PRESS RELEASES 2004


·         23.12.  PUBLICATION OF FINANCIAL REPORTS IN 2005

·         14.12.  APPOINTMENT OF MANAGEMENT BOARD OF SUBSIDIARY

·         02.11.  HARJU ELEKTER, FINANCIAL RESULTS 9M 2004

·         01.11.  INCREASE OF SHARE CAPITAL

·         05.10.  INCREASE OF SHARE CAPITAL

·         21.09.  PKC GROUP PAYS EXTRA DIVIDENDS

·         07.09.  HARJU ELEKTER CONCLUDED A PRELIMINARY LEASEHOLD CONTRACT WITH PKC EESTI

·         30.08.  DECISIONS OF THE SUPERVISORY BOARD'S MEETING

·         03.08.  FINANCIAL RESULTS, H1 2004

·         21.06.  LITHUANIAN SUBSIDIARY OPENS A NEW PLANT

·         04.06.  HARJU ELEKTER OPENS STORE IN JÕHVI

·         10.05.  FINANCIAL RESULTS, Q1 2004

·         04.05.  ASSOCIATED COMPANY OF HARJU ELEKTER OPENS NEW PRODUCTION BUILDING

·         16.04.  RESOLUTIONS OF ANNUAL GENERAL MEETING OF SHAREHOLDERS

·         11.03.  ANNUAL GENERAL MEETING OF SHAREHOLDERS

·      27.02.  FINANCIAL RESULTS OF THE GROUP IN 2003

·         16.01.  PUBLICATION OF FINANCIAL REPORTS IN 2004


AS HARJU ELEKTER
ANNOUNCEMENT
23.12.2004

PUBLICATION OF FINANCIAL REPORTS IN 2005

 

Harju Elekter wishes to the shareholders Merry Christmas and a Happy New Year
and inform you that the company will publish the 2004 unaudited consolidated
financial results in the year 2005, week 9.

During the year 2005 Harju Elekter will publish 3 interim reports:

1-3/2005    week 19
1-6/2005    week 31
1-9/2005    week 44

After their release through the stock exchange information system all
Harju Elekter’s announcements are also available on company’s internet
homepage at http://www.harjuelekter.ee

Andres Allikmäe
Chairman of the Board
+372 6747 400

 

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AS HARJU ELEKTER
ANNOUNCEMENT
14.12.2004

APPOINTMENT OF MANAGEMENT BOARD OF SUBSIDIARY

 

At its meeting of 14.12.2004, the supervisory board of AS Eltek, a 100 per
cent subsidiary to AS Harju Elekter, decided to appoint a management board
consisting of a single member for the next three-year period since the term
of office of the former management board expired, and to appoint the former
chairman of the management board Mr. Aare Metsur as the managing director.

Eltek is Harju Elekter’s subsidiary since 1998. The core business of the
company is design, manufacture and marketing of sheet metal products for the
telecommunication and data transfer markets. Eltek’s turnover in 9M 2004 was
35,3 million kroons or 2,26 million euros (
9M 2003: 33,5 million kroons or
2,14 million euros)

 

Andres Allikmäe
Chairman of the Board
+372 6747 400

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AS HARJU ELEKTER
ANNOUNCEMENT
02.11.2004

HARJU ELEKTER, FINANCIAL RESULTS 9M 2004

 

Harju Elekter has been able to effect the success arising form economic growth
and the synergistic cooperation of the group and achieve good financial
results. Sales income and operating profit have grown delightfully in all
areas of activity. The results for the first nine months of 2004 will make
positive developments possible also in the periods to come.

                                                                         1-9/2004   1-9/2003
Key indicators (MEUR)
Net sales                                                              20,15      15,04
Operating profit                                                      1,54       0,90
Profit before fin.expenses (EBIT)                             6,27       7,14
Net profit for the current period                               6,04       7,08

At the end of the period
Total current assets                                             10,41      6,36
Total fixed assets                                                28,13      19,32
Total assets                                                        38,54      25,68
Total liabilities                                                       7,52       4,93
Minority interests                                                  0,96       0
Total owners’ equity                                            30,07      20,74

Performance indicators (%)
Net sales growth                                                33,9       26,1
Operating profit growth                                      70,4       13,1
Net profit growth                                              -14,4      118,9
Return of sales (operating profit/net sales *100)    7,6        6,0
Net profit margin (net profit /net sales *100)       30,1       47,1
Owners’ equity margin                                      78,0       80,8
(equity /balance sheet total *100)

Number of employees on 30.09.2004                 383        294
EPS (EUR)                                                        1,12      1,31

The economic results of the consolidation group for the 9M were generally good
and met our expectations. The number of sales orders in the Q3 considerably
exceeded the volume of the Q2 as well as in Estonian market also in Finnish
and Lithuanian markets. Compared to the same period last year, the sales
increasing by 33,9% and operating profit by 70,4%, gross margin improved up to
7,6%.

Of the sales revenue, 77,6% accounted for the sales of industrial products and
14,5% for intermediate sales and sales of services. At the same time, the
sales of products in the 9M increased by 32,7% in comparison with the same
period in 2003, and the sales of services and intermediate sales altogether
increased by 38,5%. Of the sales revenue of the consolidation group AS Harju
Elekter, 47,7% is ascribed to the sales to
Estonia and 52,3% to the sales to
foreign markets.incl.38,5% to
Finland and 11,4% to Lithuania. The sales to the
Estonian market went up by 21,3%. The sales of products to foreign markets
went up by 48,0%. Attention should be paid to the fact that the data of the 9M
2004 include also the consolidated sales revenues of the Lithuanian subsidiary
Rifas in amount 2,3 MEUR.

Financial operations yielded a total profit of MEUR 4,7 (9M 2003: MEUR 6,2).
The market price of a PKC Group Oyj share changed only little in the Q3,
decreasing by 7 euro cents; in the Q3 of 2003, however, the market price of
the share increased by 99 euro cents, resulting in additional financial income
in the amount of MEUR 5,2. A total of MEUR 3,1 (9M 2003: MEUR 5,2) of
financial income was described from the revaluation of shares in the 9M of
2004. PKC Group Oyj paid dividends for 2003 in the total amount of MEUR 1,5,
which is exceeds the relevant figure for last year by more than five times.

During the accounting period, the Group invested in tangible and intangible
assets a total of MEUR 1,6 (9M 2003: MEUR 2,4), of which in technology was
MEUR 0,8 (9M 2003: TEUR 170) and construction and renovation work of buildings
and plant was MEUR 0,8 (9M 2003: MEUR 2,0).


Andres Allikmäe
Chairman of the Board
+372 6 747 400

For more information: Interim report 1-9/2004 of Harju Elekter or Karin
Padjus, Member of the Board (tel +372 6 747 400).


 

BALANCE SHEET, 30.09.04

 

 

 

 

Consolidated, unaudited

 

 

 

 

Group

 

 

 

 

in thousand 

  EEK

 

EUR

 

ASSETS                                                  

30.09.04

31.12.03

30.09.04

31.12.03

Cash, bank                                     

17 862

26 449

1 142

1 690

Total customer receivables               

65 966

31 784

4 216

2 030

Other current receivables                

3 058

6 106

195

390

Accrued income                           

882

67

56

4

Prepaid expenses                        

1 843

1 251

118

80

Total current receivables                

71 749

39 208

4 586

2 505

Raw materials and inventories              

61 342

37 721

3 920

2 411

Goods                                    

11 736

6 344

750

405

Prepayments to suppliers                 

184

57

12

4

Total inventories                       

73 262

44 123

4 682

2 820

TOTAL CURRENT ASSETS                    

162 873

109 780

10 409

7 016

Stock and shares in associated companies

24 523

26 476

1 567

1 692

Other shares                            

254 941

201 128

16 294

12 854

Other long-term receivables              

26

19

2

1

Total financial investments             

279 490

227 623

17 863

14 548

Investment properties

87 485

86 896

5 591

5 554

Plant and equipment                     

38 487

28 308

2 460

1 809

Other equipment and fixtures            

70 311

58 144

4 494

3 716

Other inventory                         

5 715

4 996

365

319

Accumulated depreciation                 

-45 057

-38 892

-2 880

-2 486

Construction-in-progress                 

2 325

2 363

149

151

Prepayments for fixed assets

43

2 068

3

132

Total tangible assets                    

71 824

56 987

4 590

3 642

Licences                                   

1 412

1 752

90

112

Prepayments for intangible assets 

0

39

0

2

Total intangible assets                  

1 412

1 790

90

114

TOTAL NON-CURRENT ASSETS                 

440 211

373 297

28 135

23 858

TOTAL ASSETS                             

603 084

483 077

38 544

30 874

LIABILITIES AND OWNERS' EQUITY           

 

