Business results Sales level in Q1 2010 was slightly above the management's expectations and the overall market situation confirmed the management's forecasts of the business recovery. Q1 2010 sales from continuing operations demonstrated a 20.6% increase as compared to Q4 2009 and 25.8% increase as compared to the respective period in 2009. The demand in the Russian market is recovering after the recession. The Belarusian market, which was stable during 2009, has not shown signs of weakness in Q1 2010, demonstrating slight growth. Major markets appear to be on their path to recovery. Situation remains difficult in the Baltic states and Ukraine where economies suffered most seriously in 2009. Russian rouble strengthened against EUR and USD in Q1 2010, contributing to the Group's earnings in EUR terms. The management believes that after a significant drop in 2008 the markets have entered into the stabilization phase and that consumers have adjusted their purchasing patterns to new market conditions. Based on Q1 2010 sales results and orders collected for 2010, the management estimates the sales growth of 8-10% in 2010 as compared to 2009. In Q1 2010 retail operations in Belarus demonstrated an increase of 32% in local currency terms and of 18% in EUR terms as compared to Q1 2009. Lauma Lingerie's sales in the Baltic countries increased by 65% as compared to Q1 2009. At the end of the reporting period the Group and its franchising partners operated around 330 Milavitsa and other lingerie outlets, including 52 stores operated directly by the Group and the rest by franchising partners. The Group's retail focus has been shifted towards the promotion and support of franchising in cooperation with existing and new partners. Financial performance The Group's sales from continuing operations amounted to EEK 313,980 thousand (EUR 20,067 thousand) in Q1 2010, representing a 25.8% increase as compared to the respective period in the previous year. Overall wholesale sales from continuing operations increased by 41.5%, while retail sales from continuing operations presented a decrease of 16.1%. Decrease in retail sales is in line with management expectations and is the result of the restructuring decisions taken in 2009 when loss-making own retail operations in Russia were gradually discontinued. As the results, the proportion of retail sales in total sales decreased by 8.9% and came at 17.9% of total sales in Q1 2010. The Group's gross margin from continuing operations in the 3 months' period decreased and was 40.9%, as compared to 41.6% in the respective period in the previous year. Slight decrease in gross margin is mainly explained by higher customs duties on materials imported by the Group from the EU after Belarus joining the Customs Union with Russia. The consolidated operating profit from continuing operations amounted to EEK 44,515 thousand (EUR 2,845 thousand), compared to operating loss of EEK 1,127 thousand (EUR 72 thousand) in Q1 2009. The consolidated operating margin from continuing operations was 14.2% (-0.5% in Q1 2009). The operating profit and the operating margin in 2009 were adversely influenced by one-off expenses. Consolidated net profit from foreign exchange rate fluctuations amounted to EEK 20,419 thousand (EUR 1,305 thousand) in Q1 2010. SP ZAO Milavitsa accrued a foreign exchange gain in the amount of EEK 6,333 thousand (EUR 405 thousand) that was mainly caused by sales denominated in Russian Rouble which appreciated against Belarusian Rouble in Q1 2010 by 8.1%. The remaining foreign exchange gain mainly related to the intercompany borrowings in EUR and USD. Corporate income tax from continuing operations amounted to EEK 17,274 thousand (EUR 1,104 thousand) against EEK 20,418 thousand (EUR 1,305 thousand) in Q1 2009 and effective tax rate for the Group improved significantly. Consolidated net profit from continuing operations attributable to equity holders amounted to EEK 38,679 thousand (EUR 2,472 thousand) in Q1 2010, compared to net loss of EEK 30,354 thousand (EUR 1,940 thousand) in Q1 2009; net margin from continuing operations attributable to equity holders was 12.3% (up from a negative margin of 12.2% in Q1 2009). In Q1 2010, the Group's return on equity amounted to 7.6% (-6.6% in Q1 2009) and return on assets was 4.4% (-3.4% in Q1 2009). Financial position As of 31 March 2010 consolidated assets amounted to EEK 908,239 thousand (EUR 58,047 thousand) representing an increase of 6.8% as compared to the position as of 31 December 2009. Property, plant and intangibles balances decreased by EEK 4,788 thousand (EUR 306 thousand) as compared to 31 December 2009 mainly due to depreciation and amortisation charge for the period, while total investments in property, plant, equipment and intangibles amounted to EEK 3,099 