Citycon's financial results 1 Jan. - 31. Dec.
- Profit before taxes increased 26.7 per cent to EUR 24.2 million (EUR 19.1 million)
- Turnover increased to EUR 88.6 million (EUR 78.1 million)
- Earnings per share were EUR 0.17 (EUR 0.14)
- The proposed dividend is EUR 0.14 per share (EUR 0,14 per share).
- Citycon is assessing opportunities for expansion in the Scandinavian and Baltic
countries
- Demand and occupancy rates for retail remained strong
- Citycon seeks growth in 2005 through acquisitions of shopping centres and
development projects
Key figures
1-12 2004 1-12 2003
Turnover, EUR million 88.6 78.1
Operating profit, EUR million 50.3 43.3
% of turnover 56.8 55.5
Profit before extraordinary items
and taxes, EUR million 24.2 19.1
Profit, EUR million 17.4 14.3
Earnings per share, EUR 0.17 0.14
Earnings per share, diluted, EUR 0.16 0.14
Equity per share, EUR 2.04 2.01
P/E (price/earnings) ratio 15 11
Dividend/share, EUR 0.14 0.14
Return on equity (ROE), % 8.4 7.1
Return on equity including minority
interest, % 5.7 4.9
Return on investment (ROI), % 6.2 5.8
Equity ratio, % 47.6 44.9
Equity ratio with capital loan not
counted as part of shareholders'
equity, % 39.4 36.7
Gearing, % 146.8 163.2
Net rental income, % 8.5 8.5
Occupancy rate, % 95.7 97.3
Personnel at end of period 45 34
Trend in the business environment
Development in retail business continued to be favourable in Finland.
In 2004, the value of retail sales was 4.3 per cent higher than in 2003.
The value of department store sales increased by 4.8 per cent and trade in groceries
by 1.4 per cent on the previous year. 1)
Interest rates in the euro zone remained historically low in 2004.
In 2004, the value of retail sales was 4.3 per cent higher than in 2003. The
value of department store sales increased by 4.8 per cent and trade in groceries
by 1.4 per cent on the previous year. 1)
Strong retail sales kept up healthy demand for leased retail premises throughout
the year and vacancy rates continued to remain low, particularly in the Helsinki
Metropolitan Area and Finland's other major cities. The average vacancy rate for
retail premises was below 2 per cent in the Helsinki Metropolitan Area and 1.1-
4.5 per cent in the larger cities, such as Tampere, Lahti and Jyväskylä 2).
Foreign investors' interest in the Finnish property market continued to grow and
the internationalisation of the market continued. Commercial premises and the
Helsinki Metropolitan Area as a region are particularly attractive to investors.
The deals made by international investors accounted for roughly 50 per cent of
Finnish transactions on investment properties in 2004 2).
1) Source: Statistics Finland
2) Source: Catella Kiinteistökonsultointi Oy
Property portfolio and business activities
At year-end, Citycon owned 146 (148) properties with a combined book value of EUR
732.1 million (EUR 721.8 million) and a fair value of EUR 738,7 million (EUR
726.5 million). Practically the whole of the company's property portfolio
consists of retail properties.
The company owned 16 shopping centres and 130 supermarkets and shops. Shopping
centres accounted for 59.0 per cent of the company property portfolio's book
value and supermarket and shop premises for 41.0 per cent. At year-end, in terms
of book values, 46.6 per cent were in the Helsinki Metropolitan Area, 35.7 per
cent were in other major Finnish cities and 17.7 per cent were in other parts of
Finland.
Citycon Oyj is assessing opportunities for expansion in the Scandinavian and
Baltic countries. At the same time, the company continued the implementation of
its growth strategy in Finland. The company will continue to focus on retail
premises, mainly in the Helsinki Metropolitan Area and other major cities.
Customers, the portfolio of leases, and the occupancy rate
Citycon's customers are Finnish and international speciality and grocery retail
chains, supermarkets and department stores, and retailers who are not part of
chains. There were no significant changes in the customer base in 2004.
