PRESS RELEASES 1999



AS HARJU ELEKTER
ANNOUNCEMENT
11.02.99

ESTONIA'S HARJU ELEKTER NETS EEK 14 M LAST YEAR 
The cable harnesses and security doors producer AS Harju Elekter announced a net sales 
turnover of 147.9 million kroons and a net profit of 13.9 million kroons (USD 1.0 M) last year, 
according to preliminary non-audited and non-consolidated figures. 
Harju Elekter board chairman Endel Palla said that compared with 1997, the company's turnover 
increased by 36.6 percent and the profit by 40.4 percent.
The company's volume of export increased by 33.7 percent in 1998. In 1998 Harju Elekter's 
exports totaled 64.6 million kroons as against 48.3 million kroons in 1997. (USD 1 = EEK 13.82)

Endel Palla
Chairman of the Board

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AS HARJU ELEKTER
ANNOUNCEMENT
04.03.99

INVOLVEMENT OF NEW INVESTOR IN SUBSIDIARY

The Supervisory Board of Harju Elekter approved a Danish company Inexa Panel A/S to become the strategic investor and shareholder of Saajos Balti AS, a subsidiary of Harju Elekter. After the involvement of the new investor, the share capital of Saajos Balti will be divided between three shareholders - Harju Elekter, Saajos International Ltd. and Inexa Panel A/S. Everyone will have one third of the shares of Saajos Balti.

Shareholders of Saajos Balti AS approved the enlargement of the shareholders equity from EEK 5 million to EEK 6 million by issuing 100 000 new shares. The equity of the company will increase by 2 million EEK.

AS Saajos Balti is the fireproof and safety doors producer oriented on the Baltic building market and West-European shipbuilding market. The turnover is expected to amount EEK 25 million in 1999. After adding a new investor and new possibilities in the shipbuilding market the company is expecting the turnover increase to EEK 50 million by 2000.

Inexa Panel A/S manufacture ships accommodation systems in Denmark. The wall and ceiling panels from INEXA are sold under the market leading trademark TNF. The company belongs to the Swedish INEXA Group, which also owns the steel profiles producer in Sweden - Inexa Profil. The group has six sales subsidiaries in Europe and are represented by agents world-wide. Turnover of the INEXA Group was SEK 1,1 billion in 1998 and the number of employees about 500. The Inexa Group is wholly owned by Karl- David Sundberg.

Oy Saajos International Ltd. (Finland) is a holding company having the biggest fireproof doors producer in Finland and also related companies in Estonia, China and Denmark. Turnover of the Group was EEK 105 million in 1998 and number of employees about 100. The company has worked in close co-operation with Harju Elekter since 1994.

For further information please call to:
Endel Palla, CEO of Harju Elekter (Tel 372 6747 400)
Kalev Koort, COB of Saajos Balti (Tel 372 6747 428)
Seppo Saajos, COB of Saajos International Ltd.(Tel 358 19 322900)
Jens Ulrich Nielsen, Managing Director of INEXA (Tel 45 46 56 37 00)

Endel Palla
Chairman of the Board

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AS HARJU ELEKTER
ANNOUNCEMENT
09.03.99

GENERAL MEETING OF AS HARJU ELEKTER SHAREHOLDERS, AND PROPOSAL FOR DIVIDEND PAYMENTS

The Management Board of AS Harju Elekter decided to convene the general meeting of shareholders on April 16, 1999, starting from 10:00 AM, in Keila Kultuurikeskus (Keila Cultural Center; address Keskväljak 12, Keila). The Management Board shall make a proposal to pay dividends for year 1998 in the amount of 3.6 million EEK (1997 – 2.7 million EEK), or 2.00 EEK per share (1997 – 1.50 EEK)

The agenda of the general meeting shall be announced after it is determined by the Supervisory Board.

Endel Palla
Chairman of the Board

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AS HARJU ELEKTER
ANNOUNCEMENT
15.03.99

COMMENTARY TO THE 1998 AUDITED FINANCIAL RESULTS

The 1998 net sales of AS Harju Elekter totaled 147.9 million EEK (97 - 108.3 million EEK), whereas the increase since last year was 36.6 %.