thousand (EUR 198 thousand). Trade receivables increased by EEK 63,041 thousand (EUR 4,029 thousand) as compared to 31 December 2009 and amounted to EEK 194,659 thousand (EUR 12,441 thousand) as of 31 March 2010. Inventory balance increased by EEK 7,699 thousand (EUR 492 thousand) and amounted to EEK 273,988 thousand (EUR 17,511 thousand) as of 31 March 2010. Increase in trade debtors and stock balance was in line with the seasonality trend of the business. Foreign exchange fluctuations left a negative impact on the Group's equity, in the form of a negative change in currency translation reserve in the amount of EEK 4,490 thousand (EUR 287 thousand) for Q1 2010. On the overall basis, equity attributable to equity holders increased by EEK 34,189 thousand (EUR 2,185 thousand) and amounted to EEK 524,045 thousand (EUR 33,493 thousand) as of 31 March 2010. Current liabilities increased by EEK 15,507 thousand (EUR 991 thousand) in Q1 2010, in line with management expectations. The liquidity position of the Group improved in Q1 2010 with respect to the total balance of borrowings and related maturities. Current and non-current loans and borrowings decreased by EEK 5,289 thousand (EUR 338 thousand) to EEK 22,953 thousand (EUR 1,467 thousand) as of 31 March 2010. Loans received and loans repaid in Q1 2010 amounted to EEK 3,239 thousand (EUR 207 thousand) and EEK 8,606 thousand (EUR 550 thousand) respectively, including finance lease liabilities repaid in the amount of EEK 579 thousand (EUR 37 thousand). Subsequent to the end of the quarter the Group settled an overdraft facility of AS Lauma Lingerie that amounted to EEK 14,473 thousand (EUR 925 thousand) as of 31 March 2010. In 2009 the Group divested its loss making apparel business line through sale of shares in its 100% subsidiary PTA Group. At the date of disposal the Group had outstanding guarantees issued to Danske Bank A/S Estonian securing certain borrowings and guarantee limits of PTA Group. As of 31 March 2010 PTA's balance of borrowings and guarantees from Danske Bank A/S Estonian branch that were secured by a surety provided by SFG amounted respectively to EEK 20,810 thousand (EUR 1,330 thousand) and EEK 4,006 thousand (EUR 256 thousand). Tax liabilities and other payables, including payables to employees, amounted to EEK 88,458 thousand (EUR 5,653 thousand). Provisions amounted to EEK 4,037 thousand (EUR 258 thousand) as of 31 March 2010 and included provisions for the restructuring of Russian retail operations in the amount of EEK 1,752 thousand (EUR 112 thousand). Sales Sales by business segments -------------------------------------------------------------------------------- | | Q1 | Q1 | Chang | Q1 | Q1 | Change | Q1 2010 | Q1 2009 | | | 2010 | 2009 | e EEK | 2010 | 2009 | EUR | percent | percent | | | EEK | EEK | thous | EUR | EUR | thousa | age | age | | | thous | thous | and | thousa | thousa | nd | from | from | | | and | and | | nd | nd | | sales | sales | -------------------------------------------------------------------------------- | Whole | 255,7 | 180,7 | 74,96 | 16,345 | 11,554 | 4,791 | 81.5% | 72.4% | | sale | 44 | 81 | 3 | | | | | | -------------------------------------------------------------------------------- | Retai | 56,21 | 67,01 | -10,7 | 3,593 | 4,283 | -690 | 17.9% | 26.8% | | l | 8 | 4 | 96 | | | | | | -------------------------------------------------------------------------------- | Other | 2,018 | 1,878 | 140 | 129 | 120 | 9 | 0.6% | 0.8% | | opera | | | | | | | | | | tions | | | | | | | | | -------------------------------------------------------------------------------- | Total | 313,9 | 249,6 | 64,30 | 20,067 | 15,957 | 4,110 | 100.0% | 100.0% | | | 80 | 73 | 7 | | | | | | -------------------------------------------------------------------------------- Sales by markets In Q1 2010, the Group focused mainly on the Baltic, Russian, Belarusian and Ukrainian markets. Total sales by markets -------------------------------------------------------------------------------- | | Q1 | Q1 | Chang | Q1 | Q1 | Change | Q1 2010 | Q1 2009 | | | 2010 | 2009 | e EEK | 2010 | 2009 | EUR | percent | percent | | | EEK | EEK | thous | EUR | EUR | thousa | age | age | | | thous | thous | and | thousa | thousa | nd | from | from | | | and | and | | nd | nd | | sales | sales | -------------------------------------------------------------------------------- | Russi | 188,7 | 142,1 | 46,69 | 12,066 | 9,082 | 2,984 | 60.1% | 56.9% | | a | 92 | 02 | 0 | | | | | | -------------------------------------------------------------------------------- | Belar | 76,40 | 70,72 | 5,679 | 4,883 | 4,520 | 363 | 24.3% | 28.3% | | us | 2 | 3 | | | | | | | -------------------------------------------------------------------------------- | Balti | 22,62 | 13,70 | 8,919 | 1,446 | 876 | 570 | 7.2% | 