Quarterly Report • Feb 12, 2013
Quarterly Report
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1 July 2012 – 31 December 2012
| ESTAVIS AG | 2nd quarter 12/13 1 Oct. 2012 – 31 Dec. 2012 |
2nd quarter 11/12 1 Oct. 2011 – 31 Dec. 2011 |
1st half-year 12/13 1 July 2012 – 31 Dec. 2012 |
1st half-year 11/12 1 July 2011 – 31 Dec. 2011 |
|---|---|---|---|---|
| Revenues and earnings | TEUR | TEUR | TEUR | TEUR |
| Revenues | 9,711 | 19,943 | 18,040 | 28,630 |
| Total operating performance | 9,476 | 16,175 | 19,870 | 26,113 |
| EBIT | –35 | 1,458 | 17 | 2,548 |
| Pre-tax profit | –876 | 529 | –2,614 | 596 |
| Net profit | –842 | 398 | –2,670 | 423 |
| ESTAVIS AG | 31 December2012 | 30 June 2012 | |
|---|---|---|---|
| Structure of assets and capital | TEUR | TEUR | |
| Non-current assets | 80,635 | 80,859 | |
| Current assets | 73,370 | 96,406 | |
| Equity | 55,941 | 59,048 | |
| Equity ratio | 36.3% | 33.3% | |
| Total assets/equity and liabilities | 154,005 | 177,264 |
| Prime Standard |
|---|
| DE000A0KFKB3 |
| A0KFKB |
| 14,759,352 |
| 44.2% |
| 2.06 EUR |
| 1.62 EUR |
| 1.80 EUR |
| EUR 26.6 million |
* Closing prices in Xetra trading
Dear Shareholders, Dear Ladies and Gentlemen,
Since the start of the 2012/13 financial year, we have consistently pushed the reorientation of ESTAVIS forward, and did clear important mile stones in the strategic business areas "Portfolio" and "Trade." In the "Portfolio" segment, we expanded our residential real estate portfolio substantially by making several acquisitions. Since we concentrated on properties that will generate positive contributions to operating income from the start, our investments have simultaneously created the basis for stable long-term earnings, a considerable improvement of results, and continued growth.
In the "Trade" segment, our subsidiary Accentro GmbH concluded the 2012 year with recordbreaking sales figures, making it the most successful year in its history. It sold a total of 1,137 apartments, which implies a year-on-year increase by 23%. This brought brokered property sales to a total amount of EUR 85.3 million, up from EUR 66.5 million in 2011. Worth noting is the fact that the share of foreign buyers in Berlin has remained at a high level of 30%, and that more than two thirds of the apartments sold were occupied, thus being acquired as investment rather than for owner-occupation. The high share of foreign investors suggests that Accentro GmbH operates on a market that attracts financiers from far beyond the border. Main motives for the keen investor interest in occupied apartments include the desire to exploit the brisk boom cycle in Berlin, and the need to shelter some of the own assets from the turbulences on the world's capital markets. With its sales competences, Accentro GmbH benefits from these positive parameters.
For ESTAVIS Group as a whole, the current economic and real estate market development create a persistently positive environment. On the one hand, the lively interest among private and institutional investors in commitments marked by long-term stability of value and relatively low exposure to inflation is likely to continue throughout the coming months. On the other hand, the residential letting market is less susceptible to possible economic downtrends than the commercial real estate markets is, for instance.
At first glance, our financials fail to reflect the auspicious developments in our two strategic business areas, for we did end the first semester of our 2012/13 financial year with a negative result. Compared to the first three months, however, we drastically reduced our losses in the course of the second quarter. One main aspect that impacted the result of Q1 was the premature repayment of a mezzanine loan. The current impairment of our result is offset, however, by the relief effect that we may expect to see in the upcoming quarterly reporting periods due to our optimised financing structure. Moreover, ESTAVIS has made good progress in winding up the discontinued activities in the project development sector, and actually sold off all relevant properties except for one minor asset.
More than in the result, though, the positive effects of the strategic realignment manifest themselves in the turnover and margin growth. This is true for the handsome growth of our privatisation revenues as much as for the increasing contribution to operating income we derive from letting the properties of our proprietary portfolio. In the weeks and months to come, we will work hard to drive this development forward by continuing to expand our proprietary portfolio and our activities in the area of apartment retailing.
The swift wind-up of the encumbrances resulting from the discontinued activities in the project development sector as reflected in the annual account for 2011/12 and in the first semester of the 2013/13 financial year, and the auspicious development in our two strategic business areas "Portfolio" and "Trade," give us reason to assume that the result will improve significantly as early as the third quarter of the 2012/13 financial year. Also, we expect to achieve a clearly positive result by the end of the 2012/13 financial year as a whole.
