Annual Report 2014

Itella Russia

Despite the difficult economic and political situation, the net sales of the Itella Russia business group, measured in local currency, increased by 0.7%.

By December 31, 2014, the closing rate of the Russian ruble had declined by 59.6% year-on-year. Due to the depreciation of the ruble, growth measured in euros was negative at -16.3%, with net sales amounting to EUR 172.0 (205.6) million.

The operating result before non-recurring items amounted to EUR 2.5 (5.3) million. Measured in local currency, the result was approximately a third lower than in the previous year.

The result was impaired by currency impacts, the difficult overall economic situation and the weak situation in retail and consumption. In warehousing services, competition intensified in the Moscow region due to oversupply of warehouse premises. The average fill rate of warehouses in the Moscow region declined slightly and was 88% (91%). The fill rate of warehouses in other regions improved to 76% (69%). In eastern Russia, warehousing business grew well during the year.

The operating result was EUR 2.4 (4.3) million.

The court’s ruling in the criminal case with regard to the warehouse accident at the Shushary logistics center in St. Petersburg in July 2012 was given in January 2014. The prosecutor dropped the charges against Itella’s management in Russia and the case was closed. The settlement will not impact Itella Russia’s result.

Itella Russia’s investments amounted to EUR 2.6 (8.2) million.