Published: 2019-07-31 12:48:25 CEST
Mainor Ülemiste
Company Announcement

Mainor Ülemiste AS Interim Report 2Q 2019

 

Main Events in the 2Q 2019

 

APRIL

IT sector "Deed of the Year": International House of Estonia is bringing the entire country under one roof

International House of Estonia, which was launched by Mainor Ülemiste AS together with Enterprise Estonia and which has only been operating for five months, was awarded as the "Deed of the Year" 2018 by Estonian Association of Information Technology and Telecommunications (ITL). The service centre alleviates the labour shortage especially in the IT sector as well as in other fields, which lack professionals and skilled workers. In other words, the International House helps the employee from a foreign country to settle needed issues at one place in one day, which otherwise would take a month or two by visiting different institutions.

 

Ülemiste City is growing near the maximum speed

Mainor Ülemiste AS affiliated company Technopolis Ülemiste AS and Swedbank AS concluded an agreement of 110.5 million euros which refinances all the existing loans, and which also includes the financing for the construction of the new Sepapaja 1 office building and the parking facility. With the emergence of the office building at Sepapaja 1, the new and biggest phase of the development for Technopolis Ülemiste AS will commence, which creates value for the entire campus. Over the next 5–10 years, the goal is to build a complex of six buildings worth around 130–150 million euros.

 

Tallinn Airport is expanding and a new architecture competition will be organised for the Rail Baltic terminal in Ülemiste

The neighbour of Mainor Ülemiste AS, Tallinn Airport, is planning to double/triple its’ activities within the next 5–10 years to service up to 8 million people per year. For servicing all the air passengers they plan to build up to 150,000 square meters of necessary business-, service- and accommodation premises.

The architecture competition of Rail Baltic passenger terminal will be organised again; Rail Baltica Estonia hopes to conclude the design contract with the winner of the competition already this year. The expected deadline of the completion of the terminal is 2025.

   

MAY

Ülemiste City is striving to be an independent city

Mainor Ülemiste AS set a cornerstone for the Lurich quarter's 13 floor residential building in the beginning of May in Ülemiste City, which has so far operated as a business campus, in order for the campus to become independent with permanent residents. "Ülemiste City aims to operate as a completely independent city. In addition to the first homes, the plan for the next five years is to open a health centre and complete a new education complex to ensure goods and services essential for living and a diverse transport connection with the entire world," explained Margus Nõlvak, Member of the  Board of Mainor Ülemiste. He added that by 2025, a person living and working in Ülemiste City will not even have a reason to leave the campus on daily basis. The investment volume of the Lurich building is 14.6 million euros, financed by OP Bank Plc Estonian branch; the rentable area of offices and rental apartments is altogether 9,000 m2 and it will be completed in the first half of 2020.

   

JUNE

Ülemiste Health Centre opened its doors

In the beginning of June, Ülemiste Health Centre's first floor opened its doors, where general practitioners and Benu Pharmacy are located. In August, the second floor will be opened with Synlab and Medemis and in October, the third floor where Qvalitas will be operating. The investment volume of Mainor Ülemiste AS is over 3 million euros, financed by OP Bank Plc Estonian branch and the rentable area is over 5,000 m2.

 

Ülemiste City will become a City of the Future

On the basis of the idea launched by Mainor Ülemiste AS, Tallinn University of Technology (TalTech) will open a professorship of the City of the Future in autumn, which will be financed by almost half a million euros in the next five years by the developers of Ülemiste City Mainor Ülemiste AS and Technopolis Ülemiste AS. Within the framework of the professorship, Ülemiste City will turn into a test bed of a sort, where data about the operation of a modern city is gathered, processed and synthesised, and innovative solutions are tested in the same setting in order to improve the environment. Innovation created here can be scaled over Tallinn, over Estonia and why not even further. The partners of the project include the developers of Ülemiste City Mainor Ülemiste AS and Technopolis Ülemiste AS, TalTech, the City of Tallinn, the technology giant Ericsson and a number of other private sector enterprises, mostly based in Ülemiste City.

 

A lavish green building will connect Ülemiste City and the airport

Mainor Ülemiste AS confirmed the work of the architectural bureau PLUSS as the final winner of the new architecture competition, by which a modern up to 20,000 square metre business building will be constructed next to the planned terminal building of Tallinn Airport. The Sepise 7 building with 12 aboveground floors and one underground floor is expected to be built at the end of 2020 and the doors should be open in 2022.

 

 

Ülemiste City Key Figures as of 30.06.2019

Rented space                190,767 square meters

Occupancy Rate           98%

 

 

2Q Financial Performance

2Q 2019 – Net profit EUR 1,499 thousand

Net Sales and Net Profit

  • Net sales amounted to EUR 2,628 th in the 2nd quarter, increase of 27.1% compared to the 2nd quarter of 2018
  • Net profit amounted to EUR 1,499 th, increase of 13.1% compared to the 2nd quarter of 2018

Expenses

  • Operating expenses increased from EUR 1,063 th (2nd quarter 2018) to EUR 1,286 th in the 2nd quarter of 2019
  • Interest expense on loans and issued bonds amounted to EUR 604 th (2nd quarter 2018), decrease of 16.3% compared to the 2nd quarter in 2018 (EUR 722 th)

Interest-bearing liabilities

  • Mainor Ülemiste AS interest-bearing liabilities amounted to EUR 82,807 th. The Company’s four largest creditors at the end of the period were SEB Pank AS, OP Corporate Bank Plc, LHV Pank AS and Luminor Bank AS
  • At the end of the reporting period, Mainor Ülemiste had EUR 13,200 th in untapped credit facilities

 

Statement of the Management Board

The financial and other additional information published in the Interim Report April – June 2019 is true and complete. Consolidated financial statements give a true and fair view of the actual financial position, results of operations and cash flows of the group.

