ESTIKO

REPORT

 

MANAGEMENT REPORT 1999

 

ESTIKO GROUP

 

In 1999 the main fields of activity of AS Estiko and its 

subsidiaries were real estate administration and production of 

plastic wrappings. 

 

AS Estiko consolidated net sales dropped on annual basis by EEK 

338.8 million or 69.8%, amounting to EEK 146.3 million at the end 

of 1999, including EEK 27.7 million of turnover from real estate 

administration and EEK 118.3 million turnover from production 

activities. Net income grew EEK 0.54 million or 7.9%, totaling EEK 

7.3 million at the end of the year. Lower consolidated net turnover 

was mainly due to sale of holding in subsidiary Eesti SPAR AS and 

termination of retail and wholesales activities. Thus the 1999 

consolidated balance sheet and income statement do not contain the 

results of the company's former trading division.

 

In 1999 AS Estiko made the following substantial transactions:

 

* sold 51% holding in Eesti SPAR AS and its subsidiaries AS 

Estiko-Kommerts, AS RSM Hooldus and Vesse Kaubanduse OÜ;

* began liquidation of OÜ Eniide; as of today all assets owned by 

OÜ Eniide are sold;

* sold holding in AS Remark,

* acquired 45% holding in Estiko Investeeringute AS from the state;

* sold Torni store;

* sold buildings located at Punane St. 54, Tallinn

* sale of floors and rent in AS Emajõe Ärikeskus 

* investments into AS Estiko - Plastar production equipment and 

started reorganization of production activities by consolidating AS 

Estiko - Raamex and AS Estiko - Plastar production units

 

In 1999 the company continued to develop the production activities. 

1999 consolidated net turnover from production activities was EEK 

118.3 million and major market was Estonia (78.7%).

Export markets accounted for 21.3% as follows: Latvia 9.7%, Finland 

5.2%, Ukraine 3.7%, Lithuania 1.3%, Sweden 1% and other markets 

0.4%.

 

Changes in output by product groups (in EEK thousand and percents):

 

                        1999                 1998

 

Plastic bags      54,468   46.0%        50,016   39.8%

Plastic           36,712   31.0%        41,889   33.4%

Sale of materials 13,134   11.1%        14,018   11.2%

Plastic products   4,547    3.8%         6,286    5.0%

Carton boxes       4,433    3.7%         4,942    3.9%

Polyethylene pipes 1,527    1.3%         1,188    0.9%

Other              1,002    1.0%         4,830    3.9%

 

 

On 20.04.1999 Ms. Valve Kirsipuu was elected to chair the 

Supervisory Board of AS Estiko. In H2 substantial changes took 

place in the Management Board of AS Estiko.

 

Estiko conducted a competition to find a company to assist AS 

Estiko in preparatory works for application for ISO 9001 

certificate. Estiko currently undergoes the preparations for 

application for ISO certificate. Soon the company intends to 

implement a new strategy, aiming to achieve higher print quality of 

plastic products for end users, and increased satisfaction of 

clients of Estiko real estate administration division.

 

Estiko and Tartu City Council made a preliminary agreement that 

stipulates the relocation of a branch of Tartu City Central Library 

to E-Kaubamaja. Estiko also continued to sell and rent out premises 

in AS Emajõe Ärikeskus.

 

The company's key aims in year 2000 are to increase investments in 

output facilities and equipment, improve product quality, develop 

marketing activities and improve client service, and development 

and satisfaction of the company's employees.

 

 

Mart Raik

Chairman of the Management Board

+372 73 67 011