DEFINITIONS

Assets total – sum of current and fixed assets, which is equal to the sum of liabilities and equity.

Control over the enterprise – control exists if the unit owns more than 50% of shareholdings with voting rights or the ability to determine the general policy of an enterprise.

Costs total – sum of all cost categories (except other expenses, financial and extraordinary costs), adjusted by stocks of work-in-progress and finished goods (not sold yet) and capitalized self-constructed assets.

Current assets – cash and bank; assets, which are expected to be sold or otherwise used up usually within one year, or one business cycle.

Depreciation – depreciation (decrease in value) charge calculated on tangible and intangible and biological assets (in original cost) and property investments, also expenses arising on the impairment (write-downs and/or write-offs) of non-current assets.

Equity – (net assets) the owners' interest on the assets of the enterprise after deducting liabilities.

European Union (excl. Estonia) – 26 European Union Member States: Austria, Belgium, Bulgaria, Spain, Netherlands, Ireland, Italy, Greece, Cyprus, Lithuania, Luxembourg, Latvia, Malta, Poland, Portugal, France, Sweden, Romania, Germany, Slovakia, Slovenia, Finland, United Kingdom, Denmark, Czech Republic, Hungary.

Financial income and costs – income and costs from ownership shares and other financial investments.

Fixed assets – assets purchased for continued and long-term use in an enterprise, usually more than one year. An enterprise determines the useful life and the minimum cost level of the fixed assets by categories in its accounting policies and procedures.

Foreign affiliate – an enterprise resident in the compiling country over which an institutional unit not resident in the compiling country has control, or an enterprise not resident in the compiling country over which an institutional unit resident in the compiling country has control.

Foreign countries – all countries, excluding Estonia.

Income tax – the cost of income tax on dividends.

Investments in fixed assets – the cost of buildings, land, equipment, machinery, vehicles, installation, etc. purchased in the reference period; in the case of construction and reconstruction of the existing fixed assets, it also includes the cost of work done; investments in intangible fixed assets and valuables. The acquisition of property classified as investment property is also included.

Labour productivity per person employed (on the basis of value added) – indicates how much value added is generated on average per person employed (is calculated as value added divided by the number of persons employed).

Liabilities – current and long-term liabilities.

Materials, supplies and intermediate goods, laid-out work – cost of materials, products and services consumed in the production process (in original cost).

Merchandise – goods purchased for resale to third parties without further processing, including sold stocks of raw materials and materials, real estate (dwellings, flats, non-residential buildings, land) and services (electricity, heat energy, water supply, package tour, etc.).

Net profit (loss) – net sales + other revenue + financial income – costs total – other expenses – financial costs – income tax.

Net sales – the revenue from the sale of goods and services, which does not include VAT and excises. The net sales are equal with the pay received or to be received and are calculated on the accrual basis of accounting. Income classified as other revenue, financial income and extra-ordinary income in company accounts is excluded from net sales. Reduction in prices, rebates and discounts must be deducted. ‘Net sales’ generally includes subsidies.

Non-European Union – all countries, excluding Estonia and other European Union Member States.

Number of employees – persons who work for an employer, have a contract of employment and receive compensation in the form of wages, salaries, fees, gratuities, piecework pay or remuneration in kind. The number of employees is measured as an annual average.

Number of enterprises – the number of active enterprises or enterprises, which were economically active in the reference period (net sales, expenditure, etc.).

Operating profit (loss) – total profit (loss) plus other revenue from business minus business expenses.

Other expenses – loss on the sale of tangible and intangible assets, property investments, biological assets; fines and fines for delay; other irregular costs incurred during operating activities. Other expenses include extraordinary costs.

Other revenues – profit on the sale of tangible and intangible assets, property investments, biological assets; fines and fines for delay received; other irregular revenue earned during business activities. Other revenue includes extraordinary income.

Personnel expenses – wages and salaries, and social tax.

Persons employed – persons who work for the enterprise, irrespective of the length of their working week. The number of persons employed is measured as an annual average.