During the financial year, the company signed a total of 325 leases. At the end
of the financial year, Citycon had a total of 1 486 leases with roughly 850
lessees. The average length of the leases was 3.4 years.
The occupancy rate for Citycon's property portfolio at year-end was 95.7 per cent
(97.3%). The decline in the occupancy rate was due primarily to the end of the
lease on Länsikeskus in Espoo, which belongs to the Supermarkets and Shops
division, on 31 October 2004. The occupancy rate for Citycon's property portfolio
without Länsikeskus was 96.9 per cent and that of the Supermarkets and Shops
division was 96.2 per cent. Citycon made a new lease for Länsikeskus in Espoo
with a new grocery chain in the area. The lease will commnece in March 2005.
Trend in portfolio of leases by division
1-12 2004 1-12 2003
Shopping centres
Number of leases signed during the
financial year, total 242 151
Total area of leases signed, sq.m. 32,451 16,399
Occupancy rate at end of period, % 97.4 97.6
Average length of lease portfolio
at the end of financial year, years 2.7 3.0
Supermarkets and shops
Number of leases signed during the
financial year, total 83 51
Total area of leases signed, sq.m. 24,155 9,806
Occupancy rate at end of period, % 93.4 96,8
Average length of lease portfolio
at end of financial year, years 4.5 4,4
Rental income
The net rental income of Citycon's leasing business was EUR 62.1 million (EUR
54.7 million). The average net rental yield of the properties owned by the
company remained good and was 8.5 per cent (8.5 %).
Shopping centres accounted for 56.5 per cent of the net rental income (50.2 %)
and supermarkets and shops accounted for 43.5 per cent (49.8 %). Of net income,
roughly 46.0 per cent was generated by properties in the Helsinki Metropolitan
Area, 36.0 per cent by properties in other major Finnish cities, and roughly 18.0
per cent by other properties in Finland.
Trend in rental income by division
-12 2003 1-12 2003
Shopping centres
Gross rental income, EUR million 47.0 36.5
Net rental income, EUR million 35.0 27.5
Net rental yield, % 8.2 8.1*
Supermarkets and shops
Gross rental income, EUR million 36.2 36.5
Net rental income, EUR million 27.0 27.2
Net rental yield, % 9.0 8.9
*Figures include uncompleted projects
Investments and development projects
Citycon's gross investments in 2004 amounted to EUR 18.5 million (EUR 84.2
million).
Gross investments include the acquisition of a new shopping centre, Torikeskus in
Seinäjoki, in two stages for a total of EUR 8.0 million and EUR 10.5 million on
development projects.
The Shopping Centres division's main property acquisition was Torikeskus in
Seinäjoki. Citycon acquired the property during the year in two stages and the
total price was EUR 8.2 million. With the acquisition of Torikeskus, the leasable
area grew by 880 square metres and 79 leases were transferred to Citycon.
Torikeskus in Seinäjoki is one of Southern Ostrobothnia's leading shopping
centres.
The extension to the IsoKarhu shopping centre in Pori was completed during the
third quarter and added Citycon's profit in the last quarter of the year. The
extension reinforces Citycon's leading market position in the Pori market area
and augments the services provided by IsoKarhu. The conversion work on
Jyväskeskus, which is in Jyväskylä, was completed in May, and this immediately
added rental income. The combined total of the investments in IsoKarhu and
Jyväskeskus was roughly EUR 12 million.
The division also planned extensions at the Lippulaiva and Espoontori shopping
centres in Espoo, the Myyrmanni shopping centre in Vantaa, and the Koskikeskus
shopping centre in Tampere, as well as assessing the possibilities for
development at Trio in Lahti and Forum in Jyväskylä.
