 505,341 | 740,641 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 2,443,033 | 1,728,689 | 2,191,918 |
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing loans and | 192,492 | 97,666 | 135,856 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Trade payables | 424,585 | 347,739 | 335,754 |
--------------------------------------------------------------------------------
| Tax liabilities | 60,056 | 42,293 | 54,771 |
--------------------------------------------------------------------------------
| Other payables and advances | 393,338 | 363,615 | 574,722 |
| received | | | |
--------------------------------------------------------------------------------
| Provisions | 7,761 | 6,097 | 12,458 |
--------------------------------------------------------------------------------
| Total current liabilities | 1,078,232 | 857,410 | 1,113,561 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing loans and | 554,370 | 287,186 | 263,723 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Other liabilities | 761 | 490 | 714 |
--------------------------------------------------------------------------------
| Provisions | 4,001 | 1,885 | 4,328 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 559,132 | 289,561 | 268,765 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 1,637,364 | 1,146,971 | 1,382,326 |
--------------------------------------------------------------------------------
| EQUITY | | | |
--------------------------------------------------------------------------------
| Minority interest | 78,431 | 39,492 | 90,095 |
--------------------------------------------------------------------------------
| Share capital | 307,567 | 307,567 | 307,567 |
--------------------------------------------------------------------------------
| Share premium | 509 | 0 | 0 |
--------------------------------------------------------------------------------
| Statutory capital reserve | 34,800 | 8,216 | 11,766 |
--------------------------------------------------------------------------------
| Translation reserve | -891 | 2,416 | 2,354 |
--------------------------------------------------------------------------------
| Retained earnings | 385,253 | 224,027 | 397,810 |
--------------------------------------------------------------------------------
| Total equity attributable to | 727,238 | 542,226 | 719,497 |
| equity holders of the parent | | | |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 805,669 | 581,718 | 809,592 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY | 2,443,033 | 1,728,689 | 2,191,918 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Consolidated interim balance sheet
--------------------------------------------------------------------------------
| Unaudited | 30 June | 30 June | 31 December |
| EUR '000 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 20,565 | 4,529 | 15,090 |
--------------------------------------------------------------------------------
| Trade receivables | 28,153 | 32,711 | 32,711 |
--------------------------------------------------------------------------------
| Other receivables and prepayments | 22,636 | 16,732 | 16,908 |
--------------------------------------------------------------------------------
| Deferred tax assets | 122 | 65 | 122 |
--------------------------------------------------------------------------------
| Inventories | 27,413 | 24,150 | 25,151 |
--------------------------------------------------------------------------------
| Non-current assets held for sale | 956 | 0 | 2,771 |
--------------------------------------------------------------------------------
| Total current assets | 99,844 | 78,186 | 92,753 |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Long-term investments | 4,686 | 3,265 | 7,138 |
--------------------------------------------------------------------------------
| Investment property | 8,534 | 1,547 | 8,563 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 23,382 | 16,914 | 14,172 |
--------------------------------------------------------------------------------
| Intangible assets | 19,691 | 10,572 | 17,462 |
--------------------------------------------------------------------------------
| Total non-current assets | 56,294 | 32,297 | 47,336 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 156,138 | 110,483 | 140,089 |
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing loans and | 12,302 | 6,242 | 8,683 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Trade payables | 27,136 | 22,225 | 21,459 |
--------------------------------------------------------------------------------
| Tax liabilities | 3,838 | 2,703 | 3,501 |
--------------------------------------------------------------------------------
| Other payables and advances | 25,139 | 23,239 | 36,731 |
| received | | | |
--------------------------------------------------------------------------------
| Provisions | 496 | 390 | 796 |
--------------------------------------------------------------------------------
| Total current liabilities | 68,912 | 54,798 | 71,170 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing loans and | 35,431 | 18,355 | 16,855 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Other liabilities | 49 | 31 | 46 |
