English
Published: 2004-10-21 09:32:18 CEST
Citycon Oyj
Company Announcement
PRELIMINARY INFORMATION OF IFRS COMPARATIVE FIGURES FOR THE THIRD QUARTER OF
CITYCON OYJ          STOCK EXCHANGE RELEASE       21 OCTOBER 2004  11.30
a.m.

PRELIMINARY INFORMATION OF IFRS COMPARATIVE FIGURES FOR THE THIRD
QUARTER OF 
2004

In this bulletin, Citycon presents preliminary comparative
IFRS figures for the 
first three quarters of 2004. In the bulletin issued on
31 August 2004, the 
company presented the preliminary opening IFRS balance as
at 1 January 2004, 
preliminary comparative figures for the first and second
quarters, and the major 
impacts of the transition from FAS (Finnish
Accounting Standards) to IFRS 
(International Financial Reporting
Standards).

Preliminary comparative figures for the entire financial year
will be issued by 
Citycon in the annual financial statements 2004. The
segment information 
required by IAS 14 will be given starting with the first
quarter of 2005.The 
final reconciliation required by IFRS 1 (First-time
adoption of IFRS) will also 
be presented in the interim report for the first
quarter of 2005 as Citycon 
starts reporting according to IFRS for the first
time.

The comparative information has been prepared in accordance with the
latest 
versions of IFRS. The 'notes' column refers to the additional
information 
explained in the separate section. A summary of Citycon's most
significant 
accounting principles is included in the end of this release.


Citycon will go over to reporting in accordance to IFRS in its interim
reports 
and final accounts for 2005. The timetable for the transition has not
been 
changed. 
The figures are unaudited.
Key figures
                    
        Note     FAS Q3    Preliminary   FAS   Preliminary
                   
                            IFRS Q3       Q3    IFRS Q3 
                     
                                        Cum.  Cum.
Earnings per share, EUR    
          0.04      0.06          0.13    0.20
Earnings per share, 
diluted,
EUR                          0.04      0.06          0.12    0.20
Equity per
share, EUR                 2.00      2.02          2.00    2.02
Return on
equity (ROE), %             8.9       11.9          8.5     13.8
Return on
investment (ROI), %         6.4       8.2           6.2     7.9
Equity ratio,
%               g       38.1      29.3          38.1    29.3



Preliminary
IFRS Q3 2004 comparison
Income statement
EUR Million                  FAS Q3 
  Change    Prel.    FAS    Change    Prel.
                                  
    Q3        IFRS     Q3     Q3        IFRS
                                 
               Q3       Cum.   Cum.      Q3
                                  
                                        Cum.
Turnover                     22.0
     -0.9      21.1     66.1   -2.8      63.3
Other income                 0.2
       0        0.2      0.3    -0.1      0.2
Change in value of
investment
property, note a)

Expenses
Depreciation and 
Impairments      
           1.9       -1.7      0.2      5.7    -5.5      0.2
Share of
associated 
companies 
profit, note b               0.1       -0.1      0    
   0.3    -0.3      0
Other expenses               7.2       -1.3      5.9    
 22.8   -2.2      20.6

Operating profit            13.0        2.1      15.2
    37.5   5.1       42.7

Net financial expenses     -6.8         0.2    
-6.6    -19.7    0.2      -19.5

Profit before and taxes     6.2         2.4 
    8.6     17.8    5.3       23.2

Taxes, note d)             -1.7       
-3.3     -2.4    -5.0              -2.3

Profit                      4.5     
   1.8      6.2     12.8    8.0       20,9

Earnings per share, EUR     0.04 
     0.02      0.06    0.13    0.07      0.20
Earnings per share, 
diluted,
EUR                0.04       0.02      0.06    0.12    0.07     
0.20


Preliminary IFRS Q3 2004 comparison
Balance sheet
EUR million      
                Note       FAS      Change      Preliminary
                  
                          30. Sept.            30. Sept.
                     
                       2004                 2004
Assets

Non-current
assets
Intangible assets                           4.7       -4.3      
0.3
Tangible assets                             740.5     -739.4    
1.1
Investment properties             a                    740.0    
740.0
Investments
Holdings in associated companies  b         55.3      -55.3
     0
Treasury shares                   c         4.7       -4.7      
0
Other investments                           21.4      -21.2     
0.2
Investments, total                          81.4      -81.2     
0.2
Deferred tax asset                d
Non current assets, total            
      826.6     -84.9      741.6

