CITYCON'S INTERIM REPORT 1 JANUARY-31 MARCH 2005
- Profit before taxes amounted to EUR 7.8 million (EUR 7.4 million)
- Turnover totalled EUR 21.2 million (EUR 21.0 million)
- Earnings per share were EUR 0.05 (EUR 0.08)
- Demand and occupancy rates for retail premises remained strong
- Citycon continuously enhances its readiness to expand its international
operations
Key figures 1-3 2005 1-3 2004 1-12 2004
Turnover, EUR million 21.2 21.0 84.7
Operating profit, EUR million 14.2 13.9 52.6
% of turnover 67 66 62
Profit before taxes, EUR million 7.8 7.4 26.5
Profit, EUR million 5.6 8.4 22.7
Earnings per share, EUR 0.05 0.08 0.22
Earnings per share, diluted, EUR 0.05 0.08 0.22
Equity per share, EUR 2.07 1.88 2.01
P/E (price/earnings) ratio 12 6 10
Return on equity (ROE), % 9.6 17.5 11.0
Return on investment (ROI), % 7.7 7.6 7.3
Equity ratio, % 29.8 25.2 29.6
Gearing, % 209.1 266.2 221.5
Net rental yield, % 8.7 8.6 8.8
Occupancy rate, % 96.4 97.1 95.7
Personnel at the end of period 45 41 45
Citycon and IFRS
Citycon Oyj applies for the first time IAS/IFRS standards (International
Financial Reporting Standards) in its interim reports, financial statements for
2005 and comparable figures for 2004. In 2004, Citycon already disclosed
preliminary IFRS-comparative figures on the opening balance sheet of 1 January
2004 and for each quarter, on 31 August 2004, 21 October 2004 and 18 February
2005. Information related to this change is also available in the company's
Annual Report for 2004.
The main changes related to IFRS-compliant reporting, and their impact on the
opening balance sheet as of 1 January 2005, are as follows:
EUR million
FAS Shareholders' equity 31 Dec.2004 302.0
IAS 40 Change in valuation of investment properties 18.6
IAS 39 Change in values of interest rate derivatives -18.3
IAS 32 Reclassification of treasury shares -4.7
IAS 32 Reclassification of capital loan -68.5
IAS 12 Change in deferred tax assets and liabilities -3.0
IFRS Shareholders' equity 1 Jan. 2005 226.0
The most essential changes in the income statement involve the abolishment of
depreciation related to investment properties from, and the inclusion of the
change in value in, the income statement. The impact of IFRS-related changes on
taxes also affects the income statement.
As of 1 January 2005, the net rental yield percentage of the property portfolio
has been calculated on the basis of the fair value of property, using the time-
weighted returns method based on the guidelines of the KTI Institute for Real
Estate Economics and the Investment Property Databank.
Trends in the Business Environment
Developments in the Finnish retail business remained favourable in the first
quarter of 2005. Retail sales grew by 4.2 per cent1) in the period from December
2004 to February 2005, buoying up demand for leased retail premises and keeping
their average vacancy rates low.
Financial markets remained stable, interest rates in the euro zone were lower
than ever and international interest in the Finnish property market remained
high.
1) Source: Statistics Finland
Business Activities and Property Portfolio Summary
Citycon's business activities comprise the entire chain of retail premises
ownership, i.e. ownership, leasing, management and property development. Citycon
operates in three divisions (business segments) according to customer needs and
the type of premises: Shopping Centres, Supermarkets and Shops, and Property
Development.
At the end of the reporting period, Citycon owned 144 properties (148) with a
fair value totalling EUR 736.4 million (EUR 735.4 million). Practically all of
the company's property portfolio consists of retail properties.
The company owned 16 shopping centres and 128 supermarkets and shops. Shopping
centres accounted for 60.8 per cent and supermarket and shop premises for 39.2
per cent of the property portfolio's fair value. In terms of fair values, 45.0
per cent of the properties were in the Helsinki Metropolitan Area, 37.0 in other
major Finnish cities and 18.0 in other parts of Finland at the end of the period.
Customers, Lease Portfolio and Occupancy Rate
At the end of the period, Citycon had a total of 1,463 leases with roughly 845
lessees. The average length of leases was 3.6 years.
