Today Exista hf. published its interim financial statements for the first nine
months of the year 2008.
• Earnings after taxes were negative in the amount of EUR 170 million during
the first nine months of the year
• Total assets amounted to EUR 6.3 billion at the end of September
• Book value of equity amounted to EUR 2.0 billion at the end of September
• Total liabilities decreased by EUR 1.4 billion, or 24%, in the first nine
months of the year
• Cash totalled EUR 288 million at the end of September
• The equity ratio was 36% (including hybrid securities) at the end of the
period
Events after the end of the period:
• The Financial Supervisory Authority took over the operations of Kaupthing
Bank on 9 October
• Exista responded to external shocks by selling assets, including holdings in
Sampo, Storebrand, and Bakkavör Group
• Extraordinary shareholders meeting held on 30 October gave the Board
extensive authority to take action
• Exista will be delisted from the Nasdaq OMX stock exchange
Lýdur Gudmundsson, Executive Chairman:
“Exista's balance sheet as of the end of September demonstrates the Group's
strength prior to the collapse of the Icelandic financial market. Book value of
equity amounted to EUR 2 billion, one of the highest levels among Icelandic
companies. Kaupthing's collapse was a heavy blow to Exista, as the largest
owner of the most valuable company in Iceland. However, because its holding in
Kaupthing was only secured to a limited degree, Exista has not faltered as a
result.
In recent years, we have placed primary emphasis on strengthening the
foundations of the Group amid falling financial markets. Exista has reduced its
liabilities and the size of the balance sheet has declined. We have emphasised
a sound liquidity position, and in the third quarter Exista repaid EUR 300
million of debt. In spite of the Group's preparation for difficult times,
however, the collapse of the financial system this October was a more colossal
blow than anyone could have foreseen.
Exista's position is unclear at this time. When the banks fell, the group had
assets in excess of liabilities in the Icelandic banking system, and it is
still unclear whether and when the banks' obligations towards Exista will be
met. For this reason, the group's asset position is uncertain.
In spite of this uncertainty, we believe the Group has the capacity to weather
these shocks. Within Exista are solid Icelandic companies with strong market
position. At the end of October, an extraordinary shareholders meeting approved
the delisting of the company from the stock exchange and granted the Board of
Directors extensive authority to take action in order to secure the Group's
position for the long term. On that foundation, we are working toward creating
a sound future for Exista.“
For further information on Exista's interim accounts, please contact:
Group Communications
Sigurdur Nordal
Managing Director
Tel: +354 550 8620 (ir@exista.com)
