English Estonian
Published: 2007-08-06 16:28:21 CEST
Nordecon
Quarterly report
Financial results 6 months 2007
Directors' report 
                                                           
  
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 and its entities operate in
Estonia,   
Latvia, Lithuania and Ukraine. In addition, in Estonia group
companies act as   
independent contractors in road construction and
maintenance, environmental     
engineering, the assembly of reinforced
concrete elements and structures, 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 efficient 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 contemporary 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 for the six  
months ended 30 June 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                  |        |    30 June |    30 June |    31 December
|
|                          |        |       2007 |       2006 |          
2006
     |
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|
AS Linnaehitus           |Estonia |     100.0% |     100.0% |         100.0%
|
|                          |        |            |            |             
 
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|
AS Aspi                  | Estonia|     100.0% |     100.0% |         100.0%
|
|                          |        |            |            |             
 
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|
AS Järva Teed            | Estonia|     100.0% |     100.0% |         100.0%
|
|                          |        |            |            |             
 
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|
OÜ Hiiu Teed             | Estonia|     100.0% |     100.0% |         100.0%
|
|                          |        |            |            |             
 
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|
OÜ Mapri Projekt         | Estonia       52.0% |      52.0% |          52.0%
|
|                          |        |            |            |             
 
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|
Estcon OY                | Finland|     100.0% |     100.0% |         100.0%
|
|                          |        |            |            |             
 
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|
OÜ EE Ressursid          | Estonia|     100.0% |     100.0% |         100.0%
|
|                          |        |            |            |             
 
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|
UAB Eurocon LT           |Lithuania|     100.0%|       0.0% |           0.0%
|
|                          |        |            |            |             
 
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|
OÜ Eurocon               | Estonia|      64.0% |      64.0% |          64.0%
|
|                          |        |            |            |             
 
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|
TOV Eurocon Ukraine      | Ukraine|      61.4% |      61.4% |          61.4%
|
|                          |        |            |            |             
 
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|
TOV Eurocon West         | Ukraine|      61.4% |      61.4% |          61.4%
|
|                          |        |            |            |             
 
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|
TOV Bukovina             | Ukraine|      60.8% |      60.8% |          60.8%
|
| Developments             |        |            |            |             
 
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|
TOV Passage Theatre      | Ukraine|      55.3% |      61.4% |          55.3%
|
|                          |        |            |            |             
 
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|
OÜ Kaurits               | Estonia|      52.0% |       0.0% |          52.0%
|
|                          |        |            |            |             
 
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|
SIA Abagars              | Latvia |      34.3% |       0.0% |          34.3%
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|
TOV V.I. Center          | Ukraine|      32.0% |      41.0% |          38.7%
|
|                          |        |            |            |             
 
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|
TOV EA Reng Proekt       | Ukraine|      31.3% |       0.0% |          31.3%
|
|                          |        |            |            |             
 
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|
TOV Eurobeton            | Ukraine|      30.7% |       0.0% |          30.7%
|
|                          |        |            |            |             
 
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|
TOV Technopolis-2        | Ukraine|      30.7% |      30.7% |          30.7%
|
|                          |        |            |            |             
 
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|
TOV Baltik Development   | Ukraine|      30.7% |       0.0% |           0.0%
|
|                          |        |            |            |             
 
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|
OÜ Kastani Kinnisvara    | Estonia|      26.0% |      26.0% |          26.0%
|
|                          |        |            |            |             
 
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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 the first half of 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   

together 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 new entity is 30.7%.                                     
      
In June, we founded a subsidiary, UAB Eurocon LT, in Lithuania.        
        

From the beginning of 2007, the consolidated financial statements
include the   
financial statements of OÜ Kaurits.                            
                

EMPLOYEES AND PERSONNEL EXPENSES 
                        
                      
In the first six months of 2007, the Group employed, on
average, 1113 people.   
The proportion of engineers and technical personnel
(ETP) was 37%. Personnel    
expenses totalled 176.3 million kroons (€11.3
million), a 73% increase on a year
ago. The average number of staff grew 26%
year-over year.                      
     

