PRESS RELEASES 2002



06.11.2002
AS HARJU ELEKTER

FINANCIAL RESULTS 9M 2002

Sales revenue During the accounting period the economic situation in Estonia has been relatively stable. According to the data of the Estonian Market Research Institute, in nine months of the current year the order volumes for industrial products exceeded their usual level and the output volumes sustained a growing trend. There have also been more export orders than usual.

The construction market is still experiencing a boom and the institute anticipates that the fourth quarter will be more favourable than usually. The upsurge that took off in the electrical engineering industry in the preceding years has lasted till the present day. AS Harju Elekter's domestic market is driven by building and renovation activities and the demand for products primarily used for electrical engineering purposes. The energy, infrastructure, building and wholesale companies have placed increasingly more orders on the domestic as well as on external markets.

The consolidated net sales and revenues for nine months of 2002 amounted to EEK 186.6 million (EUR 11.9 mil.). Compared with the same period last year, the Group's turnover grew by 37.6 per cent, whereas in Q3 the sales surpassed the respective indicator for the previous year by 31.5 per cent. Sales on the Estonian market accounted for 59.0 per cent of the consolidated net sales and revenues (2001 9m: 59.4%), marking a 36.6 per cent rise in comparison with the nine month period in 2001, and on the external markets EEK 76.5 million (EUR 4.9 mil.) which is 39.1 per cent more than during the same period last year.

Driven by the growing demand on the electrical engineering market, manufacturing and marketing of electrical equipment increased by 61.8 % within nine months and the acquisition of the new subsidiary added another 12.1 per cent at the expense of the turnover, totalling 80.3 per cent and representing 41.8 per cent of the sales volume (2001 9m: 31.9%).

Profit The Group's operating profit for the nine month period was EEK12.5 million or EUR 797 thousand (2001 9m: EEK 9.5 mil. or EUR 606 thou.), in comparison with the same period last year the growth has been 31.4 per cent, The operating profit for Q3 was EEK 6.0 million or EUR 382 thousand which is 1.6 times higher than in 2001. If the profit margin for the nine month period remained practically on the year 2001 level, then in the third quarter a 9.7 per cent profit margin was achieved (2001 Q3: 8.0%).

Income from financing activities was EEK 7.5 million or EUR 481 thousand (2001 9m:EEK 8.2 mil. or EUR 526 thou.). Altogether EEK 3.6 million (EUR 233 thou.) were consolidated from the related companies in the third quarter. In total, the 2.6 million kroon (EUR 166 thou.) income from financing activities that was received in Q3 of the current year surpassed the previous year's result.

The operating profit gained from the sale of fixed and current assets to a subsidiary which had been formed on the basis of Cable Harnesses Factory and the financial income earned from the sale of the subsidiary AJT Harju Elekter are reported in the consolidated income statement under Extraordinary income, totally in the amount EEK 30.6 million (EUR 2.0 mil.).

In brief, the Group's operating profit for nine months in 2002 was EEK 20.0 million (EUR 1,2 mil.) which is 12.8 per cent more against the same period last year. The operating profit earned in Q3 doubly exceeded the last year's indicator. Net profit for the period amounted to EEK 50.6 million or EUR 3.2 million (2001 9m:EEK 17.7 mil. or EUR 1.1 mil.). Net profit margin settled at 27.1 per cent (2001 9m: 13.1%). EPS was EEK 9.38 or EUR 0.60 (2001 9m: EEK 3.28 or EUR 0.21).

Investments and capital employed During the reporting period the Group invested in tangible and intangible fixed assets altogether EEK 10.5 million or EUR 673 thousand (2001 9m:EEK 5.4 mil. or EUR 346 thou.). 4.5 million kroons or 285 thousand euros were invested into plant and technology, the lion share of which amount was spent on the reconstruction of the washing systems of the powder coating unit at the Electrical Equipment Factory in order to improve quality and to significantly minimise environmental pollution. EEK 3.5 million or EUR 220 thousand were used for the renovation of buildings and facilities. EEK 0.9 million (EUR 60 thou.) were spent on the installation and upgrading of the IT systems.

During the accounting period EEK 6,6 million or EUR 420 thousand were spent to repay the principal amount of the long-term loan and the capital lease (2001 9m: EEK 6.5 mil. or EUR 414 thou.) which did not incur any income tax liability for AS Harju Elekter.

Balance sheet The consolidated balance total by the end of September 2002 was EEK 224.7 million (EUR 14.1 mil.); it had in nine months by EEK 48,2 million (EUR 3.1 mil.) and in twelve months by EEK 52.9 million (EUR 3.1 mil.). This growth is mostly attributable to the sale of AJT Harju Elekter and purchase of the subsidiary Satmatic Oy and the significant rise in the orders for the energy sector products as compared with the previous quarters and the same period last year. Changes took place also in the balance structure. Owners' equity grew in total by EEK 42.8 million (EUR 2.7 mil.) and reached the 74.8 per cent ratio to the value of assets. This is 3.6 per cent points more than a year ago and 3.8 per cent points more than it was by 31.12.2001. On the assets side the value of current assets grew the most during nine months, in total EEK 28.3 million (EUR 1.8 mil.). Together with the subsidiary Satmatic Oy the Group acquired some current assets, the total fair value of which was EEK 21.4 million (EUR 1.4 mil.), among them EEK 15.3 million (EUR 1.0 mil.)worth of stock-in-trade.

Personnel During the accounting period the average number employees in the Group was 373 (2001 9m: 682). On the balance sheet date 293 (30.09.01: 659) people were working in the Group. The number of the employees decreased considerably in connection with the sale of the subsidiary AJT Harju Elekter (418), although after the acquisition of Satmatic Oy the personnel grew by 52 employees.

Important events On the 4th of June AS Harju Elekter and PKC Group Oyj (PKC) signed a sales agreement according to which PKC acquired all shares of AJT, a 100% Harju Elekter owned subsidiary.The transaction value was EUR 2.07 million (EEK 32.4 mill.). With the disposal of AJT, the second tier subcontracting company, Harju Elekter minimised its business risks significantly,but the expertise of wiring systems and fibre-optic products manufacturing was retained in the Group.

On the 19th of September AS Harju Elekter and Siemens Osakeyhtiö signed the purchase agreement pursuant to which Harju Elekter acquired all shares of 100% Siemens owned subsidiary Satmatic Oy. The core business of Satmatic is the manufacturing and marketing of various electrical equipment, including automation and process control systems for the paper, metal and machine building industries as well as car heating units for parking lots. The acquisition of the subsidiary has widened Harju Elekter's possibilities to extend its main product range with Satmatic type-approved products, to upgrade and improve its existing products and to boost its sales in Finland and other neighbouring markets. The increase of the market share is estimated at EEK 100 million (EUR 6.4 million).

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

BALANCE SHEETS BALANCE SHEET,
30.09.2002
Consolidated, unaudited

Group

in thousand EEK EUR
ASSETS 30.09.02 31.12.01 30.09.02 31.12.01
Cash, bank 11 104 11 039 710 706
Marketable securities 0 468 0 30
Total customer receivables 25 748 15 305 1 646 978
Other current receivables 979 3 343 63 214
Accrued income 0 35 0 2
Prepaid expenses 1 034 1 242 66 79
Total current receivables 27 761 19 925 1 774 1 273
Raw materials and inventories 41 177 21 557 2 632 1 378
Goods 4 977 3 730 318 238
Prepayments to suppliers 8 0 0 0
Total inventories 46 162 25 286 2 950 1 616
TOTAL CURRENT ASSETS 85 026 56 718 5 434 3 625
Stock and shares in ass.companies 26 525 22 580 1 695 1 443
Other shares 17 038 4 521 1 089 289
Other long-term receivables 482 473 31 30
Total financial investments 44 044 27 574 2 815 1 762
Plant and equipment 75 381 75 284 4 818 4 812
Other equipment and fixtures 46 483 43 845 2 971 2 802
Other inventory 2 949 3 757 188 240
Accumulated depreciation -33 800 -31 751 -2 160 -2 029
Construction-in-progress 4 195 716 268 46
Prepayments for fixed assets 18 0 1 0
Total tangible assets 95 226 91 851 6 086 5 870
Licences 412 309 26 20
Goodwill 40 112 3 7
Total intangible assets 452 421 29 27
TOTAL NON-CURRENT ASSETS 139 723 119 845 8 930 7 660
TOTAL ASSETS 224 749 176 563 14 364 11 284
LIABILITIES AND OWNERS' EQUITY
Debt obligations 8 757 14 929 560 954
Customer prepayments 561 94 36 6
Supplier payables 25 779 12 433 1 648 795
Other short-term borrowings 1 170 499 75 32
Tax liabilities 3 107 4 931 199 315
Accrued expenses 4 644 6 010 297 384
TOTAL CURRENT LIABILITIES 44 019 38 896 2 813 2 486
TOTAL NON-CURRENT LIABILITIES 12 563 12 254 803 783
TOTAL LIABILITIES 56 582 51 150 3 616 3 269
Share capital 54 000 54 000 3 451 3 451
Restricted reserves 8 600 6 510 550 416
Retained earnings 54 933 44 161 3 511 2 822
Net profit for the year 50 634 20 742 3 236 1 326
TOTAL OWNERS' EQUITY 168 167 125 413 10 748 8 015
TOTAL LIAB.AND OWNERS' EQUITY 224 749 176 563 14 364 11 284