 

 

 

Debt obligations                        

18 074

14 366

1 155

918

Customer prepayments                     

3 470

1 065

222

68

Supplier payables                        

51 314

26 756

3 280

1 710

Other short-term borrowings              

2 050

1 218

131

78

Tax liabilities                          

7 603

6 838

486

437

Other prepaid revenue

8 706

0

556

0

Accrued expenses                         

3 643

9 600

233

614

TOTAL CURRENT LIABILITIES                

94 861

59 843

6 063

3 825

TOTAL NON-CURRENT LIABILITIES            

22 801

20 800

1 457

1 329

TOTAL LIABILITIES                        

117 661

80 643

7 520

5 154

Minority interest

14 991

13 222

958

845

Share capital                            

56 000

54 000

3 579

3 451

Paid-in capital over/under par

6 000

0

383

0

Restricted reserves                      

8 600

8 600

550

550

Retained earnings                        

305 012

151 151

19 495

9 660

Net profit for the year                  

94 820

175 461

6 060

11 214

TOTAL OWNERS' EQUITY                      

470 432

389 212

30 066

24 875

TOTAL LIABILITIES AND OWNERS' EQUITY     

603 084

483 077

38 544

30 874

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENTS

 

 

 

 

INCOME STATEMENT OF THE GROUP, 9M 2004

 

 

 

 

Consolidated,unaudited

 

 

 

 

in thousand 

EEK

 

EUR

 

GROUP

M9 2004

M9 2003

M9 2004

M9 2003

 

 

 

 

 

NET SALES

315 223

235 382

20 146

15 044

Cost of goods sold

-255 958

-191 418

-16 359

-12 234

 

 

 

 

 

Gross profit

59 265

43 964

3 787

2 810

 

 

 

 

 

Operating expenses, incl.

-35 421

-29 587

-2 264

-1 891

Marketing expenses

-14 354

-11 965

-917

-765

Administrative expenses

-21 067

-17 622

-1 346

-1 126

Other revenue

483

169

31

11

Other expenses

-302

-445

-19

-28

 

 

 

 

 

Operating profit

24 025

14 101

1 535

901

 

 

 

 

 

Financial income and expenses, incl.

 

 

 

 

 - from associated companies

-192

10 838

-12

693

 - from other holdings

25 354

5 399

1 620

345

 - from revaluat.of fin.investm.

48 849

81 332

3 122

5 198

 - interest expense

-1 012

-918

-65

-59

 - profit/loss from foreign exchange

-39

-37

-2

-2

 - other financial income/expenses

96

140

6

9

Total financial income and  expenses

73 056

96 754

4 668

6 184

 

 

 

 

 

Profit from normal operations

97 081

110 855

6 204

7 085

External income

-49

0

-3

0

Profit after faxes

97 033

110 855

6 201

7 085

Corporate Income tax

-2 212

-33

-141

-2

Net profit for the year

94 820

110 822

6 060

7 083

 

 

 

 

 

Basic earnings per share

17,49

20,52

1,12

1,31

 

 

 

 

 

Diluted earnings per share

17,49

20,20

1,12

1,29

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT OF THE GROUP, 2004 Q3

 

 

 

 

GROUP

Q3 2004

Q3 2003

Q3 2004

Q3 2003

NET SALES

126 022

85 817

8 054

5 484

Cost of goods sold

-99 826

-69 727

-6 380

-4 456

 

 

 

 

 

Gross profit

26 196

16 090

1 674

1 028

 

 

 

 

 

Operating expenses, incl.

-12 155

-9 927

-776

-634

Marketing expenses

-5 155

-4 209

-329

-269

Administrative expenses

-7 000

-5 718

-447

-365

Other revenue

94

127

6

8

Other expenses

-62

-68

-4

-4

 

 

 

 

 

Operating profit

14 073

6 222

900

398

 

 

 

 

 

Financial income and expenses, incl.

 

 

 

 

 - from associated companies

488

9 600

31

614

 - from other holdings

4 860

840

311

54

 - from revaluat.of fin.investm.

-2 134

29 008

-136

1 854

 - interest expense

-416

-421

-27

-27

 - profit/loss from foreign exchange

-13

-8

-1

-1

 - other financial income/expenses

22

50

1

3

Total financial income and  expenses

2 807

39 069

179

2 497

 

 

 

 

 

Profit from normal operations

16 880

45 291

1 079

2 895

External income

-16

0

-1

0

Profit after faxes

16 865

45 291

1 078

2 895

Corporate Income tax

-1 927

-33

-123

-2

Net profit for the year

14 937

45 258

955

2 893

 

 

 

 

 

Basic earnings per share

2,73

8,38

0,17

0,54

 

 

 

 

 

Diluted earnings per share

2,73

8,21

0,17

0,52

 

 

 

 

 

 

 

 

 

 

Karin Padjus                           

 

 

 

 

Chief accountant

 

 

 

 

67 47 403         

 

 

 

 

 

TOP

 


AS HARJU ELEKTER
ANNOUNCEMENT
01.11.2004

INCREASE OF SHARE CAPITAL

 

The commercial register registered the increase in the share capital of
AS Harju Elekter by EEK 2 million (TEUR 127,8). Harju Elekter issued 200 000
additional registered shares with the nominal value of 10 kroons (0,64 euros).
Since 29.10.2004, the share capital of Harju Elekter is EEK 56 million (MEUR
3,579), divided into 5,6 million ordinary shares with the nominal value of 10
kroons (0,64 euros). The new shares are entitled to dividends for the
financial year 2004.

Andres Allikmäe
Chairman of the Management Board
Tel +372 6 747 400

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AS HARJU ELEKTER
ANNOUNCEMENT
05.10.2004

INCREASE OF SHARE CAPITAL

 

In relation to placing, shares could be subscribed for from 16.09 to 30.09.2004.
During the period, all the 200,000 registered ordinary shares issued with a
nominal value of EEK 10 were subscribed for.
Payment for the shares issued took place simultaneously with the subscription
period and all the shares subscribed for have been duly paid for. The management
board of the company confirmed the results of subscription as of 30 September
2004 by its resolution adopted on 4 October 2004.

After the issue, the share capital of Harju Elekter is EEK 56 million, divided
into 5.6 million ordinary shares.

Andres Allikmäe
Chairman of the Management Board
+372 6 747 400

TOP


AS HARJU ELEKTER
ANNOUNCEMENT
21.09.2004

PKC GROUP PAYS EXTRA DIVIDENDS

 

PKC Group Oyj’s (hereinafter: PKC) Extraordinary General Meeting held on
20.09.2004 accepted Management Board proposal to pay extra dividend for
2003 in the amount of 0.5 EUR per share. The list of shareholders with the
right  to extra dividends shall be compiled on 23.09.2004. Harju Elekter
owns 620 001 PKC shares. Thus, the amount of dividends to be transferred
to the account of Harju Elekter on 30.09.2004 is 310 TEUR or 4.85 MEEK.
Harju Elekter has previously received dividends in the 1st quarter,
including from PKC for the year 2003 in the amount of 19.4 MEEK or 1.2 MEUR.
Harju Elekter will earn financial income from PKC dividends in 2004 in the
total amount of 24.25 MEEK or 1.55 MEUR.

The approval of shareholders was also given to the proposal of the management
board to organise bonus issue equity financing pursuant to which the share
capital of PKC will be increased by 3 916 391.74 EUR from 1 958 195.87 EUR to
5 874 587.61 EUR. During the bonus issue, 11 640 348 new shares will be
distributed so that two new shares will be given for each old share. New
shares give the right to dividends for the financial year of 2004. After the
bonus issue, the number of PKC shares will be 17 460 522. The list of share-
holders participating in the bonus issue will be compiled on 23.09.2004.
Harju Elekter is the largest shareholder of PKC who, after the bonus issue,
will own 1 860 003 PKC shares or have a holding of 10.65%.

