FAKTO

COMMENTARY TO THE FINANCIAL RESULTS

 

COMMENTARY TO THE CONSOLIDATED FINANCIAL RESULTS, YEAR 1999

 

Commentary to AS Fakto 1999 consolidated financial results

 

In 1999 the companies of AS Fakto group sold a total of 942 new 

Nissan, Fiat and Alfa Romeo cars.

 

Sale of new cars by companies:

		       1999	 1998		Change	   (%)

Nissan Balti		823	1,104		-281	 -5.45%

incl. AS Fakto		510	  510		   0	  0.00%

AS Itaalia Auto		119	  228		-109	-47.81%

Total	 		942	1.332		-390	-29.28%

 

In 1999 the company's net sales totaled EEK 290.9 million. 

Net sales by fields of activity:

		                 1999	      1998 	Change

Vehicles	          217,388,755  281,153,756  -63,765,002

Services		   13,080,870   10,950,043    2,130,827

Car parts		   50,831,074   48,653,969    2,177,104

Car rental services           398,467	   812,245     -413,777

Garage equipment	    6,066,001    7,894,951   -1,828,950

Other sales		    3,134,100    5,081,049	    495

Total 	                  290,899,267  354,546,013  -61,699,302

 

Declined sales of new cars are mainly due to overall slowdown on 

the Estonian and Baltic car sales markets. 

Compared to 1998 the ARK (vehicle registration center) registered 

18% less vehicles: 

	 

				  1998	  1999	Change	   %

Total cars registered 		32,591	24,242	-8,349 -25.6%

incl. new cars			 8,493	 6,979	-1,514 -17.8%

 

Registration of new cars by producers (according to ARK):

		1999	Share	1998	Share	1997	Share

Mazda		751	10.76%	507	 5.97%	 720	 7.48%

Volkswagen	669	 9.59%	833	 9.81%	 889     9.23%

Peugeot		665	 9.53%	376	 4.43%	 531	 5.51%

Toyota		654	 9.37%	932	10.97%	 947	 9.83%

Honda		476	 6.82%	770	 9.07% 1,222	12.69%

Nissan		461	 6.61%	602	 7.09% 	 669	 6.95%

Suzuki		434	 6.22%	268	 3.16%	 312	 3.24%

Ford		265	 3.80%	344	 4.05%	 523	 5.43%

Opel		229	 3.28%	576	 6.78%	 563	 5.85%

Citroen		227	 3.25%	307	 3.61%	 136	 1.41%

Other	      2,148	30.78% 2,978	35.06% 3,118	32.38%

Total	      6,979	       8,493	       9,630	 

 

In 1999 Nissan cars market share in Latvia stood at 2.6% and in 

Lithuania at 2.0%. Total Nissan market share in the Baltic states 

was 4.2%; Nissan market share in Europe was ca 3%.

 

The consolidated net turnover from sale of services in 1999 stood 

at EEK 13,081 thousand, providing EEK 2,131 thousand increase on 

annual basis. The main growth factor was the new service complex 

opened 

by AS Itaalia Auto (EEK 2,025 thousand).

 

Operating profit declined EEK 9.8 million y-o-y, resulting mainly 

from EEK 7.5 million decline in gross profit due to lower net sales 

(EEK -63.6 million). 

 

Financial results of AS Fakto group companies:

		        1999         1998      Change

AS Fakto	    2,095,425   3,154,340  -1,058,915

AS Nissan Balti       474,783   3,982,465  -3,057,682

AS Itaalia Auto	   -1,616,377    -602,671  -1,013,706

OÜ Nempe	       92,852     149,288     -56,436

Minority interest    -166,174  -1,393,863   1,227,689

Total		      880,508   5,289,559   4,409,050

 

Earnings per share in 1999 amounted to EEK 0.53.

 

AS Fakto Management Board evaluated the group's 1999 financial 

results to be satisfactory, although results of all companies in 

the group had declined compared to 1998.

 

 

Toivo Urva

Chairman of the Management Board

+372 6 389 222