BALANCE SHEET OF THE PARENT COMPANY,
30.09.2002
unaudited

Parent company

in thousand EEK EUR
ASSETS 30.09.02. 31.12.01. 30.09.02. 31.12.01.
Cash, bank 8 976 10 260 574 656
Marketable securities 0 468 0 30
Total customer receivables 18 058 10 718 1 154 685
Other current receivables 3 153 5 422 202 347
Accrued income 0 35 0 2
Prepaid expenses 952 938 61 60
Total current receivables 22 163 17 113 1 416 1 094
Raw materials and inventories 18 476 14 275 1 181 912
Goods 4 931 3 679 315 235
Prepayments to suppliers 8 0 0 0
Total inventories 23 415 17 954 1 497 1 147
TOTAL CURRENT ASSETS 54 554 45 795 3 487 2 927
Stock and shares in subsidiaries 13 832 8 602 884 550
Other long-term receiv.from subs. 10 170 0 650 0
Stock and shares in ass.companies 26 525 22 580 1 695 1 443
Other shares 17 038 4 521 1 089 289
Other long-term receivables 482 473 31 30
Total financial investments 68 047 36 175 4 349 2 312
Plant and equipment 75 251 75 151 4 809 4 803
Other equipment and fixtures 26 032 25 665 1 664 1 640
Other inventory 1 622 2 693 104 172
Accumulated depreciation -27 903 -27 426 -1 783 -1 753
Construction-in-progress 4 195 716 268 46
Prepayments for fixed assets 18 0 1 0
Total tangible assets 79 214 76 799 5 063 4 908
Licences 412 309 26 20
Total intangible assets 412 309 26 20
TOTAL NON-CURRENT ASSETS 147 672 113 283 9 438 7 240
TOTAL ASSETS 202 226 159 078 12 925 10 167
LIABILITIES AND OWNERS' EQUITY
Debt obligations 4 265 7 299 273 466
Customer prepayments 561 11 36 1
Supplier payables 16 625 10 703 1 063 684
Other short-term borrowings 1 481 483 95 31
Tax liabilities 2 265 4 345 145 278
Accrued expenses 3 162 5 320 202 340
TOTAL CURRENT LIABILITIES 28 359 28 161 1 812 1 800
TOTAL NON-CURRENT LIABILITIES 5 701 5 503 364 352
TOTAL LIABILITIES 34 060 33 664 2 177 2 152
Share capital 54 000 54 000 3 451 3 451
Restricted reserves 8 600 6 510 550 416
Retained earnings 54 933 44 161 3 511 2 822
Net profit for the year 50 634 20 742 3 236 1 326
TOTAL OWNERS' EQUITY 168 167 125 413 10 748 8 015
TOTAL LIAB.AND OWNERS' EQUITY 202 226 159 078 12 925 10 167

INCOME STATEMENTS
9M 2002
Consolidated,unaudited

in thousand EEK EUR
Group 9M 2002 9M 2001 9M 2002 9M 2001
NET SALES 186 636 135 625 11 928 8 668
Cost of goods sold 152 323 108 733 9 735 6 949
Gross profit 34 313 26 892 2 193 1 719
Operating expenses, incl. 21 707 17 037 1 387 1 089
Marketing expenses 8 422 6 402 538 409
Administrative expenses 13 285 10 635 849 680
Other revenue 290 302 19 19
Other expenses 425 668 27 43
Operating profit 12 471 9 489 797 606
Financial income, incl.
Fin.income from ass.companies 6 005 3 365 384 215
Fin.income from other holdings 2 254 6 190 144 396
Other interest and fin.income 223 215 14 14
Total financial income 8 482 9 770 542 624
Financial expenses, incl.
Interest expense 902 1 441 58 92
Other financial expenses 59 96 4 6
Total financial expenses 961 1 537 61 98
Profit from normal operations 19 993 17 722 1 278 1 133
External income 30 641 1 958 0  
Net profit for the year 50 634 17 722 3 236 1 133
Bas.and dil.earnings per share 9,38 3,28 0,60 0,21

INCOME STATEMENT
Q3 2002
Consolidated,unaudited

in thousand EEK EUR
Group Q3 2002 Q3 2001 Q3 2002 Q3 2001
NET SALES 61 464 46 728 3 928 2 986
Cost of goods sold 48 418 37 372 3 094 2 389
Gross profit 11 974 8 558 765 547
Operating expenses, incl. 7 029 5 481 449 350
Marketing expenses 2 777 2 377 177 152
Administrative expenses 4 252 3 104 272 198
Other revenue 51 97 3 6
Other expenses 86 237 5 15
Operating profit 5 982 3 735 382 239
Financial income, incl.
Fin.income from ass.companies 3 648 1 313 233 84
Fin.income from other holdings 28 11 2 1
Other interest and fin.income 83 47 5 3
Total financial income 3 759 1 371 240 88
Financial expenses, incl.
Interest expense 278 453 18 29
Other financial expenses 3 44 0 3
Total financial expenses 281 497 18 32
Profit from normal operations 9 461 4 609 605 295
External income 29 915 1 912 0  
Net profit for the year 39 376 4 609 2 517 295
Bas.and dil.earnings per share 7,29 0,85 0,47 0,05

INCOME STATEMENT OF THE PARENT COMPANY
9M 2002
unaudited

in thousand EEK EUR
Parent company 9M 2002 9M 2001 9M 2002 9M 2001
NET SALES 141 369 117 316 9 035 7 498
Cost of goods sold 113 246 96 121 7 238 6 143
Gross profit 28 123 21 195 1 797 1 355
Operating expenses, incl. 16 441 13 095 1 051 837
Marketing expenses 6 500 4 439 415 284
Administrative expenses 9 941 8 656 635 553
Other revenue 253 265 16 17
Other expenses 325 592 21 38
Operating profit 11 610 7 773 742 497
Financial income, incl.
Financial income from subsid. 643 1 076 41 69
Fin.income from ass.companies 6 005 3 365 384 215
Fin.income from other holdings 2 254 6 201 144 396
Other interest and fin.income 227 328 14 21
Total financial income 9 130 10 970 583 701
Financial expenses, incl.
Financial expenses from subsid. 344 0 228 0
Interest expense 391 953 18 43
Other financial expenses 12 68 1 2
Total financial expenses 747 1 021 247 45
Profit from normal operations 19 993 17 722 1 278 1 133
External income 30 641 1 958 0  
Net profit for the year 50 634 17 722 3 236 1 133
Bas.and dil.earnings per share 9,38 3,28 0,60 0,21

INCOME STATEMENT OF THE PARENT COMPANY
Q3 2002
unaudited

in thousand EEK EUR
Parent company Q3 2002 Q3 2001 Q3 2002 Q3 2001
NET SALES 48 646 40 399 3 109 2 582
Cost of goods sold 37 673 32 740 2 408 2 092
Gross profit 10 972 7 659 701 489
Operating expenses, incl. 5 508 4 257 352 272
Marketing expenses 2 108 1 590 135 102
Administrative expenses 3 400 2 667 217 170
Other revenue 52 76 3 5
Other expenses 74 197 5 13
Operating profit 5 442 3 281 348 210
ancial income, incl.
Financial income from subsid. 422 245 27 16
Fin.income from ass.companies 3 649 1 313 233 84
Fin.income from other holdings 28 14 2 1
Other interest and fin.income 116 67 7 4
Total financial income 4 213 1 639 269 105
Financial expenses, incl.
Financial expenses from subsid. -3 229 0 228 0
Interest expense 111 275 18 43
Other financial expenses 0 36 1 2
Total financial expenses -3 118 311 247 45
Profit from normal operations 12 773 4 609 816 295
External income 26 603 1 700 0  
Net profit for the year 39 376 4 609 2 517 295
Bas.and dil.earnings per share 7,29 0,85 0,47 0,05

Karin Padjus
Chief accountant
+372 67 47 403

Moonika Vetevool
PR manager +372 6712 761

TOP


19.09.2002
AS HARJU ELEKTER
NOTICE

ACQUISITION OF SUBSIDIARY FROM SIEMENS

On 19 September 2002 AS Harju Elekter and Siemens Osakeyhtiö (Finland) signed a contract by which Harju Elekter acquires all the shares of Satmatic Oy, a 100% subsidiary of Siemens. No transaction price has been disclosed.

The main business of Satmatic Oy is the manufacture and marketing of different electrical equipment, including automation and power supply control equipment for industries and car heating units for parking lots. With its advanced engineering know-how, the company is a considerable engineering and subcontracting party in Scandinavia. The factory in Ulvila near Pori employs 52 people, including 34 workers. The share capital of the company is EUR 200,000 (EEK 3.1m) and their annual turnover is EUR 7m (EEK 110m). The management board has five members and its chairman is Endel Palla. Simo Puustelli, currently Sales Director of the Automation and Drives Division of Siemens, will be the Managing Director of the company.