 

Andres Allikmäe
Chairman of Management Board
Tel 6 747 400

Additional information: http://www.hex.com/eng/news/ PKC news release of
20.09.2004

 

TOP


AS HARJU ELEKTER
ANNOUNCEMENT
07.09.2004

HARJU ELEKTER CONCLUDED A PRELIMINARY LEASEHOLD CONTRACT WITH PKC EESTI

 

On 4.09.2004 AS Harju Elekter and PKC Eesti concluded preliminary leasehold
contracts for long-term lease of additional production space. At the request
of PKC Group, AS Harju Elekter will expand the production space of its
Estonian subsidiary by 8400 m2. 5400 m2 of that production space will be at
the disposal of the PKC Eesti Keila factory and 3000 m2 at the disposal of
the Haapsalu factory.

PKC Group needs the additional production space due to the increase in the
volume of orders and the transfer of the production operations previously
performed in the Netherlands and Finland, to Estonia. The new halls will be
completed in May 2005. The investment is mainly financed from own funds but
also by debt financing. The volume of the investment does not exceed 10% of
Harju Elekter\'s equity according to the latest consolidated balance sheet.

Harju Elekter rents to its subsidiaries, affiliates and co-operation partners
a total of 35.6 thousand sq m production and other space.


Andres Allikmäe
Chairman of the Management Board
Tel +372 6747 400

TOP

 


AS HARJU ELEKTER
ANNOUNCEMENT
30.08.2004

DECISIONS OF THE SUPERVISORY BOARD'S MEETING

 

The supervisory board of AS Harju Elekter decided the following at the meeting on 30 August 2004:

 

1) The share capital of AS Harju Elekter shall be increased by EEK 2 million to EEK 56 million by an issue of new shares by way of monetary contributions.

 

2) For increasing share capital, EEK 200 000 ordinary registered shares with a nominal value of EEK 10 shall be issued.

 

3) Deriving from the resolutions adopted at the annual general meeting of shareholders of Harju Elekter on 27 April 2000, the resolutions adopted by the supervisory board on 18 August 2000, and the provisions of the TSE Rules, the issue price of the shares to be issued is EEK 40 per share, including an issue premium of EEK 30 per share.

 

4) Subscription for the shares to be issued shall take place from 16 September to 30 September 2004 on the premises of the management board of Harju Elekter at the address: Paldiski mnt. 31, 76606 Keila, on working days from 8 to 16.

 

5) The resolution of the general meeting of shareholders of Harju Elekter of 27 April 2000 precludes the pre-emptive right of shareholders to subscribe for the shares to be issued and the issue of shares is directed at persons who, pursuant to the resolutions of the general meeting of shareholders of 27 April 2000 and the meeting of the supervisory board of 18 August 2000, have concluded a share option contract valid at the time of subscription for shares or who, as entitled persons, have acquired such right of option deriving from a share option contract via the management board to the extent specified in the share option contract.

 

6) The full issue price of the subscribed shares must be paid simultaneously with the subscription for the shares.

 

7) The shares to be issued entitle a shareholder to dividends starting from the financial year of 2004.

 

8) The management board of Harju Elekter shall confirm the results of the subscription for the shares as of 30 September 2004 by 4 October 2004 at the latest.

 

9) In the case of under subscription of shares, the supervisory board of Harju Elekter shall, in 15 days from the end of the subscription period and after receiving the results of the subscription of shares from the management board, cancel the shares not subscribed for during the subscription period and consider the share capital to be increased to the extent that the shares were actually subscribed and paid for.

 

10) The funds accrued from the issue of shares shall be used for extending production, first and foremost for increasing the production capacity of electrical installations.

The same resolution of the supervisory board increased the investment plan for 2004.

 

 

Andres Allikmäe

Chairman of the Management Board

+372 6747 400

TOP

 


AS HARJU ELEKTER
ANNAUNCMENT
03.08.2004

FINANCIAL RESULTS, H1 2004

 

 

1.06.2004

1.06.2003

Key indicators (MEEK)

 

 

Net sales

189,2

149,6

Operating profit

10

7,9

Profit before fin. expenses (EBIT)

80,8

66,1

Net profit for the current period

79,9

65,6

 

 

 

At the end of the period

 

 

Total current assets

120,2

92,2

Total fixed assets

441,9

268,4

Total assets

562,1

360,7

Total liabilities

101,5

81,3

Minority interests

13,1

0

Total owners’ equity

447,5

279,3

 

 

 

Performance indicators (%)

 

 

Net sales growth

26,5

19,5

Operating profit growth

26,3

21,5

Net profit growth

21,8

482,4

Return of sales (operating profit/net sales *100)

5,3

5,3

Net profit margin (net profit /net sales *100)

42,2

43,8

Owners’ equity margin

79,6

77,4

(equity /balance sheet total *100)

 

 

 

 

 

Current ratio*

1,7

1,3

Quick ratio*

0,9

0,8

Number of employees on 30.06.2004

374

296

EPS (EEK)

14,79

12,14

*average number in the current period

 

 

 

H1 of 2004 was for Harju Elekter consolidation group successful and exceeds the expectations. Electrical engineering sector is characterised by dependence on the season, due to which the production volume of the winter period is considerably lower than in the second and third quarter when construction reaches its peak. The economic results of the consolidation
group for the first six months were generally good and met our expectations. The number of sales orders in the Q2 considerably exceeded the volume of the Q1. Compared to the same period last year, the sales and operating profit
both increased.

Of the sales revenue, 76,6% accounted for the sales of industrial products
and 23,4% for intermediate sales and sales of services. At the same time,
the sales of products in the H1 increased by 23,0% in comparison with the
same period in 2003, and the sales of services and intermediate sales altogether increased by 39,5%, including trade and intermediate sales by 41,2%. Of the sales revenue of Harju Elekter 47,6% is ascribed to the sales
to Estonia and 52,4% to the sales to foreign markets. The sales to the Estonian market went up by 16,4%. The sales of products to foreign markets went up by 37,3%. Attention should be paid to the fact that the data of
the H1 of 2004 include also the consolidated sales revenues of the Lithuanian subsidiary Rifas in amount 19,9 MEEK (1,26 MEUR). The Republic of Finland, with its share of 38,1% in turnover, continued to be the largest target country of export.

Financial operations yielded a total profit of MEEK 70,2 (MEUR 5,1), which
is 22% more than in the same period of the previous year. The major source
of financial income was the share of PKC Group Oyj. The recalculation of the value of shares as a fair value generated financial income of MEEK 51,0 or MEUR 3,3 (H1 2003: MEEK 52,3 or MEUR 3,3). PKC Group Oyj paid dividends in
the amount of MEEK 19,4 or MEUR 1,2 for 2003 ((H1 2003: MEEK 4,6 or MEUR 0,3).

During the accounting period, the Group invested in tangible and intangible assets a total of MEEK 21,3 or MEUR 1,4 (H1 2003: MEEK 27,0 or MEUR 1,7), of which in technology was MEEK 10,4 or TEUR 663 (H1 2003: MEEK 2,7 or TEUR 170) and construction and renovation work of buildings and plant was MEEK 10,6 or TMEUR 672 (H1 2003: MEEK 22,4 or MEUR 1,4).


Andres Allikmäe
Chairman of the Board
Tel +372 6 747 400

More information: Interim report 1-6/2004 of Harju Elekter, Karin
Padjus, Member of the Board (tel +372 6 747 400).

