AS EMV

ANNOUNCEMENT

30.03.99

 

COMMENTARY TO THE 1998 FINANCIAL RESULTS OF AS EMV 

 

The 1998 audited and consolidated net sales of EMV group 

amounted to 779 million EEK, and profit 0.2 million EEK. The 

1998 audited net sales of AS EMV amounted to 667 million 

EEK, and loss 1.6 million EEK. The respective numbers for 

year 1997 were the following: 

Group turnover 536 million EEK and profit 25.7 million EEK 

AS EMV turnover 491 million EEK and profit 27.5 million EEK. 

 

Previously published figure for the group’s loss was 

calculated on the basis of the preliminary results, which 

did not reflect the effect of deferred income tax on the 

final figure of net profit.

 

	 

		       Net sales   incl.to other 	 Consolidated

                                companies in the group   turnover

1. AS EMV	        667 488	      28 680	          638 808

2. AS EMV SOILMEC	 47 946	       8 098	           39 848

3. ZAO EMV	          4 056	           0	            4 056

4. SIA EMV Latvia	 37 104	         897	           36 207

5. AS E-Profiil	10 972	  4 397	       6 575

6. AS EMV Kinnisvara	  8 297	       3 222	            5 075

7. AS  Maarjamäe Maja	 48 461	         117	           48 344

Total:	                823 403	      45 411	          778 913

 

 

By countries			

1. Estonia	662 600		

2. Latvia	102 614		

3. Russia	 13 699		

Total sales:	778 913		

 

 

The EMV group has developed towards separation of different 

fields of activities and establishment of subsidiaries 

during the years 1996-97: 

– subsidiaries AS EMV SOILMEC and AS EMV Kinnisvara, new 

market-directed subsidiaries established out of Estonia SIA 

EMV Latvia in Latvia, EMV System-Bau Vertriebsgesellschaft 

mbH in Germany and ZAO EMV in Russia, and a subsidiary 

established to provide new services and products - AS E-

Profiil. 

In 1998, AS EMV acquired 145 shares in AS Maarjamäe Maja for 

1.45 million EEK, as a result of which the current 

shareholding in the company increased from 32.4% to 85.7%. 

The strategic goal for foreign markets in 1998 set by the 

new Management Board of AS EMV foresees the concentration on 

the Baltic market. Proceeding from the aforementioned, the 

company decided to terminate its activities in Germany and 

Russia. 

The strategy of EMV to increase the effectiveness of the 

group’s activities did not anticipate voluminous investments 

in minor branches in the near future. Due to that, EMV 

discontinued the production of concrete, and sold in the 

beginning of 1999 its 62.5% shareholding in subsidiary AS E-

Profiil.

 

Compared with the previous year, the group’s net sales 

increased by 242.8 million EEK, or 45%. 

 

The greatest share to the company’s turnover was contributed 

by AS EMV (638.8 million EEK), of which the general and 

engineer-technical construction works accounted for 86%.

Exports accounted for 15% of the group’s total turnover, 

incl. exports to the Republic of Latvia 13.2% of total 

turnover.

 

The official 1998 turnover forecast of EMV was 818 million 

EEK, and the goal for return on equity 25%. These figures 

were not met mainly due to extraordinary expenses, greater-

than-expected financial expenses, and the expenses related 

to reorganization of the company (finished in 1998). EMV has 

not altered its strategies to meet the ROE figure of at 

least 25%. 

As of today, the construction contracts concluded for year 

1999 amount to 460 million EEK. The most substantial 

construction contracts include: EMV and ABB Airport 

Technologies GmbH consortium contract for the reconstruction 

works on the Passenger Terminal of the Tallinn Airport with 

the volume of 227 million EEK (share of EMV 135 million 

EEK), construction-installation works on the 1999 investment 

objects of Eesti Telefon in the amount of 88.6 million EEK, 

II stage construction works of Ilmarise quarter in the 

amount of 41 million EEK, construction contract of Kärevere 

bridge in the volume of 27.1 million EEK, construction of 

collection center of dangerous substances, reloading station 

and storage location in the amount of 24 million EEK, 

reconstruction works on Vaskjala hydro-junction 19 million 

EEK, and reconstruction works on Haapsalu central water 

system in the volume of 13 million EEK. 

 

 

Marko Kaha

Financial analyst

Tel: +372 640 3310