The period-end occupancy rate for Citycon's property portfolio was 96.4 per cent
(97.1%), the change in the occupancy rate being due to normal fluctuations in the
leasing business.
Lease portfolio summary 1-3 2005 1-3 2004
Number of leases started during
the period, total 77 98
Total area of leases started, sq.m. 19,684 24,603
Occupancy rate at end of period, % 96.4 97.1
Average length of lease portfolio
at end of period, in years 3.6 3.7
Shopping Centres Division
Shopping Centres Division's key figures
Lease portfolio summary 1-3 2005 1-3 2004
Number of leases started during
the period, total 56 73
Total area for leases started, sq.m. 6,051 11,039
Occupancy rate at end of period, % 97.0 97.5
Average length of lease portfolio at
end of period, in years 2.7 2.9
Financial performance 1-3 2005 1-3 2004
Turnover, EUR million 12.7 11.8
Operating profit, EUR million 9.1 8.8
Gross rental income, EUR million 12.4 11.4
Net rental income, EUR million 9.2 8.4
Net rental yield, % 8.2 7.5
Net rental yield, standing investments, % 8.4 7.8
Market value of property portfolio,
EUR million 447.4 454.6
Gross investments, EUR million 0.8 9.4
Standing investments means those properties which have been Citycon-held for the
entire comparison year. Properties subject to development and extension have been
eliminated from the figures. Also lots have been eliminated.
Supermarkets and Shops Division
Supermarkets and Shops Division's key figures
Lease portfolio summary 1-3 2005 1-3 2004
Number of leases started during
the period, total 21 25
Total area for leases started, sq.m. 13,633 13,564
Occupancy rate at end of period, % 95.7 96.6
Average length of lease portfolio at
end of period, in years 4.8 4.6
Financial performance 1-3 2005 1-3 2004
Turnover, EUR million 8.5 9.2
Operating profit, EUR million 6.7 6.4
Gross rental income, EUR million 8.5 9.2
Net rental income, EUR million 6.2 6.8
Net rental yield, % 9.6 10.1
Net rental yield, standing investments, % 9.7 10.3
Market value of property portfolio,
EUR million 289.0 280.7
Gross investments, EUR million 0.3 0.0
Standing investments means those properties which have been Citycon-held for the
entire comparison year. Properties subject to development and extension have been
eliminated from the figures. Also lots have been eliminated.
The most significant new lease for the Supermarkets and Shops Division was that
signed with a new grocery chain on the Länsikeskus retail site in Espoo. Mainly
as a result of this, the division's occupancy rate raised by 2.3 percentage
points from year end 2004.
The Division sold two properties at a total amount of EUR 3.6 million during the
reporting period. The impact of these transactions on the results was EUR 0.3
million.
Property Development Division
The Property Development Division's mission is to contribute to realising the
corporate strategy by developing and extending Citycon's existing retail sites,
alongside the other divisions. The division is also responsible for commissioning
the construction of new retail sites - i.e., for acquiring land and controlling
and developing the related commercial and functional planning, including
negotiations on planning permission, liaison with the authorities and
administering projects. The division also handles the marketing and leasing of
premises on new retail sites.
The division's key figures are not reported separately because it does not have
property portfolio or rental income.
Turnover and Profit
The turnover for the period was EUR 21.2 million (EUR 21.0 million). Gross rental
income accounted for 98.6 per cent (98.1 %) of turnover. Operating profit rose to
EUR 14.2 million (EUR 13.9 million). Profit before taxes amounted to EUR 7.8
million (EUR 7.4 million) and profit after taxes was EUR 5.6 million (EUR 8.4
million). Profit after taxes in the corresponding period of the previous year
included one time deferred tax receivable of EUR 2.6 million related to the
acquisition of Torikeskus in Seinäjoki which was booked in income taxes.
The profit includes EUR 0.3 million in capital gains from investment properties.
Balance Sheet and Financing
The period-end balance sheet total was EUR 765.8 million (EUR 746.9 million), of
which cash and cash equivalents were EUR 23.1 million (EUR 6.7 million). The
Group's financial situation remained sound.
The Group's period-end liabilities totalled EUR 533.9 million (EUR 555.3
million). Interest-bearing liabilities decreased during the period by EUR 0.5
million to EUR 507.9 million (EUR 516.5 million), of which short-term liabilities
accounted for EUR 36.7 million (EUR 34.0 million).