Long-term cooperation between Harju Elekter and Siemens Oy will guarantee the fulfilment of orders for Satmatic’s clients: Siemens Oy, Nextrom Oy, Maileffer, Onninen, etc., and the continuation of profitable operations for all parties in the future as well. The joint output capacities of the Finnish and Estonian factories allow for a fuller range of products and better prices for clients. After acquiring the subsidiary, Harju Elekter will be able to extend its main product range, electrical equipment, by Satmatic’s type-approved products and to improve the products already developed and boost their sales in Finland and other close-by markets in the Baltic countries and Russia.

Harju Elekter has another holding in Finland, 12% in PKC Group Oyj, listed on the Helsinki Stock Exchange. In Estonia, Harju Elekter has holdings in the subsidiary AS Eltek (100%) and the related companies AS Keila Kaabel (41.2%) and AS Saajos Balti (33.3%). The groups’ sales were EEK 125.2m (EUR 8m) in the first half of 2002, of which export accounted for 47.8%, and its net profit was EEK 11.3m (EUR 0.7m). Harju Elekter has been manufacturing electrical equipment and materials since 1968.

Andres Allikmäe
Chairman of Management Board
+372 6 747 400

Siemens Osakeyhtiö is a technology company serving its clients in the field of information technology, production, energy and traffic equipment. The annual sales of Siemens’s Finnish companies is EUR 578 million and they employ 2154 people. The annual sales of Siemens AG is EUR 87 billion and they employ 450,000 people. Siemens operates in 190 countries.

TOP


06.08.2002
AS HARJU ELEKTER

CONSOLIDATED FINANCIAL RESULTS, H1 2002

Sales and revenues

The consolidated net sales of AS Harju Elekter for H1 2002 amounted to 125.2 MEEK (8.0 MEUR). Compared to the same period last year,the company's turnover grew by 40.8%. Sales on the domestic market accounted for 52.2% of the consolidated net sales and revenues (H1 2001: 59.4%). Export sales were 59.8 MEEK (3.8 MEUR) which is 65.8% more than for the same period last year.

The first 6 months of 2002 were successful for Electrical Equipment Factory. The factory's total turnover was 52.1 MEEK (3.3 MEUR), having increased in comparsion with the same period last year by 1.4 times, incl. 55.2% increase in the sales of electrical equipment. Sales on the domestic market grew 1.3 and on export markets 2.5 times. The share of export in total turnover was 20.7% (2001: 12.2%). The amount of purchase orders from energy, infrastructure, building and wholesale companies increased.

The turnover of Cable Harnesses Factory amounted to 38.9 MEEK (2001:24.0 MEEK or 1.5 MEUR), i.e. 62.2% growth. Beginning from the current year, the cost of materials used for the manufacturing of some products is reflected in the factory's turnover which is the main reason for the turnover increase.

Profit

The Group's six-month operating profit was 6.5 MEEK or 415 TEUR (H1 2001: 5.8 MEEK or 368 TEUR), thus the return on sales was 5.2% (H1 2001: 6.5%). The low profitability of Cable Harnesses Factory products and the shrinking share of products for the electronic and telecom industries in the overall sales had a decreasing effect on the Group's return on sales. Compared to the same period last year, the parent company's operating profit grew by 37.7%, incl. 42.4%

in Q2,return on sales improved by 0.8 percentage points,incl. 1.3 percentage points in Q2. Beginning from the second quarter, the results of Cable Harnesses Factory are not reported within the parent company's performance indicators.

Income from financing activities was 4.0 MEEK or 259 TEUR (H1 2001: 7.4 MEEK or 471 TEUR). During the accounting period no extraordinary share transfers were conducted (in H1 2001 income from sale of shares had been 2.8 MEEK or 176 TEUR) and also dividend income from PKC was smaller.

In the consolidated income statement under profit from extraordinary items 726 TEEK (46 TEUR) is reported as the part of extraordinary income due from the disposal of the subsidiary's assets, which was received in Q2.

In conclusion, the Group's net profit for the first six months of 2002 was 11.3 MEEK or 719 TEUR (H1 2001: 13.1 MEEK or 838 TEUR). Thus the net profit margin achieved was 9.0% (H1 2001: 14.8%). EPS was 2.08 EEK or 0.13 EUR (H1 2001: 2.43 EEK or 0.16 EUR).

Cash flow, investments and capital employed

Cash flow from operating activities was 14.8 million EEK or 946 thousand EUR (H1 2001: 11.7 MEEK or 748 TEUR), outflow due to investing and financing activities 18.4 million EEK or 1 174 thousand EUR (H1 2001: 11.0 MEEK or 702 TEUR).

During the accounting period the Group invested 6.7 MEEK or 431 TEUR in tangible and intangible fixed assets (H1 2001: 3.7 MEEK or 236 TEUR). Investments in plant and technology were 3.7 MEEK or 239 TEUR, the bulk of this amount was spent on the rehabilitation of the washing units of the powder-coating line with the aim to ensure better product quality and considerable reduction in environmental pollution. 2.0 MEEK or 128 TEUR was spent on the reconstruction projects of buildings and installations.

In March Harju Elekter paid 6 MEEK (383 TEUR) as a monetary contribution into the share capital of its 100% subsidiary AJT Harju Elekter to be founded on the basis of the Cable Harnesses Factory.

Long-term loan and capital lease repayments during the accounting period accounted for 4.4 MEEK or 278 TEUR (H1 2001: 4.9 MEEK or 319 TEUR).

In 2002 7.6 MEEK or 483 TEUR (2001; 6.5 MEEK or 414 TEUR) were distributed as dividends to the shareholders, with no income tax liabilities arising for Harju Elekter.

Balance sheet

The consolidated balance sheet volume as of end of June 2002 was 191.7 MEEK (12.3 MEUR). The balance sheet volume increased by 15.1 MEEK (1.0 MEUR) during the first six months of 2002. On one hand, current receivables grew

by 8.5 MEEK (544 TEUR) and inventories 7.6 MEEK (485 TEUR),on the other hand, trade accounts payable by 14.0 MEEK (894 TEUR). The increase in inventories was caused by stock on hand procured in the 1st quarter for the manufacturing of wiring systems for the automotive and electronic industries that, in turn, lead to an increase in trade accounts payable and in prepaid sales tax to the customs. However, the 30.0% growth in total inventory was beaten by the 40.8% growth rate of the turnover.

Important events

On the basis of former Cable Harnesses Factory, AS AJT Harju Elekter (AJT), a 100% subsidiary, was formed on the 8th of March, with the share capital of 6 million kroons (383 TEUR). The company started its Independent economic activities on April 1. On the 4th of June AS Harju Elekter and PKC Group Oyj (PKC) signed a sales agreement according to which PKC acquired all shares of AJT, a 100% Harju Elekter owned subsidiary. The transaction value was 2.07 MEUR (32.4 MEEK). The closing date was July 1, 2002.

Andres Allikmäe
Chairman of management board
+372 6 747 400

BALANCE SHEETS

BALANCE SHEET, 30.06.2002
Consolidated, unaudited

Group

in thousand

EEK

EUR

ASSETS

30.06.02

31.12.01

30.06.02

31.12.01

Cash, bank

7 475

11 039

478

706

Marketable securities

0

468

0

30

Total customer receivables

23 730

15 305

1 517

978

Other current receivables

2 505

3 343

160

214

Accrued income

14

35

1

2

Prepaid expenses

2 365

1 242

151

79

Total current receivables

28 614

19 925

1 829

1 273

Raw materials and inventories

28 205

21 557

1 803

1 378

Goods

4 661

3 730

298

238

Prepayments to suppliers

11

0

1

0

Total inventories

32 876

25 286

2 101

1 616

TOTAL CURRENT ASSETS

68 965

56 718

4 408

3 625

Stock and shares in ass.companies

22 876

22 580

1 462

1 443

Other shares

4 521

4 521

289

289

Other long-term receivables

482

473

31

30

Total financial investments

27 878

27 574

1 782

1 762

Plant and equipment

75 423

75 284

4 820

4 812

Other equipment and fixtures

44 695

43 845

2 857

2 802

Other inventory

3 993

3 757

255

240

Accumulated depreciation

-32 257

-31 751

-2 062

-2 029

Construction-in-progress

2 634

716

168

46

Prepayments for fixed assets

5

0

0

0

Total tangible assets

94 493

91 851

6 039

5 870

Licences

468

309

30

20

Goodwill

64

112

4

7

Total intangible assets

532

421

34

27

TOTAL NON-CURRENT ASSETS

122 904

119 845

7 855

7 660

TOTAL ASSETS

191 869

176 563

12 263

11 284

LIABILITIES AND OWNERS' EQUITY

Debt obligations

12 465

14 929

797

954

Customer prepayments

230

94

15

6

Supplier payables

26 434

12 433

1 689

795

Other short-term borrowings

1 201

499

77

32

Tax liabilities

4 270

4 931

273

315

Accrued expenses

5 917

6 010

378

384

TOTAL CURRENT LIABILITIES

50 517

38 896

3 229

2 486

TOTAL NON-CURRENT LIABILITIES

12 563

12 254

803

783

TOTAL LIABILITIES

63 079

51 150

4 032

3 269

Share capital

54 000

54 000

3 451

3 451

Restricted reserves

8 600

6 510

550

416

Retained earnings

54 933

44 161

3 511

2 822

Net profit for the year

11 257

20 742

719

1 326

TOTAL OWNERS' EQUITY

128 790

125 413

8 231

8 015

TOTAL LIAB.AND OWNERS' EQUITY

191 869

176 563

12 263

11 284

 
BALANCE SHEET OF THE PARENT COMPANY, 30.06.2002
Unaudited

in thousand

EEK

EUR

ASSETS

30.06.02.

