AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Accentro Real Estate AG

Quarterly Report Nov 17, 2008

12_10-q_2008-11-17_2734dec8-36d1-4237-9fe4-4214ad3492db.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

INTERIM REPORT First Quarter 2008/2009

OVERVIEW KEY FINANCIAL DATA

ESTAVIS AG July 1, 2008 –
September 30, 2008
July 1, 2007 –
September 30, 2007
Revenues and earnings TEUR TEUR
Revenues 22,151 45,540
Total operating performance 20,966 45,689
EBIT –2,819 1,264
Pre-tax profit –4,158 937
Net profit –2,982 877
ESTAVIS AG September 30, 2008 June 30, 2008
Structure of assets and capital TEUR TEUR
Non-current assets 39,589 38,644
Current assets 218,844 211,127
Equity 92,318 95,336
Equity ratio 36% 38%
Total assets/equity and liabilities 258,433 249,772

ESTAVIS AG

Share
ISIN DE000A0KFKB3
German Securities Code Number (WKN) A0KFKB
Trading symbol E7S
Number of shares on September 30, 2008 8,099,427
Free float 33%
Share price high (July 1 – September 30, 2008*) EUR 6.07
Share price low (July 1 – September 30, 2008*) EUR 3.00
Closing price on September 30, 2008* EUR 3.00
Market capitalisation on September 30, 2008* EUR 24 million

* Closing prices in Xetra trading

CONTENT

  • 3 Letter to the Shareholders
  • 5 The ESTAVIS Share
  • 6 Interim Management Report
  • 10 Consolidated Interim Balance Sheet
  • 12 Consolidated Interim Income Statement
  • 13 Consolidated Interim Cash Flow Statement
  • 14 Consolidated Interim Statement of Changes in Equity
  • 15 Selected Disclosures on Condensed Consolidated Interim Financial Statements

18 Financial Calendar

  • 18 Forward-looking Statements
  • 19 Credits

LETTER TO THE SHAREHOLDERS

Dear Shareholders, dear Ladies and Gentlemen,

In the first quarter of 2008/2009, the ESTAVIS group considerably expanded its sales of apartments to private investors.

We achieved a record figure by notarising 259 apartment sales. In addition, 184 residential units (previous year: 74) were included in turnover, generating revenues of EUR 18 million.

With these figures, we had a good start to the 2008/2009 financial year in the business segment of property sales to private investors (retail trading). As a result of the targeted expansion of our sales activities, we laid the foundation for accelerated growth in this business segment. The first positive effects of this measure were already noticeable in the first quarter.

We set ourselves the target of selling over 1,000 apartments to private investors in the course of this financial year, which will allow us to expand our strong position in this market segment.

By contrast, business performance in the portfolio trading segment was marked by jitters on the international financial markets. Institutional property transactions came to a standstill as a result of credit markets drying up.

As a leading provider of risk-diversified property portfolios in Germany, ESTAVIS was strongly impacted by this market trend. As a result, in the last quarter, no portfolio transactions were carried out.

In the first quarter of 2008/2009, total revenues of EUR 22.2 million were achieved. Earnings before interest and taxes totalled EUR –2.8 million. Adjusted for non-cash effects from the purchase price allocation resulting from company acquisitions in line with IFRS, an EBIT of EUR –1.4 million was generated. The Group recorded a net profit of EUR –3.0 million.

Retail trading business segment with high growth potential

According to a recent study by the Colonia Real Estate subsidiary CRE Accentro, Stuttgart, in 2007 more than 107,000 apartments were sold in the 82 cities of Germany with more than 100,000 inhabitants. This corresponds to a revenues volume of approximately EUR 14 billion.

With its unique product range, the ESTAVIS Group provides access to different propertybased investment models to a broad spectrum of investors. This includes listed properties, tailored pension provisions ("property-based pensions") and property assets held to generate yields.

As well as tax incentives for listed properties, property investment has become one of the most popular forms of pension provision ("title deeds rather than savings account"). With the expansion of the Riester pension scheme to include the acquisition of owner-occupied residential property, the legislator has further enhanced the status of property as a form of investment.

According to many experts, the expected long-term increase in demand for apartments – particularly in larger towns and economically growing regions – will lead to sustained rent and price increases.