Employed persons include:

- working proprietors and their unpaid family members;

- full- and part-time employees who are on the pay-roll;

- persons who work outside the unit (sales representatives, delivery personnel, repair and maintenance teams, etc.) but who are on the staff list and the pay-roll of the enterprise;

- persons temporarily absent from work (persons on sick leave, paid leave, study leave, on strike, etc.)

- seasonal workers, trainees (apprentices) and home-workers who are on the pay-roll;

- persons employed under the contract for services.

Unpaid family workers refer to persons who live with the proprietor of the enterprise and work regularly for the enterprise, but who do not have an employment contract and who do not receive remuneration for the work they perform. This group includes only those persons who are not on the payroll of another enterprise as full-time employees.

The number of employed persons excludes the staff of other enterprises who carry out ordered work, and also persons who are absent from work for a long time (persons on child care leave, conscripts, etc.).

Production value – the amount actually produced by the unit, based on sales, including changes in stocks and the resale of goods and services.

The production value is defined as turnover or revenue from sales of goods and rendering of services, plus or minus the changes in stocks of finished products, work in progress and goods and services purchased for resale, minus the purchases of goods and services for resale (only for the goods and services sold during the reporting period and excluding the costs of storage and transport of the goods purchased for resale), plus capitalised production, plus other (operating and extraordinary) income (excluding subsidies).

Profit (loss) from normal operations – operating profit (loss) plus financial revenue minus financial expenses.

Sale to non-residents – the revenue from the sale of goods and services to legal persons registered or natural persons residing abroad, i.e. outside Estonia. Sale of own manufacturing production and provided manufacturing services to non-residents does not include the cost of materials in case of re-export if the materials imported for processing purposes were not shown in costs (only the commission for services is included).

Shared control – nobody (neither legal nor natural person) has over 50% of voting rights or controls otherwise.

Social security costs – social tax and unemployment insurance tax paid by an entity in accordance with the legislation. Includes also the social security tax from fringe benefits and from calculated annual leave reserve.

Total profit (loss) – net sales minus total costs (costs of goods sold and operating expenses).

Type of owner – a basis for the classification of entrepreneurs on the assumption of their capital involvement (majority of votes) in the company.

Ultimate controlling institutional unit of a foreign affiliate – the institutional unit, proceeding up a foreign affiliate’s chain of control, which is not controlled by another institutional unit.

Value added – (at factor cost) the gross income from operating activities after adjusting for operating subsidies and indirect taxes. It can be calculated from net sales (without subsidies) + change in stocks of work-in-progress and finished goods (stocks at the end minus stocks at the beginning of the reference year) + capitalized self-constructed assets + other revenue (without profit from the sale of tangible assets) – other expenses (without loss from the sale of tangible assets) – costs of merchandise, materials, supplies, intermediate goods, electricity, fuel, power, laid-out work – duties and taxes linked to the production – taxes on products.

Wages and salaries – remuneration paid by the employer to all persons for work done in the reference period.

Formulas

Ratio

Formula

Productivity measures by value added

 

 

Productivity of labour (thousand kroons)

value added

—–———————————————

average number of persons employed

 

Productivity of personnel costs (kroons)

value added

—–———————

personnel expenses

 

Total productivity (kroons)

value added

——————

costs

Value added at factor cost

net sales + change in stocks of work-in-progress and finished goods (stocks at the end minus stocks at the beginning of the reference year) + capitalized self-constructed assets + other revenue (without profit from the sale of tangible assets) – other expenses (without loss from the sale of tangible assets) – costs of merchandise, materials, supplies, intermediate goods, electricity, fuel, power, laid-out work – duties and taxes linked to production – taxes on products

Production value

net sales + other revenue (without profit from the sale of tangible assets) – costs of merchandise, services and real estate purchased for resale – payments to subcontractors + change in stocks of work-in-progress and finished goods (stocks at the end minus stocks at the beginning of the reference year) + capitalized self-constructed assets

METHODOLOGY

Foreign affiliates statistics (hereinafter FATS) could be divided as

a)     inward FATS

b)     outward FATS

Inward FATS describes the activity of foreign affiliates resident in the compiling country, i.e. in Estonia. These are commercial undertakings registered in the Estonian Commercial Register and controlled by legal or natural persons, who are not Estonian residents, or branches of foreign companies. Inward FATS is produced by Statistics Estonia.

