IMMOEAST Annual Report 2006/07

Analysis of Results
Romania reported EBIT of TEUR 128,009.7 for 2006/07, which represents an increase of 302.5% over the previous
year as well as 23.7% of total EBIT recorded by IMMOEAST AG. This development was driven by two main factors: the
sound increase in the fair value of the properties, which generated revaluation income of TEUR 117,134.2, and strong
revenue growth in this segment.
Business activities in Poland also showed very positive development, with EBIT reaching TEUR 81,234.3 in comparison
to TEUR 56,023.5 in the previous year. The major component of the earnings improvement in this segment was
also provided by the revaluation of properties.
The new segment Bulgaria registered EBIT of 78,643.7 in 2006/07, which represents 14.5% of operating profit for the
Group. The largest contribution to earnings in this segment was generated by the revaluation of properties.
Slovakia reported sound growth in EBIT. In comparison to the negative EBIT of TEUR 21,420.8 recorded in the previous
year, the favourable development in the fair value of properties supported an increase in operating profit to
TEUR 23,816.6.
Financial results
Financial results recorded by IMMOEAST AG rose from TEUR 26,676.3 in 2005/06 to TEUR 104,163.5 for the reporting
year. This development resulted above all from profit on financial investments. Currency translation adjustments in
the individual countries made a positive contribution of TEUR 15,411.4 (2005/06: TEUR 1,199.6) to financial results.
The increasing strength of the HUF and RON led to currency translation gains in Hungary und Romania.
Investments
IMMOEAST AG invested a total of TEUR 1,480,861.7 during 2006/07, which was allocated as follows: 26.7% in the
Czech Republic, 23.7% in Russia, 23.4% in Poland, 12.1% in Romania and 7.2% in Hungary. These investments
focused primarily on office, logistics and commercial properties.
Cash EBIT margin
The segment Poland made the highest cash contribution to profit recorded by IMMOEAST AG in 2006/07. The segment
Hungary fell slightly behind the average cash EBIT margin of 34%, but increased project investments led to
impressive growth in this indicator over the previous year. Only Serbia and Bulgaria remained significantly below the
Group average of 34%, but this situation is related to the higher costs incurred for the development projects that are
currently underway in these countries.
Report by the Executive Board 253
Highlights 2006/07
Business Model and Strategy
Portfolio Structure
Corporate Governance and Outlook
Property Portfolio
Development of Business
Consolidated Financial Statements
Service and Glossary