Published: 2005-02-18 13:30:00 CET
Citycon Oyj
Company Announcement
Preliminary IFRS comparative figures for the fourth quarter of 2004
Citycon Oyj          Stock Exchange Release 18 February 2005 at
2.30pm

Preliminary IFRS comparative figures for the fourth quarter of
2004

In this bulletin, Citycon presents preliminary comparative IFRS figures
for the
fourth quarter of 2004. In its bulletins issued on 31 August 2004 and
21 October,
the company presented the preliminary opening IFRS balance as at 1
January 2004,
preliminary comparative figures for the first, second and third
quarters, and the
major impacts of the transition from FAS (Finnish Accounting
Standards) to IFRS
(International Financial Reporting
Standards).

Preliminary comparative figures for the entire financial year
will be issued by
Citycon in its financial statements bulletin. The segment
information required by
IAS 14 will be given starting with the first quarter
of 2005. The final
reconciliation required by IFRS 1 (first-time adoption of
IFRS) will be presented
in the interim report for the first quarter of 2005 as
Citycon starts reporting
according to IFRS for the first time.

The
comparative information has been prepared in accordance with the
latest
versions of IFRS. The 'notes' column refers to the additional
information
explained in the separate section. A summary of the IFRS
accounting principles
most significant to Citycon is at the end of this
release.

Citycon will go over to reporting in accordance to IFRS in its
interim reports
and final accounts for 2005. The timetable for the transition
has not been
changed.
The figures are unaudited.


Key figures

        
                    Note     FAS Q4    Preliminary   FAS   Preliminary
       
                                        IFRS Q4       Q4    IFRS Q4
          
                                                   Cum.  Cum.
Earnings per
share, EUR               0.04      0.02          0.17    0.22
Earnings per
share,
diluted, EUR                          0.04      0.02          0.16   
0.22
Equity per share, EUR                 2.04      2.01          2.04   
2.01
Return on equity (ROE), %             8.1       3.3           8.4    
11.0
Return on investment (ROI), %         6.3       5.5           6.2    
7.3
Equity ratio, %               g       47.6      29.6          47.6   
29.6




Preliminary IFRS Q4 2004 comparison

Income statement

EUR
Million                  FAS Q4    Change    Prel.    FAS    Change    Prel.
 
                                     Q4        IFRS     Q4     Q4        IFRS

                                                Q4       Cum.   Cum.      Q4
 
                                                                        
Cum.
Turnover                     22.5      -1.1       21.4     88.6   -3.9   
  84.7
Other income                 0.5        0.0       0.5      0.8    -0.1 
    0.7
Change in value of investment
property, note a)                     
-4.9      -4.9             -4.9     -4.9

Expenses
Depreciation
and
Impairments                  1.9       -2.0      0.0      7.6     -7.5    
 0.2
Share of associated
companies
profit, note b              -0.3       
0.4      0.0     -0.1      0.1       0.0
Other expenses               8.6     
 -1.5      7.2      31.5    -3.7      27.8

Operating profit            12.8 
     -2.9      9.9      50.3     2.2      52.6

Net financial expenses    
-6.4        -0.2     -6.6     -26.1     0.0     -26.1

Profit before and
taxes     6.4        -3.1      3.3      24.2     2.3      26.5

Taxes, note
d)             -1.8        0.4     -1.4       -6.8    3.0      -3.8

Profit  
                   4.6       -2.7      1.9       17.4    5.3      
22.7

Earnings per share, EUR     0.04      -0.02     0.02      0.17    0.5  
    0.22
Earnings per share,
diluted, EUR                0.04      -0.02    
0.02      0.16    0.5       0.22

Preliminary IFRS Q4 2004
comparison


Balance sheet

EUR million                       Note      
FAS      Change      Preliminary
                                            
31. Dec.             31. Dec.
                                            
2004                 2004
 Assets

 Non-current assets
 Intangible assets  
                        4.7       -4.2       0.5
 Tangible assets             
               740.5     -738.9     1.7
 Investment properties             a  
                 738.7     738.7
 Investments
 Holdings in associated
companies  b         55.7      -55.7      0.0
 Treasury shares                
  c         4.7       -4.7       0.0
 Other investments                       
   21.3      -21.3      0.0
 Investments, total                          81.7 
    -81.7      0.0
 Deferred tax asset                d
 Non current assets,
total                   827.0     -86.1      740.8

 Current assets

Short-term receivables                      4.9       -0.7       4.2
 Cash and
cash equivalents                   8.6       -0.6       7.9
 Current assets,
total                       13.5      -1.3      12.2