As a result of the size of the market and a number of positive factors, we see considerable growth potential for our business in this market segment of retail trading.

Despite the financial crisis, institutional investors are optimistic about the future proper ty situation in Germany

According to a survey of domestic and foreign investors carried out by ESTAVIS, 75 % of investors are planning to increase or retain their property investments. This demonstrates the appeal of the German property market – even against the backdrop of the dramatic price trends in many European countries and the USA.

As a result of the current situation on the financial markets, the vast majority of investors do not expect a recovery of the property transaction market in the short-term.

With the acceleration of our growth transactions with private property investors which are less susceptible to fluctuation, we are currently pursuing the strategy of minimising the impact of the financial crisis on our revenues and earnings trend and of expanding our market position in this strongly growing segment.

In the light of our business development in the first quarter, we continue to expect year-onyear revenue growth for the 2008/2009 financial year (previous year: EUR 147.5 million) and a return to profitability.

Rainer Schorr Corina Büchold Hans Wittmann Eric Mozanowski Chief Executive Member of the Member of the Member of the Officer (CEO) Management Board Management Board Management Board

THE ESTAVIS SHARE

In the last quarter, the sell-out on the international stock markets impacted the price trend of the ESTAVIS share negatively. Fears of a worldwide collapse of the credit and financial markets had a particular impact on valuations of property companies, because their business activities generally show a high dependency on the functioning of the credit system.

As of 30 September 2008, the ESTAVIS share was listed at EUR 3.00 (closing price in Xetra). On the basis of this share price, the market capitalisation of ESTAVIS is approximately EUR 24 million.

In the opinion of the Management Board, this share price does not reflect the company's healthy asset situation and future prospects. Currently, ESTAVIS is valued at a significant discount on equity.

According to recent analyst estimates, ESTAVIS' shares are considered to offer significant upside potential:

  • T. Effler, WestLB, "Buy", target price EUR 7
  • T. Klingner, SES Research, "Buy", target price EUR 5
  • S. Scharff, SRC Research, "Buy", target price EUR 6

Par ticipation in investor conferences

In order to convince the finance community of the opportunities and potential of the ESTAVIS AG business model, over recent weeks, we made presentations at investor conferences – the "Real Estate Share Initiative" and the Equity Forum in Frankfurt. In addition, in one-on-ones with investors, analysts and journalists, the prospects of the company were explained in depth.

ESTAVIS share price development from 1 July to 30 September, 2008

INTERIM MANAGEMENT REPORT

Preliminary Remarks

As a result of the acquisition of B&V Bauträger- und Vertriebsgesellschaft für Immobilien mbH, Berlin, and its affiliate Protect Vermittlungsgesellschaft für Kapitalanlagen mbH, Stuttgart (B&V Group) in the second quarter of the 2007/2008 financial year, the comparability of the figures under review and those of the previous year is limited.

1 BUSINESS AND CONDITIONS

1.1 Economic environment and business per formance

The first quarter of the 2008/2009 financial year was dominated by macroeconomic turbulences, brought about by the intensification of the crisis on the international property and financial markets. Ongoing reports on ailing banks and slumps on all important international equity markets have hugely influenced the confidence of market participants. Despite political financial assistance packages given to banks and interest rate cuts made by central banks, these influences have further curtailed the development of the real economy, particularly in industrialised countries. Key industrialised nations are now finding themselves in a recession or are on their way towards one.

What had previously been a relatively robust German economy has not been left unscathed by the current downward spiral. The leading economics institutes accordingly significantly reduced their forecasts for German economic growth next year. A further decline in the German property climate accompanied these developments.

The effects of the financial market crisis also impacted business development of the ES-TAVIS Group, particularly affecting the volatile core segment of portfolio trading. This was characterised by strong investment reluctance on the part of institutional investors. On the other hand, the sale of apartments to private investors (retail trading) has previously been little influenced by the bad general economic conditions and is even rising. Just as was the strategic intention of the acquisition of the B&V Group, this less volatile business area has stabilised the economic development of the ESTAVIS Group.

1.2 Earnings situation

As a result of the economic influences described, in the first quarter of the 2008/2009 financial year ESTAVIS Group revenues declined year-on-year from EUR 45.5 million to EUR 22.2 million. Notarised total sales in the first quarter of 2008/2009 consisted of 259 units.