31.12.01.

30.06.02.

31.12.01.

Cash, bank

7 475

11 039

478

706

Marketable securities

0

468

0

30

Total customer receivables

23 730

15 305

1 517

978

Other current receivables

2 505

3 343

160

214

Accrued income

14

35

1

2

Prepaid expenses

2 182

1 242

139

79

Total current receivables

28 430

19 925

1 817

1 273

Raw materials and inventories

28 205

21 557

1 803

1 378

Goods

4 661

3 730

298

238

Prepayments to suppliers

11

0

1

0

Total inventories

32 876

25 286

2 101

1 616

TOTAL CURRENT ASSETS

68 781

56 718

4 396

3 625

Stock and shares in subsidiaries

22 876

22 580

1 462

1 443

Stock and shares in ass.companies

4 521

4 521

289

289

Other shares

482

473

31

30

Other long-term receivables

27 879

27 574

1 782

1 762

Total financial investments

75 423

75 284

4 820

4 812

Plant and equipment

44 695

43 845

2 857

2 802

Other equipment and fixtures

3 993

3 757

255

240

Other inventory

-32 257

-31 751

-2 062

-2 029

Accumulated depreciation

2 634

716

168

46

Construction-in-progress

5

0

0

0

Prepayments for fixed assets

94 493

91 851

6 039

5 870

Total tangible assets

468

309

30

20

Licences

64

112

4

7

Total intangible assets

532

421

34

27

TOTAL NON-CURRENT ASSETS

122 904

119 845

7 855

7 660

TOTAL ASSETS

191 686

176 563

12 251

11 284

LIABILITIES AND OWNERS' EQUITY

Debt obligations

12 465

14 929

797

954

Customer prepayments

229

94

15

6

Supplier payables

26 434

12 433

1 689

795

Other short-term borrowings

1 201

499

77

32

Tax liabilities

4 087

4 931

261

315

Accrued expenses

5 917

6 010

378

384

TOTAL CURRENT LIABILITIES

50 333

38 896

3 217

2 486

TOTAL NON-CURRENT LIABILITIES

12 563

12 254

803

783

TOTAL LIABILITIES

62 896

51 150

4 020

3 269

Share capital

54 000

54 000

3 451

3 451

Restricted reserves

8 600

6 510

550

416

Retained earnings

54 933

44 161

3 511

2 822

Net profit for the year

11 257

20 742

719

1 326

TOTAL OWNERS' EQUITY

128 790

125 413

8 231

8 015

TOTAL LIAB.AND OWNERS' EQUITY

191 686

176 563

12 251

11 284

 

INCOME STATEMENTS

INCOME STATEMENT, H1 2002
Consolidated,unaudited

in thousand

EEK

EUR

Group

H1 2002

H1 2001

H1 2002

H1 2001

NET SALES

125 172

88 897

8 000

5 682

Cost of goods sold

103 905

71 361

6 641

4 561

  

Gross profit

21 267

17 536

1 359

1 121

  

Operating expenses, incl.

14 679

11 556

938

739

Marketing expenses

5 645

4 025

361

257

Administrative expenses

9 033

7 531

577

481

Other revenue

239

204

15

13

Other expenses

339

431

22

28

  

Operating profit

6 488

5 753

415

368

  

Financial income, incl.

Fin.income from ass.companies

2 357

2 053

151

131

Fin.income from other holdings

2 226

6 178

142

395

Other interest and fin.income

140

167

9

11

Total financial income

4 723

8 399

302

537

Financial expenses, incl.

Interest expense

624

987

40

63

Other financial expenses

56

52

4

3

Total financial expenses

680

1 039

43

66

  

Profit from normal operations

10 531

13 113

673

838

External income

726

46

Net profit for the year

11 257

13 113

719

838

  

Basic and dil.earnings per share

2,08

2,43

0,13

0,16

INCOME STATEMENT, 2002 Q2
Consolidated,unaudited

in thousand

EEK

EUR

Group

Q2 2002

Q2 2001

Q2 2002

Q2 2001

  

NET SALES

72 991

44 499

4 665

2 844

Cost of goods sold

61 017

35 941

3 900

2 297

  

Gross profit

11 974

8 558

765

547

  

Operating expenses, incl.

8 158

5 952

521

380

Marketing expenses

3 059

2 122

196

136

Administrative expenses

5 099

3 830

326

245

Other revenue

43

96

3

6

Other expenses

155

314

10

20

  

Operating profit

3 704

2 388

237

153

  

Financial income, incl.

Fin.income from ass.companies

1 577

1 392

101

89

Fin.income from other holdings

11

6 166

1

394

Other interest and fin.income

89

129

6

8

Total financial income

1 676

7 687

107

491

  

Financial expenses, incl.

Interest expense

290

479

19

31

Other financial expenses

10

17

1

1

Total financial expenses

300

496

19

32

  

Profit from normal operations

5 081

9 579

325

612

External income

726

0

46

0

Net profit for the year

5 807

9 579

371

612

  

Basic and dil.earnings per share

1,08

1,77

0,07

0,11

INCOME STATEMENT OF THE PARENT COMPANY, H1 2002
Unaudited

in thousand

EEK

EUR

Parent company

H1 2002

H1 2001

H1 2002

H1 2001

  

NET SALES

92 723

76 917

5 926

4 916

Cost of goods sold

75 573

63 381

4 830

4 051

  

Gross profit

17 151

13 536

1 096

865

  

Operating expenses, incl.

10 934

8 838

699

565

Marketing expenses

4 393

2 849

281

182

Administrative expenses

6 541

5 989

418

383

Other revenue

205

188

13

12

Other expenses

256

395

16

25

  

Operating profit

6 167

4 491

394

287

  

Financial income, incl.

Fin.income from subsidiaries

222

831

14

53

Fin.income from ass.companies

2 357

2 053

151

131

Fin.income from other holdings

2 227

6 187

142

395

Other interest and fin.income

111

262

7

17

Total financial income

4 916

9 332

314

596

Financial expenses, incl.

Fin.expenses from subsidiaries

3 573

0

228

0

Interest expense

280

679

18

43

Other financial expenses

12

32

1

2

Total financial expenses

3 864

711

247

45

  

Profit from normal operations

7 218

13 113

461

838

External income

4 039

0

258

0

Net profit for the year

11 257

13 113

719

838

  

Basic and dil.earnings per share

2,08

2,43

0,13

0,16

INCOME STATEMENT OF THE PARENT COMPANY 2002 Q2
Unaudited

in thousand

EEK

EUR

Parent company

Q2 2002

Q2 2001

Q2 2002

Q2 2001

  

NET SALES

48 401

40 191

3 093

2 569

Cost of goods sold

38 389

32 555

2 453

2 081

  

Gross profit

10 012

7 636

640

488

  

Operating expenses, incl.

5 849

4 509

374

288

Marketing expenses

2 527

1 451

162

93

Administrative expenses

3 322

3 058

212

195

Other revenue

45

84

3

5

Other expenses

73

306

5

20

  

Operating profit

4 135

2 904

264

186

  

Financial income, incl.

Fin.income from ass.companies

1 577

1 392

100

89

Fin.income from other holdings

11

6 169

1

394

Other interest and fin.income

44

170

3

11

Total financial income

1 632

7 732

104

494

Financial expenses, incl.

Fin.expenses from subsidiaries

3 888

725

248

46

Interest expense

106

321

6

21

Other financial expenses

5

11

1

1

Total financial expenses

3 999

1 057

255

67

  

Profit from normal operations

1 768

9 579

113

612

External income

4 038

0

258

0

Net profit for the year

5 806

9 579

371

612

  

Basic and dil.earnings per share

1,08

1,77

0,07

0,11

Karin Padjus
Chief accountant
6 747 403

TOP


04.06.2002
AS HARJU ELEKTER
NOTICE

SALE OF SHARES IN SUBSIDIARY

On 4 June 2002, a sales agreement was signed between AS Harju Elekter and PKC Group Oyj (PKC), under which PKC will acquire all the shares of AS AJT Harju Elekter (AJT), a 100% subsidiary to Harju Elekter. The price of the transaction is EUR 2.07 million (EEK 32.4 million), of which 61.4% (EUR 1.27 million) will be paid in money and the remaining in PKC shares after an approval by a meeting of the PKC shareholders. Harju Elekter will guarantee AJT the operation of the infrastructure, continue to provide management services and participate in the management bodies of PKC and AJT. The production premises will remain in the ownership of Harju Elekter and AJT will continue to rent them.