The average interest rate for interest-bearing liabilities was 5.2 per cent (5.1
%), the average loan period, weighted according to loan principals, came to 3.3
years (4.3 years), and the average interest-rate fixing period was 3.4 years (4.2
years). The Group's equity ratio was 29.8 per cent (25.2 %).
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). Period-end gearing was 209.1 per cent (266.2). Citycon's interest-
bearing liabilities at the period end included 86.0 per cent (86.7 %) of floating
rate loans, of which 80.6 per cent (76.8 %) have been converted to a fixed rate
by means of interest rate swaps. The overall hedging rate of the loan portfolio
was 69.1 per cent (77.0 %). On 31 March 2005, the par value of interest rate
swaps was EUR 339.4 million (EUR 342.2 million) while the market value of
derivatives was EUR -19.3 million (EUR -19.2 million).
Net financial expenses decreased by EUR 0.1 million to EUR 6.4 million (EUR 6.5
million).
Personnel
At the end of the period, the Citycon Group had a total of 45 (41) employees.
Share Capital and Shares
Share Capital
At the beginning of the reporting period, the company's share capital was EUR
156,655,833.30 and the number of shares was 116,041,358. The share capital
increased by EUR 124,200 during the period as a result of share subscriptions
based on Citycon's 1999 option scheme. A total of 92,000 new Citycon shares with
a par value of EUR 1.35 per share were subscribed in December 2004 at a per-share
subscription price of EUR 1.54, exercising the A/B/C options based on the option
scheme. The corresponding share capital increase was entered in the Trade
Register on 3 February 2005. The new shares have been traded on the Helsinki
Stock Exchange's Main list together with the old shares as of 4 February 2005.
At the end of the reporting period, Citycon's registered share capital stood at
EUR 156,780,033.30 and the number of shares totalled 116,133,358. The par value
of a share is EUR 1.35, each share conferring one vote.
Traded Volume and Price
During the period, a total of 7,8 million Citycon shares were traded on the
Helsinki Stock Exchange, providing a turnover of EUR 21,1 million. The high price
quoted during the period was EUR 3.03 and the low was EUR 2.40. The weighted
average price for the period was EUR 2.71 and the closing price EUR 2.45. The
company's market capitalisation at the end of the period was EUR 275.0 million
(EUR 240.6 million), after deducting the portion of treasury shares from the
total.
Shareholding
At the end of the period, Citycon had a total of 1,296 registered shareholders.
Nominee-registered shareholders, mostly international investors, had 101,496,158
shares, which is 87.4 per cent of the number of shares and voting rights in the
company.
Treasury Shares and the Shareholdings of the Board of Directors and the
Management
The number of treasury shares remained unchanged during the period, at 3,874,000
shares, which was the equivalent of 3.3 per cent of the company's total shares
and voting rights at the end of the period. The total purchase price of the
shares was EUR 4.7 million. The book value of treasury shares on 31 March 2005
corresponded to their purchase price, which was lower than their market value at
the end of the period. The effect of treasury shares has been deducted for the
calculation of the key figures.
Citycon's Board of Directors decided to propose to the Annual General Meeting the
cancellation of treasury shares.
The Board members of Citycon Oyj held a total of 91,173 shares on 31 March 2005,
which was 0.08 per cent of the company's total shares and voting rights.
Citycon's CEO held 100,000 shares and 1,650,000 stock options while the other
members of the Corporate Management Committee held a total of 3,000 shares and
971,670 stock options at the end of the reporting period.
Stock Options
Citycon has two option schemes in force, the 1999 A/B/C scheme and the 2004 A/B/C
scheme. By the end of March, 355,500 shares had been subscribed with warrants
issued in 1999, while a maximum of 5,144,500 shares can still be subscribed for
based on these warrants. The warrants related to the 1999 option scheme are
listed on the Helsinki Stock Exchange.
A total of 1,135,000 A-warrants of the 2004 option scheme have been issued to the
personnel of the Citycon Group. The remaining 2,765,000 (A/B/C) warrants were
granted to Veniamo-Invest Oy, a subsidiary of Citycon Oyj, to be further
distributed to the present and future personnel of the Citycon Group.