The Supermarket and Shops division's main projects carried out during the year
are the completion of the renovation of the Laajavuorenkuja retail site in Vantaa
and the development project for Karjaa and Sinikalliontie in Espoo. Citycon
invested a total of EUR 0.9 million in the properties. The division negotiated on
the modernisation of the Länsikeskus retail site in Espoo and brought a new
grocery chain into the property. The division also examined possibilities for
development at the shopping centres in the Hervanta district of Tampere and in
Kuopio city centre.
The Property Development Division supported Citycon's other division on
development projects for a total of ten retail properties in 2004. The division
also prepared new retail site projects in the Tampere market zone and in the
Helsinki Metropolitan Area. Marketing was launched for the MAXX retail park in
the Lahdesjärvi district of Tampere. The municipal plan for the area came into
force legally in March 2004 and it has roughly 65,000 square metres of permitted
building volume. According to the scheduled timetable, phase one of the retail
park will open in 2007.
Divestments
During the period, Citycon sold, in accordance with its strategy, three
properties belonging to the Supermarkets and Shops Division. The combined book
value of the properties sold was EUR 0.7 million and the capital gains were EUR
0.1 million.
Turnover and profit
The turnover for the financial year was EUR 88.6 million (EUR 78.1 million).
Gross rental income accounted for 93.9 per cent (93.3 %) of turnover. Operating
profit rose to EUR 50.3 million (EUR 43.3 million). The increase was mostly due
to the acquisitions of shopping centres carried out by Citycon at the end of 2004
and in the first quarter of 2004.
Turnover increased by EUR 10.5 million although was affected by a small rise in
the cost-of-living-index, which resulted smaller than expected indexed increases
in rents. On the other hand, the maintenance costs of properties and the Group's
financing expenses were lower than estimated. Property maintenance costs were
reduced by factors including refunds of property tax, which were EUR 0.7 million.
Financing expenses were lower than expected due to low interest rates and
refinancing.
Balance sheet and financing
The balance sheet total was EUR 840.4 million (EUR 835.3 million), of which cash
and cash equivalents were EUR 8.6 million (EUR 15.1 million). The Group's
financial situation remained good.
Citycon's share capital increased by EUR 13,979,925.00 as a result of a directed
share issue and share subscriptions based on Citycon's 1999 A/B/C warrants during
the financial year and it was EUR 156,780,033.30 at year-end. Into this figure
are including subscriptions made on 28 December 2004 for 92,000 new shares at a
par value of EUR 1.35. The share capital in accordance with the share
subscriptions was entered in the Trade Register on 3 February 2005.
At year-end Group's liabilities totalled to EUR 438.4 million (EUR 457.5
million). Interest-bearing liabilities decreased by EUR 21.0 million to EUR
491.3 million (EUR 512.3 million), when the capital loan of EUR 68.5 million (EUR
68.5 million) was in the regarded as interes-bearing liability. Short-term liabilities accounted for
EUR 31.1 million (EUR 29.2 million) of interest-bearing liabilities.
Most of Citycon's loans were reorganised in November 2004. Citycon signed an EUR
450 million syndicated unsecured credit facility, divided into an EUR 350 million
loan and an EUR 100 million revolving credit facility. The maturity of the
facility is 4.5 years. The facility is intended to broaden Citycon's financing
base, to reduce cost of funding and to secure financing of future investments. The
facility financed the old EUR 435 million secured
syndicated loan facility and EUR 10 million overdraft facility. The facility was
principally arranged by Nordea (Coordinator), SEB Merchant Banking, Skandinaviska
Enskilda Banken AB (publ) and Eurohypo AG. The other participating financial
institutions were Danske Bank, OKO Bank, Swedbank and Aktia Savings Bank Plc.
The average interest rate for interest-bearing liabilities during the financial
year was 5.2 per cent (5.5%). The average loan period, weighted according to the
principals of the loans, was 4.0 years (4.6 years), and the average interest-rate
fixing period was 3.6 years (4.0 years). The Group's equity ratio was 47.6 per
cent (44.9%) and 39.4 per cent (36.7%) if the capital loan is not included in
shareholders' equity.
