English Estonian
Published: 2008-02-06 16:01:25 CET
Nordecon
Quarterly report
CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOURTH QUARTER AND TWELVE MONTHS OF 2007 (UNAUDITED)
AS Eesti Ehitus is a group of construction companies whose core business is    

general contracting and construction management. The Group is engaged in the 
  
construction of buildings and structures in Estonia, Latvia, Lithuania and 
    
Ukraine. In addition, in Estonia our companies act as independent
contractors in
road construction and maintenance, environmental engineering,
the assembly of   
reinforced concrete elements, and the performance of
cast-on-site concrete      
works. The parent of the Group is AS Eesti Ehitus,
a company registered and     
located in Tallinn, Estonia. Since 18 May 2006,
the company's shares have been  
quoted in the main list of Tallinn Stock
Exchange.
                              
Mission We are committed to
providing premier value-added design and            
construction services by
creating a successful partnership with our customers.
We seek to add value to
the company by recognising our employees and providing  
them with clear
motivation, development opportunities and a contemporary work   
environment.

                                                                   
Vision
We strive to be a construction group which can always surpass the       

customer's expectations.
                                                   
    
Shared values                                                            
      
Quality We are professionals - we apply appropriate and effective
construction  
techniques and technologies and observe generally accepted
quality standards. We
provide our customers with integrated cost efficient
solutions. We are          
environmentally aware and operate sustainably.    
                             
We value our employees by providing them with a
modern work environment which   
encourages creativity and a motivation system
which fosters                     
initiative.	
                             
                                      
Reliability We always keep our promises
and honour our agreements.              
We act openly and transparently. We
consistently support and promote the best   
construction practices. We do not
take risks at the expense of our customers.
   
Innovation We are innovative
and creative engineers. We take maximum advantage  
of the benefits offered by
information technology. We inspire our employees to  
grow through consistent
training and balanced career opportunities.             

THE GROUP'S
STRUCTURE                                                           

The
unaudited consolidated financial statements of AS Eesti Ehitus as at and
for
the twelve months ended 31 December 2007 comprise the results of the
parent and 
its subsidiaries and the Group's interests in associates:         
            
     
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|
Direct and indirect ownership interests of AS Eesti Ehitus:                 
     |
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|
Company             |        |   31 December |   31 December |              
|
|                     |        |          2007 |          2006 |            
 
     |
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|
AS Linnaehitus      | Estoni |        100.0% |        100.0% |              
|
|                     | a      |               |               |            
 
     |
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|
AS Aspi             | Estoni |        100.0% |        100.0% |              
|
|                     | a      |               |               |            
 
     |
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|
AS Järva Teed       | Estoni |        100.0% |        100.0% |              
|
|                     | a      |               |               |            
 
     |
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|
OÜ Hiiu Teed        | Estoni |        100.0% |        100.0% |              
|
|                     | a      |               |               |            
 
     |
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|
OÜ Mapri Projekt    | Estoni |         52.0% |         52.0% |              
|
|                     | a      |               |               |            
 
     |
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|
Estcon OY           | Finlan |        100.0% |        100.0% |              
|
|                     | d      |               |               |            
 
     |
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|
OÜ EE Ressursid     | Estoni |        100.0% |        100.0% |              
|
|                     | a      |               |               |            
 
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|
UAB Eurocon LT      | Lithua |         70.0% |          0.0% |              
|
|                     | nia    |               |               |            
 
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|
OÜ Eurocon          | Estoni |         64.0% |         64.0% |              
|
|                     | a      |               |               |            
 
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|
TOV Eurocon Ukraine | Ukrain |         61.4% |         61.4% |              
|
|                     | e      |               |               |            
 
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|
TOV Eurocon West    | Ukrain |         61.4% |         61.4% |              
|
|                     | e      |               |               |            
 
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|
TOV Bukovina        | Ukrain |         60.8% |         60.8% |              
|
| Developments        | e      |               |               |            
 
     |
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|
TOV Passage Theatre | Ukrain |         55.3% |         61.4% |              
|
|                     | e      |               |               |            
 
     |
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|
OÜ Kaurits          | Estoni |         52.0% |          0.0% |              
|
|                     | a      |               |               |            
 
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|
OÜ DSN              | Estoni |         34.3% |          0.0% |              
|
| Ehitusmasinad       | a      |               |               |            
 