AJT as a subcontractor to PKC manufactures wiring harnesses and connection cables for the leading automotive and electronics companies in North Europe. According to PKC, the entire production process of particular product groups until finishing will be introduced to the AJT plants, to be soon accompanied by end-customer supplies. In addition to considerable cost savings, the change will result in a shorter supply chain, improved logistics and the flexibility of client service.

Harju Elekter will use the income earned from selling the AJT shares in its principal field of activity – manufacturing and marketing of electrical equipment, expanding both the product range and intensifying its activities and also contributing to the expansion of its target market share in the Baltic States and Northern Countries. Harju Elekter will continue to manufacture electrical connection cables and fibre-optic products in the Group and use them in its products. The sale of the subsidiary as a second-level subcontractor will lead to a considerable decrease in the business risks of Harju Elekter. Continuing cooperation with PKC will provide new development opportunities to both parties.

Andres Allikmäe
Chairman of management board
+372 6 747 400

Endel Palla
Chairman of supervisory board
+372 6 747 400

SUPPLEMENT TO THE 4.06.02 RELEASE

On 1.04.02, AS AJT Harju Elekter (AJT), a 100% subsidiary of Harju Elekter formed on the basis of its cable harnesses factory,started independent business operations. AJT’s share capital is 6 million kroons, divided into 600 000 shares with a nominal value of EEK 10 each. The company’s supervisory board has five members: chairman Endel Palla and members Lembit Kirsme, Lembit Libe, Ülo Merisalu and Karin Padjus. The management board has one member and Andres Allikmäe, chairman of the management board of Harju Elekter, acts in the capacity of the director.

Of the transaction price (EUR 2.07m), 61.4% (EUR 1.27m) is payable in money and the rest in PKC shares after approval by the general meeting of the PKC shareholders on 25.06.02. The subscription price for a share was EUR 7.29 ― the average share price for the 10 trading days preceding the transaction. The transaction will close on 1.07.02. The sales transaction of AJT cannot be treated as a transaction with related persons.

Harju Elekter and AJT have between them one valid contract ― a commercial lease on the production premises. AJT has neither any loan contracts nor any current court or arbitration proceedings.

The 2001 sales of the cable harnesses factory were EEK 48.8m (EUR 3.1m), accounting for 24.9% of the consolidated net sales of Harju Elekter. The total sales of the factory for the first four months of this year amounted to EEK 23.7m (EUR 1.51m), of which the factory yielded EEK 8.3m (EUR 0.53m) from its independent operations in April.

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

TOP


15.05.2002
AS HARJU ELEKTER
ANNOUNCEMENT

COMMENTARY TO FINANCIAL RESULTS, Q1 2002

Sales and revenues The consolidated net sales of AS Harju Elekter for Q1 2002 amounted to 52.2 MEEK (3.3 MEUR). Compared to the same period last year,the company's turnover grew by 17.5% and sales on the domestic market by 12.1%, thus accounting for 53.0% (Q1 2001: 55.6%) of the consolidated net sales.Export sales amounted to 24.5 MEEK (1.6 MEUR) which is 24.3% more than for the same period last year. Compared to the 1st quarter of the previous year, the sales volume of the parent company increased by 20.7%.

The sale of electrical equipment increased 1.3 times in Q1 2002 in comparison with the same period last year, incl.1.2 times on the domestic market and 2.2 times on the export markets. The share of export in total sales was 18% (Q1 2001: 11%). The increase on the domestic market was triggered by the growing number of purchase orders for the energy sector products. The increase on the foreign market is attributable primarily to the growing number of orders from Latvia and Finland.

The turnover of the Cable Harnesses Factory grew by 17.7%. Beginning from the current year the cost of material used in manufacturing of some products is reflected in the turnover which is the main reason for the turnover increase.

The order volume for fibre-optic products more than doubled in comparison with the previous quarter and accounted for 1.4 MEEK (96 TEUR) in the total sales for the telecommunications sector.

Profit The Group's operating profit was 2.8 million EEK or 178 thousand EUR(Q1 2001: 3.4 MEEK or 215 TEUR). The parent company's operating profit grew in comparison with the same period of the previous year and the profit margin improved by 0.3 points. The Group's return on sales settled at 5.3% (Q1 2001: 7.6%). The latter was caused by an extremely high return on sales of telecommunication sector in the 1st quarter of 2001 when the entire stock of the consignment warehouse was disposed of. The 9% profitability achieved in the 1st quarter of 2002 is thus quite normal.

Prompted by the need to improve customer services and to create preconditions for the entry into new markets, the number of salespeople was increased and marketing intensified in Latvia and Estonia in the second half-year of 2001 that lead to a rise in marketing expenses and laid the foundation for further sales growth on the domestic as well as foreign markets.

Financial income was 2 666 thousand EEK or 171 thousand EUR (Q1 2001: 169 TEEK or 11 TEUR). PKC Group paid dividends for the year 2001 in the 1st quarter. In 2001 the dividends were received in the 2nd quarter. Therefore the 2.1 MEEK (132 TEUR) income from dividends affected the net profit and the net profit margin for Q1 2002.

In total, the Group's net profit for the 1st quarter of 2002 was 5.5 million EEK or 348 thousand EUR (Q1 2001: 3.5 MEEK or 226 TEUR). Net profit margin settled at 10.4% (Q1 2001: 8.0%). EPS was 1.01 EEK or 0.06 EUR (Q1 2001: 0.65 EEK or 0.04 EUR).

Cash flow, investments and capital employed Cash flow from operating activities was 6.5 million EEK or 409 thousand EUR (Q1 2001: 3.6 MEEK or 231 TEUR), outflow due to investing and financing activities 5.1 million EEK or 324 thousand EUR (Q1 2001: 3.7 MEEK or 236 TEUR). During the quarter cash balance on hand and in bank increased by 1.3 MEEK or 85 TEUR whereas in Q1 2001 it had decreased by 65 TEEK or 4 TEUR.

During the accounting period the Group invested 3.1 MEEK or 199 TEUR in tangible and intangible fixed assets (Q1 2001: 1.5 MEEK or 94 TEUR). Investments in plant and technology were 1.1 MEEK or 68 TEUR,the bulk of this amount was spent on the rehabilitation of the washing units of the powder- coating line with the aim to ensure better product quality and considerable reduction in environmental pollution. 1.0 MEEK or 66 TEUR was spent on the reconstruction projects of buildings and installations.

In March Harju Elekter paid 6 MEEK (383 TEUR) as a monetary contribution into the share capital of its 100% subsidiary AJT Harju Elekter to be founded on the basis of the Cable Harnesses Factory.

Long-term loan and capital lease repayments during the accounting period accounted for 2.1 MEEK or 0.1 TEUR (Q1 2001: 2.2 MEEK or 136 TEUR).

Balance sheet The consolidated balance sheet volume as of end of March 2002 was 189.5 MEEK (12.1 MEUR).The balance sheet volume increased by 12.9 MEEK (0.8 MEUR) during the 1ST quarter of 2002. On one hand, current receivables grew by 3.5 MEEK (225 TEUR) and inventories 6.7 MEEK (426 TEUR), on the other hand, trade accounts payable by 8.9 MEEK (566 TEUR). The increase in inventories was caused by stock on hand procured in the 1st quarter for the manufacturing of wiring systems for the automotive and electronic industries as well as growing orders for electrical equipment that, in turn, lead to an increase in trade accounts payable and in prepaid sales tax to the customs.

As of the balance sheet date, owners’ equity accounted for 69% (72% in 2001).

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

BALANCE SHEET, 31.03.2002

Consolidated, unaudited

in thousand

EEK

EUR

ASSETS

31.03.02

31.12.01

31.03.02

31.12.01

Cash, bank

12 372

11 039

791

706

Marketable securities

0

468

0

30

Total customer receivables

18 695

15 305

1 195

978

Other current receivables

1 807

3 343

115

214

Accrued income

103

35

7

2

Prepaid expenses

2 832

1 242

181

79

Total current receivables

23 437

19 925

1 498

1 273

Raw materials and inventories

28 191

21 557

1 802

1 378

Goods

3 662

3 730

234

238

Prepayments to suppliers

97

0

6

0

Total inventories

31 950

25 286

2 042

1 616

TOTAL CURRENT ASSETS

67 759

56 718

4 331

3 625

Stock and shares in ass.comp.

23 360

22 580

1 493

1 443

Other shares

4 521

4 521

289

289

Other long-term receivables

513

473

33

30

Total financial investments

28 394

27 574

1 815

1 762

Plant and equipment

75 384

75 284

4 818

4 812

Other equipment and fixtures

43 787

43 845

2 798

2 802

Other inventory

3 803

3 757

243

240

Accumulated depreciation

-33 304

-31 751

-2 129

-2 029

Construction-in-progress

1 660

716

106

46

Prepayments for fixed assets

1 431

0

91

0

Total tangible assets

92 761

91 851

5 929

5 870

Licences

468

309

30

20

Goodwill

88

112

6

7

Total intangible assets

557

421

36

27

TOTAL NON-CURRENT ASSETS

121 711

119 845

7 779

7 660

TOTAL ASSETS

189 470

176 563

12 109

11 284

LIABIL.AND OWNERS' EQUITY

Debt obligations

13 048

14 929

834

954

Customer prepayments

126

94

8

6

Supplier payables

21 287

12 433

1 361

795

Other sh.-term borrowings

864

499

55

32

Tax liabilities

4 079

4 931

261

315

Accrued expenses

6 949

6 010

444

384

TOTAL CURRENT LIABILITIES

46 353

38 896

2 962

2 486

TOTAL NON-CURRENT LIABIL.