Consolidated financial statements in the report for the period April – June 2019 are not audited.

  

Margus Nõlvak

Member of the Management Board

Tallinn, 31.07.2019

 

 

Consolidated Income Statement

(according to IFRS)

In thousands Euros 

 Mainor Ülemiste AS  2Q 2018 3Q 2018 4Q 2018 1Q 2018 2Q 2019
Sales   2 067 2 127 2 410 2 693 2 628
Cost of Sales   -557 -649 -756 -864 -743
Administrative expenses -506 -434 -539 -612 -543
Depreciation   -12 -11 -11 -15 -14
Income from associate companies* 1 054 1 127 1 191 1 253 760
Other operating income 0 6 25 1 1
Other operating expenses -1 -5 -7 -4 -3
Operating profit* 2 045 2 161 2 313 2 452 2 086
Other finance income 2 25 75 13 17
Interest paid and fees -722 -518 -724 -501 -604
Income tax   0 0 0 -15 0
Net profit*   1 325 1 668 1 664 1 949 1 499
             
* Without change of valuation of Mainor Ülemiste AS's and associate companies' investments properties.

 

 

 

Consolidated Balance Sheet

(according to IFRS)

In thousands Euros

Mainor Ülemiste AS 30.06.2018 30.09.2018 31.12.2018 31.03.2019 30.06.2019  
Tangible and intangible assets 66 101 153 160 162  
Property 112 307 117 283 122 630 124 176 129 631  
Other 9 332 9 352 9 606 9 417 8 659  
Financial assets 34 377 35 504 37 748 39 001 38 420 *
Receivables 2 389 1 621  991  1 137 1 591  
Cash 9 049 10 798 9 620 9 646 11 988  
Total assets 167 520 174 659 180 748 183 537 190 451  
             
Owners' equity            
Share capital 19 200 19 200 19 200 19 200 18 200  
Mandatory reserves 1 920 1 920 1 920 1 920 1 920  
Retained earnings 72 410 74 079 78 919 80 869 80 968 *
Total equity 93 530 95 199 100 039 101 989 101 088  
             
Liabilities            
Debt 68 692 75 690 77 807 78 791 82 807  
Other liabilities 704 789 749 765 765  
Accounts payable 4 594 2 981 2 153 1 992 5 791  
Total liabilities 73 990 79 460 80 709 81 548 89 363  
             
TOTAL LIABILITIES & OWNERS' EQUITY 167 520 174 659 180 748 183 537 190 451  
             
* Without change of valuation of Mainor Ülemiste AS's and associate companies' investments properties.  

 

 

Consolidated Statement of Changes in Equity

In thousands of euros

  Share capital Statutory reserve Retained earnings Total Equity
Balance at 31.12.2017 19 200 1 920 70 817 91 937
Dividends declared     -1 232 -1 232
Total comprehensive income for the year     9 334 9 334
Balance at 31.12.2018 19 200 1 920 78 919 100 039
Dividends declared     0 0
Total comprehensive income for the year     1 949 1 949
Balance at 31.03.2019 19 200 1 920 80 869 101 989
Payments to shareholders -1 000     -1 000
Dividends declared     -1 400 -1 400
Total comprehensive income for the year     1 499 1 499
Balance at 30.06.2019 18 200 1 920 80 968 101 088

  

 

Consolidated Cash Flow Statement

In thousands Euros 

Mainor Ülemiste AS 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019
Operating activities          
Net result for the period 1 325 1 668 1 664 1 949 1 499
Adjustment:          
  Depreciation 12 11 11 15 14
  Income from associate companies -1 054 -1 127 -1 191 -1 253 -760
  Financial income and expenses 681 493 649 488 587
  Change in operating assets -367 212 -366 89 -416
  Change in operating liabilities 1 067 -1 265 -1 044 -157 3 817
  Interest received 0 0 0 0 0
  Dividends received 616 308 308 0 1 341
  Interest paid and fees -722 -518 -724 -501 -604
  Income tax 0 0 0 15 0
Net cash flow from operating activities  1 558 -218   -693   645 5 478
Investing activities          
Investments in tangible and intangible assets 0 -46 -52 -7 -7
Proceeds from sale of tangible and intangible assets 0 0 0 0 0
Investments in investment properties -5 900 -4 976 -2 548 -1 544 -5 463
Loans granted 0 0 0 0 0
Repayment of loans granted 0 0 0 0 0
Acquisition of associates 0 0 0 0 0
Cash flows from investing activities -4 338 -5 022 -2 603 -1 551 -5 470
Financing activities          
Bond issue 1 204 1 162     0 0 0
Increase in long-term loans 5 056 6 167 2 452 1 381 4 320
Decrease in long-term loans -330 -340 -335 -449 -586
Dividends paid -1 232 0 0 0 -1 400
Cash flows from financing activities 4 698 6 989 2 117  932  2 334
Total cash flow  356 1 749 -1 178  26 2 342
Cash and cash equivalents at period-start 8 693 9 049 10 798 9 620 9 646
Change in cash and cash equivalents  356  1 749 -1 178  26 2 342
Cash and cash equivalents at period-end 9 049 10 798 9 620 9 646 11 988

  

         Mainor Ülemiste AS
         Valukoja 8/1
         11415 Tallinn, Estonia
         Phone: +372 5304 6992
         E-mail: info@mainorulemiste.ee
         www.mainorulemiste.ee


Mainor Ülemiste AS Interim Report 2Q 2019.pdf