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|
SIA Abagars         | Latvia |         34.3% |          0.0% |              
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|
TOV V.I. Center     | Ukrain |         32.0% |         41.0% |              
|
|                     | e      |               |               |            
 
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|
TOV EA Reng Proekt  | Ukrain |         31.3% |          0.0% |              
|
|                     | e      |               |               |            
 
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|
TOV Technopolis-2   | Ukrain |         30.7% |         30.7% |              
|
|                     | e      |               |               |            
 
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|
TOV Baltik          | Ukrain |         30.7% |          0.0% |              
|
| Development         | e      |               |               |            
 
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|
OÜ Kastani          | Estoni |         26.0% |         26.0% |              
|
| Kinnisvara          | a      |               |               |            
 
     |
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The
parent and AS Linnaehitus are engaged in general contracting and project   

management. AS Aspi and its subsidiaries build environmental structures and  
  
roads and provide road maintenance services. Over two thirds of the revenue
of  
OÜ Mapri Projekt results from concrete works; in addition, the company
performs 
project management and general construction contracts. OÜ Eurocon
coordinates   
the Group's construction and development activities in Ukraine.
Its direct      
subsidiary TOV Eurocon Ukraine is engaged in general
contracting and project    
management. Other Ukrainian entities are project
companies which develop real   
estate in and around Kiev, and in Lvov.       
                                 
In 2007, the Group's structure changed as
follows:                              
In February, an 11% stake in TOV V.I.
Center was sold to Continental Investment 
Holding GmbH, a non-group company.
Considering minority interests in OÜ Eurocon 
and TOV Eurocon Ukraine, the
transaction reduced AS Eesti Ehitus' interest in   
TOV V.I. Center to 32%.   
                                                     
In April, a new
development company, TOV Baltik Development, was established in 
Ukraine in
association with the Dutch company Vicus Realty Delta B.V. Taking    
into
account minority interests in OÜ Eurocon and TOV Eurocon Ukraine, AS Eesti

Ehitus' interest in the entity is 30.7%.                                     
  
In June, a subsidiary, UAB Eurocon LT, was founded in Lithuania. In
September, a
30% interest in the entity was sold to the Lithuanian company UAB
Eurox LT.     
In July, the Group divested of its shareholding in the
Ukrainian joint venture  
TOV Eurobeton.                                      
                           
In August, OÜ Kaurits acquired a 66% majority
interest in OÜ DSN Ehitusmasinad. 
OÜ Kaurits is a 52% subsidiary of AS Aspi
which is a wholly-owned subsidiary of 
AS Eesti Ehitus.                       
                                        
In October AS Eesti Ehitus acquired a
52% stake in AS Eston Ehitus.             
In December, a decision was adopted
for the divestment of 61% of the stake in   
TOV Passage Theatre. The
transaction has not been completed.                    
The accounts of OÜ
Kaurits have been consolidated since the beginning of the    
financial year
and the accounts of OÜ DSN Ehitusmasinad since August 2007. The 

consolidation of TOV Eurobeton ceased as of the month of its divestment.  The
  
results of AS Eston Ehitus have been consolidated since November 2007.     
    

EMPLOYEES AND PERSONNEL EXPENSES                                       
        
                                                                     
          
In 2007 the Group employed, on average, 1103 people. The proportion
of engineers
and technical personnel (ETP) was 39% (2006: 37%). Personnel
expenses totalled  
462 million kroons (29 million euros), a 68% increase
year-over-year while the  
average number of staff grew 26% year-over year.
The rise in personnel expenses 
may be explained by the acquisition of
subsidiaries and tough competition in the
labour market.                      
                                          
     
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Average number of the Group's    |     |               |     |              
|
| employees                        |     |               |     |            
 
     |
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|
   Period    |    |     ETP      |     |    Workers    |     | Total average
     |
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|
    2007     |    |     425      |     |      678      |     |     1103     
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|
    2006     |    |     329      |     |      542      |     |      871     
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|
    2005     |    |     261      |     |      393      |     |      610     
     |
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In
2007, the remuneration of the members of the council of AS Eesti Ehitus
Group
totalled 1,080,000 kroons (69 thousand euros) and the remuneration and
benefits 
of the members of the board of AS Eesti Ehitus amounted to
15,558,000 kroons    
(994,000 euros).                                        
                       

REVENUE AND SEGMENTS                                
                           

Consolidated revenue for 2007 amounted to 3,770
million kroons (241 million     
euros), a strong 51% improvement on a year
ago. Similarly to a year ago, the    
Residential and non-residential segment
contributed 53% (49% up on a year ago)  
and the Civil engineering segment 47%
(58% growth) of total revenue.           
     