5.5% | | cs | 5 | 6 | | | | | | | -------------------------------------------------------------------------------- | Ukrai | 12,97 | 11,34 | 1,627 | 829 | 725 | 104 | 4.1% | 4.5% | | ne | 1 | 4 | | | | | | | -------------------------------------------------------------------------------- | Other | 13,19 | 11,79 | 1,392 | 843 | 754 | 89 | 4.3% | 4.8% | | marke | 0 | 8 | | | | | | | | ts | | | | | | | | | -------------------------------------------------------------------------------- | Total | 313,9 | 249,6 | 64,30 | 20,067 | 15,957 | 4,110 | 100.0% | 100.0% | | | 80 | 73 | 7 | | | | | | -------------------------------------------------------------------------------- The majority of lingerie sales revenue in Q1 2010 in the amount of EEK 188,792 thousand (EUR 12,066 thousand) was generated in the Russian market, accounting for 60.1% of all lingerie sales in Q1 2010 as compared to EEK 142,102 thousand (EUR 9,082 thousand) in Q1 2009. Sales in Russia comprise both retail sales and wholesale. The second largest region for lingerie sales was Belarus, where sales reached EEK 76,402 thousand (EUR 4,883 thousand), contributing 24.3% of lingerie sales (both retail and wholesale) as compared to EEK 70,723 thousand (EUR 4,520 thousand) in Q1 2009. Although still affected by the economic situation and the devaluation of the local currencies, sales in the major markets demonstrated a positive trend in terms of pieces sold in Q1 2010 as compared to the respective period in 2009. The most considerable sales growth took place on the Russian market, while Belarussian operations were relatively stable showing a slight increase. Overall sales results in Q1 were slightly above management's expectations after a difficult Q4 2009. Changes in the sales strategy introduced by Milavitsa in late 2009 were implemented in Q1 in Russia and Ukraine. The Group targets to increase control over its distribution and its organizational structure has been adjusted accordingly. A number of actions have been introduced by Milavitsa to the market including additional marketing activities in Belarus and Russia and supportive measures in the opening of new franchised stores. Joint programs with dealers and distributors were introduced in marketing and franchising. Lauma Lingerie experienced a sharp recovery in sales in their major markets after being affected by the crisis to a significant extent due to its high pricing positioning and inability of its distribution partners to meet current market conditions. A new sales and marketing manager with considerable experience in the industry has joined the company to meet challenges and opportunities of the market. In terms of lingerie brands, the sales of “Milavitsa” core brand accounted for 73.8% of total lingerie sales revenue in Q1 2010 (Q1 2009: 77.7%) and amounted to EEK 230,255 thousand (EUR 14,716 thousand). The sales of “Lauma Lingerie” core brand accounted for 9.1% of total lingerie sales (Q1 2009: 5.3%) and amounted to EEK 28,492 thousand (EUR 1,821 thousand). Other brands such as “Alisee”, “Aveline”, “Hidalgo” and “Laumelle” comprised 17.1% of total lingerie sales in Q1 2010 (Q1 2009: 17.0%), amounting to EEK 53,215 thousand (EUR 3,401 thousand). Wholesale In Q1 2010, wholesale revenue amounted to EEK 255,744 thousand (EUR 16,345 thousand), representing 81.5% of the Group's total revenue (Q1 2009: 72.4%). The main wholesale regions were Russia, Belarus, Ukraine and the Baltic States. The second half of 2009 demonstrated an increase in lingerie wholesale revenue of 5.6% as compared to the first half of 2009 as many of the Milavitsa's Russian and Ukrainian wholesale partners had adjusted their working capital levels to the new market and trading circumstances caused by the crisis in 2008-2009. Gradual improvements in sales were observed already in Q1 2010 despite the expectations of the difficult start of the year. Additional activities were introduced in the non-core markets targeting to diversify sales mainly in the western countries. Some markets will be approached through sales agents, while others will be served by local dealers. The Group will also seek private label production opportunities where practical. Retail operations Total lingerie retail sales of the Group in Q1 2010 amounted to EEK 56,218 thousand (EUR 3,593 thousand), representing a 16.1% decrease as compared to Q1 2009. Retail operations were conducted in Belarus, Russia and Latvia. At the end of Q1 2010 the Group operated 52 own retail outlets with a total area of 4,383 square meters. Additionally, as of 31 March 2010, there were 271 Milavitsa branded shops operated by Milavitsa trading partners in Russia, Belarus, Ukraine, Moldavia, Kazakhstan, Uzbekistan, Kirgizstan, Latvia, Azerbaijan, Armenia, and Cyprus, of which 24 shops were opened in Q1 2010. In