Further information on the company's option schemes is available in the Annual
Report 2004 and on the company's website.
Events after the End of the Reporting Period
Annual General Meeting
Citycon's Annual General Meeting was held on 5 April 2005 in Helsinki. The AGM
adopted the financial statements of Citycon Oyj and the Citycon Group for 2004
and released the Board of Directors and the CEO from personal liability. The AGM
also decided that a per-share dividend of EUR 0.14 be paid for 2004. The
dividends were paid on 15 April 2005.
Board of Directors and Board Remunerations
The number of Board members remained at eight. The following persons were re-
elected for a one-year term: Stig-Erik Bergström, Amir Gal, Raimo Korpinen, Tuomo
Lähdesmäki, Carl G. Nordman, Claes Ottosson and Dor (Dori) Segal while Thomas
(Thom) Wernink, a Dutch citizen, was elected as a new member. Stig-Erik Bergström
will continue as the Chairman of the Board. The Board elected Thom Wernink as
Deputy Chairman of the Board.
The AGM decided that the Chairman of the Board be paid an annual fee of EUR
40,000, the Deputy Chairman an annual fee of EUR 30,000 and ordinary members of
the Board an annual fee of EUR 20,000. It was further resolved that the Chairman
of the Board be paid a meeting fee of EUR 500 and the Deputy Chairman and
ordinary members of the Board a meeting fee of EUR 400 for each meeting. The
meeting fee shall also be paid for Board committee meetings. The payment of the
annual fee to Finnish members of the Board is conditional upon their signing an
undertaking to purchase Citycon shares with the amount of fee remaining after the
deduction of the applicable taxes.
Board Committees
The following Board members were elected to Board committees at the Board meeting
which convened immediately after the Annual General Meeting:
Audit Committee: Raimo Korpinen (Chairman), Stig-Erik Bergström, Thom Wernink
Compensation Committee: Stig-Erik Bergström (Chairman), Tuomo Lähdesmäki, Carl G.
Nordman
Investment Committee: Thom Wernink (Chairman), Stig-Erik Bergström, Amir Gal,
Dori Segal
Nomination Committee: Tuomo Lähdesmäki (Chairman), Stig-Erik Bergström, Amir Gal,
Claes Ottosson
At the same meeting, the Board of Directors also decided to sign a consultation
agreement with Thom Wernink on the development of Citycon's international
operations, on the basis of which he will be paid a consultancy fee of EUR 40,000
for a year.
Independence of Board Members
It is the view of the Board of Directors that all members of the Board except
Thom Wernink, who has entered into a consultancy agreement with the company, are
independent of the company. Furthermore, it is the view of the Board of Directors
that Stig-Erik Bergström, Raimo Korpinen, Tuomo Lähdesmäki, Carl G. Nordman and
Thom Wernink are independent of any major shareholder.
According to the company's rules of Procedure the members of the Audit Committee
shall be independent of the company. As an exception to this rule the Board has
elected Thom Wernink as a member of the Audit Committee due to his background as
the chairman of EPRA (European Public Real Estate Association). During his
chairmanship EPRA published Best Practice Policy Recommendations for public real
estate companies on compliance with IFRS standards.
Auditors
Authorised public accountants Tuija Korpelainen and Mikael Holmström were elected
as the company's auditors for the financial year 2005, and a firm of authorised
public accountants Ernst & Young Oy as the deputy auditor, with authorised public
accountant Tiina Lind serving as auditor-in-charge appointed by Ernst & Young.
Furthermore, the Annual General Meeting approved the following proposals made by
the Board:
Amendment to the Articles of Association
The AGM decided to amend Article 3 of the Articles of Association, changing the
maximum share capital of the company to EUR 500 million, and Article 12, to
stipulate that notice of a general meeting be issued to shareholders by means of
an advertisement published in at least one national newspaper appearing in
Helsinki.
Share Capital Reduction
The AGM decided to reduce the company's share capital by EUR 5,229,900 through
cancellation without payment of 3,874,000 treasury shares. This reduction in
share capital was executed by transferring the total nominal value of the
cancelled shares to the share premium fund with no effects on the restricted
shareholders' equity. The change in share capital was registered in the Trade
Register on 6 April 2005. After the reduction, the company's share capital is EUR
151,550,133.30, and the number of shares is 112,259,358. After the cancellation
of treasury shares, the company has no such shares.
