AS Norma April 26, 2010
Unaudited Preliminary Financial Results Q1, 2010
Sales and Revenues
In the first quarter of 2010, consolidated net sales of AS Norma totalled 245
MEEK (15.7 MEUR).This constitutes a 66% (97 MEEK, 6.2 MEUR) increase compared
to Q1 in 2009. At the same time, the sales in the first three months amounted
to 74% of same period sales in 2008. Good results in the first quarter were
achieved primarily due to increased production volumes of the Russian car
manufacturers, who were preparing for a government initiated supporting program
“50 000-ruble incentive payment for scrapping old car”, launched 8 March.
Sales to Russian, Belorussian and Ukrainian customers increased by 121% and
sales to other customers by 46%. Sales to Autoliv Group companies amounted to
146 MEEK (9.3 MEUR), a 52% increase (50 MEEK; 3.2 MEUR) when compared to the
same period a year ago.
AS Norma exported 98.9% of its products (Q1, 2009: 99.1%) - 50% to Sweden and
35% to Russian customers (Q1, 2009: respectively 58% and 25%).
AS Norma's main field of activity were production and sale of car safety
systems 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 increased by 31 to 647 people in the first quarter of
2010; however, down by 94 employees compared to a year ago figure. The Group
employed a monthly average of 627 people.
Assets and liabilities
At the end of the first quarter 2010, the accounts receivable totalled 146 MEEK
(9.4 MEUR), of which 53% related to the Russian, Ukrainian and Belorussian
customers. The receivables from Autoliv Group were 59 MEEK (3.8 MEUR). AS
Norma's payables to Autoliv Group amounted to 25 MEEK (1.6 MEUR).
The share of accounts in arrears of total receivables was 11%. The reserve
against doubtful receivables decreased to 1.5 MEEK (0.1 MEUR) in the first
quarter of 2010.
At the end of reporting period, the Group's consolidated total assets totalled
1 097 MEEK (70.1 MEUR), a 69 million kroons (4.4 MEUR) increase in 2010,
whereof current assets grew by 61 MEEK (3.9 MEUR). During the first quarter, a
significant change took place in the structure of current assets: the
receivables increased by 42% and the inventories by 26%.
As of 31.03.2010, the Group kept Euro deposits in the amount of 5.4 MEUR (85
MEEK) at Autoliv AB. In the first quarter 2010, the new transactions were not
entered into with the Autoliv AB.
The Group's short-term liabilities amounted to 132 MEEK (8.4 MEUR) at the end
of the reporting period. The Group had no long-term liabilities. All
investments were financed from equity.
During Q1, 2010, the Group's owners equity has increased by 32 MEEK (2.0 MEUR),
amounting to 965 MEEK (61.7 MEUR), i.e. 88 % of total assets.
Investments
In Q1, 2010, AS Norma invested a total of 21 MEEK (1.3 MEUR) to support
existing production capacities and assure future profits.
Profit
In the first quarter 2010, the Group's operating profit was 28 MEEK (1.8 MEUR);
operating profit margin was 11% (Q1, 2009: -14%). The Group's unaudited net
profit amounted to 32 MEEK (2.0 MEUR). At the same period of 2009, the Group's
net loss amounted to 12 MEEK (0.8 MEUR).
Both, diluted and basic earnings per share were 2.42 EEK (0.15 EUR) by the end
of March, a year earlier EPS was 0.92 EEK (0.06 EUR).
Relevant facts
On 17 March 2010, AS Automotive Holding, a wholly owned subsidiary of Autoliv
Inc., initiated an offer to acquire all shares of AS Norma not already owned by
Autoliv, for the purchase price of 92.31 Estonian kroons (5.9 euros) per share.
The acceptance period of the offer ended on April 14, 2010. In the course of
the acceptance period of the offer the shareholders decided to sell 5 641 771
shares, constituting approximately 42.7% of all shares of AS Norma, and about
87.2% of the shares that were subject to the takeover. After acquiring the
shares that were subject to the takeover, AS Automotive Holding owns 12 373 771
shares, which constitutes approximately 93.7% of all AS Norma's shares.
On 22 April, 2010, the Supervisory Board of AS Norma approved the takeover by
AS Automotive Holding of the shares of AS Norma held by the remaining
shareholders, for the fair compensation of 92.31 per share that is subject to
the takeover.
Peep Siimon
Chairman of the Management Board
+372 650 0442