The Management Board
Andreas Lewandowski Jacopo Mingazzini
Member of the Management Board Member of the Management Board
ESTAVIS shares are listed on the Regulated Market of the Frankfurt Stock Exchange, and meet the transparency requirements of the Prime Standard.
During the second semester of 2012, the DAX developed rather handsomely. Although the persistent debt crisis in the Eurozone and the recession in some European countries continue to impact the stock markets, thereby creating a latent sense of uncertainty, the relatively stable situation of the German economy when compared to other national economies in Europe provided the basis for a clear upward trend of the DAX while inspiring an optimistic sentiment among many market players.
The ESTAVIS share was initially unable to benefit from the stock market rally. Instead, it lost a total of 12.7% during the first semester of the 2012/13 financial year. At the start of the financial year on 2 July 2012, the price for ESTAVIS shares in the Xetra trading of the Frankfurt Stock Exchange stood at EUR 2.06. In the following months, the share price actually dropped as low as EUR 1.62 for a time. It recovered toward the end of the year, and the closing rate on the last trading day of the reporting period, 28 December 2012, was EUR 1.80. At the time, the market capitalisation of ESTAVIS AG equalled approximately EUR 26.57 million. The daily trading volume averaged 13,575 shares.
After the end of the reporting period, the first weeks of the third quarter of the financial year saw a continuation of the upward trend of the ESTAVIS shares:
| ESTAVIS AG | |
|---|---|
| Share | |
| Stock exchange segment | Prime Standard |
| ISIN | DE000A0KFKB3 |
| German Securities Code Number (WKN) | A0KFKB |
| Number of shares on 31 December 2012 | 14,759,352 |
| Free fl oat (information according to last notifi cation from investors) | 44.2 % |
| Share price high (1 July – 31 December 2012*) | 2.06 EUR |
| Share price low (1 July – 31 December 2012*) | 1.62 EUR |
| Closing price on 28 December 2012* | 1.80 EUR |
| Market capitalisation on 31 December 2012* | EUR 26.6 million |
* Closing prices in Xetra trading
During the reporting period, the economic situation in Germany noticeably slowed, according to an estimate of the DIW German Institute for Economic Research. While the German gross domestic product (GDP) still grew by 0.2% during the first quarter of the 2012/13 financial year, the economic output declined by 0.4% during the second quarter. The reasons cited by the survey include the persistent European debt crisis and the sense of uncertainty among many financial market players regarding the future of the Euro. For the year 2012 as a whole, the Federal Statistical Office quoted an inflation-adjusted economic growth of 0.7%, which is a sound result compared to other countries in Europe. Economic growth drivers in Germany included primarily the external contribution (+1.1%) as well as public and private consumption (+1.0% and +0.8%, respectively). Investments, by contrast, declined.
In 2013, DIW expects to see a slight increase in GDP growth up to 0.9%. The institute assumes that the German economy will gather momentum following a slow start into the year. Perhaps the most positive factor is the rising demand for German products in emerging countries. This forecast is backed by the ifo business climate index, which perked up again in November and December 2012 after having dropped for six consecutive months.
The German labour market remained rather robust in 2012. According to figures released by the Federal Statistical Office, the number of gainfully employed persons rose by more than 400,000 to 41.5 million in the annual mean, which is the highest level since the German reunification in 1990. Then again, the increase in gainful employment during the reporting period was not quite as dynamic as it had been during the first semester of 2012. The obvious reason to explain this is the deteriorated economic situation. The number of jobless dropped to an average of 2.34 million, a decrease by 162,000 persons or 6.5%. DIW believes that the labour market situation will remain stable in 2013.
Germany's residential real estate investment market developed rather handsomely during the second quarter of the 2012/13 financial year. The transaction volume equalled EUR 2.74 billion, according to BNP Paribas Real Estate. All things considered, EUR 11.4 billion worth of residential portfolios changed hands in 2012. This represents the highest figure since the boom year of 2007, and a year-on-year increase by 91%. This high annual volume was essentially generated by several very large transactions in the billion-euro range.
During the first six months of the 2012/13 financial year, the implementation of the strategic realignment took chief priority for ESTAVIS Group. This is reflected both in the successful development of the privatisation of proprietary holdings and the brokerage business, on the one hand, and the management and continued expansion of the proprietary portfolio, on the other hand. The positive contributions from these three areas were offset by encumbrances in the context of the discontinued project development activities, as well as by the effects of the premature repayment of a mezzanine financing, all of which factors combined to produce a negative semi-annual result. However, the loss was substantially reduced quarter on quarter during the second quarter.