12 254

12 254

783

783

TOTAL LIABILITIES

58 606

51 150

3 746

3 269

Share capital

54 000

54 000

3 451

3 451

Restricted reserves

8 600

6 510

550

416

Retained earnings

62 813

44 161

4 015

2 822

Net profit for the year

5 450

20 742

348

1 326

TOTAL OWNERS' EQUITY

130 864

125 413

8 364

8 015

TOT.LIABIL.AND OWNERS' EQ.

189 470

176 563

12 109

11 284

PARENT COMPANY

in thousand

EEK

EUR

ASSETS

31.03.02

31.12.01

31.03.02

31.12.01.

Cash, bank

5 769

10 260

369

656

Marketable securities

0

468

0

30

Total customer receivables

14 339

10 718

916

685

Other current receivables

3 824

5 422

244

347

Accrued income

103

35

7

2

Prepaid expenses

2 539

938

162

60

Total current receivables

20 804

17 113

1 330

1 094

Raw materials and inventories

20 056

14 275

1 282

912

Goods

3 612

3 679

231

235

Prepayments to suppliers

45

0

3

0

Total inventories

23 713

17 954

1 516

1 147

TOTAL CURRENT ASSETS

50 286

45 795

3 214

2 927

Stock and shares in subs.

15 138

8 602

967

550

Stock and shares in ass.comp.

23 360

22 580

1 493

1 443

Other shares

4 521

4 521

289

289

Other long-term receivables

513

473

33

30

Total financial investments

43 531

36 175

2 782

2 312

Plant and equipment

75 251

75 151

4 809

4 803

Other equipment and fixtures

25 607

25 665

1 637

1 640

Other inventory

2 710

2 693

173

172

Accumulated depreciation

-28 468

-27 426

-1 819

-1 753

Construction-in-progress

1 660

716

106

46

Prepayments for fixed assets

1 431

0

91

0

Total tangible assets

78 190

76 799

4 997

4 908

Licences

468

309

30

20

Total intangible assets

468

309

30

20

TOTAL NON-CURRENT ASSETS

122 190

113 283

7 809

7 240

TOTAL ASSETS

172 475 159 078

11 023

10 167

 

LIABIL.AND OWNERS' EQUITY

Debt obligations

6 145

7 299

393

466

Customer prepayments

74

11

5

1

Supplier payables

19 059

10 703

1 218

684

Other short-term borrowings

908

483

58

31

Tax liabilities

3 764

4 345

241

278

Accrued expenses

6 160

5 320

394

340

TOTAL CURRENT LIABILITIES

36 109

28 161

2 308

1 800

TOTAL NON-CURRENT LIABIL.

5 503

5 503

352

352

TOTAL LIABILITIES

41 612

33 664

2 659

2 152

Share capital

54 000

54 000

3 451

3 451

Restricted reserves

8 600

6 510

550

416

Retained earnings

62 813

44 161

4 015

2 822

Net profit for the year

5 450

20 742

348

1 326

TOTAL OWNERS' EQUITY

130 864

125 413

8 364

8 015

TOT.LIABIL.AND OWNERS' EQ.

172 475

159 078

11 023

10 167

INCOME STATEMENT, 2002 Q1
Consolidated,unaudited

in thousand

EEK

EUR

 

Q1 2002

Q1 2001

Q1 2002

Q1 2001

NET SALES

52 181

44 398

3 335

2 838

Cost of goods sold

42 888

35 420

2 741

2 264

Gross profit

9 293

8 978

594

574

Operating expenses, incl.

6 521

5 604

417

358

Marketing expenses

2 586

1 904

165

122

Administrative expenses

3 935

3 701

251

237

Other revenue

196

108

13

7

Other expenses

184

117

12

7

Operating profit

2 784

3 365

178

215

Financial income, incl.

Fin.income from ass.comp.

780

660

50

42

Fin.income from other holdings

2 216

13

142

1

Other interest and fin.income

51

39

3

2

Total financial income

3 046

712

195

46

Financial expenses, incl.

Interest expense

334

508

21

32

Other financial expenses

46

36

3

2

Total financial expenses

380

544

24

35

Profit from normal operations

5 450

3 533

348

226

Net profit for the year

5 450

3 533

348

226

Basic and diluted earn.per shar

1,01

0,65

0,06

0,04

PARENT COMPANY

in thousand

EEK

EUR

 

Q1 2002

Q1 2001

Q1 2002

Q1 2001

NET SALES

44 322

36 726

2 833

2 347

Cost of goods sold

37 184

30 826

2 376

1 970

Gross profit

7 139

5 900

456

377

Operating expenses, incl.

5 085

4 329

379

342

Marketing expenses

1 866

1 398

137

123

Administrative expenses

3 219

2 931

242

219

Other revenue

160

104

4

3

Other expenses

183

88

9

14

Operating profit

2 032

1 587

168

160

Financial income, incl.

Fin.income from subsidiaries

536

1 556

34

99

Fin.income from ass.comp.

780

660

50

42

Fin.income from other holdings

2 216

18

142

1

Other interest and fin.income

66

91

4

6

Total financial income

3 599

2 325

230

149

Financial expenses, incl.

- Interest expense

174

357

11

23

- Other financial expenses

6

22

0

1

Total financial expenses

180

379

12

24

Profit from normal operations

5 450

3 533

348

226

Net profit for the year

5 450

3 533

348

226

Basic and diluted earn.per shar

1,01

0,65

0,06

0,04

Karin Padjus
Chief accountant
(372) 6 747 403

Moonika Vetevool
PR manager
(372) 6 712 761

TOP


24.04.2002
AS HARJU ELEKTER
ANNOUNCEMENT

HARJU ELEKTER OPENED STORE IN TARTU

In order to provide better service to its south Estonian customers and to enlarge the market share, Harju Elekter opened a third store specialising in the sale of electrical supplies and equipment at 127 Tähe St, Tartu. The new store has 300 m2 of selling and storage space.

The store introduces the products of Harju Elekter and its related companies: AS Keila Kaabel, AS Glamox HE, AS Eltek, AS Saajos Balti. The store accepts orders for switchboards and other electrical equipment and spare parts made

by the Harju Elekter electrical equipment factory. The existing electrical goods stores in Keila and Tallinn have won the trust of customers with their broad range of products, competent advice and consumer-friendly prices. The store is mainly orientated towards retail and small wholesale customers.

The Harju Elekter trade group also imports Thermor water heaters and convectors and Unidare storage heaters and offers product servicing and warranty repair.

The 2001 sales of Harju Elekter group was 195,5 million kroons, of which the trade group accounted for 17,7% (14,5% in 2000).

Andres Allikmäe
Chairman of Management Board
+372 6 747 400

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23.04.2002
AS HARJU ELEKTER
ANNOUNCEMENT

HARJU ELEKTER RECEIVES ISO 14001 QUALITY CERTIFICATE

AS Harju Elekter and its subsidiaries introduced a management system assuring environmental protection, which was certified as conforming to the international quality standard ISO 14001:1996 by the international certification company Bureau Veritas Quality International. The certificate will be formally handed over today, on 23 April in Keila.

ISO 14001 sets out requirements for the management of environmentally safe production and technological processes. The environmental management system introduced by the Harju Elekter group ensures constant monitoring and adequate response to any environmental impacts. By this activity, the enterprise wishes to maintain a clean and healthy working and living environment.

Harju Elekter together with subsidiaries and related companies is one of the largest manufacturers of electrical equipment and materials in the Baltic states. Quality certificates were earlier granted to the electrical equipment plant of Harju Elekter (ISO 9001), to the subsidiaries AS AJT Harju Elekter (ISO 9002) and AS Eltek (ISO 9001), and to the related company AS Keila Kaabel (ISO 9001 and ISO 14001).

Andres Allikmäe
Chairman of Management Board
+372 6 747 400

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15.04.2002
AS HARJU ELEKTER
ANNOUNCEMENT

RESOLUTIONS OF ANNUAL GENERAL MEETING

On 12 April 2002 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 110 shareholders and their authorised representatives who represented the total of 4,533,861 votes accounting for 83.96% of the total votes.

The agenda of the general meeting was as follows:
1. approval of the annual report of AS Harju Elekter of 2001;
2. approval of the distribution of profits;
3. approval of the new version of the Articles of Association;
4. election of the members of the supervisory board;
5. appointment of auditors for 2002;
6. share option.