Compared with the last year, the production sector’s turnover (120.2 million EEK) increased by 41%, whereas the growth of turnover by main fields of activity was as follows:

 

1998

1997

Growth

Electrical equipment
55.4 million EEK 
37.3 million EEK 
148.5%
Cable harnesses and connection cables            for car and electronic industry

43.6 million EEK

33.4 million EEK

130.5%

Fireproof doors

14.3 million EEK

9.2 million EEK

155.4%

The volume of exports totaled 64.6 million EEK (97 - 48.3 million EEK), which accounted for 43.7 % of total turnover. The turnover from commercial and intermediary activities increased by 21% since the last year (98 - 20.7 million EEK; 97 - 17.0 million EEK). The store opened in Tallinn in the beginning of 1997 had a turnover equal to the one of the store located in Keila, and it has a good growth potential.

The consolidated 1998 gross profit of AS Harju Elekter amounted to 16.1 million EEK (97 - 10.5 million EEK), which is 53% higher than last year. The commercial profit accounted for 74% of the operating profit (97 - 53%). The profit of subsidiaries and associated companies totaled 2.4 million EEK.

Significant changes in the financial activities of AS Harju Elekter:

  • in the beginning of 1998, Harju Elekter purchased from OÜ Harju KEK 100% of the shares of AS Eltek.

  • at the end of the year, a new company, AS Saajos Balti, was established in joint venture with a Finnish company OY Saajos International Ltd. on a basis of fireproof door production factory of Harju Elekter. AS Harju Elekter owns 55% of the shares in this company. The company’s growth potential was increased by additional investments and know-how.

The investment volume of AS Harju Elekter was the largest of the past years - totaling 24 million EEK (97 -10.1 million EEK), of which 19.8 million EEK was invested in tangible assets. The following objects were completed: new substation production factory in Keila - 4.8 million EEK, cable harnesses production factory’s department in Haapsalu - 5.4 million EEK, and expansion of AS Keila Kaabel production facilities - 3.2 million EEK. Investment in Haapsalu was also useful due to the fact that the investments outside of Tallinn and Harju counties are exempt from taxes.

Endel Palla
Chairman of the Management Board
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AS HARJU ELEKTER
ANNOUNCEMENT
15.04.99

PRELIMINARY Q1 1999 FINANCIAL RESULTS OF AS HARJU ELEKTER

On preliminary data, the Q1 1999 net sales of AS Harju Elekter amounted to 31.3 million EEK and unconsolidated gross profit to 4.8 million EEK (Q1 1998 – 4.8 million EEK).

The Q1 1998 turnover of 32.6 million EEK includes also the 3.0 million EEK turnover of fireproof door factory, which has become an affiliated company of Harju Elekter, AS Saajos Balti. Thus, the comparable turnover figures have increased during the current year by 6 %. (99 – 31.3 million EEK; 98 – 29.6 million EEK).

Turnover was allocated between activities as follows:

 

Q1 1999

Q1 1998

 
Electrical equipment factory 15.4 mln. 13.8 mln.

112 %

Cable harnesses factory 10.9 mln. 11.0 mln. 99 %
AS Eltek 4.7 mln. 4.2 mln. 112 %

Endel Palla
Chairman of the Management Board

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AS HARJU ELEKTER
ANNOUNCEMENT
16.04.99

RESOLUTIONS OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS

Today, on 16.04.1999, beginning at 10:00 AM, the annual general meeting of AS Harju Elekter shareholders was held in Keila, Keskväljak 12. Altogether 130 shareholders and proxies representing 1122305 votes participated in the AGM, accounting for 62.35% of total votes held by all shareholders.

The agenda of the AGM was the following:

1. Approval of the 1998 annual report of AS Harju Elekter, and profit distribution.
2. Changes in the Supervisory Board.
3. Appointment of auditors for 1999.

1. Approval of the 1998 annual report of AS Harju Elekter, and profit distribution.

The AGM resolved:
To approve the 1998 annual report of AS Harju Elekter as presented by the Management and Supervisory Boards (i.e. at balance sheet volume of 109020251 EEK as of 31.12.1998, and net profit for the financial year of 16146002 EEK), and profit distribution proposal as follows:

Balance of retained earnings account at the end of 1998

33223010

Profit for the financial year of 1998

16146002

Total retained earnings

49369012

For reserve capital

1600000

To be distributed as dividends*

3600000

Balance of retained earnings account after approval of 1998 annual report

44169012

* The list of shareholders entitled for dividend payments will be fixed as of 03.05.1999.
1118568 votes were given in favor of the resolution (99.667% of registered participants).