The Group continued to pursue the setup and expansion of a high-yield proprietary portfolio by way of acquiring additional residential real estate portfolios with positive cash-flow during the reporting period. In line with these efforts, ESTAVIS secured an option on the acquisition of a large residential real estate portfolio in Berlin in late September.
The revenues of ESTAVIS Group during the first quarter of the 2012/13 financial year came to EUR 18.0 million, after EUR 28.6 million during the same period last year.
Broken down for financial reporting purposes, revenues for continued operations were attributable to the company's following business segments:
| Trade: | EUR 13.9 million (prior-year period: EUR 24.8 million) |
|---|---|
| thereof | |
| privatisation: | EUR 9.1 million (prior-year period: EUR 5.9 million) |
| other trade: | EUR 4.8 million (prior-year period: EUR 18.9 million) |
| Portfolio: | EUR 4.1 million (prior-year period: EUR 3.8 million) |
Transactions in the "Trade" segment experienced an overall decline as the activities in the project development and listed properties sectors were being wound up ("Other Trade"). In line with its strategic reorientation that the Group initiated in 2012, the turnover from these activities has steadily lost in significance, and contributed just over one third of the revenues of the "Trade" segment, whereas the major share of the segment turnover – about two thirds – is now generated by the privatisation business. The increase in revenues in the "Portfolio" segment is explained by the expansion of the proprietary portfolio since the same period last year and the simultaneous sale of smaller, unprofitable properties.
The other operating income amounted to EUR 0.7 million (first semester 2011/12: EUR 0.4 million).
Changes in inventories added up to EUR 1.2 million, having totalled EUR –3.2 million at the end of the first six months of the previous financial year.
During the reporting period, the gross margin (turnover plus changes in inventories less cost of materials/turnover) was 28.6% (previous year: 34.9%). The overall decline in margins compared to the prior-year period is explained by encumbrances in the context of the project developments that are being phased out. In the two strategic business areas of, on the one hand, the expansion and management of the proprietary portfolio, and housing privatisation, on the other hand, the registered margin trend was clearly more positive in some aspects. For instance, the margin for privatisation activities in the "Trade" segment equalled 35.1%, while the gross margin for letting activities in the "Portfolio" segment was 65.7%.
The total operating performance dropped from EUR 26.1 million to EUR 19.9 million during the first six months.
The cost of materials decreased slightly from EUR 15.5 million to EUR 14.0 million year on year.
Staff expenses during the period under review came to EUR 1.1 million after EUR 1.6 million in the same period of the previous year. The drop reflects essentially the substantial year-onyear downscaling of the workforce on the Group's payroll.
At EUR 4.7 million, the other operating expenses undercut the figure of the corresponding prior-year period (EUR 6.4 million).
Earnings before interest and taxes (EBIT) amounted to EUR 0.02 million (previous year: EUR 2.5 million).
The financial result in the period under review equalled EUR –2.6 million after EUR –2.0 million in the same period of the previous year. The decline is explained, among other reasons, by an early termination fee over EUR 0.5 million in connection with the premature repayment of a mezzanine loan.
With income taxes in the amount of EUR 0.06 million taken into account, the consolidated net profit equalled EUR –2.7 million (prior-year period: EUR 04. million), of which EUR –0.8 Million must be allotted to the second quarter of the financial year. This equals EUR –0.18 in earnings per share (previous year: EUR 0.03) in the first semester.
The total assets of the ESTAVIS Group as of 31 December 2012 decreased by EUR 23.3 million or 13.1% to EUR 154.0 million (30 June 2012: EUR 177.3 million).
The decline in assets is explained primarily by the decrease in inventories, accounts receivable, cash and cash equivalents, and non-current assets held for sale. The inventories declined from EUR 56.4 million to EUR 49.4 million, whereas cash and cash equivalents dropped from EUR 10.9 million down to EUR 3.4 million. While the value of non-current assets held for sale had equalled EUR 3.9 million by the balance sheet date of the previous financial year, no such assets were held by the end of the reporting period. The decrease in inventories is explained primarily by the disposal of project developments in conjunction with the strategic reorientation, whereas the drop in cash and cash equivalents, which had considerably increased by the end of the previous financial year through the inflow of the issuing proceeds of the convertible debenture issued in June 2012, is essentially due to the premature repayment of the mezzanine loan as well as to the repayment of other financings of inventories.
Financial liabilities, which mainly relate to liabilities to banks, decreased by a total of EUR 14.6 million to EUR 63.3 million (30 June 2012: EUR 77.8 million), the decline being primarily due to the premature repayment of the mezzanine loan.