Broken down for financial reporting purposes, revenues were attributable to the following company business segments:

Portfolio trading EUR 4,3m (previous year: EUR 37,4m)
Sale of residential property EUR 17,5m (previous year: EUR 7,8m)
Other business areas EUR 0,3m (previous year: EUR 0,3m)

Revenues generated in the first quarter of 2008/2009 are based on a business volume of 184 sold units (previous year: 745) with a total residential and useful area of 9,885 m² (previous year: 51,971 m²). The decline in revenues is due to the slump in sales in portfolio trading. Here revenues in the period under review were due exclusively providing construction services for the portfolio. In the sale of residential property, higher revenues are the result of the B&V Group which had not been included in the consolidated financial statements in the prior-year period.

The gross margin (gross profit/revenues) declined slightly year-on-year from 18.5 % to 16.6 %. As a result of the revenues shortfall in the portfolio trading segment, EBIT declined significantly by EUR 4.2 million and net profit was similarly down by EUR 3.9 million. At the same time, the EBIT margin (EBIT/revenues) for the ESTAVIS Group declined from 2.8 % to -12.7 % year-on-year, while the return on sales (net profit/revenues) fell from 1.9 % to -13.5 %.

In terms of the development of earnings and profitability, it should be noted that the contribution to earnings from the B&V Group in the period under review still partially relates to revenues that were already contractually agreed when the respective group was acquired. The corresponding property portfolios were thus re-valued in the context of purchase price allocation. This negatively impacted EBIT in the amount of EUR 1.4 million in the first three months of the 2008/2009 financial year.

1.3 Financial and assets position

As against the previous year period, the asset structure of the ESTAVIS Group only marginally changed in the period under review. The increase in total assets from EUR 249.8 million to EUR 258.4 million is primarily due to the inventory increase of EUR 15.9 million and the simultaneous reduction in cash and cash equivalents by EUR 7.3 million.

In terms of finance, this resulted in an increase in financial liabilities of EUR 12.4 million. This primarily relates to liabilities to banks. This rise comprises an increase in current financial liabilities of EUR 14.7 million and a decline in non-current financial liabilities of EUR 2.3 million.

As a result of the negative quarterly result, equity declined by 3.2% from EUR 95.3 million at the end of the previous period to EUR 92.3 million. Due to the parallel increase in the total assets, the ESTAVIS Group equity ratio declined from 38.2 % as of 30 June 2008 to 35.7 % as of the end of the reporting period. Despite this, the Group's financial situation and liquidity position remain stable. Although cash and cash equivalents and working capital (current assets less current liabilities) were at a lower level than at the previous year's period, at EUR 18.4 million (30 June 2008: EUR 25.7 million) and EUR 72.1 million (30 June 2008: EUR 78.9 million) respectively, these are still at a high level. Cash and cash equivalents amount to 7.1 % of total assets (30 June 2008: 10.3 %).

2 RISK REPORT

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 its continued existence. The risk management system allows action to be taken against potentially unfavourable developments and events in a timely manner and, where required, facilitates the implementation of countermeasures before any significant damages are incurred.

Based on the available information, the Management Board of ESTAVIS AG currently sees no specific risks that could either individually or cumulatively endanger the continued existence of the company or have a significant negative impact on its asset, finance and earnings position. This is valid despite the fact that the risk of recession in Germany has increased significantly since the assessment in the Risk Report given in the Group Management Report for the 2007/2008 financial year.

It should also be noted that all projections exhibit a significant degree of uncertainty due to the unpredictability currently prevalent concerning the effects of the crisis on the property and financial markets. It cannot currently be reliably estimated how long these negative influences will affect economic development and how significant the repercussions will be on the German property market which is still assessed as very attractive on the basis of its fundamental data. As a result, a sufficiently reliable estimate cannot be made as to when an end to the current reluctance to buy can be expected, particularly among institutional investors.

Furthermore, there have been no significant revisions to the risks for the ESTAVIS Group in the period under review compared with the Risk Report in the Group Management Report. Accordingly, reference should be made to the information contained therein.