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|
Revenue by segments              |    |            |     |     |            
     |
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|
Business segments                |    |     2007   |     |     |    2006    
     |
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|
Civil engineering                |    |    47%     |     |     |     46%    
     |
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|
Residential and non-residential  |    |    53%     |     |     |     54%    
     |
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Commercial
buildings remains the Residential and non-residential segment's      
largest
sub-segment, mainly on account of strong demand in the home market.    

Compared with 2006, the highest growth rate was posted by the Public
buildings  
sub-segment.                                                      
            
     
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|
Revenue allocation in the        |    |            |     |     |            
|
| Residential and                  |    |            |     |     |          
 
     |
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|
non-residential segment          |    |     2007   |     |     |    2006    
     |
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|
Residential buildings            |    |    11%     |     |     |     17%    
     |
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|
Public buildings                 |    |    17%     |     |     |     18%    
     |
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|
Commercial buildings             |    |    61%     |     |     |     41%    
     |
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|
Industrial and warehouse         |    |    11%     |     |     |     24%    
|
| facilities                       |    |            |     |     |          
 
     |
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In
Civil engineering, the largest sub-segment was Port construction, which     

contributed 580 million kroons (37 million euros), i.e. 15% of total         
  
construction contract revenues. A year ago, the contribution of Port       
    
construction was only 157 million kroons (10 million euros) or 14%. Road 
      
construction and maintenance generated revenues of 730 million (47
million      
euros), i.e. 19% of total construction contract revenues,
against 584 million   
kroons (37 million euros) and 23% a year ago.          
                        
At 31 December 2007, the Group's order backlog was
2,588 million kroons (165    
million euros) against 2,453 million kroons (158
million euros) a year ago.     

PROFITABILITY AND CASH FLOWS                
                                   

In 2007, the Group's profitability
showed consistent improvement.               
The period's gross margin was
13% (2006: 12%). Although personnel expenses grew 
more rapidly than revenue,
other expenses increased at a slower pace. Compared  
with a year ago, the
ratio of administrative expenses to revenue remained more  
or less stable at
slightly below 5% (2006: 5%). The period's operating margin   
was 9% (2006:
8%). The rise in the value of investment property increased       
operating
profit by 23 million kroons, i.e. by over 1 million euros (2006: 0). 

Unaudited consolidated net profit for 2007 amounted to an exceptional 302    
  
million kroons (19 million euros) against the 188 million kroons (12
million    
euros) earned a year ago. The profit attributable to equity
holders of the      
parent amounted to 281 million kroons (over 18 million
euros) against 175       
million kroons (11 million euros) for 2006.         
                           
Cash and cash equivalents grew by 80 million
kroons (5 million euros). A year   
ago, net cash flow was negative to the
extent of 36 million kroons (approx. 2   
million euros). The Group's cash
position has improved, above all, on account of
strong net operating cash
flows of 163 million kroons (approx. 10 million       
euros). In 2006,
operating cash flows totalled 55 million kroons (over 3 million
euros).       
                                                                


SIGNIFICANT RATIOS AND FIGURES 
                                          
     
     
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|
            Ratio /figure             |    |     2007    |     |    2006    
     |
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|
Weighted average number of shares     |    |  30,756,728 |     |  30,756,728
     |
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|
Earnings per share (in kroons)        |    |        9.14 |     |        5.69
     |
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|
Revenue growth                        |    |       50.6% |     |       49.5%
     |
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|
Average number of employees           |    |       1,103 |     |         871
     |
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|
Revenue per employee (in thousands of |    |       3,418 |     |       2,875
|
| kroons)                               |    |             |     |          
 
     |
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|
Personnel expenses to revenue, %      |    |       12.3% |     |       11.0%
     |
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|
Administrative expenses to revenue, % |    |        4.8% |     |        5.0%
     |
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|
EBITDA (in thousands of kroons)       |    |     396,246 |     |     234,368
     |
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|
EBITDA margin, %                      |    |       10.5% |     |        9.4%
     |
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|
Gross margin, %                       |    |       13.3% |     |       12.2%
     |
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|
Operating margin, %                   |    |        8.8% |     |        8.1%
     |
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|
Operating margin excluding gains on   |    |        8.6% |     |        7.0%
|
| property sales, %                     |    |             |     |          
 
