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