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|
Average number of the Group's    |     |               |     |              
|
| employees                        |     |               |     |            
 
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|
   Period    |    |     ETP      |     |    Workers    |     | Total average
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|
  6 months   |    |     412      |     |      701      |     |     1113     
|
|     2007     |    |              |     |               |     |            
 
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|
  6 months   |    |     316      |     |      566      |     |      882     
|
|     2006     |    |              |     |               |     |            
 
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|
    2006     |    |     329      |     |      542      |     |      871     
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REVENUE
AND SEGMENTS 
                                                          

Consolidated revenues for the six months ended 30 June 2007 totalled 1,519.6 
  
million kroons (€97.1 million), a solid 64% improvement on a year ago.
Similarly
to a year ago, the Residential and non-residential segment
contributed 62% (48% 
up on a year ago) and the Civil engineering segment 38%
(118% growth) of the    
total.                                               
                         
     

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Revenue by segments        |   |           |    |           |    |          
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|
Business segments          |   |  I half   |    |  I half   |    |   2006   
|
|                            |   |   2007    |    |   2006    |    |        
 
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|
Civil engineering          |   |    38%    |    |    38%    |    |    46%   
     |
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|
Residential and            |   |    62%    |    |    62%    |    |    54%   
|
| non-residential            |   |           |    |           |    |        
 
     |
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Commercial
buildings remains the Residential and non-residential segment's      
largest
sub-segment, largely on account of strong demand in all our home       

markets. Compared to the first half of 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   |   | I half     |    |  I half   |    |   2006   
|
|                           |   | 2007       |    |   2006    |    |        
 
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|
Residential buildings     |   |    17%     |    |    11%    |    |    17%   
     |
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|
Public buildings          |   |    20%     |    |    17%    |    |    18%   
     |
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|
Commercial buildings      |   |    53%     |    |    47%    |    |    41%   
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|
Industrial and warehouse  |   |    10%     |    |    25%    |    |    24%   
|
| facilities                |   |            |    |           |    |        
 
     |
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In
Civil engineering the largest sub-segment was Port construction, which      

contributed 302.8 million kroons (€19.4 million), i.e. 20.7% of total        
  
construction contract revenues. A year ago the contribution of Port
construction
was only 27.2 million kroons (€1.7 million) or 2.9%. Road
construction and      
maintenance generated revenues of 199.7 million (€12.8
million), i.e. 13.7% of  
total construction contract revenues, against 219.1
million kroons (€14 million)
and 23.8% a year ago.                            
                              
At 30 June 2007, the Group's order backlog was
2,730.8 million kroons (€174.5   
million) against 1,987.5 million kroons
(€127.0 million) a year ago.            

PROFITABILITY AND CASH FLOWS 
    
                                              
In the first half of 2007, the
Group's year-on-year profitability improved in   
all areas.                  
                                                   
Gross margin rose to 14.2%
against 9.9% a year ago. Although the growth in      
personnel expenses
surpassed that of revenue, other costs increased more        
moderately.     
                                                               
The ratio of
administrative expenses to revenue declined to 4.8% (I half 2006:  
5.0%). The
improvement is attributable to an increase in sales and reflects the 
Group's
enhanced ability to cover its fixed costs.                              
The
period's operating margin was 9.6% (I half 2006: 7.7%).                    

Unaudited consolidated net profit for the first six months of 2007 amounted
to  
an exceptional 129.9 million kroons (€8.3 million) against the 53.5
million     
kroons (€3.4 million) earned a year ago. The profit attributable
to equity      
holders of the parent amounted to 123.9 million kroons (€7.9
million) against   
54.7 million kroons (€3.5 million) for the first half of
2006.                  
Net operating cash flows for the first half-year were
negative to the extent of 
75.0 million kroons (€4.8 million) while a year ago
they were positive at 10.0  
million kroons (€0.6 million). The difference can
be explained by major         
materials purchases for port construction
projects and the return of excess     
amounts on the completion of the
renovation of the Luther residential quarter.  
Cash flows from investing
activities were more or less balanced, resulting in a 
net outflow of 1.6
million kroons (€0.1 million). A year ago, investing         
activities
resulted in a cash outflow of 53.7 million kroons (€3.4 million).   

Financing activities resulted in an outflow of 8.4 million kroons (€0.5      
  
million), mainly due to the distribution of dividends. A year ago, the
initial  
public offering of the company's shares and loans received generated
cash       
inflows of 45.4 million (€2.9 million).                           
             
Gearing or the ratio of net debt to invested capital (loans plus
equity) surged 
from 12.5% a year ago to 33.1% for two reasons. Firstly, the
balance of cash and
cash equivalents decreased on account of developments in
operating cash flows.  
Secondly, the proportion of invested capital increased
at the expense of growth 
in equity, creating an opportunity for involving
additional funds through the   
issuance of debt instruments.                 
                                 