Authorisation for a Share Capital Increase
The AGM authorised the Board to decide by 5 April 2006 to issue one or several
convertible bonds, issue stock options and increase the company's share capital
through one or several share issues in such a way that the total increases in the
company's share capital based on these issues do not exceed EUR 31,356,004.50 and
that a maximum of 23,226,670 new shares with a nominal value of EUR 1.35 may be
offered. This authorisation includes the right to deviate from the shareholders'
pre-emptive subscription right.
Selling of Shares in the Joint Book-entry Account
The AGM decided to sell the company's shares held in the joint book-entry account
for the benefit of their owners in accordance with Chapter 3a, Article 3a of the
Finnish Companies Act authorising the Board to take any and all actions provided
for by the said Act to execute the sale. The number of shares in the joint book-
entry account as of 2 March 2005 was 7,537, corresponding to 0.006 per cent of
the total number of shares in the company.
Subscription of Shares with Warrants
After the reporting period, 37,000 shares were subscribed for based on the option
rights 1999 A/B/C at a per-share subscription price of EUR 1.40. The
corresponding increase in share capital, EUR 49,950 has not yet been entered in
the Trade Register.
After the increase the registered share capital of Citycon Oyj is EUR
151,600,083.30 and the total amount of shares is 112,296,358. The new shares will
be traded on the Helsinki Stock Exchange's Main list together with the old shares
approx. as of 2 May 2005.
The unexercised stock options based on Citycon's stock option scheme 1999 entitle
their holders to subscribe 5,107,500 new shares, corresponding to a further
capital increase of EUR 6,895,125. The share subscription period will expire on
30 September 2007.
Future Outlook
Citycon forecasts that demand, occupancy rates and rents for its retail premises
will continue to remain stable in the Helsinki Metropolitan Area and Finland's
major cities. In the increasingly tightening competitive environment, the company
is seeking opportunities to expand its operations in Finland, the Baltic
countries and Scandinavia. Implementation of this growth strategy is expected to
begin in 2005. The company estimates that turnover and profit for 2005 will be at
least on the level of the 2004 figures.
Helsinki, 27 April 2005
Citycon Oyj
Board of Directors
Consolidated income statement
EUR million 1-3 2005 % 1-3 2004 % 1-12 2004
Turnover 21.2 100.0 21.0 100.0 84.7
Other income 0.7
Profit on sale of investment
Property 0.3 0.0 0.1
Change in value of investment
Property 0.0 0.0 -5.0
Expenses
Depreciation and impairments 0.0 0.0 0.0 0.2
Other expenses 7.3 34.2 7.1 33.8 27.8
Operating profit 14.2 67.1 13.9 66.2 52.6
Net financial expenses 6.4 30.2 6.5 31.0 26.1
Profit before taxes 7.8 36.9 7.4 35.2 26.5
Taxes -2.2 -10.5 1.0 4.7 -3.8
Profit 5.6 26.3 8.4 39.8 22.7
Earnings per share, EUR 0.05 0.08 0.22
Earnings per share, diluted, EUR 0.05 0.08 0,22
Consolidated balance sheet
EUR million 31.3.2005 31.3.2004 31.12.2004
Assets
Non-current assets
Intangible assets 0.2 0.4 0.5
Tangible assets 1.7 1.3 1.7
Investment properties 736.4 735.4 738.7
Investmets 0.0 0.0 0.0
Deferred tax assets
Non-current assets, total 738.4 737.1 740.8
Current assets
Short-term receivables 4.2 3.1 4.2
Cash and cash equivalents 23.1 6.7 7.9
Current assets, total 27.4 9.8 12.2
Assets, total 765.8 746.9 753.0
Liabilities and shareholders' equity
Equity attributable to equity holders of the parent
Share capital 156.8 142.8 156.8
Share premium fund 35.0 28.3 35.0