Current assets
Short-term receivables     
                2.9       -0.4       2.4
Cash and cash equivalents            
      27.9      -0.6       27.3
Current assets, total                      
30.8       -1.0      29.8

Assets, total                               857.3 
    -86.0     771.4

Liabilities and shareholders' equity

Equity
attributable to equity holders of the parent
Share capital                    
         156.3       0         156.3
Share premium fund                       
 35.1     -0.1         34.9
Treasury share fund               c        4.7    
 -4.7         0
Treasury shares                   c        0        -4.7      
 -4.7
Fair value reserve                e                 -10.9      
-10.8
Other funds                                6.6       0          
6.6
Retained profits                a,b,d      13.0      9.7        
22.7
Profit                                     12.8      8.0        
20.9
Capital loan                      f        68.5     -68.5       
0
Shareholders' equity, total                296.9    -71.1       
225.7

Minority interest                          101.3    -101.3      
0

Liabilities
Long term liabilities             f        426.5     82.7    
   509.2

Deferred tax liability             d                  4.3        
4.3
Long term liabilities, total                426.5     87.0       
513.5

Short-term liabilities                      32.8     -0.5        
32.2
Short-term liabilities, total               32.8     -0.5        
32.2

Liabilities, total                          459.2     86.4       
545.7

Liabilities and shareholders' 
equity, total                         
     857.3    -86.0        771.4



Preliminary statement of changes in
shareholders' equity
Attributable to equity holders of the parent
EUR million
         Share    Share    Fair value    Treasury   Retained   Total
         
           capital  premium  reserve       shares and  profits  equity
       
                      fund and               capital
                         
    other                  loan
                              reserves

FAS
Balance 
31 Dec.2003         142.8     34.8                   73.1        27.3
     278.0

IFRS Balance 
1 Jan. 2004        142.8      34.8      -7.7      
 -4.7        36.9       202.2

Cash flow hedges                        -4.7  
                           -4.7
Profit                                        
                 8.4        8.4
Total recognised income 
and expense         
                   -4.7                    8.4        8.4
Dividends           
                                         -14.3      - 14.3

IFRS Balance 
31
Mar. 2004        142.8    34.8      -12.4         -4.7      31.0       
191.5

Cash flow hedges                        4.8                           
    4.8
Profit                                                         6.3    
    6.3
Total recognised 
income and expense                      4.8        
           6.3         11.1

IFRS Balance
30 June 2004       142.8    34.8  
    -7.6          -4.7      37.3        202.6

Cash flow hedges              
        -3.3                               -3.3
Profit                        
                                6.2         6.2
Total recognised 
income and
expense                     -3.3                    6.2         3.0
Share
Offering     13.5     6.7                                          
20.2

IFRS Balance 
30 Sep. 2004       156.3    41.5      -10.9         -4.7
      43.5       225.7


Cash flow statements
Cash flow statements are not
presented. as the differences between IFRS cash 
flow statement and the cash
flow statement prepared according to Finnish 
Accounting Standards are not
considered to be material.

The directed share offering and the comparative
IFRS information for it 
                        Share    Change    Share   
Share    Change    Share
                        offering           offering 
offering          offering
                        excluded           included
 excluded          included
                        FAS                FAS    
  IFRS              IFRS
Share capital, 
EUR, million            142.8    
13.5     156.3     142.8     13.5    156.3
Sharehoder's equity, 
EUR,
million,
note h)                 276.6     20.3     296.9     205.6      20.2 
 225.7
Total number of 
shares, million         105.8     10.0     115.8    
105.8      10.0   115.8

Details of the targeted share offering can be found
in the stock exchange 
bulletins issued by Citycon in September 2004.

Notes
to the preliminary comparative financial information for Q3 in 2004
a)
Investment properties have been valued at fair value and the change in values

has been recorded in the income statement and the equity in the opening
balance.
b) Consolidation principles of mutual real estate companies have been
changed.
c) Own shares held by the parent company are not presented in assets.
but are 
deducted from equity.
d) Deferred taxes have been recognised for all
temporary differences according 
to IAS 12 Income Taxes.
e) The fair value of
cash flow hedging derivatives has been included in the 
balance sheet and the
changes in the values in cash flow hedge reserve in 
equity.
f) Capital loan
has been classified as a liability in the IFRS balance sheet.
g) The covenant
calculation used in the financial agreements will remain the 
same.
h) The
transaction costs related to the acquisition of  equity have been treated 
as
a reduction in shareholders' equity with an adjustment for income
tax.


