. million EEK million EUR
Key figures 1-6/2010 1-6/2009 2009 1-6/2010 1-6/2009 2009
Sales revenue 264.6 353.7 632.7 16.9 22.6 40.4
EBITDA 14.8 26.1 48.3 0.9 1.7 3.1
EBIT 3.9 16.2 28.3 0.2 1.0 1.8
Net profit for the period 18.2 11.1 21.7 1.2 0.7 1.4
incl equity holders of the Parent 18.1 9.7 19.2 1.2 0.6 1.2
EPS (EEK/EUR) 1.08 0.58 1.14 0.07 0.04 0.07
At the end of the period
Total assets 740.8 547.2 618.1 47.3 35.0 39.5
Owners' equity 569.6 400.4 480.5 36.4 25.6 30.7
Average number of employees on the current period 427 457 452
Number of employees at the end of the period 446 486 464
Regardless of the present economic situation, the financial results of the
Group were as expected and the Group was profitable. The consolidated sales
revenue of the Group in the second quarter was 130.5 million kroons (8.3
million euros), which was 24% less than the result of the comparable quarter.
The consolidated sales revenue of the H1 2010 was 264.6 million kroons (16.9
million euros), which was 25% less than the result of the comparable period.
The core business of the Group is the production and sales of electrical
distribution systems and control panels as well as other supportive side-
activities (hereinafter „Production“), which was traditionally the largest
share of sales revenues, 86-87% (90%). The sales revenue on production
received from customers outside of the Group decreased by 27% to 112.8
million kroons (7.2 million euros) in second quarter and were 230.5 million
kroons (14.7 million euros) in H1 2010. The main reason for decline was the
market recession in Finland.
Of the markets, the domestic markets (Estonia, Lithuania and Finland) of the
Group's companies prevailed, where 78.3% (93.7%) of the Group's products and
services were sold. 65% (69%) of Group products were sold outside of Estonia.
Sales to the Estonian market decreased by 8.4 million kroons (600,000 euros)
within the reporting quarter and by 18.4 million kroons (1.2 million euros)
for the half-year. The decrease in sales volumes was, on the one hand, caused
by the alterations in the product groups of the energy sector, when on the
domestic market the demand for cheaper products increased and the sales of
compact secondary substations decreased, and, on the other hand, by the
decrease in the sales volumes of metering boards which, in turn, was caused
by the decrease in connections. While up to one-third of the products and
services of the Estonian segment are sold outside of Estonia, the situation
on foreign markets, especially on the Finnish market, had a great effect on
the economic results of the accounting period. The sales revenue of the
Estonian segment decreased by 27 million kroons (1.7 million euros) in half-
year, with one-third being a result of a decrease in export. The main decline
in realisation on foreign markets was caused by the decrease in sales volumes
of distributing and compact secondary substations in Finland. However, the
supply to Portugal increased by 1.6 times within the half-year.
The recession of the Finnish economy continues, although there are a few
signs of an upturn, mainly regarding export. The domestic investments of
Finland during the accounting period were irrelevant. Finnish metallurgical
and engineering industry enterprises are still struggling. The revenues from
sales to the Finnish market decreased the most - by one-third within the
second quarter and over 40% during the half-year. However, the sales volume
of the Finnish company to the domestic market, compared to the first half of
2009, decreased nearly twice within the half-year. The decrease in sales
volume of the Finnish segment was 27% during the second quarter and 31%
during the half-year. The domestic decrease is partly compensated by the
increase in export to Sweden. Malaysia was added in the second quarter as a
new market. In total, goods with a value of 30 million kroons (2 million
euros) were sold to these markets, accounting for 28% of the sales volumes of
subsidiaries.
In 2009, 60% of the sales revenue of the Lithuanian segment was obtained from
the domestic market and 40% from foreign markets, with the Norwegian and
Danish markets being the largest. This year supplies to those markets have
been modest. Finland, France and the Czech Republic were added as new
markets. In June several major projects were carried out on the Lithuanian
market, as a result of which two-thirds of the sales volumes for the half-
year was earned within the reporting quarter. Almost 80% of the sales revenue
for the half-year was obtained from Lithuanian customers.
During the first 6 months the sales to other states of the European Union
have increased almost twice, including sales to the market of Sweden which
increased 22 million kroons (1.4 million euros). France, Czech Republic and
Malaysia have been added as new markets and the Group has sold during the H1
2010 its products to those markets totally in amount 18.6 million kroons (1.2
million euros). The Group has also sold its products to Latvia, Portugal and
Poland and outside of the European Union to the markets of Belarus, Ukraine,
Russia and Norway.
