SFG: Consolidated interim report for Q2 and 6 months of 2008


Consolidated interim report for Q2 and 6 months of 2008          21.08.2008 

PROFITS                                                                         

AS Silvano Fashion Group ended the second quarter of 2008 with consolidated net 
sales of EEK 485.7 million (EUR 31.0 million), representing an 18.3% increase on
the second quarter of 2007. The Group's gross margin in the second quarter of   
2008 reached 42.7% compared to 46.3% in the second quarter of 2007. Consolidated
operating profit amounted to EEK 59.7 million (EUR 3.8 million), representing a 
32.5% decline compared to normalised operating profit of Q2 20071. The          
consolidated operating margin reached 12.3% (down from 21.5% in Q2 20071). 
     
Consolidated net profit attributable to equity holders amounted to EEK 18.1     
million (EUR 1.2 million), compared to EEK 40.6 million (EUR 2.6 million) in Q2 
20071, and the net margin was 3.7% (down from 9.9% in Q2 20071).  
              
Cumulative six months' sales of AS Silvano Fashion Group amounted to EEK 914.5  
million (EUR 58.4 million), showing 17.4% increase compared to H1 2007. The     
Group's gross and operating margins in the first half of the 2008 stood at 43.7%
and 12.6% respectively (43.9% and 19.5% (normalised) in H1 2007). Operating     
profit in the first six months of 2008 amounted to EEK 115.3 million (EUR 7.4   
million) compared to normalised EEK 151.6 million (EUR 9.7 million) in H1 20071.
In the first half of year 2008, the Group earned a net profit of EEK 32.1       
million (EUR 2.1 million), representing a 56.6% decline compared to the first   
six months of 20071, and net margin reached 3.5% (9.5% in H1 20071).  
          
In first six months of 2008, the Group's return on equity was 4.4% (down from   
14.3% (normalised) in first 6 months 2007) and return on assets was 2.9% (down  
from 8.5% (normalised) in first six month of 2007).  
                           
The substantial increase in sales and the decline in profitability compared to  
first six months of 2007 are a function of the rapid expansion of the Group's   
retail network (as detailed below), and continues to be in line with the        
management's expectations.       
                                               
BALANCE SHEET    
                                                               
At 30 June 2008, consolidated assets amounted to EEK 1,166.3 million (EUR 74.5  
million), up from EEK 1,089.6 million (EUR 69.6 million) at 31 December 2007.   
The increases in both assets and liabilities are related mainly to retail       
expansion.   
                                                                   
Trade receivables have increased by EEK 48.4 million (EUR 3.1 million).    
     
Inventories increased by EEK 31.5 million (EUR 2.0 million) to reach EEK 369.1  
million (EUR 23.6 million) at 30 June 2008. The growth in inventory results     
primarily from the retail expansion. Due to the expansion of the retail network,
the Group made rental prepayments and deposits for store premises, which        
increased other receivables and prepayments.      
                              
Property, plant and intangibles increased by EEK 20.5 million (EUR 1.3 million).

Current liabilities increased by EEK 33.3 million (EUR 2.1 million). Tax        
liabilities, other payables, including payables to employees, and provisions    
amounted to EEK 74.2 million (EUR 4.7 million), remaining at the expected level.

Current and non-current loans and borrowings increased by EEK 43.4 million (EUR 
2.8 million) to EEK 72.6 million (EUR 4.6 million). This includes finance lease 
liabilities of EEK 7.0 million (EUR 0.5 million.)       
                        
Equity attributable to equity holders increased by EEK 9.5 million (EUR 0.6     
million) to reach EEK 743.3 million (EUR 47.5 million).         
                