Summary of Citycon's most significant IFRS accounting principles
The
consolidated financial statements for 2005 of Citycon are to be prepared in

accordance with International Financial Reporting Standards (IFRS). The

comparative figures of 2004 are restated from previous applied Finnish

Accounting Standards (FAS) to IFRS. 

Principles of consolidation
Mutual
real estate companies are consolidated by proportional consolidation, 
where
Citycon's  
share of assets. Liabilities, income and expenses of the company
is combined 
line by line with similar items in the Citycon's financial
statements.

Investment properties
Investment property is property (land or
building – or part of a building – or 
both) held to earn rental income or
capital gain or both. In the valuation of 
investment properties according to
IAS 40 Citycon has decided to use the fair 
value model. which will result in
changes in value being posted to the income 
statement. The valuation of
investment properties is assessed in accordance with
International Valuation
Standards (IVS) at least once a year by on external 
valuer to the income
statement. The valuation of investment properties is 
assessed in accordance
with International Valuation Standards (IVS) at least 
once a year by on
external valuer. 

Property. plant and equipment
Property (other than
investment property), plant and equipment are recorded at 
historical cost and
depreciated over the estimated economic lives of the assets. 
Machinery and
equipment is depreciated over a period of from 4 to 10 years.

Intangible
assets
Intangible assets include software licenses. They are recorded at cost
and 
amortised on straight-line basis over 5 years.

Impairment
Property.
plant and equipment and intangible assets are assessed at each balance 
sheet
date to determine whether there is any indication of impairment. If such

indication exists, the recoverable amount shall be estimated. An impairment
loss 
is recognised in the income statement if the carrying amount exceeds the

recoverable amount.

Revenue recognition
Revenue comprise mainly of rental
income from investment property. Rental income 
is recognised on a
straight-line basis over the term of the lease. 

Leases
Leases. for which
Citycon acts as a lessee. are classified as finance leases and 
recognised as
assets and liabilities if the risks and rewards have been 
transferred. A
lease is classified as an operating lease if it does not transfer

substantially all the, risks and rewards incidental to ownership.

Pension
benefits
Employee pension cover has been arranged through statutory pension
insurance. 
The contributions to defined contribution plans are charged to the
income 
statement in the period to which they relate.

Equity and
equity-related compensation benefits
IFRS 2 Share-based payment -standard has
been applied to share options that were 
granted after 7 November 2002 and
have not vested before 1 January 2005. For 
such option plans the fair value
of the equity instruments granted is measured 
at grand date and the options
are expensed over the vesting period of the 
instrument.

Share offering
expenditure 
The transaction costs related to the acquisition of  equity have
been treated as 
a reduction in shareholders' equity with an adjustment for
income tax.

Capital loan
The capital loan is treated under IFRS as a
liability.

Reacquired own equity instruments (treasury shares) 
Treasury
shares are deducted from the shareholders' equity.

Derivatives
Interest
rate derivatives are used as hedging instruments. They are designated 
as cash
flow hedges of the future interest payments on variable rate 
liabilities.
Hedging instruments are measured at fair value and the change in 
value that
relates to the effective part of the hedge is recognised directly in 
equity.
The ineffective part, if any, is recognised in the income statement. 
Fair
value changes remain in equity until the hedged cash flow is
recognised.

Provisions
Provisions are recognised, when the group has a
present legal or constructive 
obligation as a result of past events, when it
is probable that an outflow of 
resources will be required to settle the
obligation and when a reliable estimate 
of the amount can be
made.

Taxes
Income taxes include taxes based on taxable profit for the
financial period, 
adjustments to prior year taxes and change in deferred
taxes.

Deferred tax assets and liabilities are recognised using the
liability method 
for all temporary differences arising from the difference
between the tax basis 
of assets and liabilities and their carrying values in
IFRS, the enacted tax 
rate is used in the determination of deferred income
tax. 


Helsinki. 21 October 2004

Citycon Oyj
Board of
Directors


Further information
CEO Petri Olkinuora
Tel. +358 9 6803 6738
or +358 400 333 256
petri.olkinuora@citycon.fi

CFO Pirkko Salminen
Te.
+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 preliminary comparative IFRS
information for the first 
three quarters of 2004. These statements are the
responsibility of the company. 

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 preliminary comparative
information for the first three quarters 
of 2004, for them to be in
conformity with the IFRS principles.
Helsinki, October 21, 2004

Ari Ahti   
                      Jaakko Nyman
Authorized Public Accountant     
Authorized Public Accountant