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Behold the 100 top valuable firms in Estonia

Pooled suurettevõtetest kuuluvad eestlastele. PHOTO: Allikas: MAI Baltics Advisory OÜ

Over these past four years, the total value of Estonia’s hundred largest companies has basically stayed the same, with way to grow to the pre-crisis level. In 2007, the value of 100 biggest native firms amounted to €21.6bn.

This year, analysts at M&A International Baltics assumed the task to compile top 100 valuable list from Gild Corporate Finance. The list is in its 8th year of publishing. A company’s value is calculated on the basis of forecast market value of equity capital as at beginning of the year.

According to M&A International Baltics (MAI) partner Heikki Källu, the growth this year mainly came thanks to the methodology of calculating the value. Namely, the value contains two components: results of a definite enterprise, and the market coefficient. The coefficient, in its turn, is impacted by results of reference group companies, investor sentiment and market situation.

«We are seeing that the results of many of our enterprises have stayed flat or have not changed much; meanwhile, the market coefficients have risen rather much. By that, the value of the companies has gone up a lot,» he said.

Start-ups not included

The market coefficients growth, in their turn, has been caused by the widespread printing of money around the world which, according to Mr Källu, has boosted company values on the markets. «On the other hand, it is interesting to watch that this money has not always reached the economy – it has reached the markets, but not always the company results,» said the MAI partner.

But in spite of all that, the 100 top valuable Estonian firms make for a significant part of the state’s economy by providing a quarter of sales revenue and over a third of profits. The companies included in the table employ 72,000 people – over a tenth of the country’s labour force.

Also, the average monthly wages in said enterprises is almost twice the average in the country – €1,756 and €949 gross respectively, in 2013. Last year, the most valuable enterprises exported for a total of €6bn, which is close to a half of the entire exports of the nation.

Half of these largest companies are owned by private investors with Estonian background or by the state; mostly, foreign investors are from Finland and Sweden. When also considering the value of the companies, enterprises of Swedish background have an especially large impact on Estonian economy, owning our largest banks (Swedbank, SEB), communication and telecommunication companies (Eesti Telekom, Tele2, Viasat, Starman) and industrial groups (ABB, AGA, Ericsson).

By fields of activity, during a year, he top hundred’s turnover has increased most in trade and utility enterprises (4 percent) and shrunk in construction and telecommunication companies (five-six percent).

According to MAI analysts, the total value of the largest state enterprises is €2.8bn, with Eesti Energia continuing to make up a half of that.

Most of the top hundred firms operate in traditional domains and on relatively developed goods/services markets. The much talked-about start-ups are not in the table, as these are mostly registered abroad and do not fit the criteria of the table.

Rapid growth not in sight

Mr Källu says it’s difficult to predict the fortunes of the companied next year. According to him, markets’ behaviour is impacted by the USA beginning to put an end to printing of dollars, so we’ll see how the markets emerge from that.

«What comes to the results of our companies, obviously the next year economic growth forecasts have been pulled back. Probably, no big fast development is nowhere in sight,» he explained.

«The question rather is, if we are to expect some negative external shocks – the geopolitical situation, the relations with Russia, the oil price. Seems to me the negative risks are more abundant than the upward opportunities. But we’ll see by the end of the year which of these will have real impact and which won’t,» added the MAI partner.

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Comment

Tõnis Oja

Postimees

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How does one measure the size of various companies? What is important – the turnover, the profit, or some other indicator?

Estonia’s oldest company top-list is being compiled by the business daily Äripäev since 1993. The list is based on six indicators: turnover, increase of turnover, operating profit, increase of operating profit, profitability and return on assets. On the basis of points on these rankings, the top 100 list is put together. This is a mechanical aggregate of indicators characterising the company’s size, profitability and growth, which actually does not show much at all.

Toivo Mängel, an author of the Äripäev list idea, recalled in the freshest compilation of the Äripäev lists that they desired to take a bit merrier approach mapping the business landscape – according to today’s understanding, this would mean an approach even sporty and society-like.

For the most part, companies are compared on the basis of two indicators. One is sales revenue or turnover, according to which the world’s best known Fortune 500 is compiled. In the lists put together by Äripäev, the turnover is indeed a component; however, as I said, the newspaper is mostly stressing the aggregate table.

Two years ago, Postimees started to list companies according to turnover only.

The other weighty way to compare companies is according to market value thereof – this is what the Financial Times goes by.

With only 15 companies listed at Tallinn Stock Exchange, it makes not too much sense to list them according to that.

Also, company value may be calculated by indirect measurement i.e. theoretically. This is what, since 2007, has been used by the financial adviser Gild Corporate Finance (now M&A International Baltics).

This list is based on financial indicators of Estonia’s largest enterprises, but they have been compared with other listed companies as well. For every enterprise or sector, a suitable reference group has been compiled out of companies of maximally similar field of operation, region of operation, growth potential, risk profile and profitability listed at various stock exchanges.

In a word, it is attempted to put a price tag on companies – as adequate as possible. But the correctness thereof can only be checked as the company gets listed.