SIGNIFICANT RATIOS AND FIGURES            
                                    
     
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|
       Ratio /figure         |    |  I half  |    |  I half  |    |   2006  
|
|                              |    |   2007   |    |   2006   |    |       
 
     |
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|
Weighted average number of   |    | 30,756,7 |    | 30,756,7 |    | 30,756,7
|
| shares                       |    |       28 |    |       28 |    |      
28
     |
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|
Earnings per share (in       |    |     4.03 |    |     1.78 |    |     5.69
|
| kroons)                      |    |          |    |          |    |       
 
     |
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|
Revenue growth               |    |    64.0% |    |   192.3% |    |    49.5%
     |
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|
Average number of employees  |    |     1113 |    |      882 |    |      871
     |
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|
Revenue per employee (in     |    |    1,365 |    |    1,050 |    |    2,875
|
| thousands of kroons)         |    |          |    |          |    |       
 
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|
Personnel expenses to        |    |    11.6% |    |    11.0% |    |    11.0%
|
| revenue, %                   |    |          |    |          |    |       
 
     |
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|
Administrative expenses to   |    |     4.8% |    |     5.0% |    |     5.0%
|
| revenue, %                   |    |          |    |          |    |       
 
     |
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|
EBITDA (in thousands of      |    |  176,310 |    |   85,208 |    |  234,368
|
| kroons)                      |    |          |    |          |    |       
 
     |
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|
EBITDA margin, %             |    |    11.6% |    |     9.2% |    |     9.4%
     |
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|
Gross margin, %              |    |    14.2% |    |     9.9% |    |    12.2%
     |
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|
Operating margin, %          |    |     9.6% |    |     7.7% |    |     8.1%
     |
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|
Operating margin excluding   |    |     9.2% |    |     4.9% |    |     7.0%
|
| gains on property sales, %   |    |          |    |          |    |       
 
     |
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|
Net margin, %                |    |     8.6% |    |     5.8% |    |     7.5%
     |
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|
Return on invested capital,  |    |    18.2% |    |    12.9% |    |    33.7%
|
| %                            |    |          |    |          |    |       
 
     |
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|
Return on assets, %          |    |     9.4% |    |     6.5% |    |    17.4%
     |
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|
Return on equity, %          |    |    24.8% |    |    20.4% |    |    56.1%
     |
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|
Equity ratio, %              |    |    32.9% |    |    26.6% |    |    34.9%
     |
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|
Gearing or net debt to debt  |    |    33.1% |    |    12.5% |    |    14.6%
|
| plus equity, %               |    |          |    |          |    |       
 
     |
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|
Current ratio                |    |     1.41 |    |     1.18 |    |     1.33
     |
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|
Order backlog (in thousands  |    | 2,730,813|    | 1,987,547|    |
2,453,419|
| of 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 or
net debt to debt plus equity ratio = (interest-bearing liabilities - 
cash and
cash equivalents) / (interest bearing liabilities + equity)           

Current ratio = total current assets / total current liabilities             
  

Consolidated interim financial statements                                
     

Consolidated interim balance sheet                                    
        
     

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|
Unaudited, in  |           |              |                |                
|
| thousands of   |           |              |                |              
  |
| Estonian       |           |              |                |            
    |
| kroons (EEK)   |           |              |                |          
     
     |
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|
               | Note      | 30 June 2007 |  30 June 2006  | 31 December    
|
|                |           |              |                | 2006         
 
     |
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|
ASSETS         |           |              |                |                
     |
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|
Current assets |           |              |                |                
     |
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|
Cash and cash  |           | 70 871       | 193 731        | 155 980        
|
| equivalents    |           |              |                |              
 
     |
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|
Short-term     | 2         | 0            | 0              | 2 140          
|
| investments    |           |              |                |              
 
     |
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|
Trade          |           | 511 810      | 341 985        | 380 841        
|
| receivables    |           |              |                |              
 
     |
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|
Other          | 3         | 261 793      | 125 897        | 129 663        
|
| receivables    |           |              |                |              
  |
| and            |           |              |                |            
    |
| prepayments    |           |              |                |          
     
     |
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|
Deferred tax   |           | 1 015        | 0              | 1 015          
|
| assets         |           |              |                |              
 
     |
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|
Inventories    | 4         | 377 859      | 219 437        | 272 184        
     |
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|
Total current  |           | 1 223 348    | 881 050        | 941 823        
|
| assets         |           |              |                |              
 
     |
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|
Non-current    |           |              |                |                
|
| assets         |           |              |                |              
 