     |
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|
Net margin, %                         |    |        8.0% |     |        7.5%
     |
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|
Return on invested capital, %         |    |       35.2% |     |       33.7%
     |
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|
Return on assets, %                   |    |       18.6% |     |       17.4%
     |
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|
Return on equity, %                   |    |       46.8% |     |       56.1%
     |
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|
Equity ratio, %                       |    |       36.9% |     |       34.9%
     |
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|
Gearing, %                            |    |       13.5% |     |       14.6%
     |
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|
Current ratio                         |    |        1.30 |     |        1.33
     |
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|
Order backlog (in thousands of        |    |   2,587,775 |     |   2,453,419
|
| kroons)                               |    |             |     |          
 
     |
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*
For comparability, the weighted average number of shares is the number of    

shares after the bonus issues.                                               
  

Revenue per employee = revenue / average number of employees             
      
Personnel expenses to revenue = personnel expenses / revenue           
        
Administrative expenses to revenue = administrative expenses /
revenue          
EBITDA = earnings before interest, taxes, depreciation and
amortisation         
EBITDA margin = EBITDA / revenue                        
                       
Gross margin = gross profit / revenue                 
                         
Operating margin = operating profit / revenue       
                           
Operating margin excluding gains on property sales
= (operating profit - gains  
on sale of property, plant and equipment - gains
on sale of real estate) /      
revenue                                       
                                 
Net margin = net profit for the period /
revenue                                
Return on invested capital = (profit
before tax + interest expense) / the       
period's average (interest-bearing
liabilities + equity)                        
Return on assets = operating
profit / average total assets for the period       
Return on equity = net
profit for the period / average total equity for the     
period              
                                                           
Equity ratio =
total equity / total equity and liabilities                      
Gearing =
(interest-bearing liabilities - cash and cash equivalents) / (interest
bearing
liabilities + equity)                                                  

Current ratio = total current assets / total current liabilities             
  

Consolidated interim balance sheet                                       
     
     

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|
Unaudited, EEK '000                 |  Note |   31 December |    31 December
|
|                                     |       |          2007 |          
2006
     |
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|
ASSETS                              |       |               |               
     |
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|
Current assets                      |       |               |               
     |
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|
Cash and cash equivalents           |       |       236,112 |        155,980
     |
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|
Short-term investments              |     2 |        37,458 |          2,140
     |
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|
Trade receivables                   |     3 |       512,285 |        380,841
     |
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|
Other receivables and prepayments   |     4 |       255,292 |        129,663
     |
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|
Deferred tax assets                 |       |         1,015 |          1,015
     |
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|
Inventories                         |     5 |       392,876 |        272,184
     |
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|
Non-current assets held for sale    |     6 |        12,925 |              0
     |
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|
Total current assets                |       |     1,447,963 |        941,823
     |
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|
Non-current assets                  |       |               |               
     |
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|
Investments in associates           |     8 |        44,498 |         21,193
     |
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|
Other long-term investments         |     8 |        66,516 |         32,951
     |
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|
Investment property                 |     9 |       133,984 |          5,963
     |
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     ---
|
Property, plant and equipment       |    10 |       222,974 |        223,674
     |
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     ---
|
Intangible assets                   |    10 |       273,223 |        165,036
     |
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|
Total non-current assets            |       |       741,195 |        448,817
     |
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     ---
|
TOTAL ASSETS                        |       |     2,189,158 |      1,390,640
     |
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     ---
|
LIABILITIES                         |       |               |               
     |
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     ---
|
Current liabilities                 |       |               |               
     |
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     ---
|
Interest-bearing loans and          |   11; |       131,456 |         70,029
|
| borrowings                          |    12 |               |             
 
     |
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     ---
|
Trade payables                      |       |       334,350 |        183,983
     |
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     ---
|
Tax liabilities                     |       |        52,849 |         42,922
     |
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     ---
|
Other payables and advances         |    13 |       578,571 |        404,819
|
| received                            |       |               |             
 
     |
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     ---
|
Provisions                          |    14 |        12,384 |          4,511
     |
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     ---
|
Total current liabilities           |       |     1,109,610 |        706,264
     |
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     ---
|
Non-current liabilities             |       |               |               
     |
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     ---
|
Interest-bearing loans and          |   11; |       268,124 |        196,017
|
| borrowings                          |    12 |               |             
 