At EUR 55.9 million, the company equity was slightly lower than by the reporting date of the previous financial year (30 June 2012: EUR 59.0 million).
The reduction in total assets meant that ESTAVIS Group's equity ratio increased from 33.3% as of 30 June 2012 to 36.3% as of 31 December 2012.
Gearing (debt/total capital) declined from 66.7% to 63.7%. The ratio of cash and cash equivalents to total assets amounted to 2.2% at the end of the period under review (30 June 2012: 6.16%). The cash ratio of ESTAVIS Group (cash and cash equivalents/current liabilities) came to 5.7% as of 31 December 2012 (30 June 2012: 12.9%).
During the reporting period, net cash from operating activities amounted to EUR –5.2 million (previous year: EUR –1.3 million).
Net cash used in financing activities amounted to EUR –6.2 million during the reporting period (previous year: EUR –0.2 million).
During the first semester of the 2012/13 financial year, the cash flow from financing activities amounted to EUR 3.8 million (previous year: EUR –0.4 million).
The ESTAVIS Group has implemented a risk management system that is designed for several purposes, including allowing the early recognition and appropriate communication of significant risk factors arising from its business activities that could be of relevance to its earnings situation or continued existence. The risk management system allows action to be taken against potentially adverse developments and events in a timely manner, and facilitates, where required, the implementation of countermeasures before any significant damage is incurred.
There have been no significant revisions to the risks for ESTAVIS Group in the period under review compared to the Risk Report in the Group Management Report for the previous financial year of 2011/12. Accordingly, reference should be made to the information contained therein.
The activities of the ESTAVIS Group during the months to come will focus, on the one hand, on the continued setup and expansion of the proprietary portfolio and, on the other hand, on the area of housing privatisation. With a view to the swift wind-up of the encumbrances resulting from the discontinued project development activities, on the one hand, and given the progress made in the implementation of the new corporate strategy, on the other hand, the Management Board expects the result to improve significantly, starting with Q3 of the 2012/13 financial year.
Moreover, the stable and positive contributions to operating income that are to be expected in conjunction with the then-as-now very auspicious business trend in housing privatisation make it reasonable to anticipate a clearly positive result both for the 2012/13 financial year as a whole and for the financial years thereafter.
In January 2013, meaning after the reporting period that ended 31 December 2012, the Management Board of ESTAVIS AG decided in favour of two capital increases and, with the approval of the Supervisory Board, implemented these. On the one hand, a total of 1,291,667 new shares were issued from the authorised capital against a cash contribution of TEUR 2,325. On the other hand, a total of 2,007,919 new shares were issued from the authorised capital against a non-cash contribution. In return for the latter, ESTAVIS received 94% of the equity contributions of a limited partnership that holds a real estate portfolio consisting of 177 housing units in Bernau near Berlin, and a claim against this same limited partnership. Both capital increases were entered into the commercial register on 1 February 2013.
| 31 Dec. 2012 ESTAVIS AG |
30 June 2012 | |
|---|---|---|
| Assets | TEUR | TEUR |
| Non-current assets | ||
| Goodwill | 17,776 | 17,776 |
| Other intangible assets | 83 | 85 |
| Property, plant and equipment | 267 | 298 |
| Investment property | 57,490 | 57,490 |
| Investments in associates | 122 | 122 |
| Other non-current financial assets | 1,636 | 1,737 |
| Deferred income tax receivables | 3,262 | 3,352 |
| Total | 80,635 | 80,859 |
| Current assets | ||
| Inventories | 49,390 | 56,411 |
| Trade receivables | 3,510 | 4,520 |
| Other receivables | 16,179 | 19,909 |
| Current income tax receivables | 932 | 800 |
| Cash and cash equivalents | 3,359 | 10,915 |
| Assets held for sale | 0 | 3,850 |
| Total | 73,370 | 96,406 |
| Total assets | 154,005 | 177,264 |
| ESTAVIS AG | 31 Dec. 2012 | 30 June 2012 |
|---|---|---|
| Equity | TEUR | TEUR |
| Issued capital | 14,524 | 14,319 |
| Capital reserves | 41,523 | 40,909 |
| Special reserves from non-cash contributions | 0 | 1,053 |
| IAS 39 reserve | 0 | 0 |
| Retained earnings | –106 | 2,766 |
| Total equity | 55,941 | 59,048 |
| Liabilities | ||
| Non-current liabilities | ||