--------------------------------------------------------------------------------
| Provisions | 256 | 120 | 277 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 35,735 | 18,506 | 17,177 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 104,647 | 73,305 | 88,347 |
--------------------------------------------------------------------------------
| EQUITY | | | |
--------------------------------------------------------------------------------
| Minority interest | 5,013 | 2,524 | 5,758 |
--------------------------------------------------------------------------------
| Share capital | 19,657 | 19,657 | 19,657 |
--------------------------------------------------------------------------------
| Share premium | 33 | 0 | 0 |
--------------------------------------------------------------------------------
| Statutory capital reserve | 2,224 | 525 | 752 |
--------------------------------------------------------------------------------
| Translation reserve | -57 | 154 | 150 |
--------------------------------------------------------------------------------
| Retained earnings | 24,622 | 14,318 | 25,425 |
--------------------------------------------------------------------------------
| Total equity attributable to | 46,479 | 34,655 | 45,984 |
| equity holders of the parent | | | |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 51,492 | 37,179 | 51,742 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY | 156,138 | 110,483 | 140,089 |
--------------------------------------------------------------------------------
Consolidated interim income statement
--------------------------------------------------------------------------------
| | Q2 | Q2 | 6 months | 6 months | 2007 |
| Unaudited | 2008 | 2007 | to 30 | to 30 | |
| EEK '000 | | | June | June | |
| | | | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Revenue | 1,097, | 959,84 | 1,870,63 | 1,519,58 | 3,752,02 |
| | 125 | 7 | 5 | 2 | 8 |
--------------------------------------------------------------------------------
| Cost of sales | 959,74 | 809,54 | 1,631,89 | 1,303,33 | 3,252,05 |
| | 1 | 5 | 7 | 0 | 1 |
--------------------------------------------------------------------------------
| Gross profit | 137,38 | 150,30 | 238,738 | 216,252 | 499,977 |
| | 4 | 2 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing expenses | 2,575 | 1,437 | 3,402 | 1,969 | 2,395 |
--------------------------------------------------------------------------------
| Administrative expenses | 49,595 | 42,090 | 93,088 | 70,509 | 176,273 |
--------------------------------------------------------------------------------
| Other operating income | 11,298 | 3,569 | 18,420 | 6,539 | 16,411 |
--------------------------------------------------------------------------------
| Other operating expenses | 12,577 | 2,412 | 15,689 | 4,178 | 30,256 |
--------------------------------------------------------------------------------
| Operating profit | 83,935 | 109,36 | 144,978 | 146,135 | 307,464 |
| | | 9 | | | |
--------------------------------------------------------------------------------
| Financial income | 18,868 | 3,384 | 23,427 | 13,209 | 31,486 |
--------------------------------------------------------------------------------
| Financial expenses | 5,284 | 5,964 | 25,135 | 12,001 | 30,028 |
--------------------------------------------------------------------------------
| Net financial items | 13,584 | -2,580 | -1,708 | 1,208 | 1,458 |
--------------------------------------------------------------------------------
| Share of profit of equity | -16 | 237 | 0 | 994 | 856 |
| accounted investees | | | | | |
--------------------------------------------------------------------------------
| Share of loss of equity | -381 | 688 | 347 | 926 | 4,031 |
| accounted investees | | | | | |
--------------------------------------------------------------------------------
| Net share of profit and | 365 | -451 | -347 | 68 | -3,175 |
| loss of equity accounted | | | | | |
| investees | | | | | |
--------------------------------------------------------------------------------
| Profit before income tax | 97,884 | 105,80 | 142,923 | 147,411 | 305,747 |
| | | 6 | | | |
--------------------------------------------------------------------------------
| Income tax expense | 32,005 | 7,275 | 32,150 | 17,467 | 15,976 |
--------------------------------------------------------------------------------
| Profit for the period | 65,879 | 98,531 | 110,773 | 129,944 | 289,771 |
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 58,134 | 94,386 | 104,273 | 123,878 | 267,482 |
| parent | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 7,745 | 4,145 | 6,501 | 6,066 | 22,289 |
--------------------------------------------------------------------------------
| Basic earnings per share | 1.89 | 3.07 | 3.39 | 4.03 | 8.70 |
| (in kroons)* | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 1.89 | 3.07 | 3.39 | 4.03 | 8.70 |
| share (in kroons)* | | | | | |
--------------------------------------------------------------------------------
* For comparability, the weighted average number of shares used is the number of
shares after the bonus issues, i.e. 30,756,728 shares.