     |
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|
Investments in |           | 21 319       | 20 590         | 21 193         
|
| associates     |           |              |                |              
 
     |
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|
Other          | 5         | 29 763       | 24 693         | 32 951         
|
| long-term      |           |              |                |              
  |
| investments    |           |              |                |            
   
     |
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|
Investment     |           | 5 962        | 2 611          | 5 963          
|
| property       |           |              |                |              
 
     |
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|
Property,      | 6         | 264 647      | 186 853        | 223 674        
|
| plant and      |           |              |                |              
  |
| equipment      |           |              |                |            
   
     |
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|
Intangible     | 6         | 165 413      | 141 580        | 165 036        
|
| assets         |           |              |                |              
 
     |
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     ---
|
Total          |           | 487 104      | 376 327        | 448 817        
|
| non-current    |           |              |                |              
  |
| assets         |           |              |                |            
   
     |
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|
TOTAL ASSETS   |           | 1 710 452    | 1 257 377      | 1 390 640      
     |
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|
LIABILITIES    |           |              |                |                
     |
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     ---
|
Current        |           |              |                |                
|
| liabilities    |           |              |                |              
 
     |
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|
Interest-beari | 7; 8      | 97 666       | 98 709         | 70 029         
|
| ng loans and   |           |              |                |              
  |
| borrowings     |           |              |                |            
   
     |
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|
Trade payables |           | 347 739      | 252 735        | 183 983        
     |
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     ---
|
Tax            |           | 42 293       | 22 317         | 42 922         
|
| liabilities    |           |              |                |              
 
     |
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     ---
|
Other payables | 9         | 363 615      | 372 088        | 404 819        
|
| and advances   |           |              |                |              
 
     |
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     ---
|
Provisions     | 10        | 6 097        | 3 019          | 4 511          
     |
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     ---
|
Total current  |           | 857 410      | 748 868        | 706 264        
|
| liabilities    |           |              |                |              
 
     |
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     ---
|
Non-current    |           |              |                |                
|
| liabilities    |           |              |                |              
 
     |
-----------------------------------------------------------------------------
     ---
|
Interest-beari | 7; 8      | 287 186      | 170 261        | 196 017        
|
| ng loans and   |           |              |                |              
  |
| borrowings     |           |              |                |            
   
     |
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     ---
|
Other          | 9         | 490          | 1 794          | 490            
|
| liabilities    |           |              |                |              
 
     |
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     ---
|
Provisions     | 10        | 1 885        | 2 047          | 1 885          
     |
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     ---
|
Total          |           | 289 561      | 174 102        | 198 392        
|
| non-current    |           |              |                |              
  |
| liabilities    |           |              |                |            
   
     |
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|
TOTAL          |           | 1 146 971    | 922 970        | 904 656        
|
| LIABILITIES    |           |              |                |              
 
     |
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|
EQUITY         |           |              |                |                
     |
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     ---
|
Minority       | 11        | 39 492       | 9 818          | 39 291         
|
| interest       |           |              |                |              
 
     |
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     ---
|
Share capital  | 11        | 307 567      | 153 784        | 153 784        
     |
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     ---
|
Share premium  | 11        | 0            | 108 465        | 108 465        
     |
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     ---
|
Statutory      | 11        | 8 216        | 4 158          | 4 158          
|
| capital        |           |              |                |              
  |
| reserve        |           |              |                |            
   
     |
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     ---
|
Translation    | 11        | 2 416        | 1 258          | 2 196          
|
| reserve        |           |              |                |              
 
     |
-----------------------------------------------------------------------------
     ---
|
Retained       | 11        | 205 790      | 56 924         | 178 090        
|
| earnings       |           |              |                |              
 
     |
-----------------------------------------------------------------------------
     ---
|
Total equity   |           | 523 989      | 324 589        | 446 693        
|
| attributable   |           |              |                |              
  |
| to equity      |           |              |                |            
    |
| holders of the |           |              |                |          
      |
| parent         |           |              |                |        
       
     |
-----------------------------------------------------------------------------
     ---
|
TOTAL EQUITY   |           | 563 481      | 334 407        | 485 984        
     |
-----------------------------------------------------------------------------
     ---
|
TOTAL          |           | 1 710 452    | 1 257 377      | 1 390 640      
|
| LIABILITIES    |           |              |                |              
  |
| AND EQUITY     |           |              |                |            
   
     |
-----------------------------------------------------------------------------
          ---

