LICENSE AGREEMENT FOR RELEASE OF A NEW PRODUCT
On 11.12.2001 AS Harju Elekter and Schneider Electric Industry signed a license agreement for production of medium voltage primary distribution boards. The product will be used for control and protection of medium voltage substations. The new product is in accordance with the international standards.
First presentation of the product will take place at the International Energy Management fair Enerex 2002 on 28.02-02.03.2002 in Tallinn. First orders are expected in H2 2002, and the estimated net turnover of the new product line, targeted to Baltic market, is EEK 3-6 million.
Harju Elekter Group, and its subsidiaries and affiliated companies, is the largest producer of electrical equipment and materials in the Baltic countries, employing on the average of 682 people in 9m 2001. Nine-month turnover amounted to EEK 135.6 million and profit totaled EEK 17.7 million.
SUBSIDIARY TO START PRODUCTION OF FIBER OPTIC PRODUCTS
AS Eltek, 100% subsidiary of AS Harju Elekter, started production of fiber optic connection cables and equipment. A new department for 20 people was opened. The estimated output capacity for 2001 is EEK 2 million, for 2002 EEK 10 million, and annual growth rate of no less than 10% for the following years. The modern technology and skills new to the group, have a significant synergic impact on the production of wiring harnesses for car and electronic industry in the future. The production of fiber optic connection cables and equipment is a growing industry with great perspectives.
Harju Elekter made investments in total of EEK 1 million in construction of production spaces to meet the technological requirements. EEK 3.5 million was invested in high-technology equipment for production.
Fiber optic cables enable delivery of considerable amount of data. Fiber optic cables will replace copper cables for connection and data communication, thus significantly improving the speed of data communication delivery for an end consumer.
Harju Elekter Group, and its subsidiaries and affiliated companies, is the largest producer of electrical equipment and materials in the Baltic countries, employing almost 800 people. AS Eltek is a subsidiary of Harju Elekter since 1998. The company's core business is production of various products used in the field of telecommunications, i.e. production of data communication and telephone network distribution cabinets and UPS-cases etc. The company's turnover in 2000 amounted to EEK 42.9 million, of which the exports accounted for 70%.
LINK TO THE Q2/2001 INTERIM REPORT OF AS HARJU ELEKTER
The Q2/2001 interim report of AS Harju Elekter is available on the Internet homepage of the Tallinn Stock Exchange at http://www.tse.ee/english/news/news.php?lk=annual.html%23helek ("News / Financial Reports").
CONSOLIDATED BALANCE SHEET, AS AT 30.06.01
CONSOLIDATED INCOME STATEMENT, 01.01.-30.06.01
LINK TO THE Q1/2001 INTERIM REPORT OF AS HARJU ELEKTER
The Q1/2001 interim report of AS Harju Elekter is available on the Internet homepage of the Tallinn Stock Exchange at http://www.tse.ee/english/news/news.php?lk=annual.html%23helek
("News / Financial Reports").
AS HARJU ELEKTER DIVIDEND
AS Harju Elekter will fix the list of shareholders for dividend payments on 14.05.2001 at 8.00 a.m.
Proceeding from the above, shares of AS Harju Elekter are traded cum-dividend for the last day today, on 08.05.2001. The shares will go ex-dividend for year 2000 from tomorrow, 09.05.2001.
AS Harju Elekter will pay dividends EEK 1.20 per share.
RESOLUTIONS OF SHAREHOLDERS' ANNUAL GENERAL MEETING
The annual general meeting of AS Harju Elekter took place on 26.04.2001 in Keila. Altogether 84 shareholders and proxies attended the meeting, representing a total of 3,564,678 votes, or 66.01% of total votes.
Agenda of AGM:
1) Approval of 2000 annual
report of AS Harju Elekter.
1) Approval of 2000 annual report of AS Harju Elekter.
1.1. to approve the 2000 annual report of Harju Elekter, as presented by the Management Board and approved by Supervisory Board, whereby the balance sheet size of AS Harju Elekter as of 31.12.2000 was EEK 152,931,769 and net profit for the year was EEK 29,176,371.
For: 3,564,078 votes, or 99,98% of votes represented at AGM.
2) Profit allocation.
2.1. to approve the profit allocation proposal, as presented by AS Harju Elekter Management Board and approved by Supervisory Board as follows:
Retained earnings after the approval of the annual report of 2000 EEK 44,660,337
Dividends will be paid in money, in accordance with nominal value of shares held by a shareholder, in the amount of EEK 1.20 per share.
Dividend payments will be made within one month as of the date of AGM, with transfer to shareholder's bank account.
*list of shareholders will be closed for dividend payments on 14.05.2001, at 8:00 a.m.
For: 3,413,200 votes, or 95.75% of votes represented at AGM.
3) Amendments to the Articles of Association, approval of new redaction of company's Articles of Association.
3.1. to amend the Articles of Association of AS Harju Elekter and approve the new redaction annexed to the current minutes.
For: 3,562,602 votes, or 99.94% of votes represented at AGM.
4) Appointment of auditors for year 2001.