The interest coverage ratio, i.e. the previous twelve months' profit before
interest expenses, taxes and depreciation relative to net financial expenses, was
2.2 (2.1). Gearing at year-end was 146.8 per cent (163.2). At the end of 2004,
Citycon's interest-bearing liabilities included 86.0 per cent (87.0%) of floating
rate loans, of which 69.1 per cent (69.0%) has been converted to a fixed rate by
means of interest rate swaps. The par value of the interest rate swaps at year-
end was EUR 339.4 million (EUR 302.2 million). The market value of the
derivatives at year-end was EUR -18.5 million (EUR -11.4 million).
Net financial expenses increased by EUR 1.9 million to EUR 26.1 million (EUR 24.2
million).
Citycon and IFRS
Citycon Oyj is to go over to reporting in accordance with IAS/IFRS standards
(International Financial Reporting Standards) in its interim reports and
financial statements for 2005. The company made decisions on the main optional
accounting principles in IFRS at the beginning of 2004 and examined the effect of
the adoption of IFRS on its accounting principles in its financial statements
bulletin released on 12 February 2004. In addition, in 2004, Citycon issued
preliminary IFRS comparative figures on the balance sheet as at 1 January 2004
and for all quarters of the year.
In the future, Citycon will disclose preliminary IFRS-comparative figures for
2004 in a separate bulletin on the issue dates of this financial statements
bulletin. Citycon will present final reconciliation calculations in its interim
report for the first quarter of 2005.
Personnel
Citycon strengthened its personnel resources in property investment by appointing
Mr. Harri Holmström, M.Sc. (Surveying), as Chief Investment Officer and member of
the Corporate Management Committee. At year-end, the Citycon Group had a total of
45 (34) employees, of whom 34 (27) were employed by the parent company.
Wages and salaries paid by the Citycon Group totalled EUR 2.3 million (EUR 2.1
million), of which EUR 0.3 million (EUR 0.2 million) was paid to managing
directors and members of the Board of Directors were paid EUR 0.2 million (EUR
0.1 million). Wages and salaries paid to employees in the company totalled
EUR 1.9 million (EUR 1.8 million), of which EUR 0.2 million (EUR 0.2 million) was
paid to the CEO and the members of the Board of Directors were paid EUR 0.2
million (EUR 0.1million).
Board of Directors and Accountants
The annual general meeting of Citycon held on 15 March 2004 decided to re-elect
to the Board of Directors Stig-Erik Bergström and Carl G. Nordman, and to elect
as new members Amir Gal, Timo Kankuri, Raimo Korpinen, Tuomo Lähdesmäki,
and Claes Ottosson. Stig-Erik Bergström was elected as chairman of the Board and
Tuomo Lähdesmäki as deputy chairman.
Ari Ahti, Authorised Public Accountant, and Jaakko Nyman, APA, were re-elected in
2004 as the company's auditors for a new term in office, with the APA firm KPMG
Oy Ab as deputy auditor.
An extraordinary general meeting of Citycon held on 10 August 2004 decided in
accordance with a proposal by the Nomination Committee to increase the number of
members on the Board of Directors from seven to eight, in accordance with the
articles of association. Dori Segal was elected to the Board as a new member.
Shares and shareholders
Directed share offering
During the financial year, Citycon carried out a directed share offering to
Finnish and international institutional investors. The intention of the share
offering was to expand Citycon's ownership structure to support the company's
forthcoming growth and to improve the liquidity of the company's shares. The
decision by the Board of Directors to hold the share offering was based on an
authorisation granted by the annual general meeting of 15 March 2004 to increase
the share capital by means of a new issue of shares.