Outward FATS describes the activity of foreign affiliates abroad controlled by legal person resident in the compiling country, i.e. in Estonia or which are owned by Estonian resident natural person or government of Estonia. These are subsidiaries and branches of Estonian companies abroad. Outward FATS is produced by the Bank of Estonia.

The purpose of the FATS is to produce statistics about enterprises by countries of location of their ultimate controlling units. Control exists if the unit owns more than 50% of shareholdings with voting rights or has dominant influence over the medium and long-term strategies of another enterprise. Control means the ability to determine the general policy of an enterprise. It could be whether more than 50% from voting rights or legal or contractual right to appoint or withdraw majority of management or higher directing body. The ultimate controlling unit means the unit, proceeding up a chain of control, which is not controlled by another unit. In case of large multinational enterprise groups the chain of control could be long and complicated and cover several countries.

The ultimate controllers may be whether legal persons (enterprises, foundations, government institutions, local government institutions, banks, etc.) or private persons (natural persons). If the controller is a legal person then the country of location is the country where the legal person is entered in the register (e.g. Commercial Register). If the controller is a natural person, then the country of location is the country of permanent residence (country of residency).

The control is determined based on ownership links as at the end of the calendar year.

Sometimes the enterprises may not have a certain controller, but it is created as a joint venture. For example: the voting rights in enterprise registered in Estonia are divided 50%:50% between Finnish and Swedish owners. These enterprises are under the separate category – shared control. The shared control could be between owners only from the European Union Member States or from the European Union Member States and countries from all over the world. Therefore the “Equally-shared control (EU Member States)” and Equally-shared control (rest of the world) is in use.

Indirect control (Indirect majority ownership)

Indirect control

Enterprise C is controlled by the Finnish unit X

Enterprise C is controlled by the Swedish unit X. Unit X controls enterprises A and B (participation 60% in both). A and B control 60% (30% + 30%) in enterprise C.

European Union, shared control

Rest of the world, shared control

The control in enterprise C is shared by the owners in the European Union Member States (Finland and Denmark)

The control in enterprise C is shared by the owners in the USA, Russia and Sweden

 

The financial data are collected by sample survey. Enterprises with 20 or more persons employed are completely enumerated. Therefore, it is possible to publish the main financial indicators of foreign affiliates only about enterprises with 20 or more persons employed.

DATA COLLECTION

The financial data of enterprises have been collected on the basis of the annual statistical questionnaire “EKOMAR”. The financial data of enterprises do not include data of budgetary institutions and organisations, sole proprietors and farms. The financial data of enterprises total do not include the data of the agriculture, forestry, fishing and financial intermediation activity.

DATA PROCESSING

Statistical unit

Statistical unit is the enterprise as a company – public limited company, private limited company, general partnership, limited partnership, commercial association and branch of foreign company.

Population and sampling frame

Survey population comprises enterprises, which are included in the register of economically active enterprises called the Statistical Profile. The Statistical Profile is created on the basis of the database of the Ministry of Justice Centre of Registers and is used as a sampling frame.

Sample

The financial data are collected by sample survey, using stratified simple random sampling. The population was stratified by economic activity, by number of persons employed and by type of owner. The data collected by sample survey are expanded to the whole population.

Enterprises have been divided into groups by economic activity according to the Estonian Classification of Economic Activities (EMTAK 2003), which is based on the NACE Rev 1.1 (Statistical Classification of Economic Activities in the European Communities).

By type of owner, all state and municipal enterprises as well as enterprises of private ownership with 20 or more persons employed are completely enumerated. The rest of enterprises belonging to Estonian and foreign persons in private law are sampled.

