CITYCON OYJ STOCK EXCHANGE BULLETIN 21 OCTOBER 2004 11.30
a.m.
CITYCON'S INTERIM REPORT 1 JANUARY30 SEPTEMBER 2004
- Profit before
extraordinary items and taxes rose to EUR 17.8 million (EUR 15.4
million)
-
Turnover increased to EUR 66.1 million (EUR 57.9 million)
- Earnings per
share increased to EUR 0.13 (EUR 0.11)
- Share offering to selected
institutional investors was oversubscribed
- Citycon is assessing
opportunities for expansion in the Scandinavian and
Baltic countries
-
Demand and occupancy rates for business premises remained strong during the
period
Key figures
19 2004
19 2003 112 2003
Turnover, EUR million 66.1
57.9 78.1
Operating profit, EUR million 37.5
33.2 43.3
% of turnover 56.8
57.3 55.5
Profit before extraordinary items
and taxes, EUR million
17.8 15.4 19.1
Profit, EUR million
12.8 11.3 14.3
Earnings per share, EUR
0.13 0.11 0.14
Earnings per share, diluted, EUR
0.12 0.11 0.14
Equity per share, EUR
2.00 1.98 2.01
P/E (price/earnings) ratio
13 9 11
Return on equity (ROE), % 8.5
7.6 7.1
Return on equity including minority
interest, %
5.7 5.2 4.9
Return on
investment (ROI), % 6.2 6.1 5.8
Equity ratio,
% 46.2 48.3 44.9
Equity ratio with
capital loan not
counted as part of shareholders'
equity, %
38.1 39.1 36.7
Gearing, %
148.2 142.5 163.2
Net rental income, %
8.5 8.5 8.5
Occupancy rate, %
97.1 97.6 97.3
Personnel at end of period
43 35 34
Trend in the business environment
Interest rates in the euro zone continued to be low. The economic trend in
the
euro zone and particularly in Finland continued to be
favourable.
According to Statistics Finland, retail sales was 4.7 per cent
bigger in the
period of January-August 2004 than in the period of
January-August 2003. Strong
retail sales kept up healthy demand for retail
premises and vacancy rates
continued to remain low, particularly in the
Helsinki Metropolitan Area and
Finland's other major cities.
The Finnish
property market continued to attract international investors and the
internationalisation of the Finnish property market continued.
Property
portfolio and business activities
The book value of the property portfolio
owned by Citycon was EUR 731.0 million
at the end of the period (EUR 643.3
million). Citycon owned 16 shopping centres,
which comprised 58.9 per cent of
the company's property portfolio book value,
together with 130 supermarket
and shop properties, which comprised 41.1 per cent
of the value of the
company's property portfolio. At the end of the period, in
terms of book
values, 46.7 per cent of the properties were in the Helsinki
Metropolitan
Area, 35.6 per cent were in other major Finnish cities and 17.6 per
cent were
in other parts of Finland.
On 26 May 2004, the Board of Directors of Citycon
Oyj decided to start a process
to assess business opportunities in the
Scandinavian and Baltic countries. At
the same time, the company will
continue the implementation of its strategy of
expanding its core business in
Finland where Citycon will in accordance with its
strategy focus on retail
premises, mainly in the Helsinki Metropolitan Area and
the biggest regional
centres.
Customers, the portfolio of leases, and the occupancy
rate
Citycon's customers are Finnish and international speciality and grocery
retail
chains, supermarkets and department stores, and independent dealers
who are not
part of chains. There were no significant changes in the customer
structure
during the period.
During the period, the company signed a total
of 260 leases, of which 79 came
with the acquisition of Torikeskus in
Seinäjoki and 8 with the extension to
IsoKarhu. At the end of the period,
Citycon had a total of 1,471 leases with
roughly 850 lessees. The average
length of the leases was 3.6 years.
The occupancy rate for Citycon's entire
property portfolio was 97.1 per cent
(97.6%).
Trend in portfolio of leases
by division
19 2004 19 2003
112 2003
Shopping centres
Number of leases signed during the
period,
total 196 104 151
Total area
of leases signed, sq.m. 28,557 12,131 16,399
Occupancy
rate at end of period, % 97.4 98.3 97.6
Average
length of lease portfolio
at the end of period, years 2.9
2.9 3.0
Supermarkets and shops
Number of leases signed during
the
period, total 64 34
51
Total area of leases signed, sq.m. 20,535 8,058
9,806
Occupancy rate at end of period, % 96.7 96.9
96,8
Average length of lease portfolio
at end of period, years
4.4 4.4 4,4
Rental income
The net rental income
of Citycon's leasing business during the period was EUR
46.4 million (EUR
40.9 million). The average net rental yield of the properties
owned by the
company remained good and was 8.5 per cent (8.5%).