SALES                                                                           
Sales by business segments                                                      
--------------------------------------------------------------------------------
|           |     6 |     6 | Chang |     6 |      6 | Change |     6 |      6 |
|           | month | month |     e | month | months |    EUR | month | months |
|           |     s |     s |   EEK |     s |   2007 | millio |     s |   2007 |
|           |  2008 |  2007 | milli |  2008 |    EUR |      n |  2008 |  perc. |
|           |   EEK |   EEK |    on |   EUR | millio |        | perc. |   from |
|           | milli | milli |       | milli |      n |        |  from |  sales |
|           |    on |    on |       |    on |        |        | sales |        |
--------------------------------------------------------------------------------
| Women's   |  88.7 |  70.3 |  18.4 |   5.6 |    4.5 |    1.1 |  9.7% |   9.0% |
| apparel   |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Lingerie  | 792.6 | 690.1 | 102.5 |  50.7 |   44.1 |    6.6 | 86.7% |  88.6% |
--------------------------------------------------------------------------------
| Subcontra |  33.2 |  18.8 |  14.4 |   2.1 |    1.2 |    0.9 |  3.6% |   2.4% |
| cting     |       |       |       |       |        |        |       |        |
| services  |       |       |       |       |        |        |       |        |
| and other |       |       |       |       |        |        |       |        |
| sales     |       |       |       |       |        |        |       |        |
--------------------------------------------------------------------------------
| Total     | 914.5 | 779.2 | 135.3 |  58.4 |   49.8 |    8.6 | 100.0 | 100.00 |
|           |       |       |       |       |        |        |     % |     %  |
--------------------------------------------------------------------------------

Sales by markets   
                                                             
In the first six months of 2008, the Group mainly focused on Russia, Belarus and
Ukraine markets.    
                                                            
Total sales by markets                                                          
--------------------------------------------------------------------------------
|          |    6 |    6 | Chan |     6 |     6 | Chang | 6 months |  6 months |
|          | mont | mont |   ge | month | month |     e |     2008 |      2007 |
|          |   hs |   hs |  EEK |     s |     s |   EUR | percenta | percentag |
|          | 2008 | 2007 | mill |  2008 |  2007 | milli |  ge from |    e from |
|          |  EEK |  EEK |  ion |   EUR |   EUR |    on |    sales |     sales |
|          | mill | mill |      | milli | milli |       |          |           |
|          |  ion |  ion |      |    on |    on |       |          |           |
--------------------------------------------------------------------------------
| Estonia  | 76.3 | 92.4 | -16. |   4.9 |   5.9 |  -1.0 |     8.3% |     11.9% |
|          |      |      |    1 |       |       |       |          |           |
--------------------------------------------------------------------------------
| Finland  | 19.0 | 25.9 | -6.9 |   1.2 |   1.7 |  -0.5 |     2.1% |      3.3% |
--------------------------------------------------------------------------------
| Latvia   | 22.8 | 25.2 | -2.4 |   1.4 |   1.6 |  -0.2 |     2.5% |      3.2% |
--------------------------------------------------------------------------------
| Belarus  | 160. | 139. | 21.7 |  10.3 |   8.9 |   1.4 |    17.6% |     17.9% |
|          |    8 |    1 |      |       |       |       |          |           |
--------------------------------------------------------------------------------
| Ukraine  | 74.7 | 51.0 | 23.7 |   4.8 |   3.3 |   1.5 |     8.2% |      6.5% |
--------------------------------------------------------------------------------
| Russia   | 480. | 366. | 114. |  30.7 |  23.4 |   7.3 |    52.5% |     47.0% |
|          |    5 |    3 |    2 |       |       |       |          |           |
--------------------------------------------------------------------------------
| Other    | 80.4 | 79.3 |  1.1 |   5.1 |   5.0 |   0.1 |     8.8% |     10.2% |
| markets  |      |      |      |       |       |       |          |           |
--------------------------------------------------------------------------------
| Total    | 914. | 779. | 135. |  58.4 |  49.8 |   8.6 |   100.0% |    100.0% |
|          |    5 |    2 |    3 |       |       |       |          |           |
--------------------------------------------------------------------------------
                                                                                
Women's apparel     
                                                            
The main driver of growth for women's apparel sales was the expansion of the PTA
retail chain. In the first half of 2008, retail sales were 89.7% from the total 
revenue of the women's apparel segment (H1 2007: 72.8%). Sales volume in the    
Baltics decreased by 3.7%, amounting to EEK 44.2 million (EUR 2.8 million). A   
slowdown in apparel sales in the Baltics became apparent, in line with the      
general cooling of the Baltic economies. Sales revenue in Russia was EEK 25.8   
million (EUR 1.6 million) giving 5 times growth to H1 2007 and in Ukraine EEK   
9.5 million (EUR 0.6 million), giving 100% increase to H1 2007.      
           