 

BALANCE SHEET OF THE GROUP, 30.06.04

 

 

 

Consolidated, unaudited

 

 

 

 

 

 

 

 

 

in thousand 

  EEK

 

EUR

 

ASSETS                                                  

30.06.04

31.12.03

30.06.04

31.12.03

Cash, bank                                     

7 482

26 449

478

1 690

Total customer receivables               

47 583

31 784

3 041

2 030

Other current receivables                

2 652

6 106

169

390

Accrued income                           

1 762

67

113

4

Prepaid expenses                        

2 132

1 251

136

80

Total current receivables                

54 129

39 208

3 459

2 505

Raw materials and inventories              

48 771

37 721

3 117

2 411

Goods                                    

9 683

6 344

619

405

Prepayments to suppliers                 

157

57

10

4

Total inventories                       

58 611

44 123

3 746

2 820

TOTAL CURRENT ASSETS                    

120 222

109 780

7 684

7 016

Stock and shares in ass.companies

24 036

26 476

1 536

1 692

Other shares                            

257 075

201 128

16 430

12 854

Other long-term receivables              

26

19

2

1

Total financial investments             

281 137

227 623

17 968

14 548

Investment properties

85 621

86 896

5 472

5 554

Plant and equipment                     

35 589

28 308

2 275

1 809

Other equipment and fixtures            

68 074

58 144

4 351

3 716

Other inventory                         

5 574

4 996

356

319

Accumulated depreciation                 

-42 823

-38 892

-2 737

-2 486

Construction-in-progress                 

5 676

2 363

363

151

Prepayments for fixed assets

1 423

2 068

91

132

Total tangible assets                    

73 513

56 987

4 698

3 642

Licences                                   

1 598

1 752

102

112

Prepayments for intangible assets 

0

39

0

2

Total intangible assets                  

1 598

1 790

102

114

TOTAL NON-CURRENT ASSETS                 

441 868

373 297

28 240

23 858

TOTAL ASSETS                             

562 090

483 077

35 924

30 874

LIABILITIES AND OWNERS' EQUITY           

 

 

 

Debt obligations                        

24 880

14 366

1 590

918

Customer prepayments                     

3 842

1 065

246

68

Supplier payables                        

33 959

26 756

2 170

1 710

Other short-term borrowings              

1 820

1 218

116

78

Tax liabilities                          

5 932

6 838

379

437

Accrued expenses                         

8 571

9 600

548

614

TOTAL CURRENT LIABILITIES                

79 004

59 843

5 049

3 825

TOTAL NON-CURRENT LIABILITIES            

22 526

20 800

1 440

1 329

TOTAL LIABILITIES                        

101 531

80 643

6 489

5 154

Minority interest

13 063

13 222

835

845

Share capital                            

54 000

54 000

3 451

3 451

Restricted reserves                      

8 600

8 600

550

550

Retained earnings                        

305 012

151 151

19 495

9 660

Net profit for the year                  

79 883

175 461

5 105

11 214

TOTAL OWNERS' EQUITY                      

447 496

389 212

28 600

24 875

TOT.LIABILITIES AND OWNERS' EQUITY     

562 090

483 077

35 924

30 874

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT OF THE GROUP, H1 2004

 

 

 

Consolidated,unaudited

 

 

 

 

 

 

 

 

 

in thousand 

EEK

 

EUR

 

GROUP

H1 2004

H1 2003

H1 2004

H1 2003

 

 

 

 

 

NET SALES

189 201

149 566

12 092

9 559

Cost of goods sold

-156 132

-121 692

-9 978

-7 778

 

 

 

 

 

Gross profit

33 069

27 874

2 113

1 781

 

 

 

 

 

Operating expenses, incl.

-23 266

-19 660

-1 487

-1 257

Marketing expenses

-9 199

-7 756

-588

-495

Administrative expenses

-14 067

-11 904

-899

-761

Other revenue

389

43

25

3

Other expenses

-240

-377

-15

-24

 

 

 

 

 

Operating profit

9 952

7 880

636

504

 

 

 

 

 

Financial income and expenses, incl.

 

 

 

 - from associated companies

-680

1 238

-43

79

 - from other holdings

20 494

4 560

1 310

291

 - from revaluat.of fin.investm.

50 983

52 324

3 258

3 344

 - interest expense

-596

-497

-38

-32

 - profit/loss from foreign exchange

-27

-30

-2

-2

 - other financial income/expenses

74

90

5

6

Total financial income and  expenses

70 249

57 685

4 490

3 687

 

 

 

 

 

Profit from normal operations

80 201

65 565

5 126

4 190

External income

-33

0

-2

0

Profit after faxes

80 168

65 565

5 124

4 190

Corporate Income tax

-285

0

-18

0

Net profit for the year

79 883

65 565

5 105

4 190

 

 

 

 

 

Basic earnings per share

14,79

12,14

0,95

0,78

 

 

 

 

 

Diluted earnings per share

14,44

11,99

0,92

0,77

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT OF THE GROUP, 2004 Q2

 

 

 

 

Q2 2004

Q2 2003

Q2 2004

Q2 2003

NET SALES

103 468

78 724

6 613

5 031

Cost of goods sold

-84 462

-64 552

-5 397

-4 126

 

 

 

 

 

Gross profit

19 006

14 172

1 215

906

 

 

 

 

 

Operating expenses, incl.

-12 022

-10 563

-768

-675

Marketing expenses

-4 807

-4 043

-307

-257

Administrative expenses

-7 215

-6 520

-461

-417

Other revenue

204

37

13

2

Other expenses

-132

-194

-8

-12

 

 

 

 

 

Operating profit

7 056

3 452

451

221

 

 

 

 

 

Financial income and expenses, incl.

 

 

 

 - from associated companies

-19

1 164

-1

74

 - from other holdings

-6

1 343

0

86

 - from revaluat.of fin.investm.

19 402

52 055

1 240

3 327

 - interest expense

-371

-285

-24

-18

 - profit/loss from foreign exchange

-21

-14

-1

-1

 - other financial income/expenses

51

32

3

2

Total financial income and  expenses

19 037

54 295

1 217

3 470

 

 

 

 

 

Profit from normal operations

26 093

57 747

1 668

3 691

External income

-17

173

-1

11

Profit after faxes

26 076

57 920

1 667

3 702

Corporate Income tax

-828

0

-53

0

Net profit for the year

25 248

57 920

1 614

3 702

 

 

 

 

 

Basic earnings per share

4,68

10,73

0,30

0,69

 

 

 

 

 

Diluted earnings per share

4,56

10,57

0,29

0,68

 

 

 

 

 

 

 

 

 

 

Karin Padjus                           

 

 

 

Chief accountant

 

 

 

 

  + 372 6 747 400

 

 

 

 

 

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AS HARJU ELEKTER
ANNOUNCEMENT
21.06.2004

LITHUANIAN SUBSIDIARY OPENS A NEW PLANT

 

UAB Rifas, the Lithuanian subsidiary of Harju Elekter, opened a new production
building in Panevezys. The newly-built production area has 1300 square metres
of floor space that allows for doubling of the plant's production volumes and
expanding the product range from manufacturing automation products to energy
distribution and construction products. The necessary know-how for entering
the new market segment and a large number of components and semi-finished
products will be supplied from Estonia.

The investment in the construction and technical equipment totalled EEK 8m
(EUR 0.5m). The project was financed from own funds, which was possible thanks
to the contribution made by Harju Elekter in the share capital of Rifas in
2003.

UAB Rifas was founded in 1991. In October 2003 Harju Elekter acquired 51% of
the shares of Rifas. The company's main business is design and sale of
equipment for industrial control and automation, manufacture and installation
of control centers. Net sales of Rifas for the 2003 were LIT 7m (EEK 32m or
EUR 2m).

Harju Elekter is a leading producer of electrical equipment and materials in
the Baltic States. Harju Elekter has holdings in the subsidiaries AS Eltek
(100%), Satmatic Oy (100%) and UAB Rifas (51%), and in the related companies
AS Keila Kaabel (34%) and AS Saajos Balti (33.3%). Harju Elekter also has more
than 10% holding in PKC Group Oyj, a company listed on the Helsinki Stock
Exchange.

Andres Allikmäe
Chairman of the Board
+372 6747 400

 

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AS HARJU ELEKTER
ANNOUNCEMENT
04.06.2004

HARJU ELEKTER OPENS STORE IN JÕHVI

 

For a better servicing of its customers in East Estonia and enlarging its
market share in the area, Harju Elekter opens its fourth store of electrical
materials and equipment in Jõhvi today, on 3 June. The new store has 220 m2
of sales and storage space.

