AS EMV

ANNOUNCEMENT

03.06.99

 

TURNOVER AND PROFIT FORECASTS FOR 1999

 

The Supervisory Board of AS EMV adopted on 03.06.99 the consolidated 

turnover forecast at 680 million EEK, and consolidated profit 

forecast at 14 million EEK, as presented by the Management Board.

 

Compared to the results of 1998, AS EMV anticipates the group’s 

turnover to decrease by 13%. The forecasted ROE is 19%.

 

The following circumstances were considered:

 

- EMV group includes:

 

AS EMV                                            	AS EMV

Subsidiaries       Location and field of activity 	holding

 

AS EMV SOILMEC     Tallinn, drilling               	  100%

AS EMV Kinnisvara  Tallinn, real estate administration    100%

SIA EMV Latvia     Riga, construction                     100%

AS Maarjamäe Maja  Tallinn, real estate development	 87.5%

 

Affiliated companies

AS Pintaro         Tallinn, real estate administration     36%

AS Tartu Maja      Tartu, production of concrete           25%

Betoontooted       details

 

- Estonian economy will continue to stabilize, and fall of the 

construction market will by the end of the year. Ca 25-30% decrease 

in total volume of construction works has no significant influence on 

the results of AS EMV, since the respective contracts cover a 

majority of forecasted construction works.

 

- Although the turnover of EMV is anticipated to decrease, AS EMV 

will presumably preserve (or even increase slightly) its share of 

construction market, especially in light of general market fall.

 

- Total volume of existing construction contracts is 410 million EEK, 

which accounts (along with construction works completed in Q1) for ca 

80% of forecasted turnover from construction. AS EMV turnover from 

construction accounts for ca 85% of total group turnover forecast.

 

- Upon compiling the current forecast, AS EMV did not plan 

significant changes in its current fields of activity.

 

- AS EMV will continue in 1999 to reorganize the company to increase 

the effectiveness of its activities, as a result of which the general 

administrative expenses are expected to decrease annually by ca 25%. 

 

- The strategic goal of AS EMV on foreign markets is to focus on its 

activities in the Republic of Latvia; the company does not intend to 

expand its activities to other countries in near future.

 

 

Marko Kaha

Manager of Financial Analysis Department

tel. +372 640 3310