AS Norma Financial Results February 7, 2007
FINANCIAL RESULTS Q4 AND 12 MONTH 2006
Unaudited Preliminary Financial Results Q4 and full year 2006
Sales and Revenues
During the period Q4 Y2006 consolidated net sales of AS
Norma totalled 286,9 MEEK (18.3 MEUR), an increase 20%
compared to the same period a year ago (239.0 MEEK; 15.3
MEUR). Sales to Russian customers rose by 36% due to the
increased orders from AutoVAZ and GAZ. Sales to parent
company Autoliv amounted to 172.8 MEEK
(11.0 MEUR), a decrease 23% compared to the same period in 2005.
Export constituted 98.4% of sales as a year ago, 53% was exported
to Sweden, 38% to Russian and 5% to German customers (Q4 2005:
resp. 57%, 34% and 4%).
Y2006 consolidated sales of AS Norma totalled 1047.5 MEEK (66.9
MEUR), an increase 7% (71.9 MEEK; 4.6 MEUR) compared to
Y2005. Sales to Russian customers rose by 15%. Sales to parent
company Autoliv reached 646.3 MEEK (41.3 MEUR), an increase 9%
compared to the same period in 2005.
The main field of activity of Group were production and sale of
car safety seatbelts and their components. The Group also
manufactured car components, as well as dies and molds for stamping
machines, and rendered engineering services related to the design
and adaptation of car safety systems and seatbelts. The number of
employees at the end of December 2006 was 954, which was 19
employees more than a year ago. The Group employed a monthly average
of 944 people during the Q4, an increase 41 employees in three
months. During the Y2006, a monthly average number of employees
during was 911, 4 less than during Y2005.
Assets and liabilities
Accounts receivable at the end of December 2006 totalled 125.6
MEEK (8.0 MEUR), of which 47% related to the Russian and
Ukrainian customers. During the 12-months period volume of
accounts receivable has increased by 18.4 MEEK (1.2 MEUR).
Receivables from Autoliv were 57.3
MEEK (3.7 MEUR). AS Norma's payables to Autoliv amounted to 15.8
MEEK (1.0 MEUR).
The share of accounts in arrears of total receivables was 4.9%. The
provision for bad debts was 0.5 MEEK (0.03 MEUR) at the end of
period. Provision decreased as a result of write-off provisioned bad
debts from balance sheet by 2.1 MEEK (0,1 MEUR).
At the end of the period, the consolidated total assets amounted
to 997.6 MEEK (63.8 MEUR), a growth 5% (49.8 MEEK; 3.2 MEUR)
compared to the
level at the end of 2005.
Current Assets increased over 12 months period by 85.6
MEEK (5.5 MEUR), the growth was, above all, due to increase
of shortterm financial investments. Property, plant and Equipment
dropped by 22.5 MEEK (1.4 MEUR).
Short-term liabilities totalled 130.1 MEEK (8.3 MEUR) at the end
of December, 2006, an increase of 30.1 MEEK (1.9 MEUR) during the
year. The Group has no long-term liabilities, all investments
and operating activities are financed from equity.
The owners' equity of the Group increased by 19.7 MEEK (1.3
MEUR) during Y2006, amounting to 867.6 MEEK (55.4 MEUR), which
made up 87% of total assets.
Investments
In Q4, AS Norma invested a total of 15.6 MEEK (1.0 MEUR), to
support existing production capacities and assure the future
profits. During Y2006, 38.4 MEEK (2.5 MEUR) was invested.
Net Profit and Earnings per Share
The Group's consolidated unaudited net profit was 30.1 MEEK (1.9
MEUR) in Q4 Y2006, which was 49% (9.8 MEEK; 0.6
MEUR) more than a year before (20.2 MEEK; 1.3 MEUR). Compared
to the Q3 Y2006, net profit in forth quarter rose by 2.2 MEEK
(0.1 MEUR).
For Y2006 net profit amounted to 85.7 MEEK (5.5 MEUR), which was
2.4 MEEK (0.2 MEUR) higher than last year.
Both, diluted and basic earnings per share were 6.49 EEK (0.42
EUR) by the end of December Y2006, a year earlier EPS was 6.31 EEK
(0.40 EUR). During the forth quarter EPS growth was 2.28 EEK (0.15
EUR).
Results of Q1 Y2007 will be published Aprill 2007.