| Provisions | 64 | 64 |
| Financial liabilities | 37,060 | 30,956 |
| Deferred income tax liabilities | 2,426 | 2,463 |
| Total non-current liabilities | 39,550 | 33,482 |
| Current liabilities | ||
| Provisions | 1,869 | 2,319 |
| Financial liabilities | 26,201 | 46,871 |
| Advance payments received | 20,813 | 15,196 |
| Current income tax liabilities | 1,448 | 1,491 |
| Trade payables | 3,183 | 13,246 |
| Other liabilities | 5,001 | 5,612 |
| Total current liabilities | 58,515 | 84,734 |
| Total equity and liabilities | 154,005 | 177,264 |
| ESTAVIS AG | 2nd Quarter 12/13 1 Oct. 2012 – 31 Dec. 2012 |
2nd Quarter 11/12 1 Oct. 2011 – 31 Dec. 2011 |
1st half-year 12/13 1 July 2012 – 31 Dec. 2012 |
1st half-year 11/12 1 July 2011 – 31 Dec. 2011 |
|---|---|---|---|---|
| TEUR | TEUR | TEUR | TEUR | |
| Revenues | 9,711 | 19,943 | 18,040 | 28,630 |
| Change in value of investment property | 0 | 240 | 0 | 240 |
| Other operating income | 436 | 315 | 669 | 406 |
| Changes in inventories | –671 | –4,323 | 1,161 | –3,162 |
| Total operating performance | 9,476 | 16,175 | 19,870 | 26,113 |
| Cost of materials | 6,606 | 9,744 | 14,041 | 15,471 |
| Staff costs | 570 | 830 | 1,103 | 1,629 |
| Depreciation and amortisation | 29 | 35 | 59 | 67 |
| Other operating expenses | 2,305 | 4,108 | 4,652 | 6,398 |
| Operating result | –35 | 1,458 | 17 | 2,548 |
| Net income from associates | 0 | 0 | 0 | 0 |
| Interest income | 34 | 61 | 68 | 84 |
| Interest expenses | 875 | 990 | 2,698 | 2,036 |
| Financial result | –841 | –929 | –2,630 | –1,952 |
| Net profit before income taxes | –876 | 529 | –2,614 | 596 |
| Income taxes | –33 | 131 | 57 | 173 |
| Net profit | –842 | 398 | –2,670 | 423 |
| Earnings per share (EUR) | –0.06 | 0.03 | –0.18 | 0.03 |
| ESTAVIS AG | 2nd Quarter 12/13 1 Oct. 2012 – 31 Dec. 2012 |
2nd Quarter 11/12 1 Oct. 2011 – 31 Dec. 2011 |
1st half-year 12/13 1 July 2012 – 31 Dec. 2012 |
1st half-year 11/12 1 July 2011 – 31 Dec. 2011 |
|---|---|---|---|---|
| TEUR | TEUR | TEUR | TEUR | |
| Net profit | –842 | 398 | –2,670 | 423 |
| Available-for-sale financial assets | 0 | –1 | 0 | –1 |
| Changes in fair value | 0 | –1 | 0 | –1 |
| Reclassification recognised in profit or loss | 0 | 0 | 0 | 0 |
| Income taxes | 0 | 0 | 0 | 0 |
| Income directly recognized in equity | 0 | –1 | 0 | –1 |
| Total comprehensive income | –842 | 397 | –2,670 | 422 |
| ESTAVIS AG | 1st half-year 12/13 1 July 2012 – 31 Dec. 2012 |
1st half-year 11/12 1 July 2011 – 31 Dec. 2011 |
|
|---|---|---|---|
| TEUR | TEUR | ||
| Net profit | –2,670 | 423 | |
| + | Depreciation/amortisation of non-current assets | 59 | 67 |
| +/– Increase/decrease in provisions | –450 | 777 | |
| +/– Change in value of investment property | 0 | –240 | |
| +/– Other non-cash expenses/income | 1 | 1 | |
| –/+ Gains/losses from the disposal of non-current assets | 0 | 0 | |
| –/+ Increase/decrease in inventories, trade receivables and other assets that are not attributable to investing or financing activities |
11,820 | –609 | |
| +/– Increase/decrease in trade payables and other liabilities that are not attributable to investing or financing activities |
–13,985 | –1,743 | |
| = | Cash flow from current operating activities | –5,227 | –1,323 |
| + | Payments received from the disposal of investment property | 3,850 | 0 |
| + | Payments received for the disposal of financial assets | 0 | 15 |
| – | Payments for investments in intangible assets | –12 | –10 |
| – | Payments for investments in property, plant and equipment | –14 | –214 |
| – | Payments for investment property | –10,000 | –15 |
| = | Cash flow from investing activities | –6,176 | –224 |
| – | Payments for shareholders | –437 | 0 |
| + | Payments from the issuance of bonds and financial loans | 8,042 | 0 |
| – | Repayment of bonds and financial loans | –3,759 | –371 |
| = | Cash flow from financing activities | 3,846 | –371 |
| Net change in cash and cash equivalents | –7,556 | –1,919 | |
| + | Cash and cash equivalents at the beginning of the period | 10,915 | 3,598 |
| = | Cash and cash equivalents at the end of the period | 3,359 | 1,680 |
Consolidated Statement of Changes in Equity
| ESTAVIS AG | Issued capital |
Capital reserves* |
IAS 39 reserve |
Retained earnings |
Total |
|---|---|---|---|---|---|
| TEUR | TEUR | TEUR | TEUR | TEUR | |
| As of 1 July 2012 | 14,319 | 41,963 | – | 2,766 | 59,048 |
| Total comprehensive income | – | – | 0 | –2,670 | –2,670 |
| Non-cash contribution made | 440 | –440 | – | – | 0 |
| Repurchase of company shares | –235 | – | – | –201 | –437 |
| As of 31 December 2012 | 14,524 | 41,523 | 0 | –106 | 55,941 |
* including special reserves from non-cash contributions as of 1 July 2012 as reported in the balance sheet.