     |
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|
Other liabilities                   |       |             0 |            490
     |
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     ---
|
Provisions                          |    14 |         4,327 |          1,885
     |
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     ---
|
Total non-current liabilities       |       |       272,451 |        198,392
     |
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     ---
|
TOTAL LIABILITIES                   |       |     1,382,061 |        904,656
     |
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     ---
|
EQUITY                              |       |               |               
     |
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     ---
|
Minority interest                   |       |        89,409 |         39,291
     |
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     ---
|
Share capital                       |    15 |       307,567 |        153,784
     |
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     ---
|
Share premium                       |   15  |             0 |        108,465
     |
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     ---
|
Statutory capital reserve           |       |        11,658 |          4,158
     |
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     ---
|
Translation reserve                 |       |         4,984 |          2,196
     |
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     ---
|
Retained earnings                   |   15  |       393,479 |        178,090
     |
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     ---
|
Total equity attributable to equity |       |       717,688 |        446,693
|
| holders of the parent               |       |               |             
 
     |
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     ---
|
TOTAL EQUITY                        |       |       807,097 |        485,984
     |
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     ---
|
TOTAL LIABILITIES AND EQUITY        |       |     2,189,158 |      1,390,640
     |
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          ---
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     -----

Consolidated
interim balance sheet                                             
     

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|
Unaudited, EUR '000                |  Note |    31 December |    31 December
|
|                                    |       |           2007 |          
2006
     |
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     ---
|
ASSETS                             |       |                |               
     |
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     ---
|
Current assets                     |       |                |               
     |
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     ---
|
Cash and cash equivalents          |       |         15,090 |          9,969
     |
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     ---
|
Short-term investments             |     2 |          2,394 |            137
     |
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     ---
|
Trade receivables                  |     3 |         32,741 |         24,340
     |
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     ---
|
Other receivables and prepayments  |     4 |         16,316 |          8,287
     |
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     ---
|
Deferred tax assets                |       |             65 |             65
     |
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     ---
|
Inventories                        |     5 |         25,109 |         17,395
     |
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     ---
|
Non-current assets held for sale   |     6 |            826 |              0
     |
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     ---
|
Total current assets               |       |         92,542 |         60,193
     |
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     ---
|
Non-current assets                 |       |                |               
     |
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     ---
|
Investments in associates          |     8 |          2,844 |          1,354
     |
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     ---
|
Other long-term investments        |     8 |          4,251 |          2,106
     |
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     ---
|
Investment property                |     9 |          8,563 |            382
     |
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     ---
|
Property, plant and equipment      |    10 |         14,251 |         14,295
     |
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     ---
|
Intangible assets                  |    10 |         17,462 |         10,548
     |
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     ---
|
Total non-current assets           |       |         47,371 |         28,685
     |
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     ---
|
TOTAL ASSETS                       |       |        139,913 |         88,878
     |
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     ---
|
LIABILITIES                        |       |                |               
     |
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     ---
|
Current liabilities                |       |                |               
     |
-----------------------------------------------------------------------------
     ---
|
Interest-bearing loans and         |   11; |          8,402 |          4,476
|
| borrowings                         |    12 |                |             
 
     |
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     ---
|
Trade payables                     |       |         21,369 |         11,759
     |
-----------------------------------------------------------------------------
     ---
|
Tax liabilities                    |       |          3,378 |          2,743
     |
-----------------------------------------------------------------------------
     ---
|
Other payables and advances        |    13 |         36,977 |         25,873
|
| received                           |       |                |             
 
     |
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     ---
|
Provisions                         |    14 |            791 |            288
     |
-----------------------------------------------------------------------------
     ---
|
Total current liabilities          |       |         70,917 |         45,138
     |
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     ---
|
Non-current liabilities            |       |                |               
     |
-----------------------------------------------------------------------------
     ---
|
Interest-bearing loans and         |   11; |         17,136 |         12,528
|
| borrowings                         |    12 |                |             
 