Consolidated interim income statement
--------------------------------------------------------------------------------
| Unaudited | Q2 2008 | Q2 2007 | 6 | 6 months | 2007 |
| EUR '000 | | | months | to 30 | |
| | | | to 30 | June | |
| | | | June | 2007 | |
| | | | 2008 | | |
--------------------------------------------------------------------------------
| Revenue | 70,119 | 61,345 | 119,555 | 97,119 | 239,798 |
--------------------------------------------------------------------------------
| Cost of sales | 61,339 | 51,739 | 104,297 | 83,298 | 207,844 |
--------------------------------------------------------------------------------
| Gross profit | 8,780 | 9,606 | 15,258 | 13,821 | 31,954 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Marketing expenses | 165 | 92 | 217 | 126 | 153 |
--------------------------------------------------------------------------------
| Administrative expenses | 3,170 | 2,690 | 5,949 | 4,506 | 11,266 |
--------------------------------------------------------------------------------
| Other operating income | 722 | 228 | 1,177 | 418 | 1,049 |
--------------------------------------------------------------------------------
| Other operating expenses | 804 | 154 | 1,003 | 267 | 1,934 |
--------------------------------------------------------------------------------
| Operating profit | 5,364 | 6,990 | 9,266 | 9,340 | 19,651 |
--------------------------------------------------------------------------------
| Financial income | 1,206 | 216 | 1,497 | 844 | 2,012 |
--------------------------------------------------------------------------------
| Financial expenses | 338 | 381 | 1,606 | 767 | 1,919 |
--------------------------------------------------------------------------------
| Net financial items | 868 | -165 | -109 | 77 | 93 |
--------------------------------------------------------------------------------
| Share of profit of | -1 | 15 | 0 | 64 | 55 |
| equity accounted | | | | | |
| investees | | | | | |
--------------------------------------------------------------------------------
| Share of loss of equity | -24 | 44 | 22 | 59 | 258 |
| accounted investees | | | | | |
--------------------------------------------------------------------------------
| Net share of profit and | 23 | -29 | -22 | 4 | -203 |
| loss of equity accounted | | | | | |
| investees | | | | | |
--------------------------------------------------------------------------------
| Profit before income tax | 6,256 | 6,762 | 9,134 | 9,421 | 19,541 |
--------------------------------------------------------------------------------
| Income tax expense | 2,045 | 465 | 2,055 | 1,116 | 1,021 |
--------------------------------------------------------------------------------
| Profit for the period | 4,210 | 6,297 | 7,080 | 8,305 | 18,520 |
--------------------------------------------------------------------------------
| Attributable to: | | | | | |
--------------------------------------------------------------------------------
| Equity holders of the | 3,715 | 6,032 | 6,664 | 7,917 | 17,095 |
| parent | | | | | |
--------------------------------------------------------------------------------
| Minority interest | 495 | 265 | 415 | 388 | 1,425 |
--------------------------------------------------------------------------------
| Basic earnings per share | 0.12 | 0.20 | 0.22 | 0.26 | 0.56 |
| (in euros)* | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.12 | 0.20 | 0.22 | 0.26 | 0.56 |
| share (in euros)* | | | | | |
--------------------------------------------------------------------------------
* For comparability, the weighted average number of shares used is the number of
shares after the bonus issues, i.e. 30,756,728 shares.