Jõhvi is becoming the business and administrative centre of East Estonia.
Recent years’ positive development has favoured investments and intensified
construction activities. The stores act as introducers of the products of
the Harju Elekter Group companies — AS Keila Kaabel, AS Eltek, and AS Saajos
Balti. Customers can place orders with the store for the switchboards and
other electrical equipment and spare parts made by the electrical equipment
factory of Harju Elekter. The existing electrical equipment stores in Tallinn,
Tartu, and Keila with their broad range of products, professional advising
and consumer-friendly prices have won the confidence of customers. The stores
are mainly targeted to retail and smaller wholesale customers.

The Harju Elekter trade sector is also the importer of Thermor hot water
boilers and convectors, Unidare heat storage units and Ebac dehumidifiers,
and provides maintenance and warranty repair services of these products.

The sales of Harju Elekter Group amounted to EEK 342.3m in 2003, of which
14.4% (15.8% in 2002) was attributable to the trade sector’s operations.

 

Andres Allikmäe
Chairman of Management Board
+372 6747 400

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AS HARJU ELEKTER
ANNOUNCEMENT
10.05.2004

FINANCIAL RESULTS, Q1 2004

 

The consolidated net sales of Harju Elekter Group for Q1 2004 amounted to 85,7
MEEK or 5,5 MEUR (Q1 2003: 70,8 MEEK or 4,53 MEUR). The net profit of the
Group was 54,6 MEEK or 3,5 MEUR (Q1 2003: 7,6 MEEK or 489 TEUR) and EPS 10,12
EEK or 0,65 EUR (Q1 2

 

The Chairman of the Management Board Andres Allikmäe admits that focus on the principal activity of the group — the production of electrical equipment and materials — has brought success. The results of the parent company are delightful. Although the results of the subsidiaries and affiliated companies were influenced by price increases of raw materials in the world markets, to some extent also by seasonality and the US dollar exchange rate, the increasingly active cooperation, balanced production resources and integrated product development among the companies of the group allow us to look into the future optimistically.

Revenues, expenses and profit

The sales revenue of the consolidation group AS Harju Elekter comprised MEEK 85,7 (MEUR 5,5) in the Q1 2004, increasing by 21% in comparison with the same period of the previous year. Of the sales revenue, 76% accounted for the sales of industrial products and 24% for intermediate sales and sales of services. At the same time, the sales of products in the first quarter increased by 19% in comparison with the same period in 2003, and the sales of services and intermediate sales altogether increased by 30%, including trade and intermediate sales by 27%.

Of the sales revenue of the consolidation group AS Harju Elekter, 54% is ascribed to the sales to Estonia and 46% to the sales to foreign markets. The sales to the Estonian market went up by 29%, mainly on account of the increased sales of the parent company AS Harju Elekter. The sales of products to foreign markets went up by 13%. Attention should be paid to the fact that the data of the first quarter of 2004 include also the consolidated sales revenues of the Lithuanian subsidiary Rifas, which explains the boosted sales volume in the Lithuanian market. The Republic of Finland, with its share of 34% in turnover, continued to be the largest target country of export.

In the parent company, the turnover grew by 27%, the total profit by 31% and the operating profit by 65%. The turnover of the subsidiaries remained lower than expected in the first quarter. This was caused by a smaller number of orders than predicted for the products of industrial sector and automated equipment in Finland and by lower turnover due to seasonality of sales from the Lithuanian subsidiaries.

The total profit of the consolidation group AS Harju Elekter was MEEK 14,1 (MEUR 0,9), being 2,6% higher than in the previous year. The financial results of the group were influenced by an almost double increase in the prices of copper and aluminum and by a moderate increase in the prices of sheet steel in the world market. The US dollar exchange rate (USD 1 ‹ EEK 13 during the entire first quarter) influenced above all the results of the telecommunications sector.

The general administrative expenses were MEEK 6.9 (EUR 438 000) and the marketing expenses MEEK 4,4 (EUR 281 000), growing by 27% and 18%, respectively. The rapid growth of expenses in comparison with the first quarter of the previous year was caused by the fact that the indicators of 2004 also include the expenses of the Lithuanian subsidiary Rifas. If the effect of marketing and general administrative costs of Rifas were eliminated, the expenses would remain at the level of the previous year.

Depreciation of the fixed assets of the consolidation group in the Q1 2004 was MEEK 2,9 (EUR 187 000) or 34% more than in the same period of the previous year. Depreciation grew by 16% on account of the depreciation of fixed assets calculated by UAB Rifas. The rapid growth in depreciation was triggered by the investments made in 2003 in expanding the rental and production premises and enhancing the capacities.

Financial operations yielded a total profit of MEEK 51,2 (MEUR 3,5), which is seven times more than in the same period of the previous year. The major source of financial income was the share of PKC Group Oyj. The recalculation of the value of shares as a fair value generated financial income of MEEK 31,6 or MEUR 2,0. PKC Group Oyj paid dividends in the amount of MEEK 19,4 or MEUR 1,2 for 2003, which was over four times more than in the previous year.

The net profit of the consolidation group was MEEK 54,6 or MEUR 3,5 in the Q1 2004, increasing by 7,8 times in comparison with the Q1 of the previous year.


Investments and capital employed

During the investment period, the Group invested in tangible assets a total of 15,3 MEEK or 0,98 MEUR (Q1 2003: 8,6 MEEK or 0,55 MEUR), of which in technology was 9,3 MEEK or 0,59 MEUR (Q1 2003: 2,0 MEEK or 127 TEUR) and construction and renovation work of buildings and plant was 4,2 MEEK or 0,27 MEUR (Q1 2003: 6,4 MEEK or 409 TEUR).

Balance sheets

Andres Allikmäe
Chairman or the management board
+372 6 747 400

More information: Karin Padjus, member of the board (tel +372 6 747 400).

TOP


AS HARJU ELEKTER
ANNOUNCEMENT
04.05.2004

ASSOCIATED COMPANY OF HARJU ELEKTER OPENS NEW PRODUCTION BUILDING

 

Today, on 4 May 2004, the affiliated undertaking of Harju Elekter, AS Keila
Kaabel, opens its new production hall. As a result of the expansion projects of
the factory launched last summer, the production volumes of the factory will
increase and accord

 

The expansion project comprised the construction of a new production hall with
an area of 2500 m2 and the reconstruction of the drawing and production lines of
copper and aluminium cables. The new technology and the extended production
facility will enable the Keila Kaabel factory to improve productivity and
broaden its product range and quality. According to a long-term lease contract,
Keila Kaabel leases 7600 m2 of the production space and an external storage of
more than 10,000 m2 from the registered immovable belonging to Harju Elekter.

AS Keila Kaabel was founded by Harju Elekter and Nokia Kaapeli in 1992 with a
share capital of EEK 24m (EUR 1.53m). Sales in 2003 were EEK 345.3m (EUR 22.1m),
and net profit was EEK 14.53m (EUR 0.93m).

Andres Allikmäe
Chairman of the Board
Tel +372 6 747 400

More information: Endel Palla, Chairman of Supervisory Board (tel+372 6 747
400).

TOP

 


 

AS HARJU ELEKTER
ANNOUNCEMENT
16.04.2004

RESOLUTIONS OF ANNUAL GENERAL MEETING OF SHAREHOLDERS

 

Today, on 16. April 2004 starting at 10 a.m., the annual general meeting of the shareholders of AS Harju Elekter was held at Keskväljak 12, Keila. The general meeting was attended by 106 shareholders and their authorised representatives who represented th

 

The agenda of the general meeting was as follows:
1. approval of the annual report of AS Harju Elekter of 2003;
2. approval of the distribution of profits;

1. Approval of the annual report of AS Harju Elekter of 2003

The general meeting resolved:
1. to approve the annual report of AS Harju Elekter of 2003, prepared by the management board and approved by the supervisory board, according to which the consolidated balance sheet total of AS Harju Elekter was 483,077 thousand kroons as of 31.12.2003, incl. the balance sheet total of 439,078 thousand kroons of the parent undertaking, while the net profit of the financial year was 175,460,884 kroons.

The number of the votes given in favour of the resolution was 3,365,125 which accounted for 99.46 % of the registered participants.

