ARCO VARA AS - NASDAQ OMX Baltic

Operating leases are leases of investment property items. Annual minimum lease payment of operating
leases have been disclosed in Note 22.
Operating leases: the Group as a lessee
In 2005, the Group used premises, cars and office equipment under operating lease agreements. The
total operating lease expenses amounted to 6 935 thousand kroons (2004: 5 839 thousand kroons).
31 Assets pledged
in thousands of kroons
The Group has pledged the following assets as a collateral for the borrowings of the Group:
31.12.2005 31.12.2004
Real estate recorded under inventories 99 225 134 839
Property, plant and equipment 167 651 13 417
Intangible assets 95 182
Investment property 694 280 353 189
Biological assets 3 175 3 042
Floating charge 1 287 0
Total pledged assets 965 713 504 669
32 Share capital
in thousands of kroons
31.12.2005 31.12.2004
Issued and fully paid-in-capital (pcs.) 30 453 037 8 400
Share capital 304 530 4 200
Share premium per share (in kroons) 4,04 1 052,5
Total share premium 123 083 8 841
As of 31.12.2005, the maximum number of common shares allowed by the Articles of Association of
the Parent is 109 021 872 (2004: 33 600).
In 2005, Arco Vara AS split the shares by reducing the nominal value of the share from 500 kroons to
10 kroons. With the split, the number of shares was increased by 411 600. Thereafter, 268 355
thousand kroons were transferred to the Parent's share capital through bonus issue at the expense of
equity without making additional contributions. With the bonus issue, 26 835 468 new shares were
issued at a nominal value of 10 kroons.
In December 2005, the Parent increased the share capital by 3 197 569 shares through private
placement. The nominal value of new shares is 10 kroons. The shares were issued with a share
premium amounting to 124 491 thousand kroons. The service charges related to the arrangement of the
issue, which have been recorded as reduction of the share premium, amount to 1 408 thousand kroons
and are payable in 2006 (see Note 26). A monetary contribution was made for the shares issued and
share premium.
The Parent has a conditional redemption obligation with respect to certain shares, which may realise at
the end of 2008. According to the Group’s management, realisation of the conditions required for the
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