New shares in the amount of 10,000,000 were offered for subscription at a price
of EUR 2.03. Of the shares, 91 per cent were sold to foreign and 9 per cent to
Finnish investors. The new shares were the equivalent of roughly 9.4 per cent of
Citycon's share capital and voting rights conferred by shares before the
offering, and after it they were equal to roughly 8.6 per cent. The share
offering was carried out in a bookbuilding process on 13 and 14 September 2004.
The share offering was oversubscribed by a factor of 2.4. The increase in share
capital, being EUR 13,500,000, was entered in the Trade Register on 24 September
2004. The new shares were quoted on the Main List of the Helsinki Exchanges as of
27 September 2004.
The details of the directed share offering can be seen in the stock exchange
releases issued by Citycon in September 2004.
Share capital, the number and par value of shares
The trend in Citycon Oyj's share capital during the financial year was as
follows:
Date Event Change in Number of Change in Share capital
Number of shares share EUR
shares capital
EUR
1 Jan 04 Share capital 105 777 858 142 800 108,30
24 Sept.04 Increase in
capital based
share offering 10 000 000 115 777 858 13 500 000 156 300 108,30
27 Oct.04 Increase in
capital based
share offering 35 000 115 812 858 47 250 156 347 358,30
16 Dec.04 Increase in
capital based
share offering 228 500 116 041 358 308 475 156 655 833,30
31 Dec.04 Share capital 116 041 358 156 655 833,30
3.2.2005 Increase in
capital based
share offering 92 000 116 133 358 156 780 033,30
Citycon's share capital at year-end was EUR 156,780,033,30 and the number of
shares was 116,133,358. The par value of a share is EUR 1.35.
Traded volume and price
Trading in Citycon shares grew by 10.1 per cent and the share price increased by
more than a factor of 1.6 in 2004. The total for Citycon Oyj shares traded on the
Helsinki Exchanges was 115.1 million shares (104,5 million shares), equalling EUR
223.0 million (EUR 153.8 million) of trading. The high price quoted during the
period was EUR 2.65 and the low was EUR 1.52 The weighted average price for the
period was EUR 1.94 and the closing price of the period was EUR 2.44. The
company's market capitalisation at the end of the period was EUR 273.9 million
(EUR 154.9 million), after deducting the portion of treasury shares from the
total.
Shareholdings
The ownership of Citycon changed during the financial year, becoming more
international. During the financial year, 6 statutory notices of changes in
ownership were issued.
Date of Number Percentage of Percentage of
change in of shares share capital share capital
holding
16.2.04 Evli Pankki Plc 4 294 944 4,06 4,06
Total holding of funds 2 442 000 2,31 2,31
managed by
Evli Fund Management Ltd
Evli Group, total 6 736 944 6,37 6,37
17.2.04 Deutsche Bank AG 5 230 051 4,94 4,94
subsidiaries
18.2.04 Evli Pankki Plc 3 108 944 2,94 2,94
Total holding of funds 2 142 000 2,02 2,02
managed by
Evli Fund Management Ltd
Evli Group, total 5 250 944 4,96 4,96
1.3.04 Gazit-Globe(1982)Ltd 13 277 400 12,55 12,55
3.3.04 Gazit-Globe(1982)Ltd 26 902 400 25,43 25,43
5.4.04 Gazit-Globe(1982)Ltd 35 330 000 33,40 33,40
At the end of the period, Citycon had a total of 1,175 registered shareholders
(1,450). The registered shareholders held 116.0 million shares, so they had 99.9
per cent of the shares and voting rights. Nominee-registered shareholders, mostly
international investors, had 99.6 million shares, which is 85.8 per cent of the
number of shares and voting rights.
Treasury shares and the shareholdings of the Board of Directors and the
management
At year-end, the company held 3,874,000 of its own shares, which is the
equivalent of 3.3 per cent of the company's total shares and voting rights. The
total purchase price for the shares was EUR 4.7 million. The book value of
treasury shares on 31 December 2004 corresponded to their purchase price, which
was lower than their market value at the end of period. The effect of treasury
shares has been deducted for the calculation of the key figures.