1. Approval of the annual report of AS Harju Elekter of 2001

The general meeting resolved:

1.1 to approve the annual report of AS Harju Elekter of 2001, prepared by the management board and approved by the supervisory board, according to which the consolidated balance sheet total of AS Harju Elekter was 176,563,352 kroons as of 31.12.2001, incl. the balance sheet total of 159,077,642 kroons of the parent undertaking, while the net profit of the financial year was 20,741,811 kroons.

The number of the votes given in favour of the resolution was 4,510,747, which accounted for 99.49% of the registered participants.

2. Approval of the distribution of profits

The general meeting resolved:

2.1 to approve the profit distribution proposal of AS Harju Elekter of 2001 as presented by the management board and as approved by the supervisory board as follows:

net profit of the financial year

20,741,811

to allocate to the legal reserve

2,090,000

to increase the retained profits

18,651,811

net dividends on account of the retained profits of 1994-1999*

7,560,000

balance of the retained profits after the distribution of profits

55,253,302

The dividends will be paid out as 1.40 kroons per share according to the nominal values of the shares held by the shareholders on account of the retained profits of 1994-1999. The dividends will be paid to the shareholders within one month of this meeting 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 8 a.m. of 30 April 2002.

The number of the votes given in favour of the resolution was 4,511,785, which accounted for 99.51% of the registered participants.

3. Approval of the new version of the Articles of Association

The general meeting resolved:

3.1 to introduce amendments to the Articles of Association of AS Harju Elekter and to approve the new version of the Articles of the Association.

The number of the votes given in favour of the resolution was 4,500,628, which accounted for 99.27% of the registered participants.

4. Election of the members of the supervisory board

The general meeting resolved:

4.1 in relation to the termination of the three-year election period of the members of the supervisory board, to appoint the supervisory board of AS Harju Elekter as consisting of five members for the next five years.

The number of the votes given in favour of the resolution was 4,487,701, which accounted for 98.98% of the registered participants;

4.2 to elect Endel Palla, ID code 34106190276, of Tallinn, as the Chairman of the supervisory board of AS Harju Elekter.

The number of the votes given in favour of the resolution was 4,502,440, which accounted for 99.31% of the registered participants;

4.3 to elect Ain Kabal, ID code 36206100231, of Harku rural municipality, Harjumaa, as a member of the supervisory board of AS Harju Elekter.

The number of the votes given in favour of the resolution was 4,500,364, which accounted for 99.26% of the registered participants;

4.4 to elect Lembit Kirsme, ID code 34101010222, of Tallinn, as a member of the supervisory board of AS Harju Elekter.

The number of the votes given in favour of the resolution was 4,497,604, which accounted for 99.20% of the registered participants;

4.5 to elect Madis Talgre, ID code 36004176533, of Saku rural municipality, Harjumaa, as a member of the supervisory board of AS Harju Elekter.

The number of the votes given in favour of the resolution was 4,463,227, which accounted for 98.44% of the registered participants;

4.6 to elect Triinu Tombak, ID code 47101070252, of Tallinn, as a member of the supervisory board of AS Harju Elekter.

The number of the votes given in favour of the resolution was 4,453,559, which accounted for 98.23% of the registered participants;

4.7 to determine the remuneration of the members and Chairman of the supervisory board in the former amount. The bonus system applicable in the public limited company Harju Elekter should be applied to the full-time Chairman of the supervisory board.

The number of the votes given in favour of the resolution was 4,498,538, which accounted for 99.22% of the registered participants.

5. Appointment of auditors for 2002

The general meeting resolved:

5.1 to appoint AS KPMG Estonia, entered in the list of the auditors, to perform the audit of AS Harju Elekter of 2002;

5.2 the auditor will be remunerated according to the price list of AS KPMG Estonia and adhering to the economic activities budget, approved by the supervisory board of AS Harju Elekter.

6. Share option

The general meeting resolved:

6.1 to extend the term of the share option, approved by the resolution of the general meeting of AS Harju Elekter of 27 April 2000, by two years until 30.09.2004.

Andres Allikmäe
Chairman of Management Board
+372 67 47 400

Moonika Vetevool
PR manager
+372 67 12 761

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12.04.2002
HOME
Tallinna Börs

SUSPENSION OF TRADE IN HARJU ELEKTER SHARES

Trade in AS Harju Elekter shares on Tallinn Stock Exchange is suspended beginning 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.

Tallinn Stock Exchange
Market Services
+372 6 408 800

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08.03.2002
AS HARJU ELEKTER
ANNOUNCEMENT

ANNUAL GENERAL MEETING OF SHAREHOLDERS

Annual general meeting of Harju Elekter shareholders will be held on 12nd of April 2002, 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 2001.
2. Approval to profit distribution.
3. Approval of company's Articles of Association.
4. Nomination of members of the Supervisory Board.
5. Nomination of auditors for the year 2002.
6. Share option

The Management Board shall propose at the shareholders general meeting to pay dividends to the shareholders for 2001 financial year in the amount of 7.56 (2000: 6.48) million kroons or 1.40 (2000: 1.20) kroons per share. The shareholders registered in the sherholders’ registry on 30 April 2002 at 8 a.m shall be entitled to dividend.

The annual report and the Aricles of Assotiation of Harju Elekter are 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.

Registration of the participants starts 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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08.03.2002
AS HARJU ELEKTER
NOTICE

FOUNDATION OF SUBSIDIARY

The supervisory board of the AS Harju Elekter decided, in order to improve management, specify the rights and liabilities and to better arrange accounting and analysis, decided at its annual meeting on 7 March 2002 to found a 100% subsidiary of Harju Elekter on the basis of the Cable Harnesses Factory of Harju Elekter. The business name of the new company is AS AJT Harju Elekter.

The share capital of AS AJT Harju Elekter is six million kroons, which is divided into 600,000 shares with a nominal value of 10.00 kroons each. The shares shall be paid for by monetary contributions into the bank account of the company being founded. The supervisory board of the company has five members – Endel Palla, Chairman, and the members Lembit Kirsme, Lembit Libe, Ülo Merisalu and Karin Padjus. The management board of the company has one member and Andres Allikmäe, Chairman of the management board of Harju Elekter shall act in the capacity of the Chairman. All the present employees of the Cable Harnesses Factory will transfer to the new subsidiary under the current employment contracts. On 1 January 2002, the number of the employees of the Cable Harnesses Factory was 411.

AS AJT Harju Elekter will continue to operate in its present area of activities, which is the development, manufacturing and marketing of wiring harnesses, connection cables, their parts, other electromechanical and electrotechnical components and equipment as a subcontractor for the leading automotive and electronics industries in North Europe.

Harju Elekter is one of the largest manufacturers of electric equipment and materials in the Baltic States. The consolidated turnover of the company in 2001 amounted to 195.5 million kroons, of which 40.4% was export.

Andres Allikmäe
Chairman of Management Board
+372 6747 400

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05.03.2002
HARJU ELEKTER
COMMENTARY TO FINANCIAL RESULTS Q4 2001

COMMENTARY TO FINANCIAL RESULTS Q4 2001

Sales and Revenue

The consolidated net sales and revenues of AS Harju Elekter in the twelve months of 2001 were 195.5 million EEK (12.5 MEUR), which amounts to 95.1% of the last year level. At the same time, the volume of the sales of the parent company practically remained on the level of 2000, amounting to 99.8% of it.

Sales to the domestic market increased by 15.4% and constituted 59.6% of the consolidated net sales and revenues (2000: 49.1%).

Export accounted for 40.4% of the volume of sales (2000: 50.9%). The total volume of sales was by 24.5% smaller than under the same period in the previous year. The major decline in export markets was caused by a general decrease in demand in the world’s car and electronics industry. The production of wiring harnesses of vehicles and electronic equipment decreased by 18.5% and the production and sales of telecommunication products by 53.5%.

Profit

The twelve-month operating profit of the group was 11. MEEK, that is, 0.7 MEUR (2000: 17.0 MEEK equalling 1.1 MEUR). Both the reduction in the sales proceeds caused by export volumes and the additional expenditure related to the introduction of new products and launch of projects can be considered as the main reasons for the decrease in operating profit. In the group, the gross profit of the twelve months of 2001 was 6.0% (2000: 8.3%), while the gross profit margin remained at 19% (2001: 19.1%; 2000: 18.9%). The revenue from financial activities was 9.1 MEEK, that is,0.6 MEUR (2000: 12.1 MEEK equalling 0.8 MEUR).

In the accounting year, the financial income from the associated companies was 3.6 million kroons below that of 2000, which included the financial income of 3.1 MEEK (0.2 MEUR) earned from the sale of the shares of AS Glamox Harju Elekter.

The net profit of the group was 20.7 MEEK, that is, 1.3 MEUR in 2001 (2000: 29.2 MEEK equalling 1.9 MEUR). The net profit margin was 10.6% (2000: 14.2%). The net profit per share amounted to 3.84 EEK, that is, to 0.25 EUR (2000: 5.40 EEK equalling 0.35 EUR).

The management board decided to submit a proposal to the general meeting to pay dividends of 1.40 EEK per share for the financial year of 2001.