Treasury shares -4.7 -4.7 -4.7
Fair value reserve -13.0 -12.4 -13.3
Other funds 6.6 6.6 6.6
Retained profits 45.7 22.8 22.9
Profit 5.6 8.4 22.7
Shareholders' equity, total 231.9 191.7 226.0
Liabilities
Long-term liabilities 493.2 518.2 493.5
Deferred tax liabilities 4.0 3.1 3.0
Long-term liabilities, total 497.2 521.3 496.6
Short-term liabilities 36.7 34.0 30.5
Liabilities, total 533.9 555.3 527.0
Liabilities and shareholders'
equity, total 765.8 746.9 753.0
Statement of changes in shareholders' equity
Attributable to equity holders of the parent
EUR million
Share
premium
fund and Fair Trea- Retai-
other value sury ned
Share reser- reser- sha- pro- Total
capital ves ve res fits equity
IFRS Shareholders'
equity 1 Jan. 2004 142.8 34.8 -7.7 -4.7 37.1 202.4
Cash flow hedges -4.7 -4.7
Profit 8.4 8.4
Total recognised
income and expense -4.7 8.4 3.6
Dividends -14.3 -14.3
IFRS Shareholders'
equity 31 Mar. 2004 142.8 34.8 -12.4 -4.7 31.2 191.7
IFRS shareholders'
equity 1 Jan. 2005 156.8 41.5 -13.3 -4.7 45.6 226.0
Cash flow hedges 0.3 0.3
Profit 5.6 5.6
Total recognised income
and expense 0.3 5.6 5.9
Dividends 0.0
IFRS shareholders'
equity 31 Mar. 2005 156.8 41.5 -13.0 -4.7 51.2 231.9
Cash flow statement
EUR million 1-3 2005 1-3 2004 1-12 2004
Operating activities
Profit before taxes 7.8 7.4 26.5
Adjustments:
Profit on sale of
investment property -0.3 0.0 -0.1
Change in value of
investment property 0.0 0.0 5.0
Depreciation and impairments 0.0 0.0 0.1
Financial income and expenses 6.4 6.5 26.1
Other adjustments 0.1 0.3 0.2
Cash flow before change in
working capital 14.1 14.2 57.7
Change in working capital 0.3 0.1 -0.2
Cash flow from operating
activities before financial
items and taxes 14.4 14.2 57.5
Interest paid and payments for
other financial expenses
of operating activities -0.8 -1.4 -28.0
Dividend and interest received
from business operations 0.1 0.1 0.8
Taxes paid -0.9 -1.1 -4.2
Cash flow from operating
activities 12.7 11.9 26.1
Investing activities
Investments in tangible and
intangible assets -1.0 -3.1 -10.8
Shares in associated
companies sold 3.6 0.0 0.0
Shares in subsidiaries purchased 0.0 -7.5 -8.8
Shares in subsidiaries sold 0.0 0.1 0.8
Other investments sold 0.0 0.0 0.1
Cash flow from investing
activities 2.5 -10.5 -18.7
Financial activities
Share issue 0.0 0.0 20.8
Fund payments from minority
interest 0.0 0.0 0.1
Withdrawals of short-term loans 0.0 0.2 18.2
Repayments of short-term loans 0.0 0.0 -18.1
Withdrawals of long-term loans 0.0 4.9 414.9
Repayments of long-term loans 0.0 -0.5 -435.7
Dividend paid and other
distribution of profit 0.0 -13.7 -14.3
Cash flow from financial activities 0.0 -9.2 -14.1
Increase in cash and
cash equivalents 15.2 -7.9 -6.7
Cash and cash equivalents at
the beginning of period 7.9 14.7 14.7
Cash and cash equivalents at
the end of period 23.1 6.7 7.9
Segment reporting
EUR million 1-3 2005 1-3 2004 1-12 2004
Turnover
Shopping Centres 12.7 11.8 48.4
Supermarkets and Shops 8.5 9.2 36.3
Others 0.0 0.0 0.0
Total 21.2 21.0 84.7
Operating profit
Shopping Centres 9.1 8.8 18.8
Supermarkets and Shops 6.7 6.4 37.5
Others -1.6 -1.2 -3.7
Total 14.2 13.9 52.6
Key financial figures
1-3 2005 1-3 2004 1-12 2004
Earnings per share, EUR 0.05 0.08 0.22
Earnings per share, diluted, EUR 0.05 0.08 0.22
Equity per share, EUR 2.07 1.88 2.01
Return on equity (ROE), % 9.6 17.5 11.0
Return on investment (ROI), % 7.7 7.6 7.3
Equity ratio, % 29.8 25.2 29.6
Consolidated contingent liabilities
EUR million 31.3.2005 31.3.2004 31.12.2004
Mortgages on land and buildings 2.4 338.4 2.4
Group company shares pledged 0.0 85.3 0.0
Other pledged shares 0.0 76.7 0.0
Other pledges given 0.0 0.1 0.0
