Saku Õlletehas                FINANCIAL RESULTS                 11/20/2003



FINANCIAL RESULTS OF 9 MONTHS IN 2003



BALANCE SHEET                                                                

(In thousands)                        EEK                        EUR     

                       30.09.03 30.09.02 31.12.02 30.09.03 30.09.02 31.12.02



ASSETS                                                                       

Cash and bank                21,036    1,692    3,296    1,344    109     211

Trade receivables (Note 2)   32,642   28,696   29,051    2,086  1,834   1,857

Other receivables and        13,026    6,613    2,645      833    422     169

prepayments (Note 3)

Inventories (Note 4)         98,562   91,955   90,917    6,299  5,877   5,811

TOTAL CURRENT ASSETS        165,266  128,956  125,909   10,562  8,242   8,048

                                                                             

Non-current assets                                                           

Long-term financial          15,999   16,117   16,000    1,023  1,030   1,023

investments (Note 5)

Long-term receivables (Note      54      120       98        4      8       6

6)

Tangible assets (Notes 7,   234,861  266,531  260,597   15,010 17,034  16,655

8)

Intangible assets (Note 7)      863      760    1,147       55     49      73

TOTAL NON-CURRENT ASSETS    251,777  283,528  277,842   16,092 18,121  17,757

TOTAL ASSETS                417,043  412,484  403,751   26,654 26,363  25,805

                                                                             

LIABILITIES AND EQUITY                                                       

Current liabilities                                                          

Debt obligations (Note 8)     1,057    9,140    7,154       68    584     457

Trade payables               19,046   23,574   22,150    1,217  1,507   1,417

Payables to the parent and      918               282       59             18

group companies (Note 11)

Tax liabilities (Note 9)     14,874   14,936   12,376      951    955     791

Payables to employees         3,761    4,331    4,607      240    277     294

Other accrued expenses        9,975    1,382    3,463      638     88     222

Provisions                    2,190               676      140             43

TOTAL CURRENT LIABILITIES    51,821   53,363   50,708    3,313  3,411   3,242

                                                                             

Non-current liabilities                                                      

Non-convertible debt (Note      631    2,125    1,711       40    136     109

8)

TOTAL NON-CURRENT               631    2,125    1,711       40    136     109

LIABILITIES

                                                                             

Equity                                                                       

Share capital                80,000   80,000   80,000    5,113  5,113   5,113

Capital reserve               8,000    8,000    8,000      511    511     511

Other reserves               44,070   44,070   44,070    2,817  2,817   2,817

Accumulated profits         179,262  180,441  180,441   11,456 11,532  11,532

Profit for the period        53,259   44,485   38,821    3,404  2,843   2,481

TOTAL EQUITY                364,591  356,996  351,332   23,301 22,816  22,454

TOTAL LIABILITIES AND       417,043  412,484  403,751   26,654 26,363  25,805

EQUITY

  



INCOME STATEMENT                                                       

(In thousands)                      EEK                       EUR      

                          January-January-          January-January-   

                          Septemb Septembe          Septemb Septemb    

                             er      r                 er      er

                            2003    2002     2002     2003    2002   2002

Revenue                                                                   

Net sales (Note 10)       597,016  611,827  768,445  38,156  39,103 49,113

Change in work in                                                         

progress and

finished goods              6,748    2,628     -964     432     168    -62

inventories

Other revenue (Note 12)       396    1,970    2,416      25     126    154

Total revenue             604,160  616,425  769,897  38,613  39,397 49,205

                                                                          

Expenses (Note 13)                                                        

Materials, consumables    375,020  392,159  493,747  23,968  25,064 31,556

and supplies

Other operating expenses   91,268  100,872  132,724   5,833   6,447  8,483

Personnel expenses         38,105   40,951   53,872   2,435   2,617  3,443

Depreciation               34,330   32,245   43,410   2,194   2,061  2,774

Other expenses              3,439    4,516    5,932     220     289    379

Total expenses            542,162  570,743  729,685  34,650  36,478 46,635

                                                                          

OPERATING PROFIT           61,998   45,682   40,212   3,963   2,919  2,570

                                                                          

Financial income (Note        192      121      125      12       8      8

14)

Financial expenses (Note    1,249    1,318    1,516      80      84     97

14)