Q1 2010 4 new own lingerie stores were opened, including 1 under Milavitsa name in Belarus and 3 stores under Lauma Lingerie brand name in Latvia. Two underperforming stores were closed in Russia and 14 stores were transferred to Milavitsa's trading partners in the course of the strategy to shift focus from own retail chain towards the development of Milavitsa franchise network, terminating the loss making own retail operations in Russia. The remaining stores will be closed or transferred to Milavitsa's trading partners by the end of H1 2010. Number of own stores as at: -------------------------------------------------------------------------------- | | 31.03.2010 | 31.12.2009 | -------------------------------------------------------------------------------- | Latvia | 8 | 5 | -------------------------------------------------------------------------------- | Belarus | 39 | 38 | -------------------------------------------------------------------------------- | Russia | 5 | 21 | -------------------------------------------------------------------------------- | Total stores | 52 | 64 | -------------------------------------------------------------------------------- | Total sales area, sq m | 4,383 | 5,523 | -------------------------------------------------------------------------------- A number of sales promotions were conducted in the Milavitsa retail chain in Belarus. Own retail operations in Belarus remain one of the key priorities for the Group's further sales development in the country. Sales per square meter in the like-for-like shops have slightly decreased due to a considerable number of Milavitsa shops opened in the same cities. At the same time in Q1 2010 overall retail operations in the country demonstrated a 32% growth in local currency terms and a 18% growth in EUR terms as compared to the same period in 2009. In the Baltics, retail sales decreased by 67.1% as compared to Q1 2009 and amounted to EEK 2,050 thousand (EUR 131 thousand). Decrease in sales in the Baltics is mainly explained by the divestment of Lithuanian retail operations in November 2009. In respect of lingerie retail in Russia the strategic decision to shift focus from own retail chain towards the development of Milavitsa franchise network was made in H2 2009 to terminate the loss making own retail operations in Russia. As the result, the Group's own Oblicie stores were rebranded to Milavitsa and a transfer of stores to Milavitsa's trading partners commenced while non-performing stores are being closed. As of 31 March 2010 the restructuring was not yet completed and the Group operated 5 own retail stores in Russia. The management anticipates that the transfer of stores will be completed in Q2 2010. Certain structural and management changes have been made in the Group's Russian operations (including the establishment of a separate franchise department) to implement the selected franchise development strategy. Own stores by concept -------------------------------------------------------------------------------- | Market | Milavitsa | Lauma | Total | Sales area, sq | | | stores | Lingerie | | m | | | | stores | | | -------------------------------------------------------------------------------- | Belarus | 39 | 0 | 39 | 3,485 | -------------------------------------------------------------------------------- | Russia | 5 | 0 | 5 | 408 | -------------------------------------------------------------------------------- | Latvia | 0 | 8 | 8 | 490 | -------------------------------------------------------------------------------- | Total | 44 | 8 | 52 | 4,383 | -------------------------------------------------------------------------------- Discontinued operations Discontinued operations' reported results in Q1 2009 include operations of PTA (apparel business line) for Q1 2009. Results of PTA operations are presented in the consolidated income statement as a single line item under ‘Loss from discontinued operations'. Production, sourcing, purchasing and logistics Due to the increased demand in the market in Q1 2010 the Group's manufacturing companies increased their production and purchasing volumes. The total volume of production in SP ZAO Milavitsa amounted to 4,250 thousand pieces in Q1 2010, representing a 11% increase as compared to the respective period in the previous year. The total production volume in Lauma Lingerie amounted to 436 thousand pieces in Q1 2010, showing an increase of 77.4% as compared to the respective period in the previous year. The utilization of production capacities in SP ZAO Milavitsa in Q1 2010 increased by 4.9% compared to Q4 2009 in order to prepare for increased production volumes in 2010. In respect of logistics, the implementation of supply chain management system on IFS software application basis is in process and is planned to be