2. Changes in the Supervisory Board.

The AGM resolved:
To make the following changes in the Supervisory Board of AS Harju Elekter as of 01.07.1999:

2.1. Recall the Chairman of the Supervisory Board of AS Harju Elekter, Mr. Jüri Kalmet;
2.2. Number of members in the Supervisory Board of AS Harju Elekter will be 5;
2.3. Elect 3 new members to the Supervisory Board, incl. Mr. Endel Palla as Chairman and Mr. Madis Talgre and Mr. Ain Kabal as members of the Supervisory Board;
2.4. The volume of monthly remuneration to the Chairman of the Supervisory Board 18000 EEK, and     5000 EEK to the members of the Supervisory Board. The bonus-system valid for the employees of AS Harju Elekter will also be applied to the full–time employed Chairman of the Supervisory Board.
1109600 votes were given in favor of the resolution (98.868% of registered participants).

3. Appointment of auditors for 1999.

The AGM resolved:
To appoint Mr. Andris Jegers and Indrek Alliksaar of KPMG to audit the financial reports of AS Harju Elekter in 1999.
1113687 votes were given in favor of the resolution (99.232% of registered participants).

Endel Palla
Chairman of the Management Board

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AS HARJU ELEKTER
ANNOUNCEMENT
23.04.99

NEW MEMBERS OF THE SUPERVISORY BOARD

ENDEL PALLA

Birth time and place: 19.06.1941, Kiidjärve county, Tartumaa
Education: 1968 Tallinn Technical University, electronic engineer
Employment: from 1990 until now Chairman of the Management Board/Managing Director of AS Harju Elekter

As of 16.04.1999, Endel Palla holds 4.85% shareholding in AS Harju Elekter. Via OÜ Harju KEK, Mr. Endel Palla owns 3.07% of the shares of Harju Elekter. The total volume of shares controlled by (directly and indirectly) Mr. Palla amounts to 7.92% of the share capital of AS Harju Elekter.

MADIS TALGRE

Birth time and place: 17.04.1960, Tallinn
Education: 1983 Tallinn Technical University, mechanical engineer
Employment: 1996-03.1999 Chairman of the Management Board of AS Põlva KEK from 03.1999 Chairman of the Management Board/Managing Director of AS Harju Elekter

As of 16.04.1999, Madis Talgre did not hold shares in AS Harju Elekter.

AIN KABAL

Birth time and place: 10.06.1962, Pärnu
Education: 1985 Tartu University, lawyer
Employment: from 1993 until now BCLO Advokaadibüroo OÜ, lawyer/member of the Management Board

As of 16.04.1999, Ain Kabal did not hold shares in AS Harju Elekter.

The current member of the Management Board of AS Harju Elekter, manager of car lead factory, Mr. Andres Allikmäe, has agreed to fill the position of the Chairman of the Supervisory Board as of July 1, 1999.

ANDRES ALLIKMÄE

Birth time and place: 07.02.1957, Tallinn
Education: 1980 Tallinn Technical University, systemic engineer
Employment: from 1994 until now a member of the Management Board of AS Harju Elekter, manager of car lead factory

As of 16.04.1999, Andres Allikmäe holds 1.12% shareholding in AS Harju Elekter. Via OÜ Harju KEK, Mr. Andres Allikmäe owns 0.02% of the shares of Harju Elekter.

Endel Palla
Chairman of the Management Board

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AS HARJU ELEKTER
23.04.99
INCOME STATEMENT 01.01.99 - 31.03.99

INCOME STATEMENT

Consolidated/unaudited
in thousand EEK

  

Parent

Group

   

Q1 99

Q1 98

Q1 99

Q1 98

NET SALES

31351

32649

35406

33839

Cost of goods sold

25330

26203

28839

27067

Gross profit

6021

6446

6566

6771

Operating expenses, incl.

2867

3455

3326

3567

Marketing expenses

762

891

980

933

Administrative expenses

1958

2279

2199

2351

Development expenses

147

285

147

282

Amortisation of goodwill

24

4

      
Other expenses

638

27

638

29

Other revenues

105

152

106

154

Commercial profit

3687

2866

3749

3076

Financial income from affiliated companies

2587

0

2587

0

Financial income from subsidiaries

0

0

0

562

Financial income from other holdings

38

3459

38

3459

Foreign exchange gain

1

4

2

4

Other interest and financial revenues

83

26

63

25

Total financial revenues

2709

3489

2690

4050

Financial expenses related with subsidiaries

0

0

764

0

Interest expenses

327

138

378

163

Other financial expenses

2

23

5

23

Total financial expenses

329

161

1147

186

Operating profit

6067

6194

5292

6940

Profit before income tax

6067

6194

5292

6940

Income tax

1212

1380

1212

1380

Net profit for the year

4855

4814

4080

5560

Karin Padjus
Accountant 

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AS HARJU ELEKTER
BALANCE SHEET 
31.03.99

