The Supervisory Board dealt with the Report by the Managing Board on the Intereuropa Group operations 2009, acknowledging the sales revenue of EUR 193.9 million by the entire Group. The underachievement in sales revenue was 27 percent below the figure achieved in 2008, and 31 percent behind the sales target. In the sales structure of the Group, Land Transport is still the most important business area, which generated 55 percent in the net sales revenue.

Investments in fixed assets were in line with the capacity of the Group, however, most of the EUR 25-million-investment was spent on the completion of the Logistics Centre Moscow-Chekhov.

In 2009 the Group achieved Earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 15.5 million. The year 2009 closed with an Operating Profit or Loss at EUR -50.3 million and a Net Profit or Loss at EUR -53.9 million. The negative result is largely attributable to expenses for revaluation of the Group to fair value in the amount of EUR 50.8 million. In the Group, the largest impairment was made in the companies OOO Intereuropa-East Moscow (EUR 35 million), in the parent company Intereuropa d.d. (EUR 14.3 million), Intereuropa-Ukraine (EUR 4.6 million) and Intereuropa, Logističke usluge d.o.o., Zagreb (EUR 1.6 million). If these one-off events are excluded (the impact of impairment, sale of a part of business in the year 2009, expenses for employee profit-sharing scheme for 2008, sale of fixed assets in 2008), the operating result 2009 of the Group was at EUR 20 thousand. Thanks to effective cost management, the Group cut the direct costs by 34 percent and indirect cost by 10 percent. Financial expenses on the Group level exceeded the financial revenues by EUR 10.7 million, of which the largest portion stands for net interest.

In accordance with the Programme of measures for implementation by the Managing Board approved earlier, which envision the disposal of the non-operating assets, the Supervisory Board consented to the sale of the property at Šmartinska c.134/b in Ljubljana.

Pursuant to the plan of the Intereuropa Group for 2010, Intereuropa envisions to achieve sales revenue of EUR 200 million, EBITDA at EUR 23.7 million and Profit /Loss at EUR 6.7 million. The planned growth of income will be achieved by expanding the market shares; in order to reduce the indebtedness, the Group will need own funds to be acquired by disposal of non-operating assets.

Adapting to the current situation, the Intereuropa Group continues with activities towards streamlining the corporation to the market aiming to assure a faster response to the market, effective communication with partners and preparing the foundations for growth of operations and strengthening the market position of Intereuropa. Activities aiming to assure financial stability and improve the liquidity position through debt rescheduling and reducing, disinvesting activities and effective management of working capital/current assets are continued. One of our key baselines is continual process optimization in all business segments on the Group level and within the consolidated companies. The Group wishes to increase the market share in the countries in which it is already present as a provider of integral logistics services and sees opportunities to additionally strengthen the operations: that applies to Slovenia and the markets of the former common state (Yugoslavia).

The Managing Board informed the Supervisory Board on the working copy of the »Strategic business plan of the Intereuropa Group for the term 2010-2014« and obtained the Supervisory Board's consent in principle about the course to be taken by the Managing Board, while the final version will be dealt with in the next session of the Supervisory Board.