Shopping centres
accounted for 55.1 per cent of the net rental income (49.6%)
and supermarkets
and shops accounted for 44.9 per cent (50.4%). Of net income,
roughly, 46.7
per cent was generated by properties in the Helsinki Metropolitan
Area, 35.1
per cent by properties in other major Finnish cities, and roughly
18.2 per
cent by other properties in Finland.
Trend in rental income by division
19 2004 19 2003 112
2003
Shopping centres
Gross rental income, EUR million 34.8
26.8 36.5
Net rental income, EUR million 25.6
20.3 27.5
Net rental yield, % 8.0* 8.0
8.1*
Supermarkets and shops
Gross rental income, EUR million
27.4 27.4 36.5
Net rental income, EUR million
20.8 20.6 27.2
Net rental yield, %
9.2 9.0 8.9
*Figures include uncompleted
projects
Investments and development projects
Citycon's gross investments
amounted to EUR 15.0 million (EUR 2.0 million).
Gross investments include the
acquisition of a new shopping centre, Torikeskus
in Seinäjoki, for EUR 7.1
million and EUR 7.9 million for property development
projects.
The
Shopping Centres Division's property portfolio grew on 1 March 2004 with the
acquisition of Torikeskus in Seinäjoki, one of the foremost shopping centres
in
the Southern Ostrobothnia region.
The extension to the IsoKarhu
shopping centre in Pori was completed during the
third quarter. The extension
will boost Citycon's profit even in the next
quarter. The conversion work on
Jyväskeskus, which is in Jyväskylä, was
completed in May, which immediately
boosted rental income. The combined total of
the investments in IsoKarhu and
Jyväskeskus is roughly EUR 12 million.
Shopping Centres Division also
continued the planning for extensions at the
Lippulaiva and Espoontori
shopping centres in Espoo, the Myyrmanni shopping
centre in Vantaa, and the
Koskikeskus shopping centre in Tampere, as well as
starting to assess the
possibilities for development at Trio in Lahti and Forum
in Jyväskylä.
The
Supermarkets and Shops Division invested EUR 0.6 million during the period.
The division examined possibilities for development at the Länsikeskus
property
in Espoo and at shopping centres in the Hervanta district of Tampere
and in
Kuopio city centre.
The Property Development Division continued the
planning of development projects
for Citycon's retail sites together with the
other divisions. The division also
devoted effort to investigating the
commercial framework for new shopping
centres in the Helsinki Metropolitan
Area and in the Tampere market zone.
Divestments
During the period,
Citycon sold, in accordance with its strategy, 3 properties
belonging to the
Supermarkets and Shops Division. The combined book value of the
properties
sold was EUR 0.6 million and the capital gains were EUR 0.1
million.
Turnover and profit
During the period, Citycon's turnover
increased to EUR 66.1 million (EUR 57.9
million). Operating profit increased
to EUR 37.5 million (EUR 33.2 million). The
increase was largely due to the
acquisitions of shopping centres at the end of
2003 and in the first quarter
of 2004. Gross rental income accounted for 94.1
per cent (93.6%) of
turnover.
Balance sheet and financing
The Group's financing situation
remained good during the period. The balance
sheet total was EUR 857.3
million (EUR 752.2 million), of which cash and cash
equivalents were EUR 27.9
million (EUR 23.5million). At the end of the period,
Citycon had a total of
EUR 459.2 million (EUR 386.6 million) of liabilities.
Interest-bearing
liabilities decreased by EUR 2.3 million during the period to
EUR 509.7
million (EUR 440.3 million), when the capital loan of EUR 68.5 million
(EUR
68.5 million) was included in the figure.
The average interest rate for
interest-bearing liabilities during the period was
5.1 per cent (5.5%). The
average loan period, weighted according to the
principals of the loans, was
roughly 3.9 years (4.8 years), and the average
interest-rate fixing period
was 3.8 years (4.1 years).
Citycon's interest-bearing liabilities included
86.5 per cent of floating rate
loans, of which 77.6 per cent has been
converted to a fixed rate by means of
interest rate swaps and 12.3 per cent
has been hedged with interest rate caps.