     |
-----------------------------------------------------------------------------
     ---
|
Other liabilities                  |       |              0 |             31
     |
-----------------------------------------------------------------------------
     ---
|
Provisions                         |    14 |            277 |            120
     |
-----------------------------------------------------------------------------
     ---
|
Total non-current liabilities      |       |         17,413 |         12,680
     |
-----------------------------------------------------------------------------
     ---
|
TOTAL LIABILITIES                  |       |         88,330 |         57,818
     |
-----------------------------------------------------------------------------
     ---
|
EQUITY                             |       |                |               
     |
-----------------------------------------------------------------------------
     ---
|
Minority interest                  |       |          5,714 |          2,511
     |
-----------------------------------------------------------------------------
     ---
|
Share capital                      |    15 |         19,657 |          9,829
     |
-----------------------------------------------------------------------------
     ---
|
Share premium                      |    15 |              0 |          6,932
     |
-----------------------------------------------------------------------------
     ---
|
Statutory capital reserve          |       |            745 |            266
     |
-----------------------------------------------------------------------------
     ---
|
Translation reserve                |       |            319 |            140
     |
-----------------------------------------------------------------------------
     ---
|
Retained earnings                  |    15 |         25,148 |         11,382
     |
-----------------------------------------------------------------------------
     ---
|
Total equity attributable to       |       |         45,869 |         28,549
|
| equity holders of the parent       |       |                |             
 
     |
-----------------------------------------------------------------------------
     ---
|
TOTAL EQUITY                       |       |         51,583 |         31,060
     |
-----------------------------------------------------------------------------
     ---
|
TOTAL LIABILITIES AND EQUITY       |       |        139,913 |         88,878
     |
-----------------------------------------------------------------------------
     ---

Consolidated
interim income statement 
                                         
     
------------------------------------------------------------------------------
     --
|
                            | Note |     Q4, | Q4, 2006 |    2007 |     2006
|
| Unaudited, EEK '000         |      |    2007 |          |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Revenue                     |  17; | 1,111,0 |  738,921 | 3,770,4 | 2,503,84
|
|                             |   18 |      72 |          |      87 |       
4
     |
-----------------------------------------------------------------------------
     ---
|
Cost of sales               |   19 | 958,123 |  624,487 | 3,270,6 | 2,197,31
|
|                             |      |         |          |      16 |       
9
     |
-----------------------------------------------------------------------------
     ---
|
Gross profit                |      | 152,949 |  114,434 | 499,871 |  306,525
     |
-----------------------------------------------------------------------------
     ---
|
Administrative expenses     |   20 |  60,583 |   51,561 | 179,199 |  125,739
     |
-----------------------------------------------------------------------------
     ---
|
Other operating income      |   21 | 34,139, |     -170 |  42,763 |   26,859
     |
-----------------------------------------------------------------------------
     ---
|
Other operating expenses    |   21 |  24,373 |    2,331 |  30,300 |    5,108
     |
-----------------------------------------------------------------------------
     ---
|
Operating profit before     |      | 102,132 |   60,372 | 333,135 |  202,537
|
| financial items             |      |         |          |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Financial income            |   22 |   1,998 |   13,564 |  18,362 |   18,393
     |
-----------------------------------------------------------------------------
     ---
|
Financial expenses          |   22 |   7,570 |    4,909 |  30,028 |   19,046
     |
-----------------------------------------------------------------------------
     ---
|
Net financial items         |      |  -5,572 |    8,655 | -11,666 |     -653
     |
-----------------------------------------------------------------------------
     ---
|
Share of profit of equity   |      |    -239 |        0 |   1,354 |        0
|
| accounted investees         |      |         |          |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Share of loss of equity     |      |  -3,430 |      600 |  -3,671 |     -980
|
| accounted investees         |      |         |          |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Net share of profit and     |      |   3,669 |      600 |  -2,317 |     -980
|
| loss of equity accounted    |      |         |          |         |       
  |
| investees                   |      |         |          |         |     
   
     |
-----------------------------------------------------------------------------
     ---
|
Profit before income tax    |      |  92,891 |   69,627 | 319,152 |  200,904
     |
-----------------------------------------------------------------------------
     ---
|
Income tax expense          |   23 |    -561 |   -2,595 |  16,865 |   12,831
     |
-----------------------------------------------------------------------------
     ---
|
Profit for the period       |      |  93,452 |   72,222 | 302,287 |  188,073
     |
-----------------------------------------------------------------------------
     ---
|
Attributable to             |      |  84,836 |   60,635 | 281,146 |  175,003
|
| Equity holders of the       |      |         |          |         |       
  |
| parent                      |      |         |          |         |     
   
     |
-----------------------------------------------------------------------------
     ---
|
Minority interest           |      |   8,616 |   11,587 |  21,141 |   13,070
     |
-----------------------------------------------------------------------------
     ---
|
Basic earnings per share    |   15 |    2.76 |     1.97 |   9.14  |     5.69
|
| (in kroons)*                |      |         |          |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Diluted earnings per share  |   15 |  2.76   |     1.97 |   9.14  |     5.69
|
| (in kroons)*                |      |         |          |         |       
 
     |
-----------------------------------------------------------------------------
     ---