3 FORECAST REPORT

The macroeconomic environment has worsened significantly since the end of the 2007/2008 financial year as a result of the negative influence of the global financial crisis. Aside from this, we estimate that the fundamental industry and company data which are crucial in the medium and long-term business development of the ESTAVIS Group have not substantially changed as the German property market continues to be represented positively in terms of potential yields. However, portfolio trading in particular is currently being adversely affected by the seriously restricted financing possibilities for larger property transactions and the overall uncertainty of investors. In this respect, there have been no significant changes to the opportunities profile of our company in the medium to longterm in the reporting period. The information contained in the Forecast Report given in the Group Management Report for the 2007/2008 financial year also continues to apply.

We maintain our objective for the current financial year of significant year-on-year revenue growth and a return to profitability irrespective of the currently unfavourable general economic conditions. In respect to the earnings trend, negative factors resulting from the company acquisitions in the retail area (B&V Group) will be reduced further through the appreciation of the property portfolio in the context of purchase price allocation.

Overall, we are assuming that the financial market crisis will continue and that there will be no sustainable upturn of the market environment in the short term, despite political support measures.

On the basis of the available information, we currently regard as realistic the forecast statements for the future course of business and the influencing factors judged decisive. However, they naturally involve the risk that the expected developments will not actually occur either in terms of their trend or their extent.

4 SUPPLEMENTARY REPORT

No further events occurred after the end of the reporting period which are of particular significance to the business development of the ESTAVIS Group.

CONSOLIDATED INTERIM BALANCE SHEET – ASSETS

Sept. 30,2008 June 30,2008
ESTAVIS AG
Assets
TEUR TEUR
Non-current assets
Goodwill 20,581 20,581
Other intangible assets 162 141
Property, plant and equipment 1,263 1,113
Investment property 12,851 12,840
Investments in associates 32 32
Other non-current financial assets 169 252
Deferred income tax receivables 4,531 3,684
Total 39,589 38,644
Current assets
Inventories 119,621 103,703
Trade receivables 26,582 27,604
Other receivables 52,880 52,328
Current income tax receivables 1,324 1,759
Cash and cash equivalents 18,437 25,733
Total 218,844 211,127
Total assets 258,433 249,772

CONSOLIDATED INTERIM BALANCE SHEET – EQUIT Y AND LIABILITIES

ESTAVIS AG Sept. 30,2008 June 30,2008
Equity TEUR TEUR
Issued capital 8,099 8,099
Capital reserves 77,065 77,065
IAS 39 reserve 0 16
Retained earnings –1,382 1,413
Equity attributable to the shareholders of the parent company 83,782 86,594
Minority interests 8,536 8,742
Total equity 92,318 95,336
Liabilities
Non-current liabilities
Provisions 212 429
Non-current financial liabilities 14,209 16,517
Deferred income tax liabilities 4,917 5,238
Total non-current liabilities 19,338 22,184
Current liabilities
Provisions 5,323 4,416
Current financial liabilities 98,987 84,281
Advance payments received 14,057 11,055
Current income tax liabilities 4,395 4,430
Trade payables 5,649 5,297
Other liabilities 18,367 22,774
Total current liabilities 146,777 132,252
Total equity and liabilities 258,433 249,772

CONSOLIDATED INTERIM INCOME STATEMENT

July 1, 2008 –
Sept. 30, 2008
July 1, 2007 –
Sept. 30, 2007
ESTAVIS AG TEUR TEUR
Revenues 22,151 45,540
Change in investment property 0 –170
Other operating income 1,913 426
Changes in inventories –3,098 –108
Total operating performance 20,966 45,689
Cost of materials 15,371 36,987
Staff costs 1,478 1,134
Depreciation and amortisation 79 104
Other operating expenses 6,865 6,133
Operating profit –2,827 1,331
Net income from associates 8 –67
Interest income 451 755
Interest expenses 1,790 1,081
Financial result –1,339 –327
Pre-tax profit –4,158 937
Income taxes –1,176 60
Net profit –2,982 877
attributable to parent company shareholders –2,795 1,138
attributable to minority interests –188 –261
Earnings per share (EUR) –0.35 0.15

