ARCO VARA AS - NASDAQ OMX Baltic

The effect of the reclassification of investments from joint ventures to subsidiaries on the Group’s
assets, liabilities and equity was the following:
Cash and cash equivalents 416
Other current assets 11 560
Investment property 57 620
Borrowings 12 760
Minority interests -22 371
7 The Parent has the specified ownerships through its other subsidiaries. See Note 37 for additional
information on the structure of the Group as of 31.12.2005.
17 Joint ventures of the Group
in thousands of kroons
Country of
Ownership as of Ownership as of
Name of joint ventures
incorporation Segment
31.12.2004 31.12.2005
Arco Vara Arenduse OÜ Estonia Development 50% 2 50%
Arco Vara Saare Kinnistud OÜ Estonia Development 50% 50%
Arco Varavalitsemise AS (see Note 16) Estonia Service - 50% 2
Arco Ärikeskuse OÜ Estonia Development 50% 3 50% 3
Chalwell OÜ 1 Estonia Development - 100% 2
Floriston Grupp OÜ Estonia Development 50% 50%
Home Service SIA (see Note 18) Latvia Development - 50% 2
Lehe Elamud OÜ Estonia Development 50% 2 50% 2
Pärnu Elumaja OÜ (see Note 18) Estonia Development - 50% 2
Pärnu Ärihoone OÜ (see Note 18) Estonia Development - 50% 2
Tallinna Olümpiapurjespordikeskus AS Estonia Development 50% 2 50% 2
1 In 2004, there were no business activities in Chalwell OÜ and the ownership of 100% was held for
resale and recorded under “Short-term financial investments”. In 2005, the shares of Challwell were
sold to the joint venture Floriston Grupp OÜ, and reclassified as a joint venture, as well. The
reclassification had no significant effect on the Group financial indicators.
2 The Parent has the specified ownerships through its subsidiaries or other joint ventures. See Note 42
for additional information on the structure of the Group as of 31.12.2005.
3
Arco Vara AS owns directly 19.8% of shares of Arco Ärikeskuse OÜ and 30.2% of shares through
its subsidiaries.
In 2004, the Group sold the following ownerships in joint ventures:
Joint ventures Ownership sold Sale price Gain or loss from sale
Arco Kapitalijuhtimise AS 50% 4 100 2 999
Wolks AS 33% 13 603 428
Fortuuna Elamu AS 31% 11 187
Masinaehitus AS 50% 1 705
TOTAL 17 715 4 319
The effect of disposal of joint venture in 2004 on the Group’s assets and liabilities are the following:
F-114