| ESTAVIS AG | Issued capital |
Capital reserves |
IAS 39 reserve |
Retained earnings |
Total |
|---|---|---|---|---|---|
| TEUR | TEUR | TEUR | TEUR | TEUR | |
| As of 1 July 2011 | 14,319 | 48,198 | 1 | –1,819 | 60,699 |
| Total comprehensive income | – | – | –1 | 423 | 422 |
| As of 31 December 2011 | 14,319 | 48,198 | 0 | –1,396 | 61,121 |
ESTAVIS AG with its subsidiaries is active both as property portfolio holder and property trader.
The company is based in Berlin, Germany. The company's shares are listed on the Frankfurt Stock Exchange for trading on the Regulated Market (Prime Standard).
On 31 December 2012, ESTAVIS AG acted as operating holding company for numerous special purpose entities.
These condensed consolidated interim financial statement were approved for publication by the company's Management Board in February 2013. The condensed consolidated interim financial statements were not checked by an auditor or subjected to review.
The condensed consolidated interim financial statements for the second quarter of the 2012/13 financial year, which ended on 31 December 2012, were prepared in accordance with the provisions of IAS 34 "Interim Financial Reporting" as adopted by the EU by way of ordinance. The condensed consolidated interim financial statements should be read in conjunction with the most recent consolidated financial statements of ESTAVIS AG for the year ended 30 June 2012.
With the following exceptions, the accounting policies applied in the condensed interim consolidated financial statements are the same as those applied in the preparation of the most recent consolidated financial statements for the year ended 30 June 2012.
The current financial year is the first year in which the application of the following standards has become mandatory:
| Standard/Interpretation | |
|---|---|
| IAS 1 | Amendment: Presentation of Individual Items of Other Comprehensive Income |
This did not result in any changes to the financial reporting for the ESTAVIS AG consolidated financial statements. No regulations were applied early.
With a view to the increasing significance of the privatisation business and, conversely, the declining significance of the trade in listed real estate which is being wound up, the "Trade" segment, which covers both business lines, was divided into the sub-segments "Privatisation" and "Other Trade." The split of the "Trade" segment was not retrospectively applied to the previous year's figures. The segment data for the first quarter of the ongoing financial year are supplemented according to the new representation model.
In the consolidated financial statements as of 30 June 2012, the rental income from inventory properties was for the first listed among the revenues and the corresponding operating costs among the material costs. The previous year's figures listed in this interim financial statement have been adjusted accordingly.
All amounts posted in the balance sheet, income statement, consolidated statement of comprehensive income, statement of changes in equity and cash flow statement, as well as in the notes and tabular overviews, are quoted in thousands of euro (TEUR), unless otherwise noted. Both individual and total figures represent the value with the smallest rounding difference. Small differences can therefore occur between the sum of the individual values represented and the reported totals.
As of 31 December 2012, the condensed interim consolidated financial statements of ESTAVIS AG included 42 subsidiaries and one associate. The status quo of the consolidated group as of 30 June 2012 remained unchanged during the first half year of the ongoing financial year.
