FAKTO

COMMENTARY TO THE FINANCIAL RESULTS

 

COMMENTARY TO THE FINANCIAL RESULTS, YEAR 1999

 

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

activity of which 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 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  -25.45%

incl. AS Fakto      510    510	     0    0.00%

AS Itaalia Auto     119    228	  -109  -47.81%

Total               942  1,332	  -390  -29.28%

 

Sale of new cars by models:

Nissan cars         1999   1998   Change    (%)

Micra                 35     53     -18	   -34%

Almera               311    530    -219    -41%

Primera              127    177     -50    -28%

Maxima                36     76     -40    -53%

Terrano               31     42     -11    -26%

Patrol               138    129       9      7%

King Cab             123     45      78    173%

Vanette               19     42     -23    -55%

Serena                 3      2       1     50%

Other                  0      8      -8   -100%

Total                823  1,104    -281    -25%

		 		 		 		 

Fiat cars           1999   1998  Change     (%)

Alfa Romeo 166         5      1       4    400%

Alfa Romeo 156        18     52     -34    -65%

Fiat Barchetta         0      1      -1   -100%

Fiat Punto             5     15     -10    -67%

Fiat Bravo/Brava      39     50     -11    -22%

Fiat Marea            23     85     -62    -73%

Fiat Ducato           29     21       8     38%

Fiat Scudo             0      3      -3   -100%

Total 		     119    228    -109    -48%

 

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 and 

Accessories       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   -1,946,949

Total            290,899,267  354,546,013  -63,646,746

 

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): 

Type         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 9.9 million y-o-y, resulting mainly 

from EEK 7.6 million decline in gross profit due to lower net sales 

(EEK -63.6 million). 

 

Net profit earned by AS Fakto group companies:

                       1999        1998	 Change 

AS Fakto (1)      2,036,339   3,154,340  -1,118,001

AS Nissan Balti     472,213   3,982,465  -3,510,252

AS Itaalia Auto  -1,616,378    -602,671  -1,013,707

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

Minority share     -165,275  -1,393,863   1,228,588

Total               819,751   5,289,559  -4,469,808

(1)AS Fakto results do not include income and expenses related to 

subsidiaries.

 

Earnings per share in 1999 amounted to EEK 0.50. 

 

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.

 

1. Declined sales of cars are mainly due to overall slowdown on car 

sales markets. The group's market share of total car sales declined 

ca 1% on annual basis, mainly due to decline in sales of Fiat cars. 

Sales of jeeps, however, increased by 76 cars y-o-y (+35%);

2. Sale of services increased slightly from the last year. Compared 

to the last year, sale of car painting services declined; volume of 

regular maintenance works increased;

3. Level of fixed expenses remained unchanged from 1998.

 

 

Indrek Vilde

CFO

+372 6 389 211