Interim Report First Quarter 2008/2009 · ESTAVIS AG 13

CONSOLIDATED INTERIM CASH FLOW STATEMENT

July 1, 2008 –
Sept. 30, 2008
July 1, 2007 –
Sept. 30, 2007
ESTAVIS AG TEUR TEUR
Net profit –2,982 877
+ Depreciation/amortisation of non-current assets 79 104
+/– Increase/decrease in provisions 690 –260
+/– Change in investment property 0 170
+/– Other non-cash expenses/income 15 103
–/+ Increase/decrease in inventories, trade receivables and other assets that are not attributable
to investing or financing activities
–15,852 –29,859
–/+ Increase/decrease in trade payables and other liabilities that are not attributable to investing
or financing activities
11,264 29,634
= Cash flow from current operating activities –6,786 767
Payments received from the disposal of property, plant and equipment 0 23
+ Payments received for the disposal of financial assets 0 37
Payments for investments in intangible assets –32 –26
Payments for investment property –10 –1
Payments for investments in property, plant and equipment –217 –243
Payments for investments in non-current financial assets 0 –2
= Cash flow from investing activities –260 –212
Payments made by shareholders 0 25
Payments to shareholders –20 0
+ Payments from issuing bonds and raising (financial) loans 0 3
Repayment of bonds and financial loans –231 –112
= Cash flow from financing activities –251 –84
Net change in cash and cash equivalents –7,296 471
+ Cash and cash equivalents at the beginning of the period 25,733 36,048
= Cash and cash equivalents at the end of the period 18,437 36,519

CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUIT Y

for the period from July 1, 2008 to September 30, 2008

ESTAVIS AG Issued
capital
Capital
reserves
IAS 39
reserve
Retained
earnings
Equity
attributab
le to the
shareholders
of the parent
company
Minority
interests
Total
TEUR TEUR TEUR TEUR TEUR TEUR TEUR
As of July 1, 2008 8,099 77,065 16 1,413 86,594 8,742 95,336
Changes in the value of available
for-sale financial assets
–16 0 –16 0 –16
Net profit for the period
July 1, 2008–September 30, 2008
–2,795 –2,795 –188 –2,982
Total recognised income and
expenses
–16 –2,795 –2,811 –188 –2,998
Acquisition of shares of consolidated
companies
–1 –1 –19 –20
As of September 30, 2008 8,099 77,065 0 –1,382 83,782 8,536 92,318

CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUIT Y

for the period from July 1, 2007 to September 30, 2007

ESTAVIS AG Issued
capital
Capital
reserves
IAS 39
reserve
Retained
earnings
Equity
attributab
le to the
shareholders
of the parent
company
Minority
interests
Total
TEUR TEUR TEUR TEUR TEUR TEUR TEUR
As of July 1, 2007 7,724 70,577 73 7,280 85,654 10,514 96,168
Changes in the value of available
for-sale financial assets
–4 0 –4 0 –4
Net profit for the period
July 1, 2007–September 30, 2007
1,138 1,138 –261 877
Total recognised income and
expenses
–4 1,138 1,133 –261 872
Capital increase 0 25 25
As of September 30, 2007 7,724 70,577 68 8,417 86,787 10,279 97,066

SELECTED DISCLOSURES ON CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1 BASIC INFORMATION

ESTAVIS AG and its subsidiaries trade in property upon which they undertake maintenance work partly for the purpose of resale. Furthermore, property is held as a financial investment. The company is domiciled in Berlin, Germany. The company's shares are listed on the Frankfurt Stock Exchange for trading on the Regulated Market (Prime Standard).

On 30 September 2008, ESTAVIS AG acted as operating holding company of numerous special purpose entities. Its major operating investments are Hamburgische Immobilien Invest SUCV AG, Hamburg, CWI Real Estate AG, Bayreuth (together: HAG Group) and B&V Bauträger- und Vertriebsgesellschaft für Immobilien mbH, Berlin (B&V Group).

In view of the expansion of the scope of consolidation by the B&V Group, the figures in the reporting quarter are comparable only to a limited extent with those of the previous year's period.

These Condensed Consolidated Interim Financial Statements were approved for publication by the company's Management Board in November 2008. The Condensed Consolidated Interim Financial Statements were not checked by an auditor and subjected to review.

2 SIGNIFICANT ACCOUNTING POLICIES

The Condensed Consolidated Interim Financial Statements for the first quarter of the 2008/2009 financial year that ended 30 September 2008 were compiled in accordance with the regulations of IAS 34, 'Interim Reporting' included in the directives of European law. The Condensed Consolidated Interim Financial Statements should be read in connection with the most recent Consolidated Financial Statements of ESTAVIS AG as of 30 June 2008.