The expenses regarding sold products and services decreased almost at the
same pace as the sales revenue. Distribution costs and administration
expenses shrank by 3.1 million kroons (200,000 euros) in Q2 and by 4.5
million kroons (290,000 euros) in H1 2010. The administration expenses have
been affected the most by the increase in expenditures on the new software
AX2009. The software was taken into use on 1 October 2009. In conclusion,
business expenses have decreased by 21% in Q2 and by 23% in H1 2010 compared
to the same period of the previous year.
In the second quarter, there was an average of 423 (453) people working in
the Group, included 270 (295) employees in Estonia, 70 (75) employees in
Lithuania and 83 (83) employees in Finland. In H1 2010, the average number of
employees was 427 (457). As at the balance day on 30 June, there were 446
people working in the Group, whish is 18 employees less than on the beginning
of the year and 40 employees less than a year before. During the second
quarter, labour costs decreased by more than 8% compared to the previous
year, reaching 26.0 million kroons (1.7 million euros). During the half-year
employees were paid 52.6 million kroons (3.4 million euros) in salaries,
bonuses and compensation, which was 15.2% lower than during the comparable
period. In H1 2010, the average wage per employee was 20,510 kroons (1,310
euros) and 22,627 kroons (1,450 euros) in the compared period.
The gross profit of the Group was 19.7 million kroons (1.26 million euros) in
Q2 2010 and 37.9 million kroons (2.42 million euros) in H1 2010, decreasing
by 33% and 30% respectively compared to the same periods last year. The gross
profit margin decreased by 2 per cent points up to 15.1% in the second
quarter and by 1 per cent point up to 14.3% in H1 2010. Operating profit of
Q2 2010 was 2.8 million kroons or 177,000 euros (Q2 2009: 9.8 million kroons
or 627,000 euros). Return of sales for the period was 2.1% (5.7%). In Q2 2010
EBITDA was 8.2 million kroons or 525,000 euros (Q2 2009: 14.8 million kroons
or 944,000 euros) and return of sales before depreciation was 6.3% (8.6%). In
H1 2010 EBIT was 3.9 million kroons or 250,000 euros and EBITDA was 14.8
million kroons or 945,000 euros (H1 2009: 16.2 million kroons or 1.04 million
euros and 26.1 million kroons or 1.67 million euros respectively). Return of
sales of H1 2010 was 1.5% (4.6%) and return of sales before depreciation 5.6%
(7.4%). Overall, the consolidated net profit of the Q2 2010 was 10.0 million
kroons or 639,000 euros (Q2 2009: 8.4 million kroons or 535,000 euros), of
which the share of the owners of the parent company was 9.2 million kroons or
587,000 euros. EPS of the reporting period was 0.55 kroons or 0.03 euros (Q2
2009: 0.42 kroons or 0.03 euros). The consolidated net profit of the H12010
was 18.2 million kroons or 1.16 million euros, which is 64.6% more than in
compared period. The share of the owners of the parent company was 18.1
million kroons or 1.16 million euros, increasing more than 87% comparing to
the H1 2009. EPS of the reporting period was 1.08 kroons or 0.07 euros (H1
2009: 0.58 kroons or 0.04 euros).
In H1 2010 the Group invested in real estate, in tangible fixed assets and
in intangible fixed assets, totally 36.4 million kroons or 2.4 million euros
(H1 2009: 6.6 million kroons or 420,000 euros).
During H1 short-term liabilities were increased by 0.2 million kroons or
13,000 euros (H1 2009 were decreased 16.0 million kroons or 1 million euros).
Within the reporting period, 2.9 million kroons or 187,000 euros (H1 2009:
11.2 million kroons or 718,000 euros) worth of a long-term loan were re-paid.
Within the first six months, 2.3 million kroons or 147,000 euros (H1 2009:
1.1 million kroons or 71,000 euros) worth of principal amounts of the
financial lease were repaid.
During first six months, cash and cash equivalents decreased by 16.9 million
kroons (1.1 million euros) and in comparable period 4.2 million kroons
(268,000 euros).
Andres Allikmäe
Chairman of the Board
+372 674 7400
For more information: Internal report 1-6/2010 of Harju Elekter and Mrs.
Karin Padjus, Member of the Board (phone +372 674 7403).