BALANCE SHEET

Consolidated, unaudited
in thousand EEK

   

Parent

Group

ASSETS

03/31/99

03/31/98

03/31/99

03/31/98

Cash and bank

6,932

13,249

7,001

13,852

Marketable securities

368

1,433

368

1,433

Total accounts receivable

10,790

8,556

12,820

9,410

Receivables to parent company / subsidiary

918

491

240

   
Other receivables

5,436

298

5,451

300

Accrued income

3

1

3

1

Prepaid expenses

159

332

172

344

Tax prepayments

540

550

540

611

Total current receivables

17,845

10,228

18,984

10,906

Total liquid assets

25,145

24,910

26,353

26,191

Raw materials and inventories

14,369

15,820

16,353

17,087

Goods

3,090

3,077

3,251

3,246

Prepayments to suppliers

0

132

0

404

Total inventories

17,458

19,029

19,604

20,737

TOTAL CURRENT ASSETS

42,604

43,939

45,957

46,928

Stock and shares in subsidiaries

3,269

2,701

     
Stock and shares in affiliated companies

17,252

14,329

16,488

14,892

Other securities

1,554

1,570

1,554

1,584

Other long-term receivables

434

239

465

239

Other receivables to parent / subsidiaries

465

785

0

0

Total financial investments

22,974

19,624

18,507

16,714

Plant and equipment

37,200

23,984

37,200

23,984

Other equipment and fixtures

20,019

18,905

25,410

22,536

Other inventory

1,434

1,343

1,707

1,542

Accumulated depreciation

-14,414

-12,191

-15,520

-12,811

Unrealized capital investments

2,828

429

3,392

429

Total tangible assets

564

32,470

52,189

35,679

Goodwill

47,632

377

473

  
TOTAL NON-CURRENT ASSETS

70,606

52,094

71,073

52,867

TOTAL ASSETS

113,210

96,033

117,030

99,795

LIABILITIES AND OWNERS' EQUITY
Debentures

520

         
Current period repayment of long-term loans

3,936

3,016

3,936

3,016

Short-term loans from credit institutions

1,573

946

1,873

1,280

Customer prepayments

20

55

21

98

Supplier payables

7,154

6,431

8,315

7,151

Tax liabilities

3,624

228

3,624

228

Accrued expenses

3,731

6,356

3,945

6,562

Prepaid revenues

4,300

6,880

4,780

7,328

TOTAL CURRENT LIABILITIES

24,337

23,912

27,014

25,663

Non-convertible debt obligations

0

0

1,361

0

Long-term bank loan

15,744

12,813

15,744

13,820

Potential income tax liability

2,495

1,870

3,051

2,128

TOTAL NON-CURRENT LIABILITIES

18,239

14,683

20,157

15,948

TOTAL LIABILITIES

42,576

38,595

47,171

41,611

Share capital

18,000

18,000

18,000

18,000

Reserves

3,610

2,010

3,610

2,010

Retained earnings

44,169

32,614

44,169

32,614

NET PROFIT (-LOSS) FOR THE FINANCIAL YEAR

4,854

4,814

4,080

5,560

TOTAL OWNERS' EQUITY

70,633

57,438

69,859

58,184

TOTAL LIABILITIES AND OWNERS' EQUITY

113,210

96,033

117,030

99,795

Karin Padjus
Accountant

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AS HARJU ELEKTER
ANNOUNCEMENT
23.04.99

COMMENTARY TO THE CONSOLIDATED FINANCIAL RESULTS 03/99

The Q1 1999 consolidated net sales of AS Harju Elekter amounted to 35.4 million EEK (98 Q1 – 33.8 million EEK). This figure does not include the turnover of the fireproof door production factory (98 Q1 – 3.0 million EEK), which as of 01.01.99 operates as an independent subsidiary under the name of AS Saajos Balti. Thus, the comparable increase in turnover this year amounts to 15% [35.4 : (33.8-3.0)].

