IMMOEAST Annual Report 2006/07

IMMOEAST is a property company that invests exclusively in properties located on markets in Eastern Europe. The
core market of IMMOEAST AG covers three regions: Central and Eastern Europe (CEE) with investments in the Czech
Republic, Poland, Slovakia, Hungary and Estonia; South-eastern Europe (SEE) with investments in Croatia, Romania,
Bulgaria, Slovenia and Serbia; as well as the Community of Independent States (CIS) with investments in Russia
and Ukraine. The identification of segments by IMMOEAST AG follows the internal reporting structure and meets
the materiality criteria defined in IFRS 8.13 (see following table). The property portfolio of IMMOEAST is diversified
through two types of segments: regional segments (primary segments) Central and Eastern Europe (CEE: subdivided
into Hungary, the Czech Republic, Poland and Slovakia), South-eastern Europe (SEE: subdivided into Romania, Slovenia,
Serbia, Bulgaria and Croatia) and the Community of Independent States (CIS: Russia and Ukraine) as well as
sector segments that reflect the type of property (secondary segments) such as office, logistics, commercial, hotel
and residential. The activities of the Group are concentrated primarily on the purchase and rental of properties as
well as the widely diversified investment in properties with various types of use – ranging from apartments, offices,
hotels, logistics and commercial space up to garages in Central and South-eastern Europe. According to IFRS 8.13,
an operating segment qualified as reportable if it generates at least 10% of the combined segment revenue, segment
profit or segment assets.
The following table explains the materiality criterion for the identification of segments:
Segment CEE SEE CIS IMMOEAST Group
Values in million
Segment revenue
2006/07 2005/06 2006/07 2005/06 2006/07 2005/06 2006/07 2005/06
Absolute amount 142.2 65.9 26.0 14.1 24.7 0.0 193.0 80.0
Relative amount
Segment profit
73.7% 82.4% 13.5% 17.6% 12.8% 0.0%
Absolute amount 224.4 92.2 189.9 25.6 30.8 0.0 536.2 145.3
Relative amount
Segment assets
41.9% 63.5% 35.4% 17.6% 5.7% 0.0%
Absolute amount 2,960.8 1,642.0 869.1 255.7 464.6 0.0 6,728.2 2,687.5
Relative amount 44.0% 61.1% 12.9% 9.5% 6.9% 0.0%
Revenues
IMMOEAST recorded revenues of TEUR 192,920.4 in 2006/07. Of this total, 23.8% were generated in Poland, the
largest regional segment of the Group. Revenues in Poland more than tripled from TEUR 14,692.3 in 2005/06 to
TEUR 45,845.3 for the reporting year. This growth was supported not only by acquisitions, but also by the excellent
level of occupancy in the properties owned in this country. Investments in Poland are focused primarily on office,
logistics and commercial space. The Czech Republic, the second largest regional segment of IMMOEAST, generated
20.8% of Group revenues in 2006/07. Revenues in this segment rose by 76.9% over the previous financial year, from
TEUR 22,703.6 to TEUR 40,153.3. Hungary, with a 16.9% share of Group revenues, recorded an increase of 54.9%
over the previous year to TEUR 32,568.4. In Romania, revenues rose significantly from TEUR 14,115.6 in 2005/06
to TEUR 22,806.3 for the reporting year. Slovakia contributed 12.3% or TEUR 23,633.9 to Group revenues. During
2006/07 IMMOEAST was able to expand its property portfolio in a further six countries, including four countries
in South-eastern Europe (SEE): Croatia with revenues of TEUR 1,589.7, Slovenia with TEUR 1,113.1, Bulgaria with
TEUR 482.5 and Serbia with TEUR 1.2. The regional segment Russia realised revenues of TEUR 24,726.6, which represents
a share of 12.8%.
Notes
Report by the Executive Board 223
Highlights 2006/07
Business Model and Strategy
Portfolio Structure
Corporate Governance and Outlook
Property Portfolio
Development of Business
Consolidated Financial Statements
Service and Glossary