Lingerie            
                                                            
The majority of lingerie sales revenue in the first half of 2008 was earned on  
the Russian market, amounting to EEK 454.7 million (EUR 29.1 million),          
accounting for 57.4% of all lingerie sales volume for first six months of 2008  
compare to H1 2007: EEK 361.0 million (EUR 23.0 million) . Sales in Russia      
comprise both retail sales and wholesale. The second biggest region of lingerie 
sales is Belarus, amounting to EEK 160.8 million (EUR 10.3 million),            
contributing 20.3% of all lingerie sales revenue (also comprising both retail   
sales and wholesale) compare to H1 2007: EEK 139.1 million (EUR 8.9 million).   
Similarly to the women's apparel segment, the Baltic sales of lingerie were     
affected by the economic slowdown (and significantly higher inflation) in the   
region, which begins to have an effect on consumer spending.        
            
In terms of lingerie brands, the sales of “Milavitsa” core brand accounted for  
76.8% of total lingerie sales revenue in the first half of 2008 (H1 2007: 75.0%)
and amounted to EEK 608.7 million (EUR 38.9 million). The sales of “Lauma” core 
brand accounted for 5.8% of total lingerie sales (H1 2007 : 7.7 %) and amounted 
to EEK 46.0 million (EUR 3.0 million). Other brands such as “Alisee”, “Aveline”,
“Laumelle”, “Lauma Aqua” and “Laumelle Aqua” comprised 17.4% of total lingerie  
sales in H1 2008 (H1 2007: 17.3%), amounting to EEK 137.9 million (EUR 8.8      
million).             
                                                          
Retail operations    
                                                           
Total retail sales of the Group in the first six months of 2008 amounted to EEK 
209.0 million (EUR 13.4 million), representing a 117.0% increase on the first   
six months of 2007.     
                                                        
Retail operations were conducted in Estonia, Latvia, Russia, Belarus, Poland,   
Lithuania and Ukraine. At the end of June 2008, the Group operated 133 retail   
outlets with a total area of 14,549 square meters.  
                            
Women's apparel was retailed in Estonia, Latvia, Lithuania, Russia and Ukraine. 
At the end of June 2008, the Group operated 37 women's apparel stores with a    
total sales area of 6,926 square metres.         
                               
Lingerie was retailed in Russia, Belarus, Latvia, Lithuania, Ukraine and Poland.
At the end of June 2008, the Group operated 96 lingerie stores with a total area
of 7,623 square metres.    
                                                     
Within the first six months of 2008, 19 new stores were opened: 7 in the apparel
business (operating under PTA brand name), including 3 in Ukraine and 4 in      
Russia, and 12 stores in the lingerie business, including 7 under Oblicie name  
in Russia, 4 under Milavitsa name in Belarus and 1 store under Lauma Lingerie   
brand name in Latvia. One Milavitsa store was closed.     
                      
Number of stores at 30 June:                                                    
                                30.06.2008               31.12.2007
Estonia                                  8                        8 
Latvia                                   7                        6
Poland                                  10                       10
Belarus                                 26                       23
Russia                                  54                       44
Lithuania                               20                       20
Ukraine                                  8                        4
Total stores                           133                      115
Total sales area, sq m              14,549                   12,454      
            
In the first 6 months 2008, women's apparel retail revenue compared to the first
six months of 2007 increased by 55.4%, amounting to EEK 79.5 million (EUR 5.0   
million).The total like-for-like growth was a negative 6% mainly because of the 
drop of sales in the Baltics. The like-for-like growth in Russia was +64%, in   
Estonia  -7% and in Latvia -15% in H1 2008. Results in Baltics are influenced by
overall macro economical situation      
                                        