The par value of the interest rate
swaps at the end of the period was EUR 340.8
million and that of the interest
rate caps was EUR 53.8 million. The interest
coverage ratio, i.e. the
previous twelve months' profit before interest
expenses, taxes and
depreciation to net financial expenses, was 2.2 (2.1).
The Group's equity
ratio was 46.2 per cent (48.3%). If the capital loan is not
included in
shareholders' equity, the equity ratio was 38.1 per cent (39.1%).
Net
financial expenses rose by EUR 1.8 million to EUR 19.7 million (EUR 17.8
million).
Citycon and IFRS
Citycon Oyj is to go over to reporting in
accordance with IAS/IFRS standards
(International Financial Reporting
Standards) in its interim reports and
financial statements in 2005. The
company made decisions on the main optional
accounting principles in IFRS at
the beginning of 2004 and examined the effect
of the adoption of IFRS on its
accounting principles in its financial statements
bulletin released on 12
February 2004. In addition, on 31 August 2004, Citycon
issued preliminary
IFRS comparative figures on the balance sheet as at 1 January
2004 and for
the 1st and 2nd quarters of the year. In the future, Citycon will
disclose
preliminary comparative figures in a separate bulletin on the issue
dates of
interim reports and annual financial statements. Citycon will present
final
reconciliation calculations in its interim report for the first quarter of
2005.
Personnel
At the end of the period, the Citycon Group had a total
of 43 (35) employees, of
whom 32 (28) were employed by the parent
company.
Shares and shareholders
Directed share offering
During the
period, Citycon carried out a directed share offering of shares to
Finnish
and international institutional investors. The intention of the share
offering was to expand Citycon's ownership structure to support the company's
forthcoming growth and to improve the liquidity of the company's shares. The
decision by the Board of Directors to hold the share offering was based on an
authorisation granted by the annual general meeting of 15 March 2004 to
increase
the share capital by means of a new issue of shares.
New shares
in the amount of 10,000,000 were offered at price EUR 2.03 for
subscription.
Of the shares, 91 per cent were allocated to foreign and 9 per
cent to
Finnish investors. The new shares were the equivalent of roughly 9.4 per
cent
of Citycon's share capital and voting rights conferred by shares before the
offering, and after it they were equal to roughly 8.6 per cent. The share
offering was carried out in a bookbuilding process on 13 and 14 September
2004.
The share offering was oversubscribed by a factor of 2.4.
The share
offering affected Citycon's shareholders' equity and the number of its
shares
and shareholders as follows:
Share
offering Change Share offering
Excluded included
Share capital, EUR, million
142.8 13.5 156.3
Shareholders' equity, EUR, million 276.6
20.3 296.9
Total number of shares, million 105.8
10.0 115.8
The increase in share capital, being EUR 13,500,000 was
entered in the Trade
Register on 24 September 2004. The new shares were
quoted on the Main List of
the Helsinki Exchanges as of 27 September
2004.
Details of the directed share offering can be found in the stock
exchange
bulletins issued by Citycon in September 2004.
Share capital, the
number and par value of shares at the end of the period
Citycon's share
capital as at 30 September 2004 was EUR 156,300,108.30 and the
number of
shares was 115,777,858. The par value of a share is EUR 1.35.
Traded volume
and price
During the period, the total for Citycon shares traded on the
Helsinki Exchanges
was 103.5 million shares and EUR 195.8 million. The high
price quoted during the
period was EUR 2.19 and the low was EUR 1.52. The
weighted average price for the
period was EUR 1.89 and the closing price of
the period was EUR 2.15. The
company's market capitalisation at the end of
the period was EUR 240.6 million
(EUR 134.5 million), after deducting the
portion of treasury shares from the
total.
Shareholdings
At the end of
the period, Citycon had a total of 1,188 registered shareholders.
The
registered shareholders held 115,770,184 million shares, so they had 99,99
per cent of the shares and voting rights. Nominee-registered shareholders,
mostly international investors, had 91,496,706 million shares, which is 79,03
per cent of the number of shares and voting rights.
Treasury shares and
the shareholdings of the Board of Directors and the
management
The number of
treasury shares remained the same during the period, at 3,874,000
shares,
which is the equivalent of 3.3 per cent of the company's total shares
and
voting rights. The total purchase price of the shares was EUR 4.7 million.
The book value of treasury shares on 30 September 2004 corresponded to their
purchase price, which was lower than their market value at the end of period.
The effect of treasury shares has been deducted for the calculation of the
key
figures.
In deciding on carrying out the directed share offering on 15
September 2004.