The accounting methods employed in the Condensed Consolidated Interim Financial Statements are equivalent to those on which the Consolidated Financial Statements as of 30 June 2008 are based.

In the IFRS Consolidated Financial Statements for the 2008/2009 financial year, the changes to IAS 39 and IFRS 7 concerning allowed reclassifications of financial assets must be applied for the first time. This does not result in any changes to financial reporting for the ESTAVIS AG Consolidated Financial Statements. Apart from IFRS 8 on segment reporting, which was applied last year, no other regulations were applied early.

All amounts in the Balance Sheet, Income Statement, Statement of Changes in Equity and Cash Flow Statement, as well as in the notes and tabular overviews, are given in thousands of euros (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.

3 CONSOLIDATED GROUP

On 30 September 2008 (unchanged from 30 June 2008), the Condensed Consolidated Interim Financial Statements of ESTAVIS AG included 64 subsidiaries, a joint venture and two associates.

4 SUPPLEMENTARY NOTES TO THE INDIVIDUAL ITEMS OF THE INTERIM FINANCIAL STATEMENTS

4.1 Segment information

The segment results for the first quarter of the 2008/2009 financial year are shown below:

Portfolio
trading
Retail
trading
Property
manage
ment
Invest
ment
property
Develop
ment
Consoli
dation
Group
TEUR TEUR TEUR TEUR TEUR TEUR TEUR
Revenues
(external only)
4,308 17,505 147 191 22,151
Revenues
(internal only)
40 60 –100 0
Segment result –1,512 –1,031 –373 135 –46 –2,827
Unallocated
Currency gains
Operating result –2,827
Net income from
investments carried
at-equity
0 8 8
Financial result –1,339
Net profit before
income taxes
–4,158

Following the transition from two to five segments, the segment earnings for the previous year are as follows:

Portfolio
trading
Retail
trading
Property
manage
ment
Invest
ment
property
Develop
ment
Consoli
dation
Group
TEUR TEUR TEUR TEUR TEUR TEUR TEUR
Revenues
(external only)
37,381 7,782 97 280 45,540
Revenues
(internal only)
Segment result 2,130 –194 –537 –76 1,323
Unallocated
Currency gains 8
Operating result 1.331
Net income from
investments carried
at-equity
5 –72 –67
Financial result –327
Net profit before
income taxes
937

4.2 Impairment of financial assets

In the first quarter, an impairment of TEUR 34 was recognised on share holdings.

4.3 Related par ty transactions

In the reporting period, neither significant new transactions with related parties occurred, nor were transactions which were reported in the Notes to the Consolidated Financial Statements for the financial year 2007/2008 changed or discontinued.

4.4 Employees

The ESTAVIS Group employed 101 staff at the end of the quarter. In the first quarter of the previous year, the figure was 83. On average, 88 staff were employed in the Group during the last financial year.

FINANCIAL CALENDAR 2009

13 February Quarterly Report – 2nd Quarter 2008/2009
20 February Annual General Meeting, Berlin
15 May Quarterly Report – 3rd Quarter 2008/2009
25 September Full Year Results 2008/2009

FORWARD-LOOKING STATEMENTS

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 forward-looking 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.

CREDITS

ESTAVIS AG Uhlandstraße 165 10719 Berlin, Germany

Phone: +49 (0)30 887 181 - 0 Telefax: +49 (0)30 887 181 - 11

E-Mail: [email protected] Home: www.estavis.de

Management Board

Rainer Schorr (Chairman) Corina Büchold Hans Wittmann Eric Mozanowski

Chairman of the Supervisory Board

Dr. Karl-Josef Stöhr, Berlin

Contact

ESTAVIS AG Peter Vogt Investor & Public Relations

Phone: +49 (0)30 887 181 - 799 Telefax: +49 (0)30 887 181 - 779

E-Mail: [email protected]

Concept, editing

Goldmund Kommunikation, Berlin www.goldmund.biz

Layout and design

Power-DesignThing GmbH www.derthing.de

Talk to a Data Expert

Have a question? We'll get back to you promptly.