4.1. to appoint auditors of KPMG
Estonia to audit the financial reports of Harju Elekter in year 2001 as
4.2. the auditors will be remunerated in accordance with the price list of KPMG Estonia and in accordance with the budget determined by AS Harju Elekter Supervisory Board.
For: 3,557,178 votes, or 99.78% of votes represented at AGM.
RESUMPTION OF TRADE IN AS HARJU ELEKTER SHARES
Trade in AS Harju Elekter shares will be resumed today at 12:10.
Quotes can be entered into the system from 12:05.
SUSPENSION OF TRADE IN AS HARJU ELEKTER SHARES
Trade in AS Harju Elekter shares on Tallinn Stock Exchange is suspended from 10:00 a.m. due to Annual General Meeting of shareholders.
Trade in AS Harju Elekter shares will be resumed after the resolutions of the AGM are published via the Exchange's information system.
The Exchange will release announcement on resumption of trade.
LINK TO THE YEAR 2000 ANNUAL REPORT OF AS HARJU ELEKTER
The year 2000 annual report of AS Harju Elekter is available on the Internet homepage of the Tallinn Stock Exchange at http://www.tse.ee/english/news/news.php?lk=annual.html%23helek ("News / Financial Reports").
ANNUAL GENERAL MEETING OF SHAREHOLDERS
Annual general meeting of Harju Elekter shareholders will be held on 26.04.2001, beginning at 10:00 a.m., at venue of Keila Kultuurikeskus (address: Keskväljak 12, Keila).
According to the decision of the Supervisory Board of AS Harju Elekter, the agenda of the general meeting is as follows:
1. Approval of AS Harju Elekter
2000 annual report
The Management Board made a proposal to pay dividends for year 2000 in total amount of EEK 6.48 million (1999 - EEK 5.4 million), or EEK 1.20 per share (1999 - EEK 1.00). List of Harju Elekter shareholders will be fixed for payment of dividends on 14.05.2001, at 8.00 a.m.
The annual report of 2000 and amendments to the Articles of Association are available on Internet homepage of AS Harju Elekter (www.harjuelekter.ee) and at the company's head office (address: Keila, Paldiski mnt. 31, III floor).
Registration of participants to the general meeting will start at 9:00 a.m. All meeting attendants must present an identification document. Representatives also need to present a proxy or documents proving the representation right.
CONSOLIDATED INCOME STATEMENT, 2000
CONSOLIDATED BALANCE SHEET, AS AT 31.12.2000
COMMENTARY TO FINANCIAL RESULTS, 2000
Turnover and export
In 2000 the net sales and revenues of the Group totalled 205.6 million kroons (in 1999 : 158.4) and increased by 29.8% as compared to 1999. The share of export in the consolidated turnover of the Group amounted to 50.9% (1999: 46.9%). During the financial year the subsidiary company AS Eltek almost tripled its export volume (+19.2 million kroons) which accounted for 68.7% of its total turnover (1999: 42.2%).
Turnover by types of market (million kroons):
Nordic countries - Finland and
Net sales by business areas and product groups
The business operations of the Group are divided into two groups:
-industrial production and marketing of its own products;
The Group's net profit for the financial year amounted to 29.2 million kroons (+32.1%), incl. operating income 17.0 million kroons (+26.9%) and financial income 12.1 million kroons (+39.1%). The growth of financial income was mostly due to the 2.3 million kroons increase of the related company AS Keila Kaabel's share in the consolidated profit (1999: 2.7 mill. kroons) and the one-off revenue of 3.2 million kroons from the sale of AS Glamox Harju Elekter shares (in 1999 revenue from the sale of AS Saajos Balti shares was 2.6 million kroons).
If in 1999 financial expenses included 2.6 million kroons of the consolidated loss of related companies, in 2000 this was not the case thanks to the sale of Glamox HE shares.
In the year 2000 operating income grew by 46.7% (2000: 29.2 mill.kroons; 1999: 19.9 mill.kroons). A slight decline in the operating profit margin was caused by additional costs incurred in connection with the introduction of new products for Scania trucks and training of the new labour force.
Investments and financing
Altogether 28.5 (1999: 22.2) million kroons were invested in fixed assets by the Group in the year 2000. AS Eltek's investments in capital goods and information technology totalled 8.5 (1999: 0.9) million kroons.
Major investment projects:
- AS Eltek fully automated metal
conversion unit 8.2 million kroons
Investments were financed mostly from own funds. The subsidiary company AS Eltek got a long-term loan of 7.4 million kroons from Merita Bank for which the parent company Harju Elekter had to pledge the requested number of PKC Group OY shares as collateral. ROI period does not exceed 7 years.
Share and shareholders
As of 31.12 .2000 AS Harju Elekter had 443 shareholders. EPS was 5.40 (1999: 4.09) kroons.
The Management Board shall make a proposal to the general meeting of the shareholders to pay the total of 6.48 (1999: 5.4) million kroons in dividends to the shareholders for the year 2000, that is 1.20 (1999: 1.00) kroons per share.