AGGREGATE TABLE:

Highest value companies

Place

Company

Value in 2014 (million €)

Change in value from 2013 (%)

Sales revenue in 2013 (million €)

Profit in 2013 (million €)

1

Swedbank AS

2,023

+17

329

214

2

Eesti Energia AS

1,506

+29

966

160

3

SEB Pank AS

828

+25

126

73

4

Tallink Grupp AS

600

+3

942

43

5

Eesti Telekom AS

571

+9

347

42

6

Ericsson Eesti AS

369

+12

1353

20

7

Vopak E.O.S. AS

366

–34

152

34

8

Port of Tallinn AS

339

+58

102

40

9

Elering AS

318

+21

134

49

10

Olympic Entertainment Group AS

282

+5

136

26

11

Viru Keemia Grupp AS

259

–11

213

19

12

Tallinna Vesi AS

238

+29

53

20

13

Tallinna Kaubamaja AS

216

–3

499

17

14

Skinest Grupp AS

189

–17

182

27

15

E.L.L. Kinnisvara AS

175

–14

40

8

16

A. Le Coq AS

167

+21

81

14

17

State Real Estate Ltd

152

+1

44

3

18

Spacecom AS

151

–16

56

19

19

ABB AS

144

+30

187

9

20

PKC Eesti AS

143

–31

144

18

21

BLRT Grupp AS

142

+86

378

–14

22

Elisa Eesti AS

142

–37

95

16

23

Eesti Gaas AS

138

–16

221

15

24

Utilitas OÜ

136

+135

131

16

25

Tallinn Airport AS

135

+33

30

5

26

HKScan Estonia AS

134

147

2

27

Nelja Energia AS

129

49

13

28

Merko Ehitus AS

127

+22

263

10

29

If P&C Insurance AS

127

–28

113

13

30

Graanul Invest AS

127

131

10

31

Alexela Logistics AS

124

+5

85

9

32

Eesti Raudtee AS

111

+4

64

11

33

Vesta Terminal Tallinn OÜ

110

+7

34

12

34

DNB Pank AS

110

12

4

35

Henkel Makroflex AS

110

+101

99

12

36

Rocca Al Mare Kaubanduskeskus AS

109

–5

15

17

37

Silvano Fashion Group AS

104

–4

122

11

38

Saint-Gobain Glass Estonia SE

101

+24

62

7

39

Baltic International Trading OÜ

99

813

8

40

Fortum Tartu AS

99

+22

39

12

41

Tele2 Eesti AS

92

–32

67

5

42

Baltic Maritime Logistics Group AS

87

+4

112

6

43

Maxima Eesti OÜ

86

+33

381

4

44

Petromaks Spediitori AS

85

+34

29

10

45

Eesti Loto AS

85

+61

47

6

46

Transgroup Invest AS

84

–3

1

13

47

G4S Baltics AS

82

–37

0

2

48

Rimi Eesti Food AS

82

+19

361

3

49

Webinfluence Group AS

80

25

5

50

Kinnisvaravalduse AS

78

+61

19

–11

51

Kunda Nordic Tsement AS

78

–5

54

6

52

Nordea Finance Estonia AS

77

+39

18

13

53

Metaprint AS

75

+44

41

5

54

Saku Õlletehase AS

75

71

3

55

Stora Enso Eesti AS

75

+3

189

11

56

Magnum AS

73

–22

284

5

57

Bigbank AS

73

+27

55

11

58

Kodumaja AS

72

+40

52

7

59

Wett Eesti OÜ

68

–2

14

3

60

Transiidikeskuse AS

66

+14

25

6

61

Antonio Trade OÜ

66

122

10

62

Ensto Ensek AS

65

+70

67

7

63

Würth AS

65

+75

24

4

64

Glamox HE AS

64

+57

29

6

65

Santa Monica Networks Group OÜ

63

57

3

66

Lenne OÜ

63

+9

24

6

67

TREV-2 Grupp AS

63

103

1

68

Starman AS

62

+55

30

4

69

Silberauto AS

61

206

7

70.

Eesti AGA AS

60

+5

17

4

71

Lennuliiklusteeninduse AS

60

+24

18

4

72

Ramirent Baltic AS

60

+44

30

4

73

Baltic Sea Bunkering OÜ

60

187

7

74

Krimelte OÜ

59

–10

81

4

75

ERGO Insurance SE

59

–25

102

–1

76

Skype Technologies OÜ

58

48

6

77

Orica Eesti OÜ

58

27

5

78

Järve Kaubanduskeskus OÜ

57

+27

8

3

79

Statoil Fuel & Retail Eesti AS

56

–8

219

3

80

Tartu Mill AS

55

116

4

81

Mecro AS

54

+26

104

4

82

Neste Eesti AS

53

+42

316

5

83

Top Connect OÜ

53

–36

59

3

84

Elme Messer Gaas AS

53

–12

38

2

85

Leibur AS

52

+5

32

4

86

Alexela Group OÜ

51

239

8

87

Pro Kapital Grupp AS

51

–6

12

–3

88

DBT AS

50

–44

31

6

89

Lemeks AS

49

+18

90

6

90

JELD-WEN Eesti AS

48

+12

51

5

91

Norma AS

48

+2

61

2

92

Eesti Post AS

48

+3

54

2

93

Mainor Ülemiste AS

47

3

4

94

Sandmani Grupi AS

47

76

4

95

Harju Elekter AS

47

+2

48

5

96

Hebron OÜ

45

127

1

97

Horizon Tselluloosi ja Paberi AS

45

+6

59

4

98

Toftan AS

45

–5

42

6

99

UPM-Kymmene Otepää AS

45

+16

30

4

100

Tamro Eesti OÜ

44

79

4

With companies not in top 100 last year, change of value is marked as –.

Source: MAI Baltics Advisory OÜ

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