The like-for-like increase in the Oblicie lingerie retail chain in Russia is    
about 52% for stores operating longer than one year, continuing to offer strong 
evidence to the viability of the continuing expansion of the Group's operations 
into the retail sector in its primary target markets. The major objective in the
lingerie business continues to be rapid retail expansion, mainly in Russia. By  
the end of the year the Group also intends to open a few shops under the        
“Milavitsa” brand in Russia in order to capitalise on the brand awareness in the
country.   
                                                                     
Stores by concept                                                               
--------------------------------------------------------------------------------
| Market    |      PTA |  Oblicie | Milavits |    Other |    Total |     Sales |
|           |   stores |   stores | a stores |   stores |          |    area,  |
|           |          |          |          |          |          |      sq m |
--------------------------------------------------------------------------------
| Russia    |       15 |       39 |        - |        - |       54 |     5,984 |
--------------------------------------------------------------------------------
| Ukraine   |        6 |        2 |        - |        - |        8 |     1,111 |
--------------------------------------------------------------------------------
| Estonia   |        8 |        - |        - |        - |        8 |     1,759 |
--------------------------------------------------------------------------------
| Latvia    |        4 |        - |        - |        3 |        7 |     1,196 |
--------------------------------------------------------------------------------
| Lithuania |        4 |        - |        - |       16 |       20 |     1,626 |
--------------------------------------------------------------------------------
| Belarus   |        - |        - |       26 |        - |       26 |     2,385 |
--------------------------------------------------------------------------------
| Poland    |        - |        1 |        - |        9 |       10 |       488 |
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| Total     |       37 |       42 |       26 |       28 |      133 |    14,549 |
--------------------------------------------------------------------------------

Wholesale  
                                                                     
In the first half of 2008, wholesale amounted to EEK 672.3 million (EUR 43.0    
million), representing 73.5% of the Group's total revenue (H1 2007: 85.1%). The 
main wholesale regions were Russia, Belarus, Ukraine and the Baltic States for  
lingerie, and Finland and the Baltic states for women's apparel. in the first   
six months of 2008, revenue from wholesale of women's apparel decreased by 40.1%
compared to the first six months of 2007, amounting to EEK 9.1 million (EUR 0.6 
million).   
                                                                    
Lingerie wholesale in the first six months of 2008 increased by 3.5% compared to
the first six months of 2007, amounting to EEK 663.2 million (EUR 42.4 million).
Most of the lingerie wholesale partners are located in Russia.     
             
Investment  
                                                                    
In the first half of 2008, the Group's investments totalled EEK 43.1 million    
(EUR 2.8 million). A total of EEK 15.6 million (EUR 1.0 million) was invested in
retail operations, EEK 12.4 million (EUR 0.8 million) was invested in real      
estate for retail needs in Belarus,while other investments were made in         
equipment and facilities to maintain effective production.  
                    
Personnel                                                                       

At the end of June 2008, the Group employed a staff of 4,055 including 823 in   
retail and 2,488 in production. The rest are employed in wholesale,             
administration and support operations. The average number of employees in the   
first six months of 2008 was 4,059.              
                               
The total salaries and wages for the first half of 2008 amounted to EEK 185.5   
million (EUR 11.9 million). The remuneration paid to members of the Management  
Board totalled EEK 3.3 million (EUR 0.2 million). Four members of the Management
Board also serve as executives for the Group's subsidiaries.  
                  
