Sales and Revenues During the period Q1 Y2007 consolidated net sales of AS Norma totalled 283.1 MEEK (18.1 MEUR).This constitutes an 7.9% (20.8 MEEK, 1.3 MEUR) increase to Q1 Y2006. Sales to Russian and Ukrainian customers rose by 34.1% and sales to other customers decreased by 0.9% in Q1 Y2006. Sales to parent company Autoliv amounted to 181.3 MEEK (11.6 MEUR), an increase 1.1% compared to the same period in 2006. In Q1 2007 AS Norma exported 98.8% of it's products (Q1 2006: 98.3%) - 61% to Sweden, 31% to Russian and 4% German customers (Q1 2006: respectively 65%, 24%, 4%). 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 the period was 976, which is 90 employees more than a year ago and 29 more compared to the beginning of Y2007. The Group employed a monthly average of 960 people. Assets and liabilities Accounts receivable at the end Q1 Y2007 totalled 134.3 MEEK (8.6 MEUR), of which 42% related to the Russian and Ukrainian customers. During the period volume of accounts receivable has increased by 8.1 MEEK (0.5 MEUR). Receivables from Autoliv were 69.5 MEEK (4.4 MEUR). AS Norma's payables to Autoliv amounted to 6.0 MEEK (0.4 MEUR). The share of accounts in arrears of total receivables was 4.3%. The provision for bad debts remained during the period at same level, it totalled 0.5 MEEK (0.03 MEUR). At the end of the Q1 Y2007, the consolidated total assets totalled 1040.2 MEEK (66.5 MEUR), a growth 42.6 MEEK (2.7 MEUR), including of 37.1 MEEK (2.4 MEUR) increase in current assets. The growth was, above all, due to the changes in short-term financial investments and receivables. Total liabilities amounted to 146.1 MEEK (9.3 MEUR) at the end of Q1 Y2007. The Group has no long-term liabilities, all investments and operating activities are financed from equity. The owners' equity of the Group increased by 26.6 MEEK (1.7 MEUR) during the period, amounting to 894.1 MEEK (57.1 MEUR), which made up 86% of total assets. Investments In Q1 2007, AS Norma invested a total of 21.5 MEEK (1.4 MEUR), to support existing production capacities and assure the future profits. Net Profit and Earnings per Share The Group's consolidated unaudited net profit was 26.6 MEEK (1.7 MEUR) in Q1 Y2007, which was 2.8 MEEK (0.2 MEUR) i.e. 11.6% more than a year before (Q1 2007: 23.8 MEEK; 1.5 MEUR). Both, diluted and basic earnings per share were 2.01 EEK (0.13 EUR) in Q1 Y2007, a year earlier EPS was 1.80 EEK (0.12 EUR). Significant Events Norma won the AVTOVAZ ‘Best Supplier 2006' Diploma. The Q2 Y2007 results of AS Norma will be released at July 25, 2007. Peep Siimon Chairman of the Management Board 6 500 442 -------------------------------------------------------------------------------- | Consolidated balance sheet | Thousands of kroons | Thousands of euros | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | A s s e t s | 31.03.200 | 31.12.200 | 31.03.200 | 31.12.200 | | | 7 | 6 | 7 | 6 | -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Cash in hand and deposits | 73 903 | 90 918 | 4 723 | 5 811 | -------------------------------------------------------------------------------- | Short-term financial | 443 716 | 415 553 | 28 359 | 26 559 | | investments | | | | | -------------------------------------------------------------------------------- | Receivables | 152 441 | 133 028 | 9 743 | 8 502 | -------------------------------------------------------------------------------- | Prepaid expenses | 1 786 | 1 242 | 114 | 79 | -------------------------------------------------------------------------------- | Inventories | 99 865 | 93 919 | 6 383 | 6 002 | -------------------------------------------------------------------------------- | Total current assets | 771 711 | 734 660 | 49 322 | 46 953 | -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Long-term receivables | 384 | 378 | 25 | 25 | -------------------------------------------------------------------------------- | Property, plant and | 254 609 | 248 757 | 16 272 | 15 898 | | equipment | | | | | -------------------------------------------------------------------------------- | Intangible assets | 13 492 | 13 818 | 862 | 883 | -------------------------------------------------------------------------------- | Total non-current assets | 268 485 | 262 953 | 17 159 | 16 806 | -------------------------------------------------------------------------------- | Total assets | 1 040 196 | 997 613 | 66 481 | 63 759 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | L i a b i l i t i e s and s h a r e h | | | | | o l d e r s´ e q u i t y | | | | -------------------------------------------------------------------------------- | Liabilities | | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Payables | 144 813 | 128 923 | 9 256 | 8 239 | -------------------------------------------------------------------------------- | Deferred income | 1 256 | 1 138 | 80 | 73 | -------------------------------------------------------------------------------- | Total current liabilities | 146 069 | 130 061 | 9 336 | 8 312 | -------------------------------------------------------------------------------- | Total liabilities | 146 069 | 130 061 | 9 336 | 8 312 | -------------------------------------------------------------------------------- | Owners` equity | | | | | | | | | -------------------------------------------------------------------------------- | Share capital (par value) | 132 000 | 132 000 | 8 436 | 8 436 | -------------------------------------------------------------------------------- | Statutory reserves | 13 200 | 13 200 | 844 | 844 | -------------------------------------------------------------------------------- | Retained earnings | 722 352 | 636 620 | 46 167 | 40 687 | -------------------------------------------------------------------------------- | Net profit | 26 575 | 85 732 | 1 698 | 5 479 | -------------------------------------------------------------------------------- | Total owners´ equity | 894 127 | 867 552 | 57 145 | 55 447 | -------------------------------------------------------------------------------- | Total liabilities and | 1 040 196 | 997 613 | 66 481 | 63 759 | | owners´ equity | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Consolidated income | Thousands of kroons | Thousands of euros | | statement | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 01.01.07- | 01.01.06- | 01.01.07- | 01.01.06- | | | 31.03.07 | 31.03.06 | 31.03.07 | 31.03.06 | -------------------------------------------------------------------------------- | Revenue | 283 139 | 262 350 | 18 096 | 16 767 | -------------------------------------------------------------------------------- | Cost of goods sold | -243 872 | -220 507 | -15 586 | -14 093 | -------------------------------------------------------------------------------- | Gross profit | 39 267 | 41 843 | 2 510 | 2 674 | -------------------------------------------------------------------------------- | Marketing and distribution | -5 326 | -3 479 | -340 | -222 | | costs | | | | | -------------------------------------------------------------------------------- | General administrative | -6 145 | -11 562 | -393 | -739 | | expenses | | | | | -------------------------------------------------------------------------------- | Research and development | -7 498 | -6 159 | -479 | -394 | | expenses | | | | | -------------------------------------------------------------------------------- | Other operating income | 1 821 | 731 | 116 | 47 | -------------------------------------------------------------------------------- | Other opetating expenses | -136 | -438 | -9 | -28 | -------------------------------------------------------------------------------- | Operating profit | 21 983 | 20 936 | 1 405 | 1 338 | -------------------------------------------------------------------------------- | Financial items | 4 592 | 2 903 | 293 | 185 | -------------------------------------------------------------------------------- | Profit before taxes | 26 575 | 23 839 | 1 698 | 1 523 | -------------------------------