Investments and Capital Use

Under the accounting period, new investments in the amount of 10.1 MEEK (0.6 MEUR) were made in the tangible non-current assets in the group, in 2000, the amount was 28.3 MEEK (1.8 MEUR). The parent company invested nearly 1 MEEK (0.1 MEUR) in the construction of production premises for the manufacturing of fiberoptic connection cables and accessories in the subsidiary AS Eltek and 3.5 MEEK (0.2 MEUR) in the procurement of high-tech equipment required for production in AS Eltek. In June 2001, Harju Elekter invested 1 MEEK (0.1 MEUR) in increasing the share capital of the subsidiary.

Balance Sheet

The consolidated balance sheet total was 176.9 MEEK (11.3 MEUR) at the end of December 2001. Equity capital increased by 12.3 %, that is, +13.7 MEEK (+0.9 MEUR) during the year. As of the balance sheet date, the long-term and short-term liabilities of the group amounted to 27.2 MEEK (1.7 MEUR), of which 12.3 MEEK (0.8 MEUR) were of long-term nature. Liabilities to credit institutions have decreased by 3.8 MEEK (0.2 MEUR) during the year.

Karin Padjus
Chief accountant
Tel 6747 403

Moonika Vetevool
PR manager
+372 6712 761

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28.02.2002
AS HARJU ELEKTER
INCOME STATEMENT, 2001

INCOME STATEMENT 2001, CONSOLIDATED, UNAUDITED

in thousand

EEK

EUR

 

2001

2000

2001

2000

NET SALES

195 495

205 641

12 494

13 143

Cost of goods sold

158 227

164 145

10 113

10 491

Gross profit

37 268

41 496

2 382

2 652

Operating expenses, incl.

25 244

   

1 613

0

   Marketing expenses

9 568

9 747

612

623

   Administrative expenses

15 676

14 152

1 002

904

Other revenue

399

318

26

20

Other expenses

818

884

52

56

Operating profit

11 605

17 031

742

1 089

Financial income, incl.

   Financial income from subsid.

4 626

8 291

296

530

   Financial income from ass.com

6 202

5 494

396

351

   Fin.income from other holding

364

677

23

43

Other interest and fin. income

11 191

14 467

715

925

Total financial income

Financial expenses, incl.

   Interest expense

1 908

2 165

122

138

   Other financial expenses

147

157

9

10

Total financial expenses

2 055

2 322

131

148

Profit from normal operations

20 742

29 176

1 326

1 865

Net profit for the year

20 742

29 176

1 326

1 865

Basic and diluted earnings per share

3,84

5,40

0,25

0,35

INCOME STATEMENT 2001 OF THE PARENT COMPANY, UNAUDITED

in thousand

EEK

EUR

 

2001

2000

2001

2000

NET SALES

168 833

169 087

10 790

10 807

Cost of goods sold

138 994

137 709

8 883

8 801

Gross profit

29 840

31 378

1 907

2 005

Operating expenses, incl.

   Marketing expenses

6 587

6 327

421

404

   Administrative expenses

12 439

11 173

795

714

Other revenue

328

167

21

11

Other expenses

736

635

47

41

Operating profit

10 405

13 410

665

857

Financial income, incl.

   Financial income from subs.

272

2 884

17

184

   Financial income from ass.com

4 626

8 291

296

530

   Fin.income from other holding

6 215

5 528

397

353

Other interest and fin.income

494

799

32

51

Total financial income

11 607

17 502

742

1 119

Financial expenses, incl.

   Interest expense

1 196

1 643

76

105

   Amortisation of fin.assets

26

27

2

2

   Other financial expenses

48

65

3

4

Total financial expenses

1 270

1 736

81

111

Profit from normal operations

20 742

29 176

1 326

1 865

Net profit for the year

20 742

29 176

1 326

1 865

Basic and diluted earnings per share

3,84

5,40

0,25

0,35

Karin Padjus
Chief accountant
67 47 403

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28.02.2002
AS HARJU ELEKTER
BALANCE SHEET, 31.12.2001

BALANCE SHEET, 31.12.2001, CONSOLIDATED, UNAUDITED

in thousand

EEK

EUR

ASSETS

31.12.01

31.12.00

31.12.01

31.12.00

Cash, bank

11 039

8 142

706

520

Marketable securities

468

402

30

26

Total customer receivables

15 305

15 868

978

1 014

Other current receivables

3 320

2 484

214

159

Accrued income

35

34

2

2

Prepaid expenses

1 242

1 540

79

98

Total current receivables

19 902

19 926

1 273

1 274

Raw materials and inventorie

21 557

19 462

1 378

1 244

Goods

3 730

3 331

238

213

Prepayments to suppliers

0

8

0

1

Total inventories

25 286

22 801

1 616

1 457

TOTAL CURRENT ASSETS

56 694

51 272

3 625

3 277

Stock and shares in ass.comp

22 580

19 399

1 443

1 240

Other shares

4 521

3 997

289

255

Other long-term receivables

473

522

30

33

Total financial investments

27 574

23 918

1 762

1 529

Plant and equipment

75 284

72 905

4 812

4 659

Other equipment and fixtures

43 845

37 594

2 802

2 403

Other inventory

3 757

3 371

240

215

Accumulated depreciation

-31 751

-24 407

-2 029

-1 560

Construction-in-progress

716

0

46

0

Total tangible assets

91 851

89 462

5 870

5 718

Licences

309

421

20

27

Goodwill

112

208

7

13

Total intangible assets

421

629

27

40

TOTAL NON-CURRENT ASSETS

119 845

114 010

7 660

7 287

TOTAL ASSETS

176 540

165 282

11 284

10 563

LIABIL.AND OWNERS'EQUITY

Debt obligations

14 929

11 182

954

715

Customer prepayments

94

326

6

21

Supplier payables

12 433

11 793

795

754

Other short-term borrowings

499

381

32

24

Tax liabilities

4 908

5 731

315

366

Accrued expenses

6 010

6 317

384

404

TOTAL CURRENT LIABIL.

38 873

35 730

2 486

2 284

TOTAL NON-CURRENT LIABIL.

12 254

17 902

783

1 144

TOTAL LIABILITIES

51 127

53 631

3 269

3 428

Share capital

54 000

54 000

3 451

3 451

Restricted reserves

6 510

3 610

416

231

Retained earnings

44 161

24 864

2 822

1 589

Net profit for the year

20 742

29 176

1 326

1 865

TOTAL OWNERS' EQUITY

125 413

111 650

8 015

7 136

TOT.LIABIL.AND OWNERS'EQUITY

176 540

165 282

11 284

10 563

BALANCE SHEET OF THE PARENT COMPANY, UNAUDITED

in thousand

EEK

EUR

ASSETS

31.12.01

31.12.00

31.12.01

31.12.00

Cash, bank

10 260

8 119

656

519

Marketable securities

468

402

30

26

Total customer receivables

10 718

11 477

685

733

Other current receivables

5 422

7 129

347

456

Accrued income

35

34

2

2

Prepaid expenses

938

1 223

60

78

Total current receivables

17 113

19 863

1 094

1 269

Raw materials and inventorie

14 275

12 341

912

789

Goods

3 679

3 295

235

211

Prepayments to suppliers

0

0

0

0

Total inventories

17 954

15 635

1 147

999

TOTAL CURRENT ASSETS

45 795

44 019

2 927

2 813

Stock and shares in subs.

8 602

7 629

550

488

Other receivables from subs.

0

53

0

3

Stock and shares in ass.comp

22 580

19 399

1 443

1 240

Other shares

4 521

3 997

289

255

Other long-term receivables

473

522

30

33

Total financial investments

36 175

31 600

2 312

2 020

Plant and equipment

75 151

72 799

4 803

4 653

Other equipment and fixtures

25 665

23 200

1 640

1 483

Other inventory

2 693

2 625

172

168

Accumulated depreciation

-27 426 

-21 733

-1 753

-1 389

Construction-in-progress

716

0

46

0

Total tangible assets

76 799

76 892

4 908

4 914

Licences

309

421

20

27

Total intangible assets

309

421

20

27

TOTAL NON-CURRENT ASSETS

113 283

108 913

7 240

6 961

TOTAL ASSETS

159 078

152 932

10 167

9 774

LIABIL.AND OWNERS' EQUITY

Debt obligations

7 299

7 688

466

491

Customer prepayments

11

326

1

21

Supplier payables

10 703

10 124

684

647

Other short-term borrowings

483

621

31

40

Tax liabilities

4 345

5 315

278

340

Accrued expenses

5 320

5 592

340

357

TOTAL CURRENT LIABILITIES

28 161

29 665

1 800

1 896

TOTAL NON-CURRENT LIABIL.

5 503

11 616

352

742

TOTAL LIABILITIES

33 664

41 281

2 152

2 638

Share capital

54 000

54 000

3 451

3 451

Restricted reserves

6 510

3 610

416

231

Retained earnings

44 161

24 864

2 822

1 589

Net profit for the year

20 742

29 176

1 326

1 865

TOTAL OWNERS' EQUITY

125 413

111 650

8 015

7 136

TOT.LIAB. AND OWNERS' EQUITY

159 078

152 932

10 167

9 774

Karin Padjus
Chief accountant
67 47 403

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