2. Approval of the distribution of profits

The general meeting resolved:
2. to approve the profit distribution proposal of AS Harju Elekter of 2003 as presented by the management board and as approved by the supervisory board as follows:

retained profit from previous periods on 31.12.2003 151,151,324
net profit of the financial year 175,460,884
total retained profit 326,612,208
to be distributed as dividends 4,00 kroons per share* 21,600,000
balance of the retained profits after the distribution of profits305,012,208

The dividends will be paid to the shareholders within week no 20 by a transfer to the bank account of the shareholder.
*The list of the shareholders for the payment of dividends will be completed as of 9 a.m. of 3 May 2004.

The number of the votes given in favour of the resolution was 3,379,763 which accounted for 99.89% of the registered participants.

Andres Allikmäe
Chairman of Management Board
67 47 400
 

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AS HARJU ELEKTER
ANNOUNCEMENT
11.03.2004 

ANNUAL GENERAL MEETING OF SHAREHOLDERS

 Annual general meeting of Harju Elekter shareholders will be held on 16 April 2004, beginning at 10:00 a.m., at venue of Keila Kultuurikeskus (address: Keskväljak 12, Keila).

The Supervisory Board of the Joint Stock Company Harju Elekter determined the following agenda of the general meeting:

1. Approval to AS Harju Elekter annual report of the year 2003.
2. Approval to profit distribution.

The Management Board shall propose at the shareholders general meeting to pay dividends to the shareholders for 2003 financial year in the amount of 21.6 (2002: 10.8) million kroons or 4.00(2002: 2.00) kroons per share. The shareholders registered in the sherholders’ registry on 3 May 2004 at 9 a.m shall be entitled to dividend.

The annual report of the year 2003 is available for preliminary examination at the company’s secretary on the third floor of Harju Elekter office building in Keila, 31 Paldiski Road and in the Internet, company’s home page www.harjuelekter.ee since 22 March 2004.

Registration of the participants starts on 16 April 2004 at 9 a.m. For the registration we ask you to take with you an identification document. A representative of shareholder is requested to take with him/her a document certifying their right of representation or a valid copy of the commercial register card.

 

Andres Allikmäe
Chairman of the Management Board
+372 6747 400

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AS HARJU ELEKTER
ANNOUNCEMENT
27.02.2004

FINANCIAL RESULTS OF THE GROUP IN 2003

In the estimation of Andres Allikmäe, the Chairman of the Management Board, the year 2003 was remarkable for Harju Elekter. All the important resolutions for expanding the business activities led to the expected result. The internationalisation of the Group provides a good basis for securing a successful position in the Baltic and Scandinavian markets in the years to come. The clients and shareholders as well as employees of Harju Elekter Group have reason to be satisfied.

Since 17 February, the shares of Harju Elekter (HAE1T) are tradable in the main list of the Tallinn Stock Exchange.

The annual general meeting of shareholders held on 11 April decided to pay the owners dividends of EEK 2.00 (EUR 0.13) per share. The dividends were paid on 9 May 2003.

In the third quarter, a production hall of 4500 m2 was made available to PKC Eesti (the former cable harnesses factory of Harju Elekter). PKC Eesti has been leasing production premises from Harju Elekter since July 2002.

In June, a project was launched to extend the factory of AS Keila Kaabel, a related company, as a result of implementation of which the sales of the factory’s own production will double within the next two years, the production efficiency of the factory will increase, and the product range and quality will improve. The annex to the production building was completed at the end of 2003.

In July, Harju Elekter sold 105 shares of AS Keila Kaabel. Pursuant to a resolution of the special general meeting of shareholders, a share issue of AS Keila Kaabel directed to Draka NK Cables, the majority shareholder, was carried out by issuing 200 new shares. After the issue and sale of shares, the share capital of Keila Kaabel is EEK 26m (EUR 1.66m), which is divided between the shareholders as follows: 34% Harju Elekter and 66% Draka NK Cables.

In October, Harju Elekter acquired 51% of the shares of UAB Rifas, a Lithuanian company. The main activity of UAB Rifas is the manufacture and sale of electric controland distribution centres, and the design and installation of industrial automatic equipment. Rifas Group comprises, besides the parent company, subsidiaries UAB Automatikos Iranga and UAB Biržu Montuotojas, with a 51% shareholding in them. The group employs 61 persons. After acquiring the subsidiary, Harju Elekter will have a possibility, apart from a considerable market share in the automatic equipment sector, to increase its market share also in the Lithuanian energy distribution and construction sectors. To support sales, it is intended to double the production capacity of Rifas factory. In the fourth quarter of 2003, the construction of a new production building was commenced. Close cooperation between the Estonian, Finnish and Lithuanian subsidiaries of Harju Elekter Group provides a possibility to offer the clients a broader product package.

 

Sales income

The sales income of the consolidated group was EEK 342.3m or EUR 21.9m in 2003 (EEK 271.2m or EUR 17.3m in 2002), the growth being 26.2%. Sales to the Estonian market increased by 20.1%, forming 52.8% of the consolidated turnover (2002: 55.5%). Sales to international markets amounted to EEK 161.5m or EUR 10.3m (2002: EEK 120.8m or EUR 7.7m), including EEK 134.2m or EUR 8.6m to the Finnish market (2002: EEK 104.7m or EUR 6.7m). Sales to the Lithuanian market increased by EEK 10m (EUR 0.62m). In October, Harju Elekter purchased a Lithuanian subsidiary whose consolidated turnover is included in the sales income of the consolidated group.

 

Profit

The operating profit of the consolidated group was EEK 19.9m or EUR 1.3m in 2003 (2002: EEK 15.5m or EUR 1.0m), including EEK 5.7m or EUR 368k in the fourth quarter (fourth quarter of 2002: EEK 3.0m or EUR 193k). The profit margin of the Group was 5.8% (2002: 5.7%), which in the fourth quarter was by 1.8 per cent points better than in the fourth quarter of the preceding year (fourth quarter of 2002: 5.4%; fourth quarter of 2002: 3.6%).

 

The operating profit of the parent company increased by 16.3% in 2003 in comparison with the same period of the previous year (2003: EEK 18.1m or EUR 1155k; 2002: EEK 14.3m or EUR 915k). In the fourth quarter of 2003, the operating profit to net sales ratio was 8.3% (2002: 5.6%).

Profit from financial activities was EEK 155.8m or EUR 10.0m (2002: EEK 7.2m or EUR 0.5m). Since 1 January 2003, the shares of PKC are valued at market price in the balance sheet. The price on the last trading day of the financial year ended on 31.12.2003 on the Helsinki Stock Exchange was EUR 7.10, and as of 31.12.2003 — EUR 21.20. Thus, the market price increased three times. The revaluation of the shares in PKC Group Oyj at the end of the quarter as of 31.12.2003 resulted in an additional financial income of EEK 56.5m (EUR 3.6m), totalling EEK 137.9m (EUR 5.2m) in 12 months. To finance new investments, Harju Elekter sold altogether 40 thousand shares in PKC Group in September and October, receiving additional financial income of EEK 3.0m (EUR 53k). PKC Group Oyj paid dividends for 2002 in the amount of EEK 4.6m or EUR 291k, which was over two times more than in the previous year (2002: EEK 2.1m or EUR 132k). A total financial income of EEK 145.4m (EUR 5.5m) was earned from other financial investments during the 12 months. The one-off financial income from selling the shares in AS Keila Kaabel in July was EEK 7.1m (EUR 0.45m).

All in all, the net profit of the consolidated group in 2003 was EEK 175.3m or EUR 11.2m (2002: EEK 53.2m or EUR 3.4m). The return on net profit was 51.2% (2002: 19.6%). The net profit per share was EEK 32.47 or EUR 2.07 (2002: EEK 9.86 or EUR 0.63).

 

Cash flows, investments and capital use

Cash flow from operating activities was EEK 35.2m or EUR 2.2m (2002: EEK 6.1m or EUR 0.4m), cash outflow from investing activities was EEK 23.7m or EUR 1.5m (2002: cash inflow EEK 11.3m or EUR 0.7m), and cash outflow from financing activities was EEK 21.0m or EUR 1.3m (2002: EEK 16.8m or EUR 1.1m). The balance of cash and cash equivalents increased by EEK 14.9m or EUR 952k (2002: EEK 627k or EUR 40k) over the 12 months.