Peep Siimon
Chairman of the Management Board
6 500 442
Consolidated balance sheet Thousands of kroons Thousandsof euros
Unaudited
A s s e t s 31.12.2006 31.12.2005 31.12.2006 31.12.2005
Current assets
Cash in hand and deposits 90 918 183 029 5 811 11 698
Short-term financial 415 553 262 873 26 558 16 801
investments
Receivables 133 401 111 803 8 526 7 146
Prepaid expenses 869 1 539 56 98
Inventories 93 919 89 782 6 002 5 738
Total current assets 734 660 649 026 46 953 41 481
Non-current assets
Long-term financial 0 10 953 0 700
investments
Long-term receivables 378 455 25 29
Property, plant and equipment 248 757 271 220 15 898 17 334
Intangible assets 13 818 16 134 883 1 031
Total non-current assets 262 953 298 762 16 806 19 094
Total assets 997 613 947 788 63 759 60 575
Liabilities and shareholders'equity
Liabilities
Current liabilities
Payables 128 923 94 499 8 240 6 040
Deferred income 1 138 3 375 73 215
Provisions 0 2 094 0 134
Total current liabilities 130 061 99 968 8 313 6 389
Total liabilities 130 061 99 968 8 313 6 389
Owners` equity
Share capital (par value) 132 000 132 000 8 436 8 436
Statutory reserves 13 200 13 200 844 844
Retained earnings 636 620 619 321 40 687 39 582
Net profit 85 732 83 299 5 479 5 324
Total owners´ equity 867 552 847 820 55 446 54 186
Total liabilities and owners´ 997 613 947 788 63 759 60 575
equity
Consolidated income statement
Unaudited
Thousands of kroons
01.10.06- 01.01.06- 01.10.05- 01.01.05-
31.12.06 31.12.06 31.12.05 31.12.05
Revenue 286 872 1 047 493 239 006 975 575
Cost of goods sold 239 825 881 179 198 077 808 470
Gross profit 47 047 166 314 40 929 167 105
Marketing and distribution 5 795 16 820 3 982 13 440
costs
General administrative expenses 8 048 25 684 4 388 21 817
Research and development 8 618 35 179 13 126 38 875
expenses
Other operating income 4 222 6 194 -653 4 657
Other operating expenses 2 176 3 365 880 4 306
Operating profit 26 632 91 460 17 901 93 324
Financial items 3 402 13 987 2 325 10 817
Profit before taxes 30 034 105 447 20 226 104 141
Income tax expense -16 19 715 0 20 842
Net profit 30 050 85 732 20 226 83 299
Basic and diluted earnings per 2,28 6,49 1,53 6,31
share (in kroons)
Thousands of euros
01.10.06- 01.01.06- 01.10.05- 01.01.05-
31.12.06 31.12.06 31.12.05 31.12.05
Revenue 18 334 66 947 15 275 62 351
Cost of goods sold 15 328 56 318 12 659 51 671
Gross profit 3 006 10 629 2 616 10 680
Marketing and distribution 370 1 075 254 859
costs
General administrative expenses 514 1 642 280 1 394
Research and development 551 2 248 839 2 485
expenses
Other operating income 270 396 -42 298
Other operating expenses 139 215 56 275
Operating profit 1 702 5 845 1 144 5 965
Financial items 217 894 149 691
Profit before taxes 1 919 6 739 1 293 6 656
Income tax expense -1 1 260 0 1 332
Net profit 1 920 5 479 1 293 5 324
Basic and diluted earnings per 0,15 0,42 0,10 0,40
share (in kroons)
Consolidated Cash Elow Statement
Unaudited
Thousands of kroons Thousands of euros
Cash flows from operating 2006 2005 2006 2005
activities
Operating profit 91 460 93 324 5 845 5 965
Adjustments of operating profit
Gain from disposals of -682 -83 -44 -5
property, plant and equipment
Depreciation and amortisation 61 380 62 740 3 923 4 010
Impairment loss of property, 0 1 046 0 67
plant and equipment
Changes in assets related to
operating activities, incl.:
Short-term receivables and -18 857 71 264 -1 205 4 555
prepaid expenses, except loans
and interests
Inventories -4 137 -3 024 -264 -193
Long-term receivables, 0 500 0 32
except loans
Changes in liabilities, incl.:
Payables 34 424 -11 733 2 200 -750
Deferred income -2 237 -10 524 -143 -673
Provision -2 094 2 094 -134 134
Total cash flows from operating 159 257 205 604 10 178 13 141
activities:
Cash flows from investing
activities
Proceeds from disposal of 2 432 1 120 155 71
property, plant and equipment
Acquisition of property, plant -38 351 -91 970 -2 451 -5 878
and equipment and intangible
assets
Loans granted -80 -88 -5 -6
Loan repayments received 129 296 8 19
Acquisition of short-term -623 406 -197 930 -39 842 -12 650
financial investments
Proceeds from disposals of 481 679 223 583 30 785 14 290
short-term financial
investments
Interest received 12 037 10 474 769 669
Total cash flows from investing -165 560 -54 515 -10 581 -3 485
activities:
Cash flows from financing
activities
Payment of income tax on -19 714 -20 842 -1 260 -1 332
dividends
Dividends paid -66 000 -66 000 -4 218 -4 218
Total cash flows from financing -85 714 -86 842 -5 478 -5 550
activities:
Net cash flow -92 017 64 247 -5 881 4 106
Changes in cash and cash
equivalents
Balance at the beginning of the 183 029 118 208 11 698 7 555
year
Increase/decrease of cash and -92 017 64 247 -5 881 4 106
cash equivalents
Foreign exchange effect -94 574 -6 37
Cash and cash equivalents at 90 918 183 029 5 811 11 698
the end of the year, incl.:
Cash in hand and deposits with 29 120 109 145 1 861 6 976
maturity up to 3 months
Shares of interest fund 61 798 73 884 3 950 4 722
Consolidated changes in owners`
equity
Unaudited Thousands of kroons
Share Statutory Retained Total
capital reserves earnings owners'
equity
31.12.2004 132 000 13 200 685 321 830 521
Net profit 63 073 63 073
Dividends -66 000 -66 000
30.09.2005 132 000 13 200 682 394 827 594
Net profit 20 226 20 226
31.12.2005 132 000 13 200 702 620 847 820
Dividends -66 000 -66 000
Net profit 55 682 55 682
30.09.2006 132 000 13 200 692 302 837 502
Net profit 30 050 30 050
31.12.2006 132 000 13 200 722 352 867 552
Thousands of euros
Share Statutory Retained Total
capital reserves earnings owners'
equity
31.12.2004 8 436 844 43 800 53 080
Net profit 4 031 4 031
Dividends -4 218 -4 218
30.09.2005 8 436 844 43 613 52 893
Net profit 1 293 1 293
31.12.2005 8 436 844 44 906 54 186
Dividends -4 218 -4 218
Net profit 3 559 3 559
30.09.2006 8 436 844 44 247 53 527
Net profit 1 920 1 920
31.12.2006 8 436 844 46 167 55 447
FINANCIAL RESULTS Q4 AND 12 MONTH 2006
| Source: Norma