TALLINNA KAUBAMAJA

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO FINANCIAL RESULTS, 2000



Tallinna Kaubamaja AS consolidated net sales in year 2000 were 

EEK 1.19 billion. The parent company’s net sales were EEK 590.6 Mio 

and the group’s audited net profit was EEK 60.4 Mio.



As at 31.12.2000 Tallinna Kaubamaja group total assets stood at 

EEK 686.1 Mio, having increased annually by EEK 308.9 Mio. The effect 

of revaluation of fixed assets on balance sheet was EEK 169.7 Mio. 

Current liabilities grew by EEK 72.4 Mio and non-current liabilities 

by EEK 11 Mio. Owners’ equity account increased by EEK 223.3 Mio and 

amounted to EEK 377.4 Mio at the end of the year.



In 2000 Kaubamaja group invested EEK 90.7 Mio in fixed assets.



On February 3 Tallinna Kaubamaja AS made an issue of commercial 

papers. The issue volume was EEK 20 Mio, weighted average duration 

270 days, interest rate 5.85% annually. The issue was redeemed during 

the ongoing financial year in accordance with the schedule. The issue 

was organized by Hansabank Markets.



On February 9 the Management Board chairman Mr. Peeter Tohver 

submitted a resignation application in order to start working as 

Management Board chairman of AS ESS. As of 04.03.2000 the company's 

Management Board is chaired by Mr. Toomas Tamsar. Before Kaubamaja 

Toomas Tamsar worked as CEO of Estonian Chamber of Commerce and 

Industry. From 1998 to 1999 Mr. Tamsar chaired the Management Board 

of Norma Grupp AS, and from 1999 to 2000 the Management Board of AS 

NG Investeeringud.



On February 28 an ID [ide:] floor (Youth World) with internet café 

was opened at Tallinna Kaubamaja, Gonsiori 2, and sales premises were 

expanded by 1,100m2 on the account of storage rooms. At the same time 

the Kaubamaja youth card ( ID [ide:] card ) program was launched. 



On April 20 the shareholders general meeting elected the following 

people as members of the Supervisory Board of Tallinna Kaubamaja: 

Jüri Käo, Andres Järving, Enn Kunila, Indrek Vanaselja, Toomas Luman 

and Meelis Milder. 



On April 26 the Supervisory Board elected Jüri Käo as its new 

chairman.



On May 23 Pirita Selver store was opened. Selver operates 1,300m2 of 

sales premises, which is owned by Tallinna Kaubamaja Kinnisvara AS. 

The sales of Pirita Selver were inhibited during the first months of 

operating due to series of bomb threats. In co-operation with police 

the persons responsible for bomb threats are now under arrest.



In Q2 Tallinna Kaubamaja AS made changes to the accounting 

principles, according to which the company's land and buildings will 

be carried at market value on the balance sheet. IAS 16 §35 

requirements were followed upon revaluation.



On July 7 Tallinna Kaubamaja issued EEK 14.3 Mio worth of 

discount bonds. The bonds yield 7.18% on annual basis and will be 

redeemed on 07/12/2001. The issue was organized by Hansabank Markets.



On August 21 A-Selver AS made a rent agreement with Sermo 

Kaubandusega for building of new Selver chain store to Tallinn 

(address Tammsaare tee 60-64). The store is scheduled to be opened 

in May 2001.



On September 27 Järve Selver and sports and leisure products store 

Hype were opened. Hype is the group’s third strategic product next to 

Kaubamaja and Selver trademarks. The stores operate on the premises 

owned by AS Silikaat.



On November 6 Tallinna Kaubamaja issued EEK 22.7 Mio worth of 

discount bonds. The bonds yield 6.9% on annual basis and will be 

redeemed on 07/12/2001. The issue was organized by Hansabank Markets.



On December 22 Tallinna Kaubamaja AS signed a rent agreement with 

Emajõe Ärikeskus for building of shopping center in the center of 

Tartu. The new shopping center will have 7,600m2 of sales premises, 

and the largest part of it will be operated by A-Selver AS. The 

center is scheduled to be opened in November 2001.



On December 22 Tartu City Council organized a bid for sale of land 

on address Tartu, Vanemuise 2 and Riia 1. Currently Tallinna 

Kaubamaja Kinnisvara AS owns both estates and plans to use them for 

building of new department store in Tartu. The department store is 

scheduled to be completed in fall 2002.



As at the end of the year Kaubamaja had more than 41 thousand regular 

clients.



The average number of the employees in the group during the year was 

1,135 and salary expenses totaled EEK 86.7 Mio, of which EEK 0.6 Mio 

was paid to the members of Tallinna Kaubamaja Supervisory Board and 

EEK 2.4 Mio to the members of Management Board. Average number of 

parent company’s employees was 602 and their salary expenses totaled 

EEK 52.5 Mio.



In 2000 the highest price of Tallinna Kaubamaja AS share on Tallinn 

Stock Exchange was EEK 60 and lowest EEK 34.10. on the last stock 

exchange day of year 2000 the closing price of Kaubamaja share was 

EEK 55, having increased 72.4% during the year. The market value of 

Kaubamaja as at the end of the year was EEK 373.4 Mio.



Kaubamaja’s priority was in year 2000 was development of super- 

and hypermarkets chain Selver; in year 2001 Kaubamaja will also 

prioritize its development in Tartu, the second largest city in 

Estonia. In 2001 Kaubamaja will open two Selver stores: in May Tondi 

Selver (1,500 m2 of shopping premises) and in November Emajõe Selver 

in Tartu (4,600 m2 of shopping premises). Both Selver stores will 

have a Drive In service, where the client can order the goods via 

internet and pick them up on the way home. Both Selver stores will 

operate on rented premises. In 2001 preparatory works will be 

launched in Tartu for building of new Tartu Kaubamaja. 



Kaubamaja also intends to continue to sponsor it’s long-term co-

operation partners Tallinn Zoo and Estonian Puppet Theater. Kaubamaja 

has been the major sponsor of Estonian Puppet Theater since 1995.





Urmo Vallner

Management Board member

+372 6 400 200