Compared to Q1 1998, the volume of operating profit increased by 21% (99 Q1 – 3.75 million EEK; 98 Q1 – 3.08 million EEK). Decrease in net profit occurred due to the fact that the Q1 financial revenues do not include the dividends received by PK Cables (98 – 3.5 million EEK), which are due in (in the amount of 4.4 million EEK) and thus will be reflected in H1 reports. The revenues from the disposal of subsidiary AS Saajos Balti in the amount of 2.6 million EEK are reflected on the account of financial revenues.

The Q1 results of subsidiary AS Eltek are consolidated row-by-row in the group’s reports, and the results of subsidiaries are expanded on equity method. Based on the methods used, the financial results of subsidiaries and affiliated companies are decreased by the amount of unrealized profit from intra-company transactions, totaling 613 thousand EEK.

Endel Palla
Chairman of the Management Board

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AS HARJU ELEKTER
ANNOUNCEMENT 
21.06.99

CHANGES IN THE EXECUTIVE MANAGEMENT OF AS HARJU ELEKTER

As of 01.07.99, Endel Palla (currently Chairman of the Management Board/CEO of AS Harju Elekter) will take the position of the Chairman of the Supervisory Board. Andres Allikmäe (currently member of the Management Board and director of cable harnesses factory) will be appointed as a new Chairman of the Management Board/Managing Director.

Changes in the company’s Supervisory Board were approved by the annual general meeting of AS Harju Elekter shareholders on 16.04.1999. The Supervisory Board will consist of five members (formerly three). Endel Palla was elected the Chairman of the Supervisory Board. The other members of the Supervisory Board are Lembit Kirsme and Triinu Tombak, and the new members Ain Kabal (lawyer of BCLO Advokaadibüroo OÜ, member of the Management Board) and Madis Talgre (OÜ Harju KEK Chairman of the Management Board/Managing Director).

The Supervisory Board decided on its 18.06.99 meeting to appoint the following 4 members to the Management Board of Harju Elekter: Andres Allikmäe – chairman of the Management Board, Ülo Merisalu – director of electrical equipment factory, Lembit Libe – chief economist, Karin Padjus – chief accountant.

Moonika Vetevool
Public Relations Manager

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AS HARJU ELEKTER
6.August 1999
INCOME STATEMENT 01.01.99 -30.06.99

INCOME STATEMENT

Consolidated/unaudited
in thousand EEK

  

Parent

Group

  

H 1 99

H 1 98

H 1   '99

H 1 '98

Net sales

61206

69378

70693

73769

Cost of goods sold

50317

53606

57713

56632

Gross profit

10889

15772

12980

17137

Operating expenses, incl.

6512

7447

7475

8130

Marketing expenses

1513

2025

2006

2269

Administrative expenses

4665

4818

5134

5271

Development expenses

334

604

334

590

Amortisation of goodwell

x

x

   48

  15

Other revenues

702

74

702

79

Other expenses

390

300

401

308

Operating profit

4689

8099

5758

8763

Financial income from subsidiaries

2589

0

2587

0

Financial income from affiliated companies

0

0

0

647

Financial income from other holdings

4506

4147

4506

4147

Foreign exchange gaint

1

12

2

12

Other interest and financial income

329

131

290

105

Total financial income

7423

4290

7385

4911

Fin.expenses related with affil. companies

0

0

224

0

Interest expenses

638

412

735

482

Foreign exchange loss

13

0

18

0

Other financial expenses

32

732

31

740

Total financial expenses

683

1144

1008

1222

Profit from normal operations

11429

11245

12135

12452

Profit before income tax

11429

11245

12135

12452

Income tax

1587

2220

1587

2238

Net profit for the year

9842

9025

10548

10214

Karin Padjus
Chief Accountant
(372) 6 747 403

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HARJU ELEKTER
BILANCE SHEET 

BALANCE SHEET 
on June 30, 1999


Consolidated, unaudited
in thousand EEK

   

