Behold the 100 top valuable firms in Estonia

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 8^th 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