FAKTO

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO FINANCIAL RESULTS 2000



AS Fakto and its subsidiaries form a group, which main fields of 

activity are sale of vehicles, car accessories and car parts, and 

car maintenance and repair works.



AS Fakto group consists of the following companies:

            AS Fakto holding		 Address

AS Fakto                        Osmussaare tee 10, TALLINN

AS Nissan Balti          65%    Osmussaare tee 10, TALLINN

AS Itaalia Auto         100%     Tammsaare tee 53, TALLINN

OÜ Nempe                100%    Osmussaare tee 10, TALLINN



The group's companies have concentrated on sale and maintenance of 

cars of Nissan and Fiat group (Fiat, Alfa Romeo and Lancia).

 

In 2000 the companies of AS Fakto group sold a total of 1,453 new 

cars by Nissan, Fiat and Alfa Romeo (493 more than in 1999).



Sale of new cars by companies:



	          2000  1999 Change     (%)

Nissan Balti     1,251	 823    428  52.00%

incl. AS Fakto     575	 510     65  12.75%

AS Itaalia Auto    184	 119     65  54.62%

Total            1,435	 942    493  52.34%



In 2000 the group’s net sales totaled EEK 401 million (EEK 110.1 

million or 37.8% y-o-y growth). Net sales by fields of activity:



                        2000	     1999      Change     (%)

Vehicles         326,050,116  217,846,808 108,203,308  49.67%

Services          12,422,093   13,080,870    -658,777  -5.04%

Car parts         49,779,031   50,831,074  -1,052,043  -2.07%

Garage equipment   4,492,727    6,066,001  -1,573,274 –25.94%

Car rental           381,466      398,467     -17,001  -4.27%

Other sales        7,873,322    2,676,047   5,197,275 194.21%

Total            400,998,755  290,899,267 110,099,488  37.85%



Net sales by companies:

	        Fakto      N-Balti    It. Auto      Nempe     Concern

Vehicles  143,370,642  267,578,017  32,474,716          0  326,050,116

Services   11,442,298            0   3,040,792    261,162   12,422,093

Car parts  21,577,585   30,026,963   9,268,690  5,760,007   49,779,031

Car rental     78,022        2,456	     0  1,928,484      381,466

Garage 

equipment   4,499,795            0	     0	        0    4,492,727

Other sales 6,028,546    4,403,226     561,128    446,370    7,873,322

Total     135,418,444  219,113,569  33,469,286  6,328,080  400,998,755





Sale of vehicles



Initial registration of vehicles at ARK (vehicle registration center) 

in 2000:



                          2000     1999   Change      %

Total cars registered	22,125   24,242   -2,117   -8.8

incl. new cars		 9,726    6,979    2,747   39.4 

 

The above table indicates that even the initial registration of new 

cars has increased y-o-y by 40%, the total initial registration of 

vehicles at ARK has dropped by 9%. Decrease in imports of used 

vehicles (initial registration) might be due to sufficient supply of 

3-4 years old cars on the Estonian car market (mainly cars that were 

bought as brand new 3-4 years ago, and that are now being replaced).



Registration of new cars at ARK (vehicle registration center) in 

2000, by models:



Model     2000  share   1999   share  1998   share   1997   share 

Peugeot    942	9.69%	 665   9.53%   376    4.43%   531    5.51%

Toyota     916	9.42%	 654   9.37%   932   10.97%   947    9.83%

Volkswagen 893	9.18%	 669   9.59%   833    9.81%   889    9.23%

Nissan     751	7.72%	 461   6.61%   602    7.09%   669    6.95%

Opel	   747	7.68%	 229   3.28%   576    6.78%   563    5.85%

Mazda	   676	6.95%	 751  10.76%   507    5.97%   720    7.48%

Honda	   486	5.00%	 476   6.82%   770    9.07% 1,222   12.69%

Lada	   428	4.40%	   0   0.00%     0    0.00%     0    0.00%

Seat	   416	4.28%	 170   2.44%    78    0.92%    21    0.22%

Suzuki     372	3.82%	 434   6.22%   268    3.16%   312    3.24%

Other    3,099	31.9%  2,470   35.4% 3,551    41.8% 3,756    39.0%

Total	 7,097	       4,978	     6,502	    6,976	

Concern    905  9.30%    554   7.94%   783    9.22% 1,018   10.57%



The market share on cars sold by companies in Fakto group has grown 

by 1.34% since 1999.

 



Services and sale of car parts.



In 2000 the consolidated net turnover from sale of services stood 

at EEK 12.4 million, which is EEK 659 thousand less than during 

last year.

Sale of services by companies in 2000:



                      2000        1999     Change        %

AS Fakto	 9,777,054  11,125,217  -1,348,164  -12.12%

AS Itaalia Auto	 3,031,484   2,843,567     187,918    6.61%

OÜ Nempe	   234,098     274,150     -40,052  -14.61%

Concern		12,422,093  13,080,870    -658,777   -5.04%



The group's net turnover from sale of services and car parts 

decreased by EEK 1.35 mln y-o-y, incl. EEK 1.1 mln drop in 

turnover from sale of car parts.



Sale of car parts by companies:



                       2000        1999     Change        %

AS Fakto	 30,278,214  34,652,865 –4,374,652  -12.62%

AS Nissan Balti	 15,522,052  14,585,277    936,775    6.42%

AS Itaalia Auto	 12,167,793  10,955,407  1,212,385   11.07%

OÜ Nempe	  4,233,066   3,718,394    514,672   13.84%

Concern 	 62,201,124  63,911,944 –1,710,820   -2.68%





Other activities



Other activities include income from sales of car rental services, 

garage equipment, income from rental of premises and income from 

other sales that are not related with the company's main activity 

fields. In 2000 the income from sales of other services totaled 

EEK 12.7 million, i.e. EEK 3.6 million more than in 1999.





Operating costs

 

Operating costs grew by EEK 1,519,802 compared with 1999. 

Changes by expense accounts:



	                      2000        1999       Change

Personnel expenses       27,669,271  27,851,399     -182,128

Other operating expenses 22,136,321  18,271,172    3,876,936

Depreciation		  5,948,135   6,934,885     -986,749

Total operating expenses 55,753,727  53,057,455    2,708,059



On the operating expenses account, the volume of other operating 

expenses has increased the most, mainly due to increased advertising 

expenses.

The advertising expenses have mainly increased on the account of this 

spring's car fair "Motorex 2000", where all companies of the group 

participated this year. The advertising expenses also grew due to 

introduction of several new car models to the market.





Toivo Urva

Management Board chairman

+372 6 389 200