-------------------------------------------------------------------------
     -------
|
Unaudited,   |               |               |               |              
|
| in thousands |               |               |               |            
  |
| of euro (€)  |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
             | Note          | 30 June 2007  | 30 June 2006  | 31 December  
|
|              |               |               |               | 2006       
 
     |
-----------------------------------------------------------------------------
     ---
|
ASSETS       |               |               |               |              
     |
-----------------------------------------------------------------------------
     ---
|
Current      |               |               |               |              
|
| assets       |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Cash and     |               | 4 529         | 12 382        | 9 969        
|
| cash         |               |               |               |            
  |
| equivalents  |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
Short-term   | 2             | 0             | 0             | 137          
|
| investments  |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Trade        |               | 32 711        | 21 857        | 24 340       
|
| receivables  |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Other        | 3             | 16 732        | 8 046         | 8 287        
|
| receivables  |               |               |               |            
  |
| and          |               |               |               |          
    |
| prepayments  |               |               |               |        
     
     |
-----------------------------------------------------------------------------
     ---
|
Deferred tax |               | 65            | 0             | 65           
|
| assets       |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Inventories  | 4             | 24 149        | 14 025        | 17 395       
     |
-----------------------------------------------------------------------------
     ---
|
Total        |               | 78 186        | 56 310        | 60 193       
|
| current      |               |               |               |            
  |
| assets       |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
Non-current  |               |               |               |              
|
| assets       |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Investments  |               | 1 363         | 1 316         | 1 354        
|
| in           |               |               |               |            
  |
| associates   |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
Other        | 5             | 1 902         | 1 578         | 2 106        
|
| long-term    |               |               |               |            
  |
| investments  |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
Investment   |               | 381           | 167           | 381          
|
| property     |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Property,    | 6             | 16 914        | 11 942        | 14 296       
|
| plant and    |               |               |               |            
  |
| equipment    |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
Intangible   | 6             | 10 572        | 9 049         | 10 548       
|
| assets       |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Total        |               | 31 132        | 24 052        | 28 685       
|
| non-current  |               |               |               |            
  |
| assets       |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
TOTAL ASSETS |               | 109 318       | 80 362        | 88 878       
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
LIABILITIES  |               |               |               |              
     |
-----------------------------------------------------------------------------
     ---
|
Current      |               |               |               |              
|
| liabilities  |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Interest-bea | 7; 8          | 6 242         | 6 309         | 4 476        
|
| ring loans   |               |               |               |            
  |
| and          |               |               |               |          
    |
| borrowings   |               |               |               |        
     
     |
-----------------------------------------------------------------------------
     ---
|
Trade        |               | 22 225        | 16 153        | 11 759       
|
| payables     |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Tax          |               | 2 703         | 1 426         | 2 743        
|
| liabilities  |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Other        | 9             | 23 239        | 23 781        | 25 873       
|
| payables and |               |               |               |            
  |
| advances     |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
Provisions   | 10            | 391           | 193           | 288          
     |
-----------------------------------------------------------------------------
     ---
|
Total        |               | 54 800        | 47 862        | 45 139       
|
| current      |               |               |               |            
  |
| liabilities  |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
Non-current  |               |               |               |              
|
| liabilities  |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Interest-bea | 7; 8          | 18 355        | 10 882        | 12 528       
|
| ring loans   |               |               |               |            
  |
| and          |               |               |               |          
    |
| borrowings   |               |               |               |        
     
     |
-----------------------------------------------------------------------------
     ---
|
Other        | 9             | 31            | 115           | 31           
|
| liabilities  |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Provisions   | 10            | 120           | 131           | 120          
     |
-----------------------------------------------------------------------------
     ---
|
Total        |               | 18 506        | 11 128        | 12 679       
|
| non-current  |               |               |               |            
  |
| liabilities  |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
TOTAL        |               | 73 306        | 58 990        | 57 818       
|
| LIABILITIES  |               |               |               |            
 