CONFIDENTIALITY

According to the Official Statistics Act (Articles 8 and 9), Statistics Estonia is obliged to ensure the protection of the collected data. The data can be used only for statistical purposes. The data are disseminated and transmitted in a generalized form, all characteristics, which permit identification of respondents, are excluded, the data have to be grouped in at least threes where the proportion of each respondent's data in aggregations does not exceed 90%. In case there are only one or two enterprises in a group, the data can be transmitted or disseminated only by the written consent of respondents.

CLASSIFICATIONS

Estonian Classification of Economic Activities (EMTAK 2003) based on NACE Rev.1.1

C

Mining and quarrying

  10

..mining of coal and lignite; extraction of peat

  11

..extraction of crude petroleum and natural gas

  12

..mining of uranium and thorium ores

  13

..mining of metal ores

  14

..other mining and quarrying

D

Manufacturing

  15

..manufacture of food products and beverages

  16

..manufacture of tobacco products

  17

..manufacture of textiles

  18

..manufacture of wearing apparel; dressing and dyeing of fur

  19

..manufacture of leather and leather products

  20

..manufacture of wood and wood products

  21

..manufacture of pulp, paper and paper products

  22

..publishing, printing and reproduction of recorded media

  23

..manufacture of coke, refined petroleum products, nuclear fuel

  24

..manufacture of chemicals and chemical products

  25

..manufacture of rubber and plastic products

  26

..manufacture of other non-metallic mineral products

  27

..manufacture of basic metals

  28

..manufacture of fabricated metal products, except machinery and equipment

  29

..manufacture of machinery and equipment n.e.c.

  30

..manufacture of office machinery and computers

  31

..manufacture of electrical machinery and apparatus n.e.c.

  32

..manufacture of radio, television and communication equipment

  33

..manufacture of medical, precision and optical instruments, watches and clocks

  34

..manufacture of motor vehicles, trailers and semi-trailers

  35

..manufacture of other transport equipment

  36

..manufacture of furniture; manufacturing n.e.c.

  37

..recycling

E

Electricity, gas and water supply

  40

..electricity, gas, steam and hot water supply

  41

..collection, purification and distribution of water

F

Construction

G

Wholesale and retail trade; repair of motor vehicles etc.

  50

..sale, repair of motor vehicles; retail sale of automotive fuel

  51

..wholesale trade and commission trade

  52

..retail trade, excl motor vehicles; repair of household goods

H

Hotels and restaurants

I

Transport, storage and communication

  60

..land transport

  61

..water transport

  62

..air transport

  63

..supporting transport activities; travel agencies

  64

..post and telecommunications

K

Real estate, renting and business activities

  70

..real estate activities

  71

..renting of machinery and equipment without operator

  72

..computer and related activities

  73

..research and development

  74

..other business activities

M

Education

N

Health and social work

O

Other community, social and personal service activities

  90

..sewage and refuse disposal, sanitation and similar activities

  92

..recreational, cultural and sporting activities

  93

..other service activities

 

International Standard Codes for the Representation of the Names of Countries (ISO 3166)

The list of country names and territories (official short names in English) as given in ISO 3166-1.

Additionally the following categories are in use:

Foreign countries

All countries, excluding Estonia

European Union (excl. Estonia)

26 European Union Member States: Austria, Belgium, Bulgaria, Spain, Netherlands, Ireland, Italy, Greece, Cyprus, Lithuania, Luxemburg, Latvia, Malta, Poland, Portugal, France, Sweden, Romania, Germany, Slovakia, Slovenia, Finland, United Kingdom, Denmark, Czech Republic, Hungary

Non-European Union

All countries, excluding Estonia and European Union Member States

MORE DATA

Ettevυtlus EestisBusiness in Estonia. Pocket-sized reference book

 CONTACT PERSON

Merike Pυldsaar

Enterprise and Agricultural Statistics Department

Tel +372 625 9133

merike.poldsaar@stat.ee

 

 Updated: 03.04.2014