AS MERKO EHITUS ANNUAL GENERAL MEETING 2008 The agenda of the - PowerPoint PPT Presentation

AS MERKO EHITUS ANNUAL GENERAL MEETING 2008

The agenda of the general meeting: 1. Approval of the 2007 Annual Report 2. Deciding on the distribution of profits 3. Approval of the auditor for the financial year 2008 4. Approval of the division plan of AS MERKO EHITUS 5. Election and removal of members of supervisory board 6. Remuneration of supervisory board members 7. Amendment of the Articles of Association

2005 2006 2007 Merko Ehitus; 7,0% Merko Ehitus; 6,1% Merko Ehitus; 6,1% Skanska; 3,2% Skanska; 5,1% Skanska; 3,9% Eesti Ehitus; 5,9% Eesti Ehitus; 5,0% Eesti Ehitus; 4,5% YIT Ehitus; 2,0% YIT Ehitus; 2,0% YIT Ehitus; 3,4% Others; 83,0% Others; 80,0% Others; 82,8% In million EUR 2005 2006 2007 Construction activities in Estonia 2 240 2 953 3 568 Merko Ehitus sales in Estonia 156 179 217 Skanska EMV sales in Estonia 115 116 112 Eesti Ehitus sales in Estonia 100 147 212 YIT Ehitus sales in Estonia 75 59 70

Merko Ehitus ; 3,4% Merko Ehitus ; Merko Ehitus ; 3,7% 3,6% Skans ka; 1,1% Skans ka; 1,6% 2007 Skans ka; 2,0% Ees ti Ehitus ; 2,1% Ees ti Ehitus ; 1,9% 2005 2006 YIT Group; 2,1% Ees ti Ehitus ; 1,7% YIT Group; 2,6% YIT Group; 3,4% PST; 1,2% PST; 1,4% PST; 0,9% Others ; 88,4% Others ; 89,0% Others ; 89,9% In million EUR 2005 2006 2007 Total construction activities in Baltics 5 830 7 691 10 376 Merko Ehitus sales in Baltics 207 282 353 Skanska EMV sales in Baltics 118 122 118 Eesti Ehitus sales in Baltics 100 146 213 YIT Group sales in Baltics 199 197 222 Panevežio statybos trestas sales in Baltics 51 91 145

4500 4086 4000 3775 3426 3500 3255 3226 3199 3000 2500 2000 1751 1429 1500 1054 953 922 826 1000 692 676 664 600 512 497 482 412 370 360 500 278 302 262 222 229 0 2001 2002 2003 2004 2005 2006 2007 Estonia Latvia Lithuania Finland

18% Estonia Latvia Lithuania Finland 15,9% 16% 15,2% 14% 12,8% 12% 11,3% 10,8% 9,6% 10% 9,6% 8% 6% 4% 2% 0% 2001 2002 2003 2004 2005 2006 2007

8 Estonia Latvia Lithuania Finland Sweden Denmark Norway 6,7 7 6,6 6,4 6,1 6 5,4 5,1 5 4,1 3,8 4 3,3 3,3 2,7 3 2,6 2,1 2 1 0 2002 2003 2004 2005 2006 2007

48 50 Estonia Latvia Lithuania Finland Sweden 45 40 38 35 29 30 26 24 25 20 15 10 5 0 2002 2003 2004 2005 2006

Source: Jones Lang LaSalle, Re&Solution Sweden Luxembourg Estonia EU Average Lithuania Latvia 0 50 100 150 200 250 300 350 400 450

Source: Re&Solution, DEGI, Jones Lang LaSalle, Helsinki; 14,0 Stockholm; 13,6 Tallinn; 0,8 Vilnius; 0,5 Riga; 0,4 0 2 4 6 8 10 12 14 16

6 000 5511 5 000 4414 4 000 3110 3232 2708 3 000 2 000 1670 1421 1359 843 734 1 000 527 181 150 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

739 5 000 14% 1386 564 4 000 25% 1056 231 161 3 000 461 560 434 263 2 000 3386 231 61% 2794 101 2489 2441 1981 1 000 1307 0 2002 2003 2004 2005 2006 2007 Estonia Latvia Lithuania Others