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
EQUITY       |               |               |               |              
     |
-----------------------------------------------------------------------------
     ---
|
Minority     | 11            | 2 524         | 627           | 2 511        
|
| interest     |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Share        | 11            | 19 657        | 9 829         | 9 829        
|
| capital      |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Share        | 11            | 0             | 6 932         | 6 932        
|
| premium      |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Statutory    | 11            | 525           | 266           | 266          
|
| capital      |               |               |               |            
  |
| reserve      |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---
|
Translation  | 11            | 154           | 80            | 140          
|
| reserve      |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Retained     | 11            | 13 152        | 3 638         | 11 382       
|
| earnings     |               |               |               |            
 
     |
-----------------------------------------------------------------------------
     ---
|
Total equity |               | 33 488        | 20 745        | 28 549       
|
| attributable |               |               |               |            
  |
| to equity    |               |               |               |          
    |
| holders of   |               |               |               |        
      |
| the parent   |               |               |               |      
       
     |
-----------------------------------------------------------------------------
     ---
|
TOTAL EQUITY |               | 36 012        | 21 372        | 31 060       
     |
-----------------------------------------------------------------------------
     ---
|
TOTAL        |               | 109 318       | 80 362        | 88 878       
|
| LIABILITIES  |               |               |               |            
  |
| AND EQUITY   |               |               |               |          
   
     |
-----------------------------------------------------------------------------
     ---

Consolidated
interim income statement                                           
          
                                                                    
     
------------------------------------------------------------------------------
     --
|
Unaudited |          |          |          |          |          |          
|
| , in      |          |          |          |          |          |        
  |
| thousands |          |          |          |          |          |      
    |
| of        |          |          |          |          |          |    
      |
| Estonian  |          |          |          |          |          |  
        |
| kroons    |          |          |          |          |          |
          |
| (EEK)     |          |          |          |          |         
|          
     |
-----------------------------------------------------------------------------
     ---
|
          | Note     | Q2, 2007 | Q2,      | I half   | I half   | 2006     
|
|           |          |          | 2006     | 2007     | 2006     |        
 
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Revenue   | 13       | 959 847  | 584 720  | 1 519    | 926 514  | 2 503 844
|
|           |          |          |          | 582      |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
Cost of   | 14       | 809 545  | 522 830  | 1 303    | 834 387  | 2 197 319
|
| sales     |          |          |          | 330      |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
Gross     |          | 150 302  | 61 890   | 216 252  | 92 127   | 306 525  
|
| profit    |          |          |          |          |          |        
 
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Administr | 15       | 42 622   | 25 066   | 72 478   | 45 931   | 125 739  
|
| ative     |          |          |          |          |          |        
  |
| expenses  |          |          |          |          |          |      
   
     |
-----------------------------------------------------------------------------
     ---
|
Other     | 16       | 3 569    | 7 090    | 6 539    | 26 140   | 26 859   
|
| operating |          |          |          |          |          |        
  |
| income    |          |          |          |          |          |      
   
     |
-----------------------------------------------------------------------------
     ---
|
Other     | 16       | 2 412    | 320      | 4 178    | 1 214    | 5 108    
|
| operating |          |          |          |          |          |        
  |
| expenses  |          |          |          |          |          |      
   
     |
-----------------------------------------------------------------------------
     ---
|
Operating |          | 108 837  | 43 594   | 146 135  | 71 122   | 202 537  
|
| profit    |          |          |          |          |          |        
  |
| before    |          |          |          |          |          |      
    |
| financial |          |          |          |          |          |    
      |
| items     |          |          |          |          |          |  
       
     |
-----------------------------------------------------------------------------
     ---
|
          |          |          |          |          |          |          
     |
-----------------------------------------------------------------------------
     ---
|
Financial | 17       | 3 384    | 1 359    | 13 209   | 2 654    | 18 393   
|
| income    |          |          |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
Financial | 17       | 5 964    | 4 252    | 12 001   | 9 097    | 19 046   
|
| expenses  |          |          |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
Net       |          | -2 580   | -2 893   | 1 208    | -6 443   | -653     
|
| financial |          |          |          |          |          |        
  |
| items     |          |          |          |          |          |      
   
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Share of  |          | 237      | 0        | 994      | 0        | 0        
|
| profit of |          |          |          |          |          |        
  |
| equity    |          |          |          |          |          |      
    |
| accounted |          |          |          |          |          |    
      |
| investees |          |          |          |          |          |  
       
     |
-----------------------------------------------------------------------------
     ---
|
Share of  |          | -688     | -198     | -926     | -378     | -980     
|
| loss of   |          |          |          |          |          |        
  |
| equity    |          |          |          |          |          |      
    |
| accounted |          |          |          |          |          |    
      |
| investees |          |          |          |          |          |  
       
     |
-----------------------------------------------------------------------------
     ---
|
Net share |          | -451     | -198     | 68       | -378     | -980     
|
| of profit |          |          |          |          |          |        
  |
| and loss  |          |          |          |          |          |      
    |
| of equity |          |          |          |          |          |    
      |
| accounted |          |          |          |          |          |  
        |
| investees |          |          |          |          |          |
         