During the accounting period, the Group’s investments in tangible and intangible assets totalled EEK 51.9m or EUR 3.3m (2002: EEK 14.0m or EUR 0.9m), including construction and reconstruction works of buildings and structures in the amount of EEK 41.9m or EUR 2.7m (2002: EEK 5.1m or EUR 0.3m). Land acquired for the Group totalled EEK 2.3m or EUR 147k, machinery and equipment: EEK 6.0m or EUR 0.4m (2002: EEK 4.5m or EUR 285k).

In the first quarter, Harju Elekter purchased 9000 shares in PKC Group Oyj, paying EEK 1061k (EUR 68k) for the investment. On 1 October 2003, Harju Elekter purchased a 51% shareholding in UAB Rifas, a Lithuanian company, paid a total of EEK 10.6m or EUR 0.68m for the shares and for increasing the share capital. Harju Elekter paid EEK 3.4m (EUR 220k) on the transaction to the former owners. As of the acquisition date 1 October 2003, the amount of money on the bank account of Rifas Group totalled EEK 1.3m (EUR 81k). The acquisition of the subsidiary resulted in a cash outflow from the Group in the amount of EEK 2.1m (EUR 130k).

In the second half-year, the sale of 105 shares in Keila Kaabel yielded EEK 8.7m or EUR 559m, and the sale of 40,000 shares in PKC Group yielded EEK 11.6m or EUR 740k. PKC Group OY paid dividends for 2002 in the amount of EEK 4.6m or EUR 291k (2002: EEK 2.1m or EUR 132k) and the related company Keila Kaabel paid dividends of EEK 3.0m or EUR 195k (2002: EEK 1.7m or EUR 111k).

To finance the annexes to PKC Eesti and Keila Kaabel, Harju Elekter raised a long-term bank loan in a total amount of EEK 21.6m or EUR 1.38m. Production equipment was acquired for the Group by means of financial lease for a total of EEK 2.1m or EUR 134k. The long-term loan and principal instalments of financial lease repaid during the accounting period totalled EEK 8.5m or EUR 544k (2002: EEK 8.6m or EUR 550k). The dividends paid to the shareholders for 2002 totalled EEK 10.8m or EUR 690k (2002: EEK 7.6m or EUR 483k), which did not impose any income tax liability on AS Harju Elekter.

 

Balance sheet

In accordance with the new Accounting Act of the Republic of Estonia applicable since 1 January 2003 and the guidelines of the Accounting Standards Board, the consolidated group changed the accounting method used for financial instruments. Since 2003, financial instruments are reflected in the balance sheet on a fair value method. The financial investments (the shares of PKC Group Oyj) in the balance sheet as of 31 December 2002 were revaluated at market value on the basis of the average share price of the last trading day of 2002. The difference between the fair value and balance-sheet value arising from revaluation was EEK 53.9m (EUR 3.5m); this was the amount by which the initial balance of retained earnings in the equity capital and the initial balance of other long-term shares in long-term financial investments were increased. As a result, the share of equity capital in the balance sheet increased from 76.2% as of 31 December 2002 to 80.8% and fixed assets increased from 62.8% to 70.0% in the adjusted initial balance sheet of 2003.

During the year, the value of assets in the consolidated balance sheet increased by EEK 205m or EUR 13m (2002: EEK 48m or EUR 3.08m), reaching EEK 483m or EUR 30.9m as of 31 December 2003 (31 December 2002: EEK 225m or EUR 14m). Within 12 months, the market value of the shares of PKC Group OY has increased three times, from EUR 7.10 in the initial balance sheet to EUR 21.20 as of the balance sheet date (31 December 2003). The revaluation of securities resulted in a growth in the value of assets by EEK 138m or EUR 5.2m in the balance sheet.

 

Employees

The average number of employees in the Group in 2003 was 302 (2002: 351), including 175 (2002: 273) in the parent company. As of the balance sheet date 31 December 2003, the number of employees in the Group was 353, including 181 in the parent company. The number of employees in Estonia, Finland, and Lithuania was 240, 51 and 62, respectively. A significant change in the number of employees was caused by the purchase of the Lithuanian subsidiary Rifas (+62 people). The Group employs 218 workers and 135 engineers, technicians, and managers. By education, the Estonian companies of the Group have 42 employees with higher education, 161 employees with secondary and vocational secondary education, and 37 employees with basic education.

 

Andres Allikmäe
Chairman of the Management Board
+372 6 747 400

 

BALANCE SHEETS

BALANCE SHEET OF THE GROUP, 31.12.2003
Consolidated, unaudited

 

in thousand

EEK

EUR

ASSETS

31.12.03

31.12.02

31.12.03

31.12.02

Cash, bank

26 449

11 620

1 690

743

Total customer receivables

31 784

28 705

2 031

1 834

Other current receivables

6 106

2 035

390

130

Accrued income

67

14

4

1

Prepaid expenses

1 251

753

80

48

Total current receivables

39 208

31 507

2 506

2 013

Raw materials and inventories

37 721

35 527

2 411

2 271

Goods

6 344

4 616

405

295

Prepayments to suppliers

57

0

4

0

Total inventories

44 123

40 142

2 820

2 566

TOTAL CURRENT ASSETS

109 780

83 270

7 016

5 322

Stock and shares in assoc.comp.

26 476

26 587

1 692

1 699

Other shares

201 128

70 803

12 854

4 525

Other long-term receivables

19

379

1

24

Total financial investments

227 623

97 768

14 548

6 249

Investments for the real estate

86 896

0

5 554

0

Plant and equipment

28 308

77 556

1 809

4 957

Other equipment and fixtures

58 144

46 385

3 716

2 965

Other inventory

4 996

3 277

319

209

Accumulated depreciation

-38 892

-35 288

-2 486

-2 255

Construction-in-progress

2 363

3 556

151

227

Prepayments for fixed assets

2 068

28

132

2

Total tangible assets

56 987

95 514

3 642

6 104

Licences

1 752

1 206

112

77

Prepayments for intangible assets

39

0

2

0

Goodwill

-375

16

-24

1

Total intangible assets

1 416

1 222

90

78

TOTAL NON-CURRENT ASSETS

372 922

194 505

23 834

12 431

TOTAL ASSETS

482 702

277 774

30 850

17 753

LIABILITIES AND OWNERS' EQUITY

 

 

 

 

Debt obligations

14 366

12 360

918

790

Customer prepayments

1 065

193

68

12

Supplier payables

26 756

22 438

1 710

1 434

Other short-term borrowings

1 218

1 251

78

80

Tax liabilities

6 451

5 405

412

345

Accrued expenses

9 534

5 869

609

375

TOTAL CURRENT LIABILITIES

59 390

47 516

3 796

3 037

TOTAL NON-CURRENT LIABILITIES

20 800

5 707

1 329

365

TOTAL LIABILITIES

80 189

53 223

5 125

3 402

Minority interests

13 444

0

859

0

Share capital

54 000

54 000

3 451

3 451

Restricted reserves

8 600

8 600

550

550

Retained earnings

151 151

108 698

9 661

6 947

Net profit for the year

175 317

53 254

11 205

3 404

TOTAL OWNERS' EQUITY

389 069

224 551

24 866

14 351

TOT.LIABIL.AND OWNERS' EQUITY

482 702

277 774

30 850

17 753

 

BALANCE SHEET OF THE PARENT COMPANY, 31.12.2003
Consolidated, unaudited

 

in thousand

EEK

EUR

ASSETS

31.12.03.

31.12.02.

31.12.03.

31.12.02.

Cash, bank

15 105

11 165

965

714

Total customer receivables

13 003

12 075

831

772

Other current receivables

11 611

8 056

742

515

Accrued income

20

0

1

0

Prepaid expenses

682

564

44

36

Total current receivables

25 316

20 694

1 618

1 323

Raw materials and inventories

17 900

16 690

1 144

1 067

Goods

5 869

4 575

375

292

Prepayments to suppliers

39

0

2

0

Total inventories

23 808

21 265

1 522

1 359

TOTAL CURRENT ASSETS

64 229

53 124

4 105

3 395

Stock and shares in subsidiaries

24 829

13 759

1 587

879

Other long-term receiv.from subs.