finalised in H1 2010. Investment In Q1 2010, the Group's investments totalled EEK 3,099 thousand (EUR 198 thousand) with investments into retail amounting to EEK 1,314 thousand (EUR 84 thousand). Other investments were made in equipment and facilities to maintain effective production. Personnel As of 31 March 2010, the Group employed 3,103 employees including 419 in retail and 2,004 in production. The rest were employed in wholesale, administration and support operations. The average number of employees in Q1 2010 was 3,065. Total salaries and wages in Q1 2010 amounted to EEK 74,932 thousand (EUR 4,789 thousand). The remuneration of the members of the Management Board totalled EEK 2,691 thousand (EUR 172 thousand). The members of the Management Board also serve as executives for the Group's subsidiaries. Key Events in Q1 2010 Changes in the Supervisory Board structure The extraordinary general meeting of shareholders of AS Silvano Fashion Group was held on 5 March 2010, in Tallinn. The meeting resolved to recall members of the Supervisory Board of SFG Mr. Indrek Rahumaa and Mr. Priit Põldoja and to elect Mr. Risto Mägi, Mr. Stephan Balkin, Mr. Otto Tamme and Mr. Sven Kunsing to the Supervisory Board. Resignation of a Member of the Supervisory Board On 24 March 2010 a member of the Supervisory Board Mr. Sven Kunsing presented to SFG an application for his resignation from the position of a supervisory board member, and requested that the application would be provided to the next ordinary general meeting of SFG. Selected financial data The Group's operating results are summarised in the following figures and ratios: -------------------------------------------------------------------------------- | Key figures and ratios | 31.03.2010 | 31.03.2009 | Change | -------------------------------------------------------------------------------- | Net sales from continuing | 313,980 | 249,673 | 64,307 | | operations (EEK thousand) | | | | -------------------------------------------------------------------------------- | Net profit from continuing | 38,679 | -30,354 | 69,033 | | operations, attributable to owners | | | | | of the Company (EEK thousand) | | | | -------------------------------------------------------------------------------- | Earnings before interest, taxes | 51,508 | 8,309 | 43,199 | | and depreciation (EBITDA) from | | | | | continuing operations (EEK | | | | | thousand) | | | | -------------------------------------------------------------------------------- | Earnings before interest and taxes | 44,515 | -1,127 | 45,642 | | (EBIT) from continuing operations | | | | | (EEK thousand) | | | | -------------------------------------------------------------------------------- | Net sales from continuing | 20,067 | 15,957 | 4,110 | | operations (EUR thousand) | | | | -------------------------------------------------------------------------------- | Net profit from continuing | 2,472 | -1,940 | 4,412 | | operations, attributable to owners | | | | | of the Company (EUR thousand) | | | | -------------------------------------------------------------------------------- | Earnings before interest, taxes | 3,292 | 531 | 2,761 | | and depreciation (EBITDA) from | | | | | continuing operations (EUR | | | | | thousand) | | | | -------------------------------------------------------------------------------- | Earnings before interest and taxes | 2,845 | -72 | 2,917 | | (EBIT) from continuing operations | | | | | (EUR thousand) | | | | -------------------------------------------------------------------------------- | Operating margin from continuing | 14.2% | -0.5% | - | | operations, % | | | | -------------------------------------------------------------------------------- | Net margin from continuing | 12.3% | -12.2% | - | | operations attributable to owners | | | | | of the Company, % | | | | -------------------------------------------------------------------------------- | ROA, % | 4.4% | -3.4% | - | -------------------------------------------------------------------------------- | ROE, % | 7.6% | -6.6% | - | -------------------------------------------------------------------------------- | Earnings per share (EPS), in EEK | 0.98 | -0.98 | - | -------------------------------------------------------------------------------- | Earnings per share (EPS), in EUR | 0.06 | -0.06 | - | -------------------------------------------------------------------------------- | Current ratio | 2.9 | 2.0 | - | -------------------------------------------------------------------------------- | Quick ratio | 1.7 | 1.0 | - | -------------------------------------------------------------------------------- Consolidated statement of financial position Unaudited -------------------------------------------------------------------------------- | | 31.03.2 | 31.12.2 | 31.03.2 | 31.03.2 | 31.12.20 | 31.03.20 | | | 010 EEK | 009 EEK | 009 EEK | 010 EUR | 09 EUR | 09 EUR | | | thousan | thousan | thousan | thousan | thousand | thousand | | | d | d | d | d | | | -------------------------------------------------------------------------------- | ASSETS | | | | | | | -------------------------------------------------------------------------------- | Non-current | | | | | | | | assets | | | | | | | -------------------------------------------------------------------------------- | Property, | 163,789 | 168,248 | 246,168 | 10,468 | 10,753 | 15,733 | | plant and | | | | | | | | equipment | | | | | | | -------------------------------------------------------------------------------- | Intangible | 8,590 | 8,919 | 11,469 | 549 | 570 | 733 | | assets | | | | | | | -------------------------------------------------------------------------------- | Investment | 20,388 | 20,090 | 21,060 | 1,303 | 1,284 | 1,346 | | property | | | | | | | -------------------------------------------------------------------------------- | Investments in | 1,001 | 2,175 | 720 | 64 | 139 | 46 | | equity | | | | | | | | accounted | | | | | | | | investees | | | | | | | -------------------------------------------------------------------------------- | Available-for- | 5,711 | 5,664 | 7,182 | 365 | 362 | 459 | | sale financial | | | | | | | | assets | | | | | | | -------------------------------------------------------------------------------- | Deferred tax | 20,059 | 18,119 | 0 | 1,282 | 1,158 | 0 | | asset | | | | | | | -------------------------------------------------------------------------------- | Other | 9,967 | 9,920 | 954 | 637 | 634 | 61 | | receivables | | | | | | | -------------------------------------------------------------------------------- | Total | 229,505 | 233,135 | 287,553 | 14,668 | 14,900 | 18,378 | | non-current | | | | | | | | assets | | | | | | | -------------------------------------------------------------------------------- | Current assets | | | | | | | -------------------------------------------------------------------------------- | Inventories | 273,988 | 266,289 | 393,262 | 17,511 | 17,019 | 25,134 | -------------------------------------------------------------------------------- | Corporate | 5,617 | 7,260 | 13,972 | 359 | 464 | 893 | | income tax | | | | | | | | asset | | | | | | | -------------------------------------------------------------------------------- | Other tax | 13,174 | 22,875 | 29,447 | 842 | 1,462 | 1,882 | | receivables | | | | | | | -------------------------------------------------------------------------------- | Trade | 194,659 | 131,618 | 170,579 | 12,441 | 8,412 | 10,902 | | receivables | | | | | | | -------------------------------------------------------------------------------- | Other | 21,593 | 18,260 | 58,581 | 1,380 | 1,167 | 3,744 | | receivables | | | | | | | -------------------------------------------------------------------------------- | Prepayments | 10,984 | 9,529 | 37,348 | 702 | 609 | 2,387 | -------------------------------------------------------------------------------- | Cash and cash | 157,092 | 153,931 | 72,585 | 10,040 | 9,838 | 4,639 | | equivalents | | | | | | | -------------------------------------------------------------------------------- | Assets | 1,627 | 7,526 | 0 | 104 | 481 | 0 | | classified as | | | | | | | | held for sale | | | | | | | -------------------------------------------------------------------------------- | Total current | 678,734 | 617,288 | 775,774 | 43,379 | 39,452 | 49,581 | | assets | | | | | | | -------------------------------------------------------------------------------- | TOTAL ASSETS | 908,239 | 850,423 | 1,063,3 | 58,047 | 54,352 | 67,959 | | | | | 27 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | LIABILITIES | | | | | | | | AND EQUITY | | | | | | | -------------------------------------------------------------------------------- | Equity | | | | | | | -------------------------------------------------------------------------------- | Share capital | 400,000 | 400,000 | 400,000 | 25,565 | 25,565 | 25,565 | | at per value | | | | | | | -------------------------------------------------------------------------------- | Share premium | 223,293 | 223,293 | 223,293 | 14,271 | 14,271 | 14,271 | -------------------------------------------------------------------------------- | Own shares | -7,041 | -7,041 | -7,041 | -450 | -450 | -450 | -------------------------------------------------------------------------------- | Statutory | 1,046 | 1,046 | 1,046 | 67 | 67 | 67 | | capital | | | | | | | | reserve | | | | | | | -------------------------------------------------------------------------------- | Translation | -191,02 | -186,53 | -138,57 | -12,209 | -11,922 | -8,857 | | reserve | 9 | 9 | 5 | | | | -------------------------------------------------------------------------------- | Retained | 97,776 | 59,097 | 58,753 | 6,249 | 3,777 | 3,755 | | earnings | | | | | | | -------------------------------------------------------------------------------- | Total equity | 524,045 | 489,856 | 537,476 | 33,493 | 31,308 | 34,351 | | attributable | | | | | | | | to equity | | | | | | | | holders of the | | | | | | | | Company | | | | | | | -------------------------------------------------------------------------------- | Non-controllin | 145,717 | 136,141 | 122,106 | 9,313 | 8,701 | 7,804 | | g interest | | | | | | | -------------------------------------------------------------------------------- | Total equity | 669,762 | 625,997 | 659,582 | 42,806 | 40,009 | 42,155 | -------------------------------------------------------------------------------- | Non-current | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Loans and | 4,021 | 4,052 | 13,081 | 257 | 259 | 836 | | borrowings | | | | | | | -------------------------------------------------------------------------------- | Deferred tax | 0 | 0 | 203 | 0 | 0 | 13 | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Other | 31 | 1,455 | 4,600 | 2 | 93 | 294 | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Provisions | 0 | 0 | 125 | 0 | 0 | 8 | -------------------------------------------------------------------------------- | Total | 4,052 | 5,507 | 18,009 | 259 | 352 | 1,151 | | non-current | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Current | | | | | | | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Loans and | 18,932 | 24,190 | 129,585 | 1,210 | 1,546 | 8,282 | | borrowings | | | | | | | -------------------------------------------------------------------------------- | Trade payables | 123,030 | 123,999 | 147,423 | 7,863 | 7,925 | 9,422 | -------------------------------------------------------------------------------- | Corporate | 14,911 | 3,552 | 7,135 | 953 | 227 | 456 | | income tax | | | | | | | | payable | | | | | | | -------------------------------------------------------------------------------- | Other tax | 33,452 | 24,831 | 32,373 | 2,138 | 1,587 | 2,069 | | payable | | | | | | | -------------------------------------------------------------------------------- | Other payables | 15,944 | 14,270 | 32,670 | 1,019 | 912 | 2,088 | -------------------------------------------------------------------------------- | Provisions | 4,037 | 3,395 | 20,997 | 258 | 217 | 1,342 | -------------------------------------------------------------------------------- | Accrued | 23,611 | 24,033 | 15,553 | 1,509 | 1,536 | 994 | | expenses | | | | | | | -------------------------------------------------------------------------------- | Deferred | 509 | 649 | 0 | 32 | 41 | 0 | | income | | | | | | | -------------------------------------------------------------------------------- | Total current | 234,426 | 218,919 | 385,736 | 14,982 | 13,991 | 24,653 | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Total | 238,477 | 224,426 | 403,745 | 15,241 | 14,343 | 25,804 | | liabilities | | | | | | | -------------------------------------------------------------------------------- | TOTAL | 908,239 | 850,423 | 1,063,3 | 58,047 | 54,352 | 67,959 | | LIABILITIES | | | 27 | | | | | AND EQUITY | | | | | | | -------------------------------------------------------------------------------- Consolidated income statement Unaudited -------------------------------------------------------------------------------- | | Q1 2010 | Q1 2009 | Q1 2010 | Q1 2009 EUR | | | EEK | EEK | EUR | thousand | | | thousand | thousand | thousand | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Continuing operations | | | | | -------------------------------------------------------------------------------- | Revenue | | | | | -------------------------------------------------------------------------------- | Sales revenue | 313,980 | 249,673 | 20,067 | 15,957 | -------------------------------------------------------------------------------- | Costs of goods sold | -185,678 | -145,748 | -11,867 | -9,315 | -------------------------------------------------------------------------------- | Gross Profit | 128,302 | 103,925 | 8,200 | 6,642 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other operating income | 2,597 | 11,500 | 166 | 735 | -------------------------------------------------------------------------------- | Distribution costs | -37,301 | -46,048 | -2,384 | -2,943 | -------------------------------------------------------------------------------- | Administrative expenses | -35,549 | -43,263 | -2,272 | -2,765 | -------------------------------------------------------------------------------- | Other operating | -13,534 | -27,241 | -865 | -1,741 | | expenses | | | | | -------------------------------------------------------------------------------- | Operating