Citycon's Board of Directors also decided to propose to the
annual general
meeting to be held in spring 2005 that the 3,784,000 treasury
shares held by the
company be invalidated instead of selling them in public
trading at the Helsinki
Exchanges as decided by the Board of Directors on 11
August 2004.
The members of Citycon Oyj's Board of Directors held a total
of 66,453 shares on
30 September 2004, which was 0.05 per cent of the
company's total shares and
voting rights. Citycon's CEO held 100,000 shares
and 1,650,000 stock options, in
addition to which the other members of the
Corporate Management Committee held a
total of 3,000 shares and 971,670
stock options on 30 September 2004.
Citycon in international investors'
comparative indexes
Citycon is included in international property investment
companies' indexes. The
EPRA/NAREIT Global Real Estate Index and the GPR 250
Property Securities Index
serve as comparative indexes for international
investors.
Authorisations and stock options
During the period, Citycon's
Board of Directors exercised an authorisation
granted by the annual general
meeting on 15 March 2004 to increase the share
capital by means of a share
offering, and it decided on 15 September 2004 to
carry out a directed share
offering. The Board of Directors decided on 11 August
2004 to exercise the
authorisation, granted by the annual general meeting of 15
March 2004, to
dispose of the invalidation of treasury shares. The disposal of
treasury
shares was not carried out. However, and instead the Board of Directors
decided on 15 September 2004 to propose the cancellation of these shares to
the
next annual general meeting.
Citycon Oyj applied for the listing of
the 1999 A/B/C warrants on the main list
of the Helsinki Exchanges during the
period. The A/B warrants were included on
the main list of the Helsinki
Exchanges as of 23 April 2004 and the C warrants
have been included on the
same list since 1 September 2004.
The annual general meeting of 15 March
2004 decided on issuing stock options to
personnel of Citycon Oyj and of its
subsidiaries and to a wholly owned
subsidiary of Citycon Oyj as part of the
Group's personnel incentive and
commitment system. Citycon's Board of
Directors decided on 26 May 2004 on the
distribution of stock options in
accordance with the decision of the annual
general meeting.
A total of
1,135,000 2004A stock options were distributed to the personnel of
the Group.
The rest of the stock options 2,765,000 (A/B/C) were granted to
Veniamo-Invest Oy, a subsidiary of Citycon Oyj, to be further distributed to
the
present and future personnel of the Group.
Changing the number of
members on the Board of Directors
An extraordinary general meeting of Citycon
Oyj on 10 August 2004 decided, in
accordance with a proposal from the Board's
Nomination Committee, to increase
the number of members on the Board of
Directors from seven to eight, within the
limits permitted by the articles of
association. The meeting augmented the Board
of Directors' international
expertise in property business by electing, in
accordance with a proposal by
the Nomination Committee, the American Dori Segal
as the new member. Segal is
the CEO of First Capital Realty Inc and Gazit-Globe
(1982) Ltd. His
membership will be in effect until the next annual general
meeting.
Events
after the end of the review period
Subscriptions were made for 35,000 new
shares on 13 October 2004 based on the
option rights 1999. The increase of
share capital is estimated to be registered
in the Trade Registry on 27
October 2004 and the new shares are estimated to be
listed on the Helsinki
Exchanges along with the old shares on 28 October 2004.
The Board has in its
meeting on 21 October 2004 decided to establish a new
investment committee to
complement the existing audit, nomination and
compensation committees. The
Investment Committee will be among other things be
reviewing investments
being within the decision making scope of the Board and
supervising
investment and approval processes. The Investment Committee consists
of three
members, Stig-Erik Bergström, Tuomo Lähdesmäki and Dori Segal.
Outlook for
the future
Citycon forecasts that demand, occupancy rates and rents for its
retail premises
will continue to remain good in the Helsinki Metropolitan
Area and Finland's
major cities. The company reasserts its estimate that
turnover and profit for
the current year will grow due to the favourable
market outlook, combined with
the shopping centres acquired at the end of
2003 and the beginning of 2004.
Helsinki, 21 October 2004
Citycon
Oyj
Board of Directors
Consolidated income statement
EUR million
19 2004 19 2003 112 2003
Turnover
66.1 57.9 78.1
Other income
0.3 0.2 -0.5
Expenses
Materials and
services 16.7 13.4 18.7
Salaries and
social expenses 2.1 1.9 2.6
Depreciation and
impairments 5.7 4.9 6.5
Rents and maintenance
charges 2.5 3.1 4.1
Share of associated
companies' profit 0.3 0.3 0.4
Other expenses of
business operations 1.6 1.3 1.9
Expenses, total
28.8 24.8 34.3
Operating profit
37.5 33.2 43.3
Financial income and
expenses -19.7 -17.9 -24.2
Profit before
extraordinary
items and taxes 17.8 15.4
19.1
Taxes -5.0 -4.1
-4.9
Profit 12.8 11.3
14.3
Consolidated balance sheet
EUR million 30 Sept.