Parent

Group

ASSETS

06/30/99

06/30/98

06/30/99

06/30/98

Cash and bank

15861

4731

16658

4986

Marketable securities

489

736

489

736

Total accounts receivable

7488

11199

8649

12086

Receivables to parent company/subsidiary

599

173

0

   0

Other receivables

4190

379

4215

394

Accrues income

41

5

41

5

Prepaid expenses

189

228

189

228

Prepaid taxes

355

753

355

813

Total current receivables

12861

12737

13449

13526

Total liquid assets

29211

18204

30596

19248

Raw materials and inventories

13072

19096

14929

20681

Goods

3201

3601

3462

3766

Prepayments to suppliers

425

487

425

487

Total inventories

16698

23184

18816

24934

TOTAL CURRENT ASSETS

45909

41388

49412

44182

Stock and shares in subsidiaries

3269

2701

     
Stock and shares in affiliated companies

17252

14329

17028

14977

Other shares

1554

1568

1554

1581

Other long-term receivables

434

239

465

239

Other receivables to parent/subsidiaries

465

785

0

0

Total financial investments

22974

19622

19047

16797

Plant and equipment

37205

23984

37205

23984

Other equipment and fixtures

20521

19340

25909

24330

Other inventory

1552

1385

1834

1596

Accumulated depreciation

-15455

-13000

-16711

-13743

Unrealized capital investments

6901

4370

6893

4371

Prepayments for fixed assets 564 0 564   
Total tangible assets

51289

36079

55694

40538

Goodwill 0   353

463

TOTAL NON-CURRENT ASSETS

74263

55701

75094

57797

TOTAL ASSETS

120172

97089

124506

101979

LIABILITIES AND OWNERS' EQUITY
Debentures

 

  

 321

     294

Current period repayment of long-term loans

2934

2014

2934

2014

Short-term loans from credit institutions

1091

1352

1091

1352

Customer prepayments

142

647

142

668

Supplier payables

4568

7726

5201

8219

Other short-term borrowings 21 12 21 12
Tax liabilities

4190

5479

4549

5900

Accrues expenses

2840

3527

3236

3883

TOTAL CURRENT LIABILITIES

15785

20757

17495

22342

Non-convertible dept

0

0

1361

1856

Long-term bank loan

26270

12813

26270

12814

Deferred income tax liabilitiy

2495

1870

3051

2128

TOTAL NON-CURRENT LIABILITIES

28765

14683

30683

16799

TOTAL LIABILITIES

44551

35440

48178

39141

Share capital

18000

18000

18000

18000

Reserves

3610

2010

3610

2010

Retained earings

44169

32614

44169

32614

Total profit for the year

9842

9025

10549

10214

TOTAL OWNERS' EQUITY

75621

61649

76328

62838

TOTAL LIABILITIES AND OWNERS' EQUITY

120172

97089

124506

101979

Karin Padjus
Chief Accountant
(372) 6 747 403

TOP


AS HARJU ELEKTER
ANNOUNCEMENT
06.August 1999

COMMENTARY TO THE CONSOLIDATED FINANCIAL RESULTS

The H1 1999 consolidated net sales of AS Harju Elekter amounted to 70.7 million EEK (H1 98 -- 73.8 million EEK) and net profit 10.5 million EEK (H1 98 -- 10.2 million EEK). The last year’s turnover figure included the turnover of the fireproof door production plant, which as of 01.01.99 operates as an independent subsidiary under the name of AS Saajos Balti. Hence, the comparable increase in turnover this year amounts to 4.7% (H1 99 -- 70.7 million EEK; H1 98 -- 67.5 million EEK). Exports accounted in H1 for 51.3% (36.2 million EEK) of total turnover, exceeding the last year’s result by 6.4% (H1 98 -- 33.1 million EEK, or 44.9% of total turnover).

Turnover of plants and subsidiaries:

 
H 1 1999 
H 1 1998 

 

Electrical equipment factory

29,2 mln.EEK.

29,6 mln.EEK

99 %

Cable harnesses factory

21,6 mln.EEK

23,3 mln.EEK

93 %

AS Eltek

11,0 mln.EEK

8,0 mln.EEK

138 %

The H1 1999 consolidated net profit totaled 10.5 million EEK, accounting for 102.9% of the last year's respective result (10.2 million EEK). Financial income account includes proceeds from sale of shareholding in subsidiary AS Saajos Balti of 2.6 million EEK and dividends received by subsidiary PK Cables 4.4 million EEK (98 -- 3.5 million EEK).

Due to worsened economic climate, the company’s profit margin was lowered, resulting in decreased operating profit (H1 99 -- 5.8 million EEK; H1 98 -- 8.8 million EEK).

The financial results of subsidiary AS Eltek are consolidated into the group’s reports under row-by-row method, and the results of associated companies are expanded under equity method.