100% 4% 5% 6% 7% 7% 9% 90% 9% 13% 10% 20% 16% 22% 21% 2% 80% 7% 21% 7% 14% 7% 5% 70% 10% 13% 15% 13% 15% 60% 10% 50% 43% 40% 31% 47% 49% 36% 39% 46% 30% 20% 24% 22% 10% 16% 14% 12% 9% 8% 0% 2001 2002 2003 2004 2005 2006 2007 Residential/Development Public service Office Industrial Civil engineering Road

10% 9,3% 9% 8,0% 8% 7,3% 7,1% 7% 6,3% 5,7% 6% 4,6% 5% 4,5% 3,9% 3,8% 4% 3,4% 3,3% 3% 2% 1% 0% 2002 2003 2004 2005 2006 2007 General expenses to sales Staff costs to sales

600 Net profit (extraordinary) Net profit (without extraordinary) 49 125 500 400 149 300 20 496 457 200 289 274 100 185 99 88 67 39 26 17 10 0 1995 1996 1997 1998 1999* 2000 2001 2002 2003 2004 2005 2006 2007 * Does not include the one-off financial expense of EUR 1 054 mln due to the spinoff of E.L.L.Kinnisvara

3917 4 000 100% Total assets Equity to assets ratio Debt obligations 90% 3 500 3215 80% 3 000 70% 2 500 55% 2220 60% 52% 50% 50% 50% 2 000 43% 40% 40% 1 500 1299 1146 30% 1 000 18% 706 14% 14% 20% 500 10% 2% 0 0% 2002 2003 2004 2005 2006 2007

60% 50% 48% 48% 50% 43% 40% 37% 30% 30% 25% 24% 21% 20% 20% 16% 15% 10% 0% 2002 2003 2004 2005 2006 2007 Return on equity Return on assets

1 000 900 800 700 600 1000 500 930 400 721 300 200 358 328 320 313 312 300 279 268 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

2 500 OMX Tallinn MERKO 2 000 1 500 1 000 812 500 211 0 06.97 12.97 06.98 12.98 06.99 12.99 06.00 12.00 06.01 12.01 06.02 12.02 06.03 12.03 06.04 12.04 06.05 12.05 06.06 12.06 06.07 12.07

DIVISION OF AS MERKO EHITUS Hannes Vallikivi, Tark & Co

Division briefly • AS Merko Ehitus will replace its business name with the name AS Järvevana and will give the current business name to the company to be created in the course of the division. • The shareholders will retain the existing shares in AS Järvevana and will additionally receive shares of AS Merko Ehitus at a ratio of 1 to 1. • After AS Merko Ehitus has been listed on the stock exchange, the new shares can be traded freely, similar to the existing shares. • AS Järvevana will transfer all of its business activities and the company (including the assets, rights, obligations and contracts) to AS Merko Ehitus, except for the assets and liabilities/obligations specified in the division plan. • AS Merko Ehitus will continue the business activities of AS Järvevana, taking over all contracts and projects currently in progress.

Situation after division Shareholders 100% the same structure of shareholders AS Järvevana AS Merko Ehitus (prev. AS Merko Ehitus) (new company) Supervisory Board : Supervisory Board : • Tõnu Toomik • Tõnu Toomik • Teet Roopalu • Teet Roopalu • Jaan Mäe • Jaan Mäe Management Board : Management Board : • Toomas Annus • Veljo Viitmann • Alar Lagus • Andres Agukas • Tõnu Korts • Tiit Roben * SIA Merks UAB Merko Statyba Tallinna Teede AS Others

Situation after division (assets and equity) AS MERKO EHITUS 31.03.2008 Liabilities 1 705 mEEK Equity 2 205 mEEK Total assets 3 910 mEEK AS JÄRVEVANA MERKO EHITUS Liabilities 17,5 mEEK Liabilities 1 687,5 mEEK Equity 232,5 mEEK Equity 1 972,5 mEEK Total assets 250 mEEK Total assets 3 660 mEEK

Assets of AS Järvevana Assets Liabilities (off-balance sheet) • Cash in bank account 25 mEEK • contingent liabilities, incl. theoretical penalty 250 mEEK • Loan to AS Merko Ehitus in the amount of 125 mEEK (6% / EURIBOR+1% a interest) • 5 registered immovable with the right to sell them to AS Merko Ehitus with the total 6% price of 100 mEEK. 94% Equity (in balance sheet) • Share capital 177 mEEK • Retained earnings 55,5 mEEK AS Merko Ehitus (group) AS Järvevana