2004 30 Sept. 2003 31 Dec. 2003
Assets
Non-current assets
Intangible
assets 4.7 4.1 4.5
Tangible assets
740.5 620,7 729.1
Investments
Holdings
in associated companies 55.3 74.8 55.5
Treasury
shares 4.7 4.7 4.7
Other
investments 21.4 21.5
23.1
Investments, total 81.4 101.0
83.3
Non-current assets, total 826.6 725.8
816.9
Current assets
Short-term receivables 2.9 2.9
3.4
Cash and cash equivalents 27.9 23.5
15.1
Current assets, total 30.8 26.4
18.5
Assets, total 857.3 752.2
835.3
Liabilities and shareholders' equity
Shareholders' equity
Share
capital 156.3 142.8 142.8
Share
premium fund 35.1 28.3 28.3
Treasury
share reserve 4.7 4.7 4.7
Other funds
6.6 6.6 6.6
Retained profits
13.0 13.0 13.0
Profit
12.8 11.3 14.3
Capital loan
68.5 68.5 68.5
Shareholders' equity, total 296.9
275.0 278.0
Minority interest 101.3
90.6 99.8
Liabilities
Long-term liabilities
426.5 366.1 428.3
Short-term liabilities 32.8
20.5 29.2
Liabilities, total 459.2
386.6 457.5
Liabilities and shareholders'
equity, total
857.3 752.2 835.3
Gross investment
in non-current
assets 15.0 2.0
84.2
% of turnover 22.7 3.5
107.9
Depreciation and impairments 5.7 4.9
6.5
Personnel, average 40 33
33
Cash flow statement
EUR million 19 2004
19 2003 112 2003
Operating activities
Profit before extraordinary items
17.8 15.4 19.1
Adjustments:
Depreciation
5.7 4.9 6.5
Financial income and expenses
19.7 17.9 24.2
Other adjustments
0.2 0.1 0.9
Cash flow before change in working
capital
43.4 38.2 50.8
Change in working
capital 0.3 0.5 0.0
Cash flow from operating
activities
before financial items and taxes 43.8 38.7
50.7
Interest paid and payments for other
financial expenses of operating
activities -16.3 -15.8
-24.1
Dividend and interest received from
business operations
0.5 0.3 0.5
Taxes paid
-3.5 -3.2 -4.7
Cash flow from operating activities (A) 24.5
20.0 22.4
Investing activities
Investments in tangible and
intangible assets -8.5 -1.9 -4.9
Shares
in subsidiaries purchased -7.6 0.0 -77.1
Shares in
subsidiaries sold 0.7 1.4 1.4
Shares in
associated companies purchased 0.0 -0.2 -0.8
Shares in
associated companies sold 0.0 1.6 1.6
Other items
0.0 0.1 0.1
Cash flow from investing
activities (B) -15.3 1.0
-79.7
Financial activities
Proceeds from issuance of share
capital
20.3 0.0 0.0
Withdrawals of short-term
loans 8.1 0.0 2.1
Repayments of short term loans
-8.0 0.0 0.0
Withdrawals of long-term loans 4.9
0.0 67.9
Repayments of long term loans -7.3
-0.2 -0.2
Dividend paid and other distribution
of profit
14.3 -9.2 -9.2
Cash flow from financial
activities (C) 3.7 -9.3
60.6
Increase (+)/decrease (-) in cash
and cash equivalents (A+B+C)
12.9 11.7 3.3
Cash and cash equivalents at
beginning of
period 15.1 11.7 11.7
Cash and cash
equivalents at end
of period 27.9 23.5
15.1
Key financial figures
19 2004 19 2003 112 2003
Earnings per share, EUR
0.13 0.11 0.14
Equity per share, EUR 2.00
1.98 2.01
Return on equity (ROE), % 8.5 7.6
7.1
Return on equity, including minority
interest, %
5.7 5.2 4.9
Return on investment (ROI), %
6.2 6.1 5.8
Equity ratio, % 46.2
48.3 44.9
Equity ratio with capital loan not
counted as part of
shareholders'
equity, % 38.1 39.1
36.7
Treasury shares
25 November 1999-30 September 2004 19
2004 19 2003 112 2003
Number of shares, million
3.9 3.9 3.9
Total par value, EUR million 5.2
5.2 5.2
Share of shareholders' equity, % 3.3
3.7 3.7
Share of voting rights, % 3.3
3.7 3.7
Acquisition cost, EUR million 4.7 4.7
4.7
The book value of treasury shares on 30 September 2004
corresponded to the
purchase price, which was lower than market value at the
end of the period. The
effect of the treasury shares has been eliminated for
the calculation of the key
figures.