Andres Allikmäe
Chairman of the Management Board

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AS HARJU ELEKTER
ANNOUNCEMENT
25.August 1999

AS SAAJOS BALTI, AFFILIATED COMPANY OF AS HARJU ELEKTER, RECEIVED THE EC CERTIFICATE

During the first half of the current year, the international certification company Det Norske Veritas audited the products and production processes of AS Saajos Balti, as a result of which the company issued on 29.07.99 a certificate to B15 fireproof doors (valid until 31.12.2004) stating their compliance with the EC requirements provided in European directive on shipbuilding.

AS Harju Elekter will invest this year 7 million EEK in AS Saajos Balti (the company’s former fireproof doors factory), incl. 2.5 million EEK in share capital and 4.5 million EEK for expansion of production facilities. AS Saajos Balti is owned by AS Harju Elekter, Saajos International Ltd. (Finland) and INEXA PANEL A/S (Denmark) - each 33.3%.

Inclusion of strategic partner INEXA, investments and EC certificate provide the grounds for increasing the exports to the European and world’s shipbuilding companies.

Andres Allikmäe
Chairman of the Management Board
(372) 6 747 400

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AS HARJU ELEKTER
ANNOUNCEMENT
11.Oct.1999

AGREEMENT CONCLUDED BY CO-OPERATION PARTNER

PK Cables Oyj (Finland), the largest co-operation partner of AS Harju Elekter, became the exclusive supplier of cable harnesses to Scania in the world.

PK Cables Oyj (PKC) and its largest client Scania made an agreement, pursuant to which PKC will become the exclusive supplier of cable harnesses for Scania trucks and buses. AS Harju Elekter (HE) owns 10% stake in PKC, and is also its largest subcontractor. HE cable harnesses factory employs 350 people, and almost 100% of the company's output is marketed through PKC.

Due to expected increase in the cable harnesses factory's output volumes AS Harju Elekter established a production unit in Haapsalu, investing 5.6 million EEK in 1998 and 7.5 million EEK in 1999. In October the company will take into use 2000 m2 of additional production premises, and the number of employees in the company's Haapsalu branch will be increased to 130 people.

The turnover of cable harnesses factory accounted for 30% of AS Harju Elekter total turnover in 1998. AS Harju Elekter (incl. electrical equipment factory and cable harnesses factory), along with its subsidiaries and associated companies AS Eltek, AS Keila Kaabel, AS Saajos Balti and AS Glamox Harju Elekter, is the largest producer of electrical equipment in the Baltic countries, and employs more than 750 people.

PK Cables Oyj is an international company which makes cable harnesses and wiring systems to car and electronics industry. PK Cables group's turnover in 1998 amounted to 497 million FIM; in H1 1999 the group's turnover increased by 37% (on annual basis). PK Cables group employs more than 700 people in Finland, Brazil and Netherlands.

Andres Allikmäe
Chairman of the Management Board
(372) 6 747 400

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AS HARJU ELEKTER
30.09.99
INCOME STATEMENT 01.01.99 -30.09.99

INCOME STATEMENT

Consolidated/unaudited
in thousand EEK

  

Parent

Group

  

9 mos '99

9 mos '98

9 mos '99

9 mos '98

NET SALES

94420

106863

108211

115349

Cost of goods sold

77104

83719

87853

90021

Operating profit

17316

23144

20358

25328

Operating expenses, incl.

9338

10897

10821

11782

Marketing expenses

2157

3049

2928

3463

Administrative expenses

6688

7013

7400

7504

Development expenses

493

835

493

815

Amortisation of goodwill

x

x

   72

26

Other income

750

131

754

136

Other expenses

484

518

525

527

Operating profit

8244

11860

9694

13130

Financial income from subsidiaries

2587

0

2587

0

Financial income from affiliated companies

0

0

123

1645

Finanical income from other holdings

4519

4147

4519

4174

Foreign exchange gain

1

14

4

16

Other interest and financial income

544

196

503

145

Total financial income

7651

4384

7736

5980

Fin.expenses related with affil.companies

0

0

0

0

Interest expenses

1036

692

1178

812

Amortisation of financial assets

0

14 0 28
Foreign exchange loss

21

0

30

0

Other financial expenses

61

955

61

981

Total financial expenses

1118

1661

1269

1821

Profit from normal operations

14777

14583

16161

17289

Income tax

1962

2960

1962

3146

Net profit for the year

12815

11623

14199

14143

Karin Padjus
Chief Accountant
Phone 372 6 747 403

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AS HARJU ELEKTER
BALANCE SHEET 
30.09.99

