AS FAKTO

COMMENTARY TO THE FINANCIAL RESULTS

05.11.1999

 

COMMENTARY TO THE FINANCIAL RESULTS 09/99

 

In 9 months 1999, the companies of Fakto group sold a total of 694 new 

Nissan, Fiat and Alfa Romeo cars.

 

Sale of new cars by companies:

		        1999	1998	Change	  (%)

Nissan Balti	         604	 882	 -278	-31.5%

   incl. AS Fakto	 358	 404	  -46	-11.4%

AS Itaalia Auto	          90	 202	 -112	-55.5%

Total		         694	1084	 -390	-36.0%

 

The company's 9-months net sales totaled 217.7 million EEK. 

 

Net sales by fields of activity (in thousand EEK): 

	                  1999	   1998	 Change

Cars 	               163 064 	224 561	-61 496 

Services	         9 608	  7 811	  1 797

Spare parts	        37 881	 38 347	   -466

Car rental	           270 	  2 190	 -1 920

Garage equipment 	 4 503    5 751	 -1 248

Other sales 	         2 434	  2 422	     12

Total	               217 761	281 081	-63 464

 

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

Estonian car sales market.

Compared to the same period last year, the ARK (vehicle registration 

center) registered 23.7% less vehicles:

  

	                1998	1999	Difference	%

Total number of cars registered

with ARK        	24 443	18 643	  -5 790    -23.7%

incl. new cars	         6 502	 4 978	  -1 524    -23.4%

 

Sale of new cars by companies (according to ARK):

 

	        9-m 99   share   9-m 98   share	       9-m 97   share

Volkswagen	  530	 10.65%	    663	  10.20%          625    8.96%

Toyota	          472	 9.48%	    717	  11.03%	  686	 9.83%

Mazda	          435	 8.74%	    406	   6.24%	  526	 7.54%

Peugeot	          422	 8.48%	    278	   4.28%	  360	 5.16%

Honda	          379	 7.61%	    621	   9.55%	  942	13.50%

Nissan	          342	 6.87%	    470	   7.23%	  514	 7.37%

Suzuki	          339	 6.81%	    199	   3.06%	  223	 3.20%

Ford	          208	 4.18%	    263	   4.04%	  355	 5.09%

Citroen	          160	 3.21%	    267	   4.11%	   74	 1.06%

Skoda	          152	 3.05%	    312	   4.80%	  322	 4.62%

Other           1 101   32.34%	  1 694	  36.65%	1 211	31.48%

Total	        4 978		  6 502			6 976	

 

As of 9-m 1999, Nissan cars market share in Latvia stood at 2.5% and in 

Lithuania at 2.9%. 

Total Nissan market share in the Baltic states was 4.5%; Nissan market 

share in Europe was ca 3%.

 

In 9-months 1999, the consolidated net turnover from sale of services 

stood at 9 618 thousand EEK, providing 1 797 thousand EEK increase on 

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

by AS Itaalia Auto.  

 

The main field of activity of OÜ Nempe is rental of cars; the sales 

figures in this area have dropped mainly due to differences in 

reflecting these services in accounting. As of year 1999, the company 

considers the cars rented by OÜ Nempe as financial investments. Rent 

payments are treated as loan and interest repayments (according to 

the payment schedule).

 

AS Fakto Management Board evaluated the group's 9-months financial 

results to be satisfactory. During the past two years the car sales 

figures have constantly declined; however, amid AS Fakto group 

companies only AS Itaalia Auto has not met its business plan due to 

declined sales figures; all other companies in the group have been 

able to post profits in unfavorable conditions. 

 

 

Toivo Urva

Chairman of the Management Board

+372 63 89 222