Selected financial data                                                         

The Group's operating results are best summarised in the following figures and  
ratios:                                                                         
--------------------------------------------------------------------------------
| Key figures and ratios                    | 30.06.200 | 30.06.2007 |  Change |
|                                           |         8 |            |         |
--------------------------------------------------------------------------------
| Net sales (EEK million)                   |     914.5 |      779.2 |   135.3 |
--------------------------------------------------------------------------------
| Net income, attributable to shareholders  |      32.1 |      146.3 |  -114.2 |
| (EEK million)                             |           |            |         |
--------------------------------------------------------------------------------
| Earnings before interest, taxes and       |     138.2 |      242.1 |  -103.9 |
| depreciation (EBITDA) ( EEK million)      |           |            |         |
--------------------------------------------------------------------------------
| Earnings before interest and taxes (EBIT) |     115.3 |      223.8 |  -108.5 |
| (EEK million)                             |           |            |         |
--------------------------------------------------------------------------------
| Net sales (EUR million)                   |      58.4 |       49.8 |     8.6 |
--------------------------------------------------------------------------------
| Net income attributable to shareholders   |       2.1 |        9.4 |    -7.3 |
| (EUR million)                             |           |            |         |
--------------------------------------------------------------------------------
| Earnings before interest, taxes and       |       8.8 |       15.5 |    -6.7 |
| depreciation (EBITDA) ( EUR million)      |           |            |         |
--------------------------------------------------------------------------------
| Earnings before interest and taxes (EBIT) |       7.4 |       14.3 |    -6.9 |
| (EUR million)                             |           |            |         |
--------------------------------------------------------------------------------
| Operating margin, %                       |     12.6% |      28.7% |       - |
--------------------------------------------------------------------------------
| Net margin, %                             |      3.5% |      18.8% |       - |
--------------------------------------------------------------------------------
| ROA, %                                    |      2.9% |      12.9% |       - |
--------------------------------------------------------------------------------
| ROE, %                                    |      4.4% |      16.8% |       - |
--------------------------------------------------------------------------------
| Earnings per share (EPS), in EEK          |      0.80 |       3.86 |       - |
--------------------------------------------------------------------------------
| Earnings per share (EPS), in EUR          |      0.05 |       0.25 |       - |
--------------------------------------------------------------------------------
| Current ratio                             |       3.4 |        3.2 |       - |
--------------------------------------------------------------------------------
| Quick ratio                               |       1.9 |        1.9 |       - |
--------------------------------------------------------------------------------

Underlying formulas:                                                            
Operating margin = operating profit / sales revenue                             
Net margin = net profit attributable to equity holders of the parent / sales    
revenue                                                                         
ROA (return on assets) = net profit attributable to equity holders of the parent
/ average total assets                                                          
ROE (return on equity) = net profit attributable to equity holders of the parent
/ average equity                                                                
EPS (earnings per share) = net profit attributable to equity holders of the     
parent / weighted average number of ordinary shares                             
Current ratio = current assets / current liabilities                            
Quick ratio = (current assets - inventories) / current liabilities              

Sergei Kusonski                                                                 
CEO, Member of the Management Board        