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Profit    |          | 105 806  | 40 503   | 147 411  | 64 301   | 200 904  
|
| before    |          |          |          |          |          |        
  |
| income    |          |          |          |          |          |      
    |
| tax       |          |          |          |          |          |    
     
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Income    | 18       | 7 275    | 4 379    | 17 467   | 10 801   | 12 831   
|
| tax       |          |          |          |          |          |        
  |
| expense   |          |          |          |          |          |      
   
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Profit    |          | 98 531   | 36 124   | 129 944  | 53 500   | 188 073  
|
| for the   |          |          |          |          |          |        
  |
| period    |          |          |          |          |          |      
   
     |
-----------------------------------------------------------------------------
     ---
|
Attributa |          |          |          |          |          |          
|
| ble to    |          |          |          |          |          |        
 
     |
-----------------------------------------------------------------------------
     ---
|
Equity    |          | 94 386   | 36 519   | 123 878  | 54 742   | 175 003  
|
| holders   |          |          |          |          |          |        
  |
| of the    |          |          |          |          |          |      
    |
| parent    |          |          |          |          |          |    
     
     |
-----------------------------------------------------------------------------
     ---
|
Minority  |          | 4 145    | -395     | 6 066    | -1 242   | 13 070   
|
| interest  |          |          |          |          |          |        
 
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Basic     | 11       | 4,86     | 1,22     | 4,03     | 1,78     | 5,69     
|
| earnings  |          |          |          |          |          |        
  |
| per share |          |          |          |          |          |      
    |
| (in       |          |          |          |          |          |    
      |
| kroons)*  |          |          |          |          |          |  
       
     |
-----------------------------------------------------------------------------
     ---
|
Diluted   | 11       | 4,86     | 1,22     | 4,03     | 1,78     | 5,69     
|
| earnings  |          |          |          |          |          |        
  |
| per share |          |          |          |          |          |      
    |
| (in       |          |          |          |          |          |    
      |
| kroons)*  |          |          |          |          |          |  
       
     |
-----------------------------------------------------------------------------
     ---
*
For comparability, the underlying weighted average number of shares is the   

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

----------------------------------------------------------------------------
     ----
|
Unaudite |          |          |          |          |           |          
|
| d, in    |          |          |          |          |           |        
  |
| thousand |          |          |          |          |           |      
    |
| s of     |          |          |          |          |           |    
      |
| euro (€) |          |          |          |          |           |  
       
     |
-----------------------------------------------------------------------------
     ---
|
         | Note     | Q2, 2007 | Q2, 2006 | I half   | I half    | 2006     
|
|          |          |          |          | 2007     | 2006      |        
 
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Revenue  | 13       | 61 345   | 37 370   | 97 119   | 59 215    | 160 025  
     |
-----------------------------------------------------------------------------
     ---
|
Cost of  | 14       | 51 739   | 33 415   | 83 298   | 53 327    | 140 434  
|
| sales    |          |          |          |          |           |        
 
     |
-----------------------------------------------------------------------------
     ---
|
Gross    |          | 9 606    | 3 955    | 13 821   | 5 888     | 19 591   
|
| profit   |          |          |          |          |           |        
 
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Administ | 15       | 2 724    | 1 602    | 4 632    | 2 936     | 8 036    
|
| rative   |          |          |          |          |           |        
  |
| expenses |          |          |          |          |           |      
   
     |
-----------------------------------------------------------------------------
     ---
|
Other    | 16       | 228      | 453      | 418      | 1 671     | 1 716    
|
| operatin |          |          |          |          |           |        
  |
| g income |          |          |          |          |           |      
   
     |
-----------------------------------------------------------------------------
     ---
|
Other    | 16       | 154      | 20       | 267      | 78        | 326      
|
| operatin |          |          |          |          |           |        
  |
| g        |          |          |          |          |           |      
    |
| expenses |          |          |          |          |           |    
     
     |
-----------------------------------------------------------------------------
     ---
|
Operatin |          | 6 956    | 2 786    | 9 340    | 4 545     | 12 945   
|
| g profit |          |          |          |          |           |        
  |
| before   |          |          |          |          |           |      
    |
| financia |          |          |          |          |           |    
      |
| l items  |          |          |          |          |           |  
       
     |
-----------------------------------------------------------------------------
     ---
|
         |          |          |          |          |           |          
     |
-----------------------------------------------------------------------------
     ---
|
Financia | 17       | 216      | 87       | 844      | 170       | 1 175    
|
| l income |          |          |          |          |           |        
 
     |
-----------------------------------------------------------------------------
     ---
|
Financia | 17       | 381      | 272      | 767      | 581       | 1 217    
|
| l        |          |          |          |          |           |        
  |
| expenses |          |          |          |          |           |      
   
     |
-----------------------------------------------------------------------------
     ---
|
Net      |          | -165     | -185     | 77       | -411      | -42      
|
| financia |          |          |          |          |           |        
  |
| l items  |          |          |          |          |           |      
   