AS HARJU ELEKTER
BALANCE SHEET, 30.06.2010
Consolidated, unaudited
Group
in thousands EEK EUR
ASSETS 30.06.1031.12.0930.06.10 31.12.09
Cash and cash equivalents 18 663 35 640 1 193 2 278
Trade receivables and other receivables 86 016 70 238 5 497 4 489
Prepayments 2 041 2 499 130 160
Inclusive income tax 599 0 38 0
Inventories 94 832 79 352 6 061 5 071
TOTAL CURRENT ASSETS 201 552 187 729 12 881 11 998
Investments in associates 10 569 9 681 676 619
Other long-term financial investments 235 598 153 172 15 057 9 789
Investment property 138 297 137 176 8 839 8 768
Property, plant and equipment 149 155 124 575 9 533 7 962
Intangible assets 5 647 5 815 360 371
Total non-current assets 539 266 430 419 34 465 27 509
TOTAL ASSETS 740 818 618 148 47 346 39 507
LIABILITIES AND OWNERS' EQUITY
Interest-bearing loans and borrowings 16 120 18 166 1 030 1 161
Trade payables and other payables 87 554 75 890 5 596 4 850
Tax liabilities 9 298 10 367 594 663
Inclusive income tax 620 620 40 39
Short-term provision 1 148 1 157 73 74
Deferred income 457 1 564 29 100
TOTAL CURRENT LIABILITIES 114 577 107 144 7 322 6 848
NON-CURRENT LIABILITIES 33 842 7 016 2 163 448
TOTAL LIABILITIES 148 419 114 160 9 485 7 296
Share capital 168 000 168 000 10 737 10 737
Paid-in capital over/under par 6 000 6 000 384 384
Restricted reserves 233 261 149 760 14 907 9 571
Retained earnings 162 305 156 770 10 374 10 020
TOTAL OWNERS' EQUITY 569 566 480 530 36 402 30 712
Non-controlling interests 22 833 23 458 1 459 1 499
TOTAL EQUITY 592 399 503 988 37 861 32 211
TOT.LIABILIT.AND OWNERS' EQUITY 740 818 618 148 47 346 39 507
INCOME STATEMENT, 1-6/2010
Consolidated,unaudited
EEK'000
GROUP Q2 2010 Q2 2009 1-6/2010 1-6/2009
NET SALES 130 463171 934 264 575 353 704
Cost of goods sold -110 762-142 332 -226 699 -299 332
Gross profit 19 701 29 602 37 876 54 372
Marketing expenses -6 830 -7 894 -13 160 -15 538
Administrative expenses -10 028 -12 027 -20 874 -22 952
Other revenue 77 346 375 662
Other expenses -144 -216 -316 -348
Operating profit 2 776 9 811 3 901 16 196
Net financial incomes/expenses 8 632 3 567 16 723 8 021
Income/loss(-) from subsidiaries 1 592 -581 888 -8 126
Profit from normal operations 13 000 12 797 21 512 16 091
Corporate Income tax -3 004 -4 432 -3 326 -5 039
Profit after taxes, incl 9 996 8 365 18 186 11 052
Attributable to:
Equity holders of the parent 9 189 7 059 18 145 9 696
Non-controlling interests 807 1 306 41 1 356
Basic earnings per share (EEK) 0,55 0,42 1,08 0,58
Diluted earnings per share (EEK) 0,54 0,42 1,07 0,58
EUR'000
GROUP Q2 2010 Q2 2009 1-6/2010 1-6/2009
NET SALES 8 338 10 989 16 909 22 606
Cost of goods sold -7 079 -9 097 -14 488 -19 131
Gross profit 1 259 1 892 2 421 3 475
Marketing expenses -437 -504 -841 -993
Administrative expenses -641 -769 -1 334 -1 467
Other revenue 5 22 24 42
Other expenses -9 -14 -20 -22
Operating profit 177 627 250 1 035
Net financial incomes/expenses 552 228 1 069 512
Income/loss(-) from subsidiaries 102 -37 57 -519
Profit from normal operations 831 818 1 376 1 028
Corporate Income tax -192 -283 -213 -322
Profit after taxes, incl 639 535 1 163 706
Attributable to:
Equity holders of the parent 587 451 1 160 619
Non-controlling interests 52 84 3 87
Basic earnings per share (EUR) 0,03 0,03 0,07 0,04
Diluted earnings per share (EUR) 0,03 0,03 0,07 0,04
Karin Padjus
Financial manager
+372 674 7403