Consolidated contingent
liabilities
EUR million 30 Sept. 2004 30 Sept. 2003
31 Dec. 2003
Mortgages on land and buildings 362.2 337.2
338.4
Group company shares pledged 76.9 0.07
8.4
Other pledged shares 76.8 96.2
76.7
Other pledges given 0.6 3.2
3.2
Group's derivatives
EUR million 30 Sept. 2004
30 Sept. 2003 31 Dec. 2003
Par Fair
Par Fair Par Fair
values values
values values values values
Interest-rate derivatives
Interest-rate
swaps
Maturing in 2004 0.0 0.0 50.0 -1.7 0.0
0.0
Maturing in 2007 78.2 -0.3 78.2 0.0 78.2
1.1
Maturing in 2008 50.0 -2.1 0.0 0.0 50.0
-1.3
Maturing in 2009 129.6 -7.4 66.0 -7.0 91.0
-5.4
Maturing in 2010 83.0 -6.8 83.0 -7.4 83.0
-5.8
Total 340.8 -16.7 277.2 -16.1 302.2
-11.4
Interest-rate options
Interest-rate caps purchased
Maturing in 2004
53.8 0.0 53.8 0.0 53.8 0.0
Total
53.8 0.0 53.8 0.0 53.8 0.0
The fair values
for derivatives describe their value if all agreements had been
closed at the
market price at the end of the period. Derivatives have been used
for hedging
the loan portfolio. The accrued interest for the period included in
the
derivatives' fair values, being EUR 2.1 million (EUR 1.4 million) has been
booked in interest expenses.
The taxes correspond to the profit of the
period. The figures are unaudited. An
Independent Auditors' Review Report to
the Board of Directors of Citycon Oyj is
enclosed.
Accounting
principles
The accounting principles applied in the annual financial
statements as at 31
December 2003 are applied in this interim
report
Financial reporting
Citycon Oyj will disclose its financial
statements bulletin on 18 February 2005.
The annual report
will be
published the company's website during week 10, and the printed version
will
be completed in week 12.
Citycon Oyj will publish its interim reports in
2005 as follows:
January-March 27 April 2005
January-June
20 July 2005
January-September 19 October 2005
The annual general
meeting of Citycon Oyj will be held on 5 April 2005.
Further information for
investors can be seen on Citycon's website,
www.citycon.fi.
Further
information:
CEO Mr Petri Olkinuora
Tel. +358 9 6803 6738 or +358 400 333 256
petri.olkinuora@citycon.fi
CFO Ms Pirkko Salminen
Tel. +358 9 6803 6730
or +358 50 3022 485
pirkko.salminen@citycon.fi
Distribution:
Helsinki
Exchanges
Main media
www.citycon.fi
Independent Auditors' Review Report
to the Board of Directors of Citycon Oyj
We have reviewed the consolidated
balance sheet of Citycon Oyj as of September
30, 2004, the related
consolidated statements of operations for the nine-month
period ended
September 30, 2004, and the related consolidated statements of cash
flows for
the nine-month period ended September 30, 2004, which are included in
the
Company's interim report. These consolidated financial statements are the
responsibility of the Board of Directors and the Company's management
We
conducted our review in accordance with the International Standard on
Auditing applicable to review engagements. This standard requires that we
plan
and perform the review to obtain moderate assurance as to whether the
financial
statements are free of material misstatement. A review is limited
primarily to
inquiries of company personnel and analytical procedures applied
to financial
data and thus provides less assurance than an audit. We have not
performed an
audit and, accordingly, we do not express an audit
opinion.
Based on our reviews, we are not aware of any material
modifications that should
be made to the consolidated financial statements
referred to above for them to
be in conformity with the Accounting Act and
other rules and regulations
governing the preparation of interim financial
statements in Finland.
Helsinki, October 21, 2004
Ari Ahti
Jaakko Nyman
Authorized Public Accountant
Authorized Public Accountant
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