*For
comparability, the weighted average number of shares used is the number of

shares after the bonus issues, i.e. 30,756,728 shares.                       
  

Consolidated interim income statement                                    
     
     

----------------------------------------------------------------------------
     ----
|
Unaudited, EUR '000        | Note |     Q4, |  Q4, 2006 |    2007 |     2006
|
|                            |      |    2007 |           |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Revenue                    |  17; |  71,010 |    47,226 | 240,978 |  160,025
|
|                            |   18 |         |           |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Cost of sales              |   19 |  61,235 |    39,912 | 209,030 |  140,434
     |
-----------------------------------------------------------------------------
     ---
|
Gross profit               |      |   9,775 |     7,314 |  31,948 |   19,591
     |
-----------------------------------------------------------------------------
     ---
|
Administrative expenses    |   20 |   3,872 |     3,295 |  11,453 |    8,036
     |
-----------------------------------------------------------------------------
     ---
|
Other operating income     |   21 |   2,182 |       -11 |   2,733 |    1,717
     |
-----------------------------------------------------------------------------
     ---
|
Other operating expenses   |   21 |   1,558 |       149 |   1,937 |      326
     |
-----------------------------------------------------------------------------
     ---
|
Operating profit before    |      |   6,527 |     3,858 |  21,291 |   12,944
|
| financial items            |      |         |           |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Financial income           |   22 |     128 |       867 |   1,174 |    1,176
     |
-----------------------------------------------------------------------------
     ---
|
Financial expenses         |   22 |     484 |       314 |   1,919 |    1,217
     |
-----------------------------------------------------------------------------
     ---
|
Net financial items        |      |    -356 |       553 |    -746 |      -42
     |
-----------------------------------------------------------------------------
     ---
|
Share of profit of equity  |      |     -15 |         0 |      87 |        0
|
| accounted investees        |      |         |           |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Share of loss of equity    |      |    -219 |        38 |    -235 |      -63
|
| accounted investees        |      |         |           |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Net share of profit and    |      |    -234 |        38 |    -148 |      -63
|
| loss of equity accounted   |      |         |           |         |       
  |
| investees                  |      |         |           |         |     
   
     |
-----------------------------------------------------------------------------
     ---
|
Profit before income tax   |      |   5,937 |     4,450 |  20,398 |   12,840
     |
-----------------------------------------------------------------------------
     ---
|
Income tax expense         |   23 |     -36 |      -166 |   1,078 |      820
     |
-----------------------------------------------------------------------------
     ---
|
Profit for the period      |      |   5,973 |     4,616 |  19,320 |   12,020
     |
-----------------------------------------------------------------------------
     ---
|
Attributable to            |      |   5,422 |     3,875 |  17,969 |   11,185
|
| Equity holders of the      |      |         |           |         |       
  |
| parent                     |      |         |           |         |     
   
     |
-----------------------------------------------------------------------------
     ---
|
Minority interest          |      |     551 |       741 |   1,351 |      835
     |
-----------------------------------------------------------------------------
     ---
|
Basic earnings per share   |   15 |    0.18 |      0.12 |    0.58 |     0.36
|
| (in euros)*                |      |         |           |         |       
 
     |
-----------------------------------------------------------------------------
     ---
|
Diluted earnings per share |   15 |    0.18 |      0.12 |    0.58 |     0.36
|
| (in euros)*                |      |         |           |         |       
 
     |
-----------------------------------------------------------------------------
     ---


*For
comparability, the weighted average number of shares used is the number of

shares after the bonus issues, i.e. 30,756,728 shares.

Sulev Luiga
CFO,
Member of the Management Board
AS Eesti
Ehitus
Sulev.Luiga@eestiehitus.ee
+372 5043175
 


ee_4q2007_eng_fin.pdf