                                     
Balance Sheet                                                                   
Consolidated, unaudited                                                         
--------------------------------------------------------------------------------
|                   |  | 30.06 | 30.06. | 31.12. | 30.06.0 | 30.06.0 | 31.12.0 |
|                   |  |   .08 |  07    | 07     |   8     |  7      |       7 |
|                   |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
|                   |  |   EEK |    EEK |    EEK | EUR Th. | EUR Th. | EUR Th. |
|                   |  |   Th. |    Th. |    Th. |         |         |         |
--------------------------------------------------------------------------------
| ASSETS            |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Non-current       |  |       |        |        |         |         |         |
| assets            |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Property, plant   |  | 268,3 | 213,91 | 246,54 |  17,153 |  13,671 |  15,757 |
| and equipment     |  |    86 |      7 |      1 |         |         |         |
--------------------------------------------------------------------------------
| Intangible assets |  | 26,59 | 16,801 | 27,976 |   1,700 |   1,074 |   1,788 |
|                   |  |     9 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Investment        |  | 21,51 |      0 | 22,954 |   1,375 |       0 |   1,467 |
| property          |  |     4 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Investments in    |  | 2,144 |     78 |    876 |     137 |       5 |      56 |
| equity accounted  |  |       |        |        |         |         |         |
| investees         |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Available-for-sal |  | 8,027 |  9,310 |  8,480 |     513 |     595 |     542 |
| e financial       |  |       |        |        |         |         |         |
| assets            |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Other receivables |  |   814 |  5,101 |    595 |      52 |     326 |      38 |
--------------------------------------------------------------------------------
| Total non-current |  | 327,4 | 245,20 | 307,42 |  20,930 |  15,671 |  19,648 |
| assets            |  |    84 |      7 |      2 |         |         |         |
--------------------------------------------------------------------------------
| Current assets    |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Inventories       |  | 369,0 | 281,56 | 337,52 |  23,588 |  17,995 |  21,572 |
|                   |  |    72 |      1 |      8 |         |         |         |
--------------------------------------------------------------------------------
| Prepaid taxes     |  | 29,43 | 22,171 | 24,471 |   1,881 |   1,417 |   1,564 |
|                   |  |     1 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Trade receivables |  | 206,9 | 173,58 | 158,53 |  13,224 |  11,094 |  10,132 |
|                   |  |    11 |      3 |      1 |         |         |         |
--------------------------------------------------------------------------------
| Other receivables |  | 44,48 |  5,430 | 29,713 |   2,843 |     347 |   1,899 |
|                   |  |     4 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Prepayments       |  | 48,64 | 60,161 | 51,680 |   3,109 |   3,845 |   3,303 |
|                   |  |     5 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Cash and cash     |  | 140,3 | 139,02 | 180,23 |   8,968 |   8,885 |  11,519 |
| equivalents       |  |    19 |      0 |      3 |         |         |         |
--------------------------------------------------------------------------------
| Total current     |  | 838,8 | 681,92 | 782,15 |  53,613 |  43,583 |  49,989 |
| assets            |  |    62 |      6 |      6 |         |         |         |
--------------------------------------------------------------------------------
| TOTAL ASSETS      |  | 1 166 | 927,13 | 1 089, |  74,543 |  59,254 |  69,637 |
|                   |  |  ,346 |      3 |    578 |         |         |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES AND   |  |       |        |        |         |         |         |
| EQUITY            |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Equity            |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Share capital at  |  | 400,0 | 379,47 | 400,00 |  25,565 |  24,252 |  25,565 |
| par value         |  |    00 |      2 |      0 |         |         |         |
--------------------------------------------------------------------------------
| Share premium     |  | 223,2 | 83,011 | 223,29 |  14,271 |   5,305 |  14,271 |
|                   |  |    93 |        |      3 |         |         |         |
--------------------------------------------------------------------------------
| Statutory capital |  | 1,046 |  1,046 |  1,046 |      67 |      67 |      67 |
| reserve           |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Translation       |  | -99,1 | -27,86 | -76,51 |  -6,338 |  -1,781 |  -4,890 |
| reserve           |  |    57 |      7 |      2 |         |         |         |
--------------------------------------------------------------------------------
| Retained earnings |  | 218,0 | 145,31 | 185,92 |  13,937 |   9,287 |  11,883 |
|                   |  |    65 |      0 |      7 |         |         |         |
--------------------------------------------------------------------------------
| Total equity      |  | 743,2 | 580,97 | 733,75 |  47,502 |  37,130 |  46,896 |
| attributable to   |  |    47 |      2 |      4 |         |         |         |
| equity holders of |  |       |        |        |         |         |         |
| the parent        |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Minority interest |  | 165,0 | 127,55 | 136,31 |  10,547 |   8,152 |   8,712 |
|                   |  |    25 |      2 |      3 |         |         |         |
--------------------------------------------------------------------------------
| Total equity      |  | 908,2 | 708,52 | 870,06 |  58,049 |  45,282 |  55,608 |
|                   |  |    72 |      4 |      7 |         |         |         |
--------------------------------------------------------------------------------
| Non-current       |  |       |        |        |         |         |         |
| liabilities       |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Loans and         |  | 9,529 |  6,556 |  4,068 |     609 |     419 |     260 |
| borrowings        |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Deferred tax      |  |   203 |    201 |    201 |      13 |      13 |      13 |
| liabilities       |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Other liabilities |  |   188 |      0 |    360 |      12 |       0 |      23 |
--------------------------------------------------------------------------------
| Provisions        |  |   125 |    139 |    139 |       8 |       9 |       9 |
--------------------------------------------------------------------------------
| Total non-current |  | 10,04 |  6,896 |  4,768 |     642 |     441 |     305 |
| liabilities       |  |     5 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Current           |  |       |        |        |         |         |         |
| liabilities       |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Loans and         |  | 63,08 | 24,972 | 25,160 |   4,032 |   1,596 |   1,608 |
| borrowings        |  |     7 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Trade payables    |  | 110,7 | 121,01 | 122,88 |   7,078 |   7,734 |   7,854 |
|                   |  |    47 |      3 |      8 |         |         |         |
--------------------------------------------------------------------------------
| Corporate income  |  | 8,308 |  6,916 |  3,192 |     531 |     442 |     204 |
| tax liability     |  |       |        |        |         |         |         |
--------------------------------------------------------------------------------
| Other tax         |  | 15,88 | 21,968 | 23,486 |   1,015 |   1,404 |   1,501 |
| liabilities       |  |     1 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Other payables    |  | 24,11 | 17,321 | 17,430 |   1,541 |   1,107 |   1,113 |
|                   |  |     1 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Provisions        |  | 25,86 | 19,523 | 22,462 |   1,653 |   1,248 |   1,436 |
|                   |  |     4 |        |        |         |         |         |
--------------------------------------------------------------------------------
| Accrued expenses  |  |    31 |      0 |    125 |       2 |       0 |       8 |
--------------------------------------------------------------------------------
| Total current     |  | 248,0 | 211,71 | 214,74 |  15,852 |  13,531 |  13,724 |
| liabilities       |  |    29 |      3 |      3 |         |         |         |
--------------------------------------------------------------------------------
| Total liabilities |  | 258,0 | 218,60 | 219,51 |  16,494 |  13,972 |  14,029 |
|                   |  |    74 |      9 |      1 |         |         |         |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES |  | 1 166 | 927,13 | 1 089, |  74,543 |  59,254 |  69,637 |
| AND EQUITY        |  |  ,346 |      3 |    578 |         |         |         |
--------------------------------------------------------------------------------