                                                                          

PROFIT FOR THE PERIOD      60,941   44,485   38,821   3,895   2,843  2,481

BEFORE TAXES

                                                                          

Income tax expense          7,682                       491               

                                                                          

NET PROFIT FOR THE PERIOD  53,259   44,485   38,821   3,404   2,843  2,481

                                                                          

Basic earnings per share     6.66     5.56     4.85    0.43    0.36   0.31

(Note 15)

Diluted earnings per         6.66     5.56     4.85    0.43    0.36   0.31

share (Note 15)

                                                                          

     

Review of operations



Operating profit for the first nine months of 2003 amounted to

EEK  62.0m (EUR 0.4m), an increase of EEK 16.3m (EUR 1.0m)  on

the  EEK  45.7m (EUR 2.9m) attained a year ago and net  profit

amounted to EEK 53.3m (EUR 3.4m), an increase of EEK 8.8m (EUR

0.6m)  on  the EEK 44.5m (EUR 2.8m) earned in the  first  nine

months of 2002.



According  to  Estonian  Breweries Association,  in  the  nine

months  the total volume of the beer market was 74,7 m litres,

3% down on the same period of 2002. The main reason was a cold

weather  in the firs half of the summer. According to Estonian

Breweries  Association Saku Brewery as the market  leader  had

42,7%  on  the  local  beer market. In  the  period  increased

imported  beers  and  Viru Brewery,  because  of  the  general

increase of the economy segment on the total market.



In  quantitative terms, Saku Brewery Ltd sold 44,8 m litres of

beverages,  remained on the same level compared  to  the  same

period  2002. The company exported 13% from total sales.  Beer

sales  amounted to 37,4 m litres, 5% decrease compared on  the

same  period of the last year,  what was caused by the  shrank

of the beer market.



During  the  period  the  company has expanded  on  the  other

beverages  markets.  Cider  sales of  Saku  Brewery  grew  78%

compared  to  the  last year., thanks to new canned  products;

total  cider  market growth was 33%. Saku Brewery`s  gin  long

drink sales increased 3,5 times compared to the last year same

period.  Saku  Brewery entered into the market  of  near  bear

(kvas) and got 11% market share in the period August-September

by AC Nielsen.



Saku Brewery Ltd ended the first nine months of 2003 with  net

sales of EEK 597.0m (EUR 38.2m), a decrease of EEK 14.8m  (EUR

0.9m),  i.e.  2.4%, on the same period last year. The  decline

resulted,  above all, from a decrease in the sales of  bottles

in circulation, which dropped by EEK 34.3m (EUR 2.2m) owing to

the  shrinkage of the beer market and an increase in the share

of one-way packaging (cans and PET packaging). Beverage sales,

on the other hand, grew by a strong EEK 22.0m (EUR 1.4m), i.e.

6.4%,  mostly on account of an increase in the sales of  other

self-produced alcoholic beverages and beers.



Expenses for the period amounted to EEK 28.6m (EUR 1.8m), a 5%

decrease  on  the corresponding figure for 2002.  Whereas  the

share  of  bottles in circulation decreased by EEK 34.5m  (EUR

2.2m), the costs of ancillary materials grew by EEK 12.8m (EUR

0.8m) largely due to the shrinkage of the beer market and  the

increase  in  the  use of one-way packaging.  Other  operating

expenses, personnel expenses, depreciation and other  expenses

proved EEK 11.4m (EUR 0.7m) smaller than a year ago.



Cash  flows  for the period were EEK 36.2m (EUR  2.3m)  larger

than   a   year  ago,  primarily  because  of  less  extensive

investment.





FINANCIAL RATIOS                      January-  January-

                                      September September

                                        2003      2002

                                                

Operating margin (operating profit  /     10.3%      7.4%

total revenue)

Net   margin  (net  profit  /   total      8.8%      7.2%

revenue)

Return on assets (net profit /            13.0%     11.0%

average total assets)

Return on equity (net profit /            14.9%     12.5%

average equity)

Non-current asset turnover ratio            2.3       2.2

(total revenue / average non-current

assets)

Total assets turnover ratio (total          1.5       1.5

revenue / average total assets)





Kristina Seimann

Communication Manager

+ 372 6 508 303