In deciding on carrying out the directed share offering on 15 September 2004.
Citycon's Board of Directors also decided to propose to the annual general
meeting to be held in spring 2005 that the 3,874,000 treasury shares held by the
company be invalidated instead of selling them in public trading at the Helsinki
Exchanges as decided by the Board of Directors on 11 August 2004.
The members of Citycon Oyj's Board of Directors held a total of 91,667 shares on
31 December 2004, which was 0.07 per cent of the company's total shares and
voting rights. Citycon's CEO held 100,000 shares and 1,650,000 stock options, in
addition to which the other members of the Corporate Management Committee held a
total of 3,000 shares and 971,670 stock options on 31 December 2004.
Citycon in international investors' comparative indexes
Citycon is included in international property investment companies' indexes. The
EPRA/NAREIT Global Real Estate Index and the GPR 250 Property Securities Index
serve as comparative indexes for international investors, measuring the
appreciation and total earnings of shares.
Authorisations and stock options
During the financial year, Citycon's Board of Directors exercised the
authorisation granted by the company's annual general meeting of 15 March 2004 to
increase the share capital by an issue of new shares and it decided on 15
September 2004 to carry out a share offering to selected investors. The
authorisation was used for 10,000,000 shares.
The annual general meeting of 15 March 2004 authorised the Board of Directors to
buy back a number of the company's shares amounting to a maximum of 5 per cent of
the company's share capital and of the total voting rights conferred by all
shares. The authorisation is valid until 15 March 2005. The authorisation has not
been exercised.
The annual general meeting authorised the Board of Directors to surrender the
treasury shares held by the company. The authorisation is valid until 15 March
2005. On 11 August 2004, the Board of Directors decided to exercise the
authorisation granted by the annual general meeting of 15 March 2004 to surrender
treasury shares. However, the surrender of treasury shares was not effected; the
Board of Directors decided on 15 September 2004 to propose the cancellation of
these shares to the next annual general meeting.
Citycon Oyj applied for the listing of the 1999 A/B/C warrants on the main list
of the Helsinki Exchanges during the financial year. The A/B warrants were
included on the main list of the Helsinki Exchanges as of 23 April 2004 and the C
warrants have been included on the same list since 1 September 2004. By the end
of the financial year, A/B/C warrants had been exercised to subscribe a total of
263,500 new Citycon Oyj shares at a par value of EUR 1.35 per share. The
subscription price of the shares was EUR 1.54 per share. In addition there were
made subscriptions for 92,000 new shares on 28 December 2004.The share capital in
accordance with the share subscriptions was entered in the Trade Register on 3
February 2005. Each share confers one vote. The new shares will confer
entitlement to dividend for the financial year 2004. The other share rights will
come into force when the increase in the share capital is registered.
The annual general meeting of 15 March 2004 decided on issuing stock options to
personnel of Citycon Oyj and of its subsidiaries and to a wholly owned subsidiary
of Citycon Oyj as part of the Group's personnel incentive and commitment system.
Citycon's Board of Directors decided on 26 May 2004 on the distribution of stock
options in accordance with the decision of the annual general meeting. A total of
1,135,000 2004A stock options were distributed to the personnel of the Group. The
rest of the stock options, 2,765,000 (2004A/B/C), were granted to Veniamo-Invest
Oy, a subsidiary of Citycon Oyj, to be further distributed to the present and
future personnel of the Group.
Events after the end of the financial year
Subscriptions were made for 92,000 new shares at a par value of EUR 1.35 based on
the option rights 1999A/B/C. The share capital in accordance with the share
subscriptions was entered in the Trade Register on 3 February 2005.
The Board's proposal on dividend
Citycon's Board of Directors is to recommend to the annual general meeting
convening on 5 April 2005 that a dividend of EUR 0.14 per share be paid for the
financial year ending on 31 December 2004 on all shares outside the company's
ownership. The Board of Directors recommends that the record date be 8 April 2005
and that the dividend be paid to shareholders on 15 April 2005.