Consolidated interim statement of cash flows
--------------------------------------------------------------------------------
| | EEK '000 | EUR '000 |
--------------------------------------------------------------------------------
| | 6 months | 6 months | 6 months | 6 months |
| | to 30 | to 30 | to 30 | to 30 |
| | June 2008 | June 2007 | June 2008 | June 2007 |
--------------------------------------------------------------------------------
| Cash flows from operating | | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Cash receipts from customers | 2,235,724 | 1,529,072 | 142,889 | 97,726 |
--------------------------------------------------------------------------------
| Cash paid to suppliers | -1,828,46 | -1,402,07 | -116,860 | -89,609 |
| | 5 | 2 | | |
--------------------------------------------------------------------------------
| Cash paid to and for | -286,494 | -196,846 | -18,310 | -12,581 |
| employees | | | | |
--------------------------------------------------------------------------------
| Income taxes paid | -13,868 | -5,200 | -886 | -332 |
--------------------------------------------------------------------------------
| Net cash from / used in | 106,897 | -75,046 | 6,832 | -4,796 |
| operating activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from investing | | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Acquisition of property, | -6,109 | -15,506 | -390 | -991 |
| plant and equipment | | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of | 6,329 | 11,560 | 404 | 739 |
| property, plant and | | | | |
| equipment | | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries | -215,370 | -9,342 | -13,765 | -597 |
--------------------------------------------------------------------------------
| Proceeds from sale of | 9,800 | 0 | 626 | 0 |
| subsidiaries | | | | |
--------------------------------------------------------------------------------
| Cash acquired on acquisition | 4,116 | 0 | 263 | 0 |
| of subsidiaries | | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of | 32,605 | 8,449 | 2,084 | 540 |
| associates | | | | |
--------------------------------------------------------------------------------
| Acquisition of other | 0 | -4,104 | 0 | -262 |
| investments | | | | |
--------------------------------------------------------------------------------
| Loans granted | -17,776 | -4,811 | -1,136 | -307 |
--------------------------------------------------------------------------------
| Repayment of loans granted | 46,815 | 7,980 | 2,992 | 510 |
--------------------------------------------------------------------------------
| Interest received | 9,357 | 4,126 | 598 | 264 |
--------------------------------------------------------------------------------
| Net cash used in investing | -130,233 | -1,648 | -8,323 | -105 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing | | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Proceeds from loans received | 332,686 | 90,140 | 21,263 | 5,761 |
--------------------------------------------------------------------------------
| Repayment of loans received | -78,279 | -9,800 | -5,003 | -626 |
--------------------------------------------------------------------------------
| Payment of finance lease | -29,295 | -32,230 | -1,872 | -2,060 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -103,790 | -52,135 | -6,633 | -3,332 |
--------------------------------------------------------------------------------
| Interest paid | -12,465 | -4,391 | -797 | -281 |
--------------------------------------------------------------------------------
| Other settlements | 148 | 12 | 9 | 1 |
--------------------------------------------------------------------------------
| Net cash from / used in | 109,005 | -8,404 | 6,967 | -537 |
| financing activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash flow | 85,669 | -85,098 | 5,475 | -5,439 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 236,112 | 155,980 | 15,090 | 9,969 |
| beginning of period | | | | |
--------------------------------------------------------------------------------
| Effect of exchange rate | -13 | -11 | -1 | -1 |
| fluctuations | | | | |
--------------------------------------------------------------------------------
| Increase / decrease in cash | 85,669 | -85,098 | 5,475 | -5,439 |
| and cash equivalents | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 321,768 | 70,871 | 20,565 | 4,529 |
| end of period | | | | |
--------------------------------------------------------------------------------
Eesti Ehitus is a group of construction companies whose core business is
general contracting and construction management in the construction of
buildings and infrastructures in Estonia, Latvia, Lithuania and Ukraine. In
addition, in Estonia our companies act as independent contractors in road
construction and maintenance, environmental engineering, the assembly of
reinforced concrete elements, and the performance of cast-on-site concrete
works. The parent of the Group is AS Eesti Ehitus, a company registered and
located in Tallinn, Estonia. In addition to the parent company, there are more
than 20 subsidiaries in the Group. The consolidated revenue of the Group in
2007 was 3,8 billion kroons (240 million euros) and the consolidated net profit
was 290 million kroons (19 million euros). Eesti Ehitus Group employs more than
1200 people. Since 18 May 2006, the company's shares have been quoted in the
main list of the NASDAQ OMX Tallinn Stock Exchange.
1 EUR = 15,6466 EEK
Raimo Talviste
AS Eesti Ehitus
Head of Investor Relations
Tel:+372 6400 450
Email: raimo.talviste@eestiehitus.ee
http://www.eestiehitus.ee
2008 II QUARTER AND SIX MONTHS ENDED 30 JUNE CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
| Source: Nordecon
Pièces jointes