 Assets, total         
                     840.4     -87.4     753.0

 Liabilities and
shareholders' equity

 Equity attributable to equity holders of the parent

Share capital                              156.8     0.0         156.8
 Share
premium fund                         35.1     -0.1         35.0
 Treasury
share fund               c        4.7      -4.7         0.0
 Treasury shares  
                c                 -4.7        -4.7
 Fair value reserve        
       e                 -13.3       -13.3
 Other funds                       
        6.6       0.0         6.6
 Retained profits                a.b.d     
13.0      9.9         22.9
 Profit                                     17.4   
  5.3         22.7
 Capital loan                      f        68.5     -68.5 
      0.0
 Shareholders' equity, total                302.0    -76.0       
226.0

 Minority interest                          100.0    -100.0      
0.0

 Liabilities
 Long term liabilities             f        407.4     86.1
       493.5

Deferred tax liability             d                  3.0      
  3.0
Long term liabilities, total                407.4     89.2       
496.5

Short-term liabilities                      31.1     -0.6        
30.5
Short-term liabilities, total               31.1     -0.6        
30.5

Liabilities, total                          438.4     88.6       
527.0

Liabilities and shareholders'
equity, total                          
    840.4    -87.4        753.0






Preliminary statement of changes
in shareholders' equity

Attributable to equity holders of the parent
EUR
million          Share    Share    Fair value    Treasury   Retained   Total
 
                   capital  premium  reserve       shares and  profits 
equity
                              fund and               capital
         
                    other                  loan
                             
reserves

FAS Balance
31 Dec.2003         142.8     34.8                  
73.1        27.3      278.0

IFRS Balance
1 Jan. 2004         142.8     34.8
     -7.7         -4.7        37.1      202.2

Cash flow hedges              
         -4.7                               -4.7
Profit                       
                                   8.4        8.4
Total recognised income
and
expense                             -4.7                     8.4       
8.4
Dividends                                                       -14.3     
-14.3

IFRS Balance
31 Mar. 2004        142.8    34.8       -12.4        
-4.7       31.0
191.5

Cash flow hedges                         4.8         
                     4.8
Profit                                               
           6.3       6.3
Total recognised
income and expense                 
     4.8                    6.3        11.1

IFRS Balance
30 June 2004      
142.8    34.8       -7.6          -4.7      37.5        202.6

Cash flow
hedges                       -3.3                               -3.3
Profit   
                                                     6.2         6.2
Total
recognised
income and expense                     -3.3                    6.2 
       3.0
Share Offering     13.5     6.7                                    
       20.2

IFRS Balance
30 Sep. 2004       156.3    41.5      -10.9       
 -4.7       438.5       225.7

Cash flow hedges                      -2.4    
                           -2.4
Profit                                        
                1.9         1.9
Total recognised
Income and expense          
         -2.4                     1.9        -0.5
Share offering     0.5      
                                              0.5

IFRS Balance
31 Dec. 2004
      156.8     41.5     -13.3         -4.7       45.6       226.0



Cash
flow statements
Cash flow statements are not presented. as the differences
between IFRS cash flow
statement and the cash flow statement prepared
according to Finnish Accounting
Standards are not considered to be
material.




Notes to the preliminary comparative financial information
for Q4 in 2004

   a) Investment properties have been valued at fair value
and the change in
      values has been recorded in the income statement and
the equity in the
      opening balance.
   b) Consolidation principles of
mutual real estate companies have been changed.
   c) Own shares held by the
parent company are not presented in assets but are
      deducted from
equity.
   d) Deferred taxes have been recognised for all temporary
differences according
      to IAS 12 Income Taxes.
   e) The fair value of
cash flow hedging derivatives has been included in the
      balance sheet and
the changes in the values in cash flow hedge reserve in
      equity.
   f)
Capital loan has been classified as a liability in the IFRS balance sheet.
  
g) The covenant calculation used in the financial agreements will remain the
 
    same.
   h) The transaction costs related to the acquisition of
shareholders' equity
      have been treated as a reduction in shareholders'
equity with an adjustment
      for income tax.


Summary of Citycon's most
significant IFRS accounting principles
The consolidated financial statements
for 2005 of Citycon are to be prepared in
accordance with International
Financial Reporting Standards (IFRS). The
comparative figures of 2004 are
restated from previous applied Finnish Accounting
Standards (FAS) to
IFRS.