1 734

6 780

111

433

Stock and shares in assoc.comp.

26 476

26 587

1 692

1 699

Other shares

201 128

70 803

12 854

4 525

Other long-term receivables

19

379

1

24

Total financial investments

254 186

118 308

16 245

7 561

Investments for the real estate

91 667

0

5 859

0

Plant and equipment

15 642

77 428

1 000

4 949

Other equipment and fixtures

30 843

26 033

1 971

1 664

Other inventory

1 900

1 751

121

112

Accumulated depreciation

-22 242

-28 798

-1 422

-1 841

Construction-in-progress

1 351

3 556

86

227

Prepayments for fixed assets

868

28

55

2

Total tangible assets

28 362

79 998

1 813

5 113

Licences

490

750

31

48

Total intangible assets

490

750

31

48

TOTAL NON-CURRENT ASSETS

374 705

199 055

23 948

12 722

TOTAL ASSETS

438 935

252 179

28 053

16 117

LIABILITIES AND OWNERS' EQUITY

 

 

 

 

Debt obligations

4 612

5 516

295

353

Customer prepayments

559

193

36

12

Supplier payables

16 463

13 501

1 052

863

Other short-term borrowings

1 456

1 269

93

81

Tax liabilities

2 978

2 525

190

161

Accrued expenses

4 902

3 191

313

204

TOTAL CURRENT LIABILITIES

30 971

26 195

1 979

1 674

TOTAL NON-CURRENT LIABILITIES

18 895

1 433

1 208

92

TOTAL LIABILITIES

49 866

27 628

3 187

1 766

Share capital

54 000

54 000

3 451

3 451

Restricted reserves

8 600

8 600

550

550

Retained earnings

151 151

108 698

9 660

6 947

Net profit for the year

175 317

53 254

11 205

3 404

TOTAL OWNERS' EQUITY

389 069

224 551

24 866

14 351

TOT.LIABIL.AND OWNERS' EQUITY

438 935

252 179

28 053

16 117

 

INCOME STATEMENTS

INCOME STATEMENT OF THE GROUP, 2003

 

Consolidated,unaudited

EEK

EUR

in thousand

2003

2002

2003

2002

NET SALES

342 348

271 212

21 880

17 334

Cost of goods sold

-278 881

-222 367

-17 824

-14 212

Gross profit

63 468

48 845

4 056

3 122

Operating expenses, incl.

-43 317

-33 063

-2 768

-2 113

Marketing expenses

-17 722

-12 322

-1 133

-788

Administrative expenses

-25 595

-20 741

-1 635

-1 326

Other revenue

396

381

25

24

Other expenses

-692

-668

-44

-42

Operating profit

19 855

15 494

1 269

990

Financial income and expenses, incl.

 

 

 

 

- from associated companies

11 691

6 067

747

388

- from other holdings

145 433

2 247

9 294

144

- interest expense

-1 464

-1 353

-94

-86

- profit/loss from foreign exchange

-62

-46

-4

-3

- other financial income/expenses

186

247

12

16

Total financ.income and expenses

155 784

7 162

9 955

458

Profit from normal operations

175 639

22 656

11 225

1 448

External income

0

30 641

0

1 958

Corporate Income tax

-283

-44

-18

-3

Minority interests

-38

0

 

 

Net profit for the year

175 317

53 254

11 205

3 404

Basic earnings per share

32,47

9,86

2,07

0,63

Diluted earnings per share

31,89

9,86

2,04

0,63

 

INCOME STATEMENT OF THE GROUP, 2003 Q4

 

in thousand

EEK

EUR

 

Q4 2003

Q4 2002

Q4 2003

Q4 2002

NET SALES

106 966

84 576

6 836

5 405

Cost of goods sold

-87 463

-70 044

-5 589

-4 477

Gross profit

19 504

14 532

1 247

929

Operating expenses, incl.

-13 730

-11 356

-877

-726

Marketing expenses

-5 757

-3 900

-368

-248

Administrative expenses

-7 973

-7 456

-510

-477

Other revenue

227

91

15

6

Other expenses

-247

-243

-16

-16

Operating profit

5 754

3 024

368

193

Financial income and expenses, incl.

 

 

 

 

- from associated companies

852

62

54

4

- from other holdings

58 702

-7

3 752

0

- interest expense

-546

-451

-35

-29

- profit/loss from foreign exchange

-24

-17

-2

-1

- other financial income/expenses

46

54

3

3

Total financial income and expenses

59 030

-359

3 773

-23

Profit from normal operations

64 784

2 665

4 140

170

External income

-250

-44

-16

-3

Corporate Income tax

-38

0

-2

0

Net profit for the year

64 495

2 621

4 122

168

Basic earnings per share

11,94

0,49

0,76

0,03

Diluted earnings per share

11,70

0,49

0,75

0,03

 

INCOME STATEMENT OF THE PARENT COMPANY, 2003

 

Unaudited

EEK

EUR

in thousand

2003

2002

2003

2002

NET SALES

205 708

189 731

13 147

12 126

Cost of goods sold

-161 696

-151 715

-10 334

-9 696

Gross profit

44 012

38 016

2 813

2 430

Operating expenses, incl.

-25 665

-23 426

-1 640

-1 497

Marketing expenses

-10 153

-9 113

-649

-582

Administrative expenses

-15 512

-14 313

-991

-915

Other revenue

320

262

20

17

Other expenses

-590

-540

-38

-35

Operating profit

18 077

14 311

1 155

915

Financial income and expenses, incl.

 

 

 

 

- from subsidiaries

370

227

24

14

- from associated companies

11 691

6 067

747

388

- from other holdings

145 433

2 392

9 295

153

- interest expense

-862

-664

-55

-42

- profit/loss from foreign exchange

-19

-16

-1

-1

- other financial income/expenses

627

295

40

19

Total financial income and expenses

157 240

8 301

10 049

531

Profit from normal operations

175 317

22 612

11 205

1 445

External income

0

30 641

0

1 958

Net profit for the year

175 317

53 253

11 205

3 404

Basic earnings per share

32,47

9,86

2,07

0,63

Diluted earnings per share

31,89

9,86

2,04

0,63

 

 

INCOME STATEMENT OF THE PARENT COMPANY 2003 Q4

 

in thousand

EEK

EUR

 

Q4 2003

Q4 2002

Q4 2003

Q4 2002

NET SALES

62 033

48 362

3 965

3 091

Cost of goods sold

-48 870

-38 469

-3 123

-2 459

Gross profit

13 163

9 893

841

632

Operating expenses, incl.

-8 003

-6 985

-513

-446

Marketing expenses

-3 472

-2 613

-222

-167

Administrative expenses

-4 532

-4 372

-290

-279

Other revenue

190

9

12

1

Other expenses

-212

-215

-14

-14

Operating profit

5 138

2 702

328

173

Financial income and expenses, incl.

 

 

 

 

- from subsidiaries

79

-72

5

-4

- from associated companies

852

62

54

4

- from other holdings

58 702

138

3 752

9

- interest expense

-390

-273

-25

-17

- profit/loss from foreign exchange

-4

-4

0

0

- other financial income/expenses

120

68

8

4

Total financial income and expenses

59 357

-81

3 795

-5

Profit from normal operations

64 495

2 621

4 122

168

External income

0

0

0

0

Net profit for the year

64 495

2 621

4 122

168

Basic earnings per share

11,94

0,49

0,76

0,03

Diluted earnings per share

11,70

0,49

0,75

0,03

 

Karin Padjus
Chief accountant
67 47 403

 

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AS HARJU ELEKTER
ANNOUNCEMENT
16.01.2004

PUBLICATION OF FINANCIAL REPORTS IN 2004

Harju Elekter will publish the 2003 unaudited consolidated financial results in the week 9.

During the year 2004 Harju Elekter will publish 3 interim reports:

1-3/2004

week 19

1-6/2004

week 32

1-9/2004

week 45

After their release through the stock exchange information system all Harju Elekter’s announcements are also available on company’s internet homepage at http://www.harjuelekter.ee

Andres Allikmäe
Chairman of the Board
+372 6747 400

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