BALANCE SHEET

Consolidated/anaudited
in thousand EEK

   

Parent

Group

ASSETS

09/30/99

09/30/98

09/30/99

09/30/98

Cash and bank

12034

8975

12695

9511

Marketable securities

485

542

485

542

Total accunts receivable

10212

11290

11482

12316

Receivables from parent company/subsidiary

553

156

0

   0

Other receivables

673

437

702

444

Accrued income

59

6

59

6

Prepaid expenses

218

160

218

161

Prepaid taxes

1889

43

1979

122

Total current receivables

13603

12092

14440

13048

Total liquid assets

26121

21609

27619

23101

Raw maerials and inventories

12551

18573

14847

20038

Goods

35631

3209

3781

3353

Prepayments to suppliers

950

517

950

532

Total inventories

17063

22299

19578

23923

TOTAL CURRENT ASSETS

43185

43908

47197

47024

Stock and shares in subsidiaries

3269

2701

   0

     0

Stock and shares in affiliated companies

17664

14329

17787

15974

Other shares

1554

1554

1554

15541

Other long-term receivables

465

239

465

239

Other receivables from parent/subsidiaries

434

785

0

0

Total financial investments

23386

19608

19806

17767

Plant and equipment

41375

24115

41375

24115

Other equipment and fixtures

21244

19755

26719

24961

Other inventory

1676

1558

1985

1833

Accumulated depreciation

-16516

-13922

-17905

-14801

Unrealized capital investments

11673

10262

11656

10262

Prepayments for fixed assets 564 0 564  
Total tangible assets

60015

41768

64396

46370

Goodwell 0 0 329

193

TOTAL NON-CURRENT ASSETS

83401

61376

84530

64330

TOTAL ASSETS

126586

105284

131727

111354

LIABILITIES AND OWNER'S EQUITY
Debentures

0

0

158

     176

Current period repayments of long-term loans

1467

1013

1467

1013

Short-term loans from credit institutions

436

1531

436

1531

Customer prepaymetns

938

1002

992

1013

Supplier payables

7500

6815

8436

7484

Other short-term borrowings 51 31 51 31
Tax liabilities

5328

4940

5670

5415

Accrued expenses

506

3141

3856

3427

TOTAL CURRENT LIABILITIES

19227

18473

21065

20089

Non-convertable debt

0

0

1361

1934

Long-term bank loan

26270

20694

26270

20694

Deferred income tax liability

2495

1870

3051

1870

TOTAL NON-CURRENT LIABILITIES

28765

22564

30683

24498

TOTAL LIABLITIES

47992

41037

51749

44587

Share capital

18000

18000

18000

18000

Reserves

3610

2010

3610

2010

Retained earings

44169

32614

44169

32614

Net profit for the year

12815

11623

14199

14143

TOTAL OWNER'S EQUITY

78594

64247

79978

66767

TOTAL LIABILITIES AND OWNER'S EQUITY

126586

105284

131727

111354

Karin Padjus
Chief accountant
Phone 372  6 747 403

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AS HARJU ELEKTER
ANNOUNCEMENT
26.October 1999

COMMENTARY TO THE FINANCIAL RESULTS 09/99

The 9-moths 1999 consolidated net sales of AS Harju Elekter amounted to 108.2 million EEK (9m 1998 --115.3 million EEK) and net profit 14.2 million EEK (9m 98 -- 14.1 million EEK).

Exports accounted for 48.5% (52.5 million EEK) of total turnover, exceeding the last year’s result by 6.8% (9m 98 -- 48.1 million EEK, or 41.7% of total turnover).

Turnover of plants and subsidiaries:

 
9m 1999 
9m 1998 

 

Electrical equipment factory

44.1 mln.EEK.

46.4 mln.EEK

95 %

Cable harnesses factory

33.0   mln.EEK

33.3   mln.EEK

99 %

AS Eltek

16.3   mln.EEK

12.7   mln.EEK

128 %

The 9-months 1999 consolidated net profit totaled 14.2 million EEK, which is approximately equal to the last year's respective result (14.1 million EEK); the group's parent company, however, posted 10% highter net profit (9m 99 -- 12.8 million EEK; 9m 98 -- 11.6 million EEK). Decreased operating profit was mainly due to change market conditions. At the end of Q3, however, the market situation improved and forecasts for Q4 are again rather optimistic.

Andres Allikmäe
Chairman of the Management Board

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