Outlook for the future
Citycon expects that demand, occupancy rates and rents for its retail premises
will continue to remain positive in the Helsinki Metropolitan Area and Finland's
major cities. Within more competetive environment the company is pursuing its
possibilities of expanding its business in Finland , Baltic countries and in Scandinavia.
The implementation of the growth strategy is forecast to begin in 2005.
At the same time, the company will continue the implementation of the growth strategy for its
business in Finland. Because of the favourable market prospects and the shopping centre
acquisitions in 2004 as well as the extension projects carried out, the company estimates that
turnover and profit for 2005 will be at least on the level of the 2004 figures.
Helsinki, 18 February 2005
Citycon Oyj
Board of Directors
Consolidated income statement
EUR million 1-12 2004 % 1-12 2003 %
Turnover 88.6 100.0 78.1 100.0
Other income 0.8 0.9 -0.5 -0.6
Expenses
Materials and services 22.8 25.8 18.7 23.9
Salaries and social expenses 3.0 3.4 2.6 3.4
Depreciation and impairments 7.6 8.6 6.5 8.4
Rents and maintenance charges 3.5 4.0 4.1 5.2
Share of associated companies' profit -0.1 -0.1 0.4 0.5
Other expenses of business operations 2.1 2.4 1.9 2.5
Expenses, total 39.1 44.1 34.3 43.9
Operating profit 50.3 56.8 43.3 55.5
Financial income and expenses -26.1 -29.4 -24.2 -31.0
Profit before extraordinary
items and taxes 24.2 27.4 19.1 24.5
Taxes -6.8 -7.7 -4.9 -6.2
Profit 17.4 19.7 14.3 18.3
Consolidated balance sheet
EUR million 31 Dec. 2004 31 Dec. 2003
Assets
Non-current assets
Intangible assets 4.7 4.5
Tangible assets 740.5 729.1
Investments
Holdings in associated companies 55.7 55.5
Treasury shares 4.7 4.7
Other investments 21.3 23.1
Investments, total 81.7 83.3
Non-current assets, total 827.0 816.9
Current assets
Short-term receivables 4.9 3.4
Cash and cash equivalents 8.6 15.1
Current assets, total 13.5 18.5
Assets, total 840.4 835.3
Liabilities and shareholders' equity
Shareholders' equity
Share capital 156.8 142.8
Share premium fund 35.1 28.3
Treasury share reserve 4.7 4.7
Other funds 6.6 6.6
Retained profits 13.0 13.0
Profit 17.4 14.3
Capital loan 68.5 68.5
Shareholders' equity, total 302.0 278.0
Minority interest 100.0 99.8
Liabilities
Long-term liabilities 407.4 428.3
Short-term liabilities 31.1 29.2
Liabilities, total 438.4 457.5
Liabilities and shareholders'
equity, total 840.4 835.3
Gross investment in non-current
assets 18.5 84.2
% of turnover 20.9 107.9
Depreciation and impairments 7.6 6.5
Personnel, average 40 33
Cash flow statement
EUR million 1-12 2004 1-12 2003
Operating activities
Profit before extraordinary items 24.2 19.1
Adjustments:
Depreciation 7.6 6.5
Financial income and expenses 26.1 24.2
Other adjustments 0.0 0.9
Cash flow before change in working
capital 57.9 50.8
Change in working capital -0.2 0.0
Cash flow from operating activities
before financial items and taxes 57.7 50.7
Interest paid and payments for other
financial expenses of operating
activities -28.0 -24.1
Dividend and interest received from
business operations 0.8 0.5
Taxes paid -4.2 -4.7
Cash flow from operating activities (A) 26.3 22.4
Investing activities
Investments in tangible and
intangible assets -10.8 -4.9
Shares in subsidiaries purchased -8.8 -77.1
Shares in subsidiaries sold 0.8 1.4
Shares in associated companies purchased 0.0 -0.8