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Share of |          | 15       | 0        | 64       | 0         | 0        
|
| profit   |          |          |          |          |           |        
  |
| of       |          |          |          |          |           |      
    |
| equity   |          |          |          |          |           |    
      |
| accounte |          |          |          |          |           |  
        |
| d        |          |          |          |          |           |
          |
| investee |          |          |          |          |          
|           |
| s        |          |          |          |          |        
  |          
     |
-----------------------------------------------------------------------------
     ---
|
Share of |          | -44      | -13      | -59      | -24       | -63      
|
| loss of  |          |          |          |          |           |        
  |
| equity   |          |          |          |          |           |      
    |
| accounte |          |          |          |          |           |    
      |
| d        |          |          |          |          |           |  
        |
| investee |          |          |          |          |           |
          |
| s        |          |          |          |          |          
|          
     |
-----------------------------------------------------------------------------
     ---
|
Net      |          | -29      | -13      | 5        | -24       | -63      
|
| share of |          |          |          |          |           |        
  |
| profit   |          |          |          |          |           |      
    |
| and loss |          |          |          |          |           |    
      |
| of       |          |          |          |          |           |  
        |
| equity   |          |          |          |          |           |
          |
| accounte |          |          |          |          |          
|           |
| d        |          |          |          |          |        
  |           |
| investee |          |          |          |          |      
    |           |
| s        |          |          |          |          |    
      |          
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Profit   |          | 6 762    | 2 588    | 9 422    | 4 110     | 12 840   
|
| before   |          |          |          |          |           |        
  |
| income   |          |          |          |          |           |      
    |
| tax      |          |          |          |          |           |    
     
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Income   | 18       | 465      | 280      | 1 116    | 690       | 820      
|
| tax      |          |          |          |          |           |        
  |
| expense  |          |          |          |          |           |      
   
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Profit   |          | 6 297    | 2 308    | 8 306    | 3 420     | 12 020   
|
| for the  |          |          |          |          |           |        
  |
| period   |          |          |          |          |           |      
   
     |
-----------------------------------------------------------------------------
     ---
|
Attribut |          |          |          |          |           |          
|
| able to  |          |          |          |          |           |        
 
     |
-----------------------------------------------------------------------------
     ---
|
Equity   |          | 6 032    | 2 333    | 7 918    | 3 499     | 11 185   
|
| holders  |          |          |          |          |           |        
  |
| of the   |          |          |          |          |           |      
    |
| parent   |          |          |          |          |           |    
     
     |
-----------------------------------------------------------------------------
     ---
|
Minority |          | 265      | -25      | 388      | -79       | 835      
|
| interest |          |          |          |          |           |        
 
     |
-----------------------------------------------------------------------------
          ---
---------------------------------------------------------------------------
     -----
|
Basic    | 11       | 0,31     | 0,08     | 0,26     | 0,11      | 0,36     
|
| earnings |          |          |          |          |           |        
  |
| per      |          |          |          |          |           |      
    |
| share    |          |          |          |          |           |    
      |
| (in      |          |          |          |          |           |  
        |
| euro)*   |          |          |          |          |           |
         
     |
-----------------------------------------------------------------------------
     ---
|
Diluted  | 11       | 0,31     | 0,08     | 0,26     | 0,11      | 0,36     
|
| earnings |          |          |          |          |           |        
  |
| per      |          |          |          |          |           |      
    |
| share    |          |          |          |          |           |    
      |
| (in      |          |          |          |          |           |  
        |
| euro)*   |          |          |          |          |           |
         
     |
-----------------------------------------------------------------------------
     ---
*
For comparability, the underlying weighted average number of shares is the   

number of shares after the bonus issues, i.e. 30,756,728 shares.             
  
                                                                           
    
Sulev Luiga
AS Eesti Ehitus
+372 6400448
E-mail:
eestiehitus@eestiehitus.ee
 


ee_2q2007_eng_fin.pdf