Quarter on quarter, the segment results for the first quarter of the 2012/13 financial year, with the segments split into sub-segments, present themselves as shown below:
| Trade | Portfolio | Group | ||||||
|---|---|---|---|---|---|---|---|---|
| Total | Privatisation | Other trade | ||||||
| 2012/13 | 2012/13 | 2012/13 | 2011/12 | 2012/13 | 2011/12 | 2012/13 | 2011/12 | |
| TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | |
| Revenues (external only) |
6,438 | 3,956 | 2,482 | 7,630 | 1,892 | 1,058 | 8,330 | 8,687 |
| thereof Letting | 442 | 265 | 177 | 310 | 1,231 | 992 | 1,673 | 1,302 |
| thereof Privatisation | ||||||||
| Sales | 1,957 | 1,957 | – | 714 | – | – | 1,957 | 714 |
| Brokerage | 1,735 | 1,735 | – | 1,257 | – | – | 1,735 | 1,257 |
| thereof other sales | 2,304 | 2,304 | 5,349 | 661 | 65 | 2,965 | 5,414 | |
| Revenues (internal only) | – | – | – | – | – | – | – | – |
| Segment result | –43 | 1,081 | –1,124 | 745 | 94 | 346 | 51 | 1,091 |
| Net income from invest ments carried at-equity |
– | – | – | – | 0 | 0 | 0 | 0 |
| Financial result | –1,219 | –264 | –956 | –551 | –570 | –471 | –1,789 | –1,023 |
| Net profit before income taxes |
–1,262 | 817 | –2,080 | 194 | –476 | –125 | –1,738 | 68 |
The cost distribution among the segments was corrected for the first quarter. This diminished the operating result, or the earnings before taxes, respectively, of the "Portfolio" segment by TEUR 340, while that of the "Trade" segment increased by a corresponding amount. Also corrected was the allocation of one property, which resulted in corresponding minor adjustments in the "Trade" and "Portfolio" segments. This has caused the earnings before taxes to shift by TEUR 5 in favour of the "Trade" segment.
Due to the changed listing of the rental income from inventory properties, the adjustment of the previous year's turnover in the "Trade" segment was corrected upward by TEUR 166, as were the total turnover by a corresponding amount. The other operating income of the previous year decreased by a corresponding amount, so that the operating result of the same period last year remains unaffected by this adjustment.
| Trade | Portfolio | Group | ||||||
|---|---|---|---|---|---|---|---|---|
| Total | Privatisation | Other trade | ||||||
| 2012/13 | 2012/13 | 2012/13 | 2011/12 | 2012/13 | 2011/12 | 2012/13 | 2011/12 | |
| TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | |
| Revenues (external only) |
7,456 | 5,117 | 2,339 | 17,188 | 2,255 | 2,754 | 9,711 | 19,943 |
| thereof Letting | 378 | 232 | 146 | 418 | 1,140 | 1,039 | 1,518 | 1,457 |
| thereof Privatisation | ||||||||
| Sales | 3,181 | 3,181 | – | 1,554 | – | – | 3,181 | 1,554 |
| Brokerage | 1,703 | 1,703 | – | 2,150 | – | – | 1,703 | 2,150 |
| thereof other sales | 2,194 | 2,194 | 13,066 | 1,115 | 1,715 | 3,309 | 14,781 | |
| Revenues (internal only) | – | – | – | – | – | – | – | – |
| Segment result | 138 | 1,102 | –964 | 550 | –172 | 907 | –35 | 1,458 |
| Net income from invest ments carried at-equity |
– | – | – | – | 0 | 0 | 0 | 0 |
| Financial result | –473 | –177 | –295 | –499 | –369 | –431 | –841 | –929 |
| Net profit before income taxes |
–335 | 925 | –1,259 | 51 | –541 | 476 | –876 | 529 |
Quarter on quarter, the segment results for the second quarter of the 2012/13 financial year present themselves as shown below:
| Trade | Portfolio | Group | ||||||
|---|---|---|---|---|---|---|---|---|
| Total | Privatisation | Other trade | ||||||
| 2012/13 | 2012/13 | 2012/13 | 2011/12 | 2012/13 | 2011/12 | 2012/13 | 2011/12 | |
| TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | TEUR | |
| Revenues (external only) |
13,894 | 9,073 | 4,821 | 24,818 | 4,147 | 3,812 | 18,040 | 28,630 |
| thereof Letting | 820 | 497 | 323 | 728 | 2,371 | 2,031 | 3,191 | 2,759 |
| thereof Privatisation | ||||||||
| Sales | 5,138 | 5,138 | – | 2,268 | – | – | 5,138 | 2,268 |
| Brokerage | 3,438 | 3,438 | – | 3,407 | – | – | 3,438 | 3,407 |
| thereof other sales | 4,498 | 4,498 | 18,415 | 1,776 | 1,780 | 6,274 | 20,195 | |
| Revenues (internal only) | – | – | – | – | – | – | – | – |
| Segment result | 95 | 2,183 | –2,088 | 1,295 | –78 | 1,253 | 17 | 2,548 |
| Net income from invest ments carried at-equity |
– | – | – | – | 0 | 0 | 0 | 0 |
| Financial result | –1,692 | –441 | –1,251 | –1,050 | –939 | –902 | –2,630 | –1,952 |
| Net profit before income taxes |
–1,597 | 1,742 | –3,339 | 245 | –1,017 | 351 | –2,614 | 596 |
Year on year, the segment results for the first semester of the 2012/13 financial year present themselves as shown below:
The financial result of the first quarter is burdened with an early termination fee of TEUR 535 for the premature repayment of a mezzanine financing. The expense was accounted for in the "Trade" segment, and there in the sub-segment "Other Trade." The change in value of investment property in the amount of TEUR 240 that was posted for the second quarter of the previous year is listed as income among the results of the "Portfolio" segment.