Income Statement-H1                                                             
Consolidated, unaudited                                                         

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|                              |    |    2008 |     2007 |     2008 |     2007 |
|                              |    |      H1 |       H1 |       H1 |       H1 |
|                              |    |     EEK |      EEK |      EUR |      EUR |
|                              |    | thousan | thousand | thousand | thousand |
|                              |    |      ds |        s |        s |        s |
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| Net sales                    |    | 914,513 |  779,201 |   58,448 |   49,800 |
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| Costs of goods sold          |    | -515,08 | -437,369 |  -32,920 |  -27,953 |
|                              |    |       6 |          |          |          |
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| Gross Profit                 |    | 399,427 |  341,832 |   25,528 |   21,847 |
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| Other operating income       |    |  10,155 |   79,485 |      649 |    5,080 |
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| Distribution costs           |    | -156,07 |  -89,968 |   -9,975 |   -5,750 |
|                              |    |       5 |          |          |          |
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| Administrative expenses      |    | -104,39 |  -77,560 |   -6,672 |   -4,957 |
|                              |    |       4 |          |          |          |
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| Other operating expenses     |    | -33,828 |  -29,963 |   -2,162 |   -1,915 |
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| Operating profit             |    | 115,285 |  223,826 |    7,368 |   14,305 |
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| Interest expenses            |    |  -1,549 |     -391 |      -99 |      -25 |
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| Gains/losses on conversion   |    |  -1,502 |      955 |      -96 |       61 |
| of foreign currencies        |    |         |          |          |          |
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| Other financial income /     |    |   5,242 |    1,596 |      335 |      102 |
| expenses                     |    |         |          |          |          |
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| Total financial income /     |    |   2,191 |    2,160 |      140 |      138 |
| expenses                     |    |         |          |          |          |
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| Share of profit of equity    |    |   1,314 |        0 |       84 |        0 |
| accounted investees          |    |         |          |          |          |
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| Profit before corporate      |    | 118,790 |  225,986 |    7,592 |   14,443 |
| income tax                   |    |         |          |          |          |
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| Corporate income tax         |    | -56,625 |  -47,487 |   -3,619 |   -3,035 |
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| Net profit for period        |    |  62,165 |  178,499 |    3,973 |   11,408 |
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| Net profit attributable to   |    |  32,138 |  146,297 |    2,054 |    9,350 |
| parent company               |    |         |          |          |          |
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| Net profit attributable to   |    |  30,027 |   32,202 |    1,919 |    2,058 |
| minority shareholders        |    |         |          |          |          |
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| Earnings per share           |    |         |          |          |          |
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| Basic earnings per share     |    |    0.80 |     3.86 |     0.05 |     0.25 |
| (EEK/EUR)                    |    |         |          |          |          |
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| Diluted earnings per share   |    |    0.80 |     3.86 |     0.05 |     0.25 |
| (EEK/EUR)                    |    |         |          |          |          |
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Income Statement-Q2                                                             
Consolidated, unaudited                                                         