profit / loss | 44,515 | -1,127 | 2,845 | -72 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Finance income and | | | | | | finance costs | | | | | -------------------------------------------------------------------------------- | Interest expenses | -657 | -2,613 | -42 | -167 | -------------------------------------------------------------------------------- | Gains/losses on | 20,419 | -829 | 1,305 | -53 | | conversion of foreign | | | | | | currencies | | | | | -------------------------------------------------------------------------------- | Other financial income | 2,863 | 892 | 183 | 57 | | / expenses | | | | | -------------------------------------------------------------------------------- | Net finance income/ | 22,625 | -2,550 | 1,446 | -163 | | (costs) | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share of profit of | -1,205 | -1,831 | -77 | -117 | | equity accounted | | | | | | investees | | | | | -------------------------------------------------------------------------------- | Profit before tax | 65,935 | -5,508 | 4,214 | -352 | -------------------------------------------------------------------------------- | Income tax expense | -17,274 | -20,418 | -1,104 | -1,305 | -------------------------------------------------------------------------------- | Profit / (loss) from | 48,661 | -25,926 | 3,110 | -1,657 | | continuing operations | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Discontinued operations | | | | | -------------------------------------------------------------------------------- | Loss from discontinued | 0 | -8,606 | 0 | -550 | | operations (net of | | | | | | income tax) | | | | | -------------------------------------------------------------------------------- | Profit / (loss) for the | 48,661 | -34,532 | 3,110 | -2,207 | | period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Attributable to | | | | | -------------------------------------------------------------------------------- | Owners of the Company | 38,679 | -38,960 | 2,472 | -2,490 | -------------------------------------------------------------------------------- | Non-controlling | 9,982 | 4,428 | 638 | 283 | | interest | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share | | | | | -------------------------------------------------------------------------------- | Basic earnings per | 0.98 | -0.98 | 0.06 | -0.06 | | share (EEK/EUR) | | | | | -------------------------------------------------------------------------------- | Diluted earnings per | 0.98 | -0.98 | 0.06 | -0.06 | | share (EEK/EUR) | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Continuing operations | | | | | -------------------------------------------------------------------------------- | Basic earnings per | 0.98 | -0.77 | 0.06 | -0.05 | | share (EEK/EUR) | | | | | -------------------------------------------------------------------------------- | Diluted earnings per | 0.98 | -0.77 | 0.06 | -0.05 | | share (EEK/EUR) | | | | | -------------------------------------------------------------------------------- Consolidated statement of comprehensive income Unaudited -------------------------------------------------------------------------------- | | Q1 2010 | Q1 2009 | Q1 2010 | Q1 2009 EUR | | | EEK | EEK | EUR | thousand | | | thousand | thousand | thousand | | -------------------------------------------------------------------------------- | Profit/ (loss) for the | 48,661 | -34,532 | 3,110 | -2,207 | | period | | | | | -------------------------------------------------------------------------------- | Other comprehensive | | | | | | income | | | | | -------------------------------------------------------------------------------- | Foreign currency | -2,831 | -104,898 | -181 | -6,704 | | translation differences | | | | | | for foreign operations | | | | | -------------------------------------------------------------------------------- | Other comprehensive | -2,831 | -104,898 | -181 | -6,704 | | income for the period | | | | | -------------------------------------------------------------------------------- | Total comprehensive | 45,830 | -139,430 | 2,929 | -8,911 | | income | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive | 34,189 | -119,449 | 2,185 | -7,634 | | income attributable to: | | | | | | Owners of the Company | | | | | -------------------------------------------------------------------------------- | Non-controlling | 11,641 | -19,981 | 744 | -1,277 | | interest | | | | | -------------------------------------------------------------------------------- | Total comprehensive | 45,830 | -139,430 | 2,929 | -8,911 | | income | | | | | -------------------------------------------------------------------------------- Dmitry Ditchkovsky Chairman of the Management Board 17 May 2010
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