Mr Florian Lanz, the former CEO of ESTAVIS AG (until 17 April 2012), and Mr Eric Mozanowski, former member of the Management Board of ESTAVIS AG (until 31 December 2011), assumed guarantees for loans granted to ESTAVIS Group. By the reporting date, the guarantee volumes amounted to TEUR 2,000 in the case of Mr Lanz, and to TEUR 1,000 in the case of Mr Mozanowski. It has been agreed to pay remuneration equal to 5% p.a. and 1% p.a., respectively.
Above and beyond this, there were no significant new related party transactions, nor were any of the related party transactions reported in the notes to the consolidated financial statements for the 2011/12 financial year changed or derecognised.
The ESTAVIS Group employed 28 staff by the end of the quarter. During the same quarter last year, there was a workforce of 49. On average, 42 staff were on the Group's payroll during the past financial year.
In January 2013, ESTAVIS AG went ahead with 2 capital increases. A total of 1,291,667 new shares were issued from the authorised capital against a cash contribution of TEUR 2,325. A total of 2,007,919 new shares were issued from the authorised capital against a non-cash contribution. Object of the non-cash contribution were 94% of the equity contributions of a limited partnership that holds a real estate portfolio consisting of 177 housing units in Bernau near Berlin, and a claim against this same limited partnership. Both capital increases were entered into the commercial register on 1 February.
I state to the best of my knowledge that in accordance with the applicable auditing principles for interim reporting the Interim Consolidated Financial Statements convey an accurate picture of the Group assets, financial situation and earnings, and that the course of business including net operating profit and the condition of the Group are portrayed in the Group Interim Management Report in such a way as to convey a true and fair view, and the key opportunities and risks concerning the anticipated development of the Group in the remainder of the financial year are set out.
Berlin, 11 February 2013
Andreas Lewandowski Jacopo Mingazzini
Member of the Management Board Member of the Management Board
| 2013 | |
|---|---|
| 27 February 2013 | Annual General Meeting, Berlin |
| 13 May 2013 | Quarterly report – 3rd quarter / Nine months 2012/13 |
All dates are provisional. Please check our website www.estavis.de for confirmation.
This interim report contains specific forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events. This applies, in particular, to statements relating to future financial earning capacity, plans and expectations with respect to the business and management of ESTAVIS, growth, profitability and the general economic and regulatory conditions and other factors to which ESTAVIS is exposed.
Forward-looking statements are based on current estimates and assumptions made by the company to the best of its knowledge. Such forward-looking statements are based on assumptions and are subject to risks, uncertainties and other factors that may cause the actual results including the net asset, financial and earnings situation of ESTAVIS to differ materially from or disappoint expectations expressed or implied by these statements. The operating activities of ESTAVIS are subject to a number of risks and uncertainties that may also cause a forwardlooking statement, estimate or prediction to become inaccurate.
This translation of the original German version of the interim report has been prepared for the convenience of our English-speaking shareholders. The German version is authoritative.
ESTAVIS AG Uhlandstr. 165 10719 Berlin Germany Phone: +49 (0)30 887181-0 Telefax: +49 (0)30 887181-11 E-Mail: [email protected] Home: www.estavis.de
Management Board
Andreas Lewandowski, Jacopo Mingazzini
Dr. Karl-Josef Stöhr, Berlin
ESTAVIS AG Investor & Public Relations Phone: +49 (0)30 887181-799 Telefax: +49 (0)30 887181-779 E-Mail: [email protected]
Goldmund Kommunikation, Berlin www.goldmund-kommunikation.de
Power-DesignThing GmbH www.derthing.de
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