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|                               |   |    2008 |     2007 |     2008 |     2007 |
|                               |   |      Q2 |       Q2 |       Q2 |       Q2 |
|                               |   |     EEK |      EEK |      EUR |      EUR |
|                               |   | thousan | thousand | thousand | thousand |
|                               |   |      ds |        s |        s |        s |
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| Net sales                     |   | 485,718 |  410,675 |   31,043 |   26,247 |
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| Costs of goods sold           |   | -278,44 | -220,585 |  -17,796 |  -14,098 |
|                               |   |       7 |          |          |          |
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| Gross Profit                  |   | 207,271 |  190,090 |   13,247 |   12,149 |
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| Other operating income        |   |   5,868 |   76,482 |      375 |    4,888 |
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| Distribution costs            |   | -87,152 |  -49,880 |   -5,570 |   -3,188 |
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| Administrative expenses       |   | -50,038 |  -33,936 |   -3,198 |   -2,169 |
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| Other operating expenses      |   | -16,210 |  -22,045 |   -1,036 |   -1,409 |
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| Operating profit              |   |  59,739 |  160,711 |    3,818 |   10,271 |
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| Interest expenses             |   |    -892 |        0 |      -57 |        0 |
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| Gains/losses on conversion of |   |   1,550 |    1,086 |       99 |       70 |
| foreign currencies            |   |         |          |          |          |
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| Other financial income /      |   |   2,519 |   -1,767 |      161 |     -113 |
| expenses                      |   |         |          |          |          |
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| Total financial income /      |   |   3,177 |     -681 |      203 |      -43 |
| expenses                      |   |         |          |          |          |
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| Share of profit of equity     |   |   1,126 |        0 |       72 |        0 |
| accounted investees           |   |         |          |          |          |
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| Profit before corporate       |   |  64,042 |  160,030 |    4,093 |   10,228 |
| income tax                    |   |         |          |          |          |
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| Corporate income tax          |   | -28,508 |  -23,652 |   -1,822 |   -1,512 |
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| Net profit for period         |   |  35,534 |  136,378 |    2,271 |    8,716 |
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| Net profit attributable to    |   |  18,103 |  112,824 |    1,157 |    7,211 |
| parent company                |   |         |          |          |          |
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| Net profit attributable to    |   |  17,431 |   23,554 |    1,114 |    1,505 |
| minority shareholders         |   |         |          |          |          |
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| Earnings per share            |   |         |          |          |          |
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| Basic earnings per share      |   |    0.45 |     2.97 |     0.03 |     0.19 |
| (EEK/EUR)                     |   |         |          |          |          |
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| Diluted earnings per share    |   |    0.45 |     2.97 |     0.03 |     0.19 |
| (EEK/EUR)                     |   |         |          |          |          |
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