Group's derivatives
EUR million 31.3.2005 31.3.2004 31.12.2004
Par Fair Par Fair Par Fair
values values values values values values
Interest-rate derivatives
Interest-rate swaps
Maturing in 2007 78.2 -0.7 78.2 -0.3 78.2 -0.5
Maturing in 2008 50.0 -2.3 50.0 -2.6 50.0 -2.2
Maturing in 2009 128.2 -8.5 131.0 -8.5 128.2 -7.9
Maturing in 2010 83.0 -7.7 83.0 -7.7 83.0 -7.9
Total 339.4 -19.3 342.2 -19.2 339.4 -18.5
Interest-rate options
Interest-rate caps
Purchased Maturing
in 2004 0.0 0.0 53.8 0.0 0.0 0.0
Total 0.0 0.0 53.8 0.0 0.0 0.0
The fair values for derivatives describe their value if all agreements had been
closed at the market price of the end of period.
Derivatives have been used for hedging the loan portfolio.
The accrued interest for the period included in the derivatives' fair values,
being EUR 1.7 million (EUR 1.7 million) has been booked in interest expenses.
Summary of effects of IFRS on profit
EUR million 1-3 2004 1-12 2004
Profit FAS 4.1 17.4
IAS 40 Change in valuation of
investment property 1.7 2.4
IAS 12 Change in deferred tax assets
and liabilities 2.6 3.0
Other changes 0.0 -0.2
Changes total 4.3 5.3
Profit IFRS 8.4 22.7
Summary of effects of IFRS on shareholders' equity
EUR million 1.1.2004 31.3.2004 31.12.2004
Shareholders' equity FAS 278.0 267.8 302.0
IAS 40 Change in valuation of
investment properties 16.2 17.8 18.6
IAS 39 Change in values of
interest rate derivatives -10.9 -17.6 -18.3
IAS 32 Reclassification of
treasury shares -4.7 -4.7 -4.7
IAS 32 Reclassification of
capital loan -68.5 -68.5 -68.5
IAS 12 Change in deferred tax
assets and liabilities -7.7 -3.1 -3.0
Other changes 0.0 -0.1 -0.2
Changes total -75.6 -76.1 -76.0
Shareholders' equity IFRS 202.4 191.7 226.0
The figures are unaudited.
Accounting Principles
The IFRS accounting principles applied in the annual financial statements as of
31 December 2004 have been applied to these financial statements.
Financial Information in 2005
Citycon will publish interim reports for 2005 as follows:
January-June 20 July 2005 at 12:00
January-September 18 October 2005 at 12:00
Further information for investors is available 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
Distribution:
Helsinki Stock Exchange
Main media
www.citycon.fi
Report on the general review of Citycon Oyj's interim report for the period 1.1.-
31.3.2005
We have generally reviewed the interim report of Citycon Oyj for the period 1.1.-
31.3.2005. The Board of Directors and the Managing Director have prepared an
interim report in accordance with the Securities Market Act, chapter 2, paragraph
5. Based on our interim review we express at the request of the Board of
Directors a report in accordance with the Securities Market Act, chapter 2,
paragraph 5.
We conducted our general review in accordance with the International Standard on
Auditing applicable to general review engagements. This standard requires that we
plan and perform the review to obtain reasonable assurance as to whether the
financial statements are free of material misstatement. The general review is
limited primarily to inquiries of company personnel and analytical procedures
applied to financial data and thus provides less assurance than an audit. We have
not performed an audit and, accordingly, we do not express an audit opinion.
Based on our general review, nothing has come to our attention that causes us to
believe that the interim report does not give a true and fair view in accordance
with the Securities Market Act regarding the financial position of Citycon Oyj.
Helsinki, 27 April 2005
Tuija Korpelainen Mikael Holmström
Authorized Public Accountant Authorized Public Accountant