EQUITY INCREASE
· Net loss of EUR 13 million (including negative accounting impact of EUR 16 million);
· Equity increase by EUR 38 million due to strengthening of currencies in countries of operation vis a vis the Euro;
· Operating profit1 in CEE Real Estate increased to EUR 3 million(Q1 2009: loss EUR 1 million) , mainly from increase in rental and services revenues (+42% YoY);
· Significant increase YoY in sales contracts apartments in China (990 units versus 291 units) will increase future results;
· Banking and Lending operating profit before credit losses substantially improved (EUR 17 million in Q1 2010 versus EUR 10 million in Q1 2009); credit losses decreased to EUR 16 million from EUR 20 million;
· (Water) Infrastructure: Q1 2010 revenues increased by 22% YoY; major contracts signed in Angola and Ghana; operating profit of EUR 3 million.
For Equity Holders of Kardan N.V. (EUR million)2
Q1 2010 Q1 2009 2009
- Real Estate 3 (2) (63)
- Financial Services - Banking and Lending (17) (14) (29)
- Financial Services - Insurance and Pension 7 (3) 19
- (Water) Infrastructure - Projects - 1 2
- (Water) Infrastructure - Assets - 1 (4)
- Rental and Leasing of vehicles 2 - 1
- Sale of vehicles 2 2 5
- Other (10) (3) (23)
Total net result attributable to equity holders (13) (18) (92)
Profit (loss) per share (EUR) (0.13) (0.18) (0.91)
Profit (loss) per share diluted (EUR) (0.13) (0.18) (0.92)
Kardan NV - balance sheet (non consolidated)
March 31, 2010
dec. 31, 2009
Total Assets (in EUR million) 965 909
Total Equity (in EUR million) 331 293
Equity/Total assets (%) 34 32
Alain Ickovics, Kardan N
Alain Ickovics, Kardan N.V.'s ("Kardan") Chairman of the Management Board comments on Kardan's Q1 2010 results:
"Kardan is active in emerging markets to create long term value for shareholders. Despite the difficult economic circumstances during part of 2008 and 2009 resulting in significant losses in 2009, we continue to keep a firm believe in the recoveries of these markets. The results of Q1 2010, give us reasons to believe that the worst is behind us, although markets are still very volatile and the South European sovereign crisis may negatively impact emerging markets as well. Several of our larger markets are performing very well (e.g. China, Poland, Israel, Czech Republic and Russia); others like Ukraine, Bulgaria and Romania are facing challenges due to measures taken by the respective governments to reduce their fiscal deficit. These measures may have a negative impact on the short term purchasing power of the public, but will significantly improve their competitive position in the long run. The net loss for the period amounted to EUR 13 million while our equity increased by EUR 38 million. The result was negatively impacted by an amount of EUR 16 million recognized on the increase of the stake in VAB Bank due to the application of a new accounting standard. Without this IFRS requirement Kardan would have recognized a profit of EUR 3 million".
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1 Before fair value adjustments such as revaluation of properties, disposal of assets and finance expenses
2. The table shows the contribution of each of the businesses to the results attributable to the shareholders of Kardan N.V. and excludes results attributable to minority shareholders.