Principles of consolidation
Mutual real estate companies are
consolidated by proportional consolidation,
where Citycon's

share of
assets, liabilities, income and expenses of the company is combined line
by
line with similar items in the Citycon's financial statements.

Investment
properties
Investment property is property (land or building - or part of a
building - or
both) held to earn rental income or capital gain or both. In the
valuation of
investment properties according to IAS 40 Citycon has decided to
use the fair
value model, which will result in changes in value being posted
to the income
statement. The valuation of investment properties is assessed in
accordance with
International Valuation Standards (IVS) at least once a year
by on external
valuer.

Property, plant and equipment
Property (other than
investment property), plant and equipment are recorded at
historical cost and
depreciated over the estimated economic lives of the assets.
Machinery and
equipment is depreciated over a period of from 4 to 10 years.

Intangible
assets
Intangible assets include software licenses. They are recorded at cost
and
amortised on straight-line basis over 5 years.

Impairment
Property,
plant and equipment and intangible assets are assessed at each balance
sheet
date to determine whether there is any indication of impairment. If
such
indication exists, the recoverable amount shall be estimated. An
impairment loss
is recognised in the income statement if the carrying amount
exceeds the
recoverable amount.

Revenue recognition
Revenue comprise
mainly of rental income from investment property. Rental income
is recognised
on a straight-line basis over the term of the lease.

Leases
Leases, for
which Citycon acts as a lessee, are classified as finance leases
and
recognised as assets and liabilities if the risks and rewards have
been
transferred. A lease is classified as an operating lease if it does not
transfer
substantially all the risks and rewards incidental to
ownership.

Pension benefits
Employee pension cover has been arranged
through statutory pension insurance. The
contributions to defined contribution
plans are charged to the income statement
in the period to which they
relate.

Equity and equity-related compensation benefits
IFRS 2 Share-based
payment -standard has been applied to share options that were
granted after 7
November 2002 and have not vested before 1 January 2005. For such
option plans
the fair value of the equity instruments granted is measured at
grand date and
the options are expensed over the vesting period of the
instrument.

Share
offering expenditure

The transaction costs related to the acquisition of
shareholders' equity have
been treated as a reduction in shareholders' equity
with an adjustment for income
tax.

Capital loan
The capital loan is
treated under IFRS as a liability.

Reacquired own equity instruments
(treasury shares)
Treasury shares are deducted from the shareholders'
equity.

Derivatives
Interest rate derivatives are used as hedging
instruments. They are designated as
cash flow hedges of the future interest
payments on variable rate liabilities.
Hedging instruments are measured at
fair value and the change in value that
relates to the effective part of the
hedge is recognised directly in equity. The
ineffective part, if any, is
recognised in the income statement. Fair value
changes remain in equity until
the hedged cash flow is recognised.

Provisions
Provisions are recognised,
when the group has a present legal or constructive
obligation as a result of
past events, when it is probable that an outflow of
resources will be required
to settle the obligation and when a reliable estimate
of the amount can be
made.

Taxes
Income taxes include taxes based on taxable profit for the
financial period,
adjustments to prior year taxes and change in deferred
taxes.

Deferred tax assets and liabilities are recognised using the
liability method for
all temporary differences arising from the difference
between the tax basis of
assets and liabilities and their carrying values in
IFRS. The enacted tax rate is
used in the determination of deferred income
tax.


Helsinki, 18 February 2005

Citycon Oyj
Board of
Directors


Further information
CEO Petri Olkinuora
Tel. +358 9 6803 6738
or +358 400 333 256
petri.olkinuora@citycon.fi

CFO Pirkko Salminen
Te.
+358 9 6803 6730 or + 358 50 3022
485
pirkko.salminen@citycon.fi





Independent Auditors' Review Report
to the Board of Directors of Citycon Oyj



We have reviewed the
preliminary comparative IFRS information for the fourth
quarter of 2004. These
statements are the responsibility of the company.

We conducted our review in
accordance with the International Standard on Auditing
applicable to review
engagements. This standard requires that we plan and perform
the review to
obtain moderate assurance as to whether the financial statements
are free of
material misstatement. A review is limited primarily to inquiries of
company
personnel and analytical procedures applied to financial data and
thus
provides less assurance than an audit. We have not performed an audit
and,
accordingly, we do not express an audit opinion.

Based on our reviews,
we are not aware of any material modifications that should
be made to the
preliminary comparative information for the fourth quarter of
2004, for them
to be in conformity with the IFRS principles.

Helsinki, February 18,
2005


Ari Ahti                       Jaakko Nyman
Authorized Public
Accountant   Authorized Public Accountant