Shares in associated companies sold 0.0 1.6
Other items 0.1 0.1
Cash flow from investing
activities (B) -18.7 -79.7
Financial activities
Share issue 20.8 0.0
Withdrawals of short term loans 18.2 2.1
Repayments of short-term loans -18.1 0.0
Withdrawals of long-term loans 414.9 67.9
Repayments of long-term loans -435.7 -0.2
Dividend paid and other distribution
of profit -14.3 -9.2
Cash flow from financial
activities (C) -14.1 60.6
Increase (+)/decrease (-) in cash
and cash equivalents (A+B+C) -6.5 3.3
Cash and cash equivalents at
beginning of period 15.1 11.7
Cash and cash equivalents at end
of period 8.6 15.1
Key financial figures
1-12 2004 1-12 2003
Earnings per share, EUR 0.17 0.14
Equity per share, EUR 2.04 2.01
Return on equity (ROE), % 8.4 7.1
Return on equity, including minority
interest, % 5.7 4.9
Return on investment (ROI), % 6.2 5.8
Equity ratio, % 47.6 44.9
Equity ratio with capital loan not
counted as part of shareholders'
equity, % 39.4 36.7
Treasury shares
31 Dec. 2004 31 Dec. 2003
Number of shares, million 3.9 3.9
Total par value, EUR million 5.2 5.2
Share of shareholders' equity, % 3.3 3.3
Share of voting rights, % 3.3 3.3
Acquisition cost, EUR million 4.7 4.7
The book value of treasury shares on 31 December 2004 corresponded to the
purchase price, which was lower than market value at the end of the period. The
effect of the treasury shares has been eliminated for the calculation of the key
figures.
Consolidated contingent liabilities
EUR million 31 Dec. 2004 31 Dec. 2003
Mortgages on land and buildings 2.4 338.4
Group company shares pledged 0.0 78.4
Other pledged shares 0.0 76.7
Other pledges given 0.0 3.2
Group's derivatives
EUR million 31 Dec. 2004 31 Dec. 2003
Par Fair Par Fair
values values values values
Interest-rate derivatives
Interest-rate swaps
Maturing in 2007 78.2 -0.5 78.2 1.1
Maturing in 2008 50.0 -2.2 50.0 -1.3
Maturing in 2009 128.2 -7.9 91.0 -5.4
Maturing in 2010 83.0 -7.9 83.0 -5.8
Total 339.4 -18.5 302.2 -11.4
Interest-rate options
Interest-rate caps purchased
Maturing in 2004 0.0 0.0 53.8 0.0
Total 0.0 0.0 53.8 0.0
The fair values for derivatives describe their value if all agreements had been
closed at the market price at the end of the period. Derivatives have been used
for hedging the loan portfolio. The accrued interest for the period included in
the derivatives' fair values, being EUR 0.6 million (EUR 0.6 million) has been
booked in interest expenses.
The taxes correspond to the profit of the period.
Accounting principles
The accounting principles applied in the annual financial statements as at 31
December 2003 are applied in this interim report
Financial reporting
Citycon Oyj will disclose its financial statements bulletin on 18 February 2005.
The annual report will be published the company's website during week 10, and the
printed version will be completed in week 12.
Citycon Oyj will publish its interim reports in 2005 as follows:
January-March 27 April 2005 at 12:00 noon
January-June 20 July 2005 at 12:00 noon
January-September 19 October 2005 at 12:00 noon
The annual general meeting of Citycon Oyj will be held on 5 April 2005.
Further information for investors can be seen on Citycon's website,
www.citycon.fi.
Further information:
CEO Mr Petri Olkinuora
Tel. +358 9 6803 6738 or +358 400 333 256
petri.olkinuora@citycon.fi
CFO Ms Pirkko Salminen
Tel. +358 9 6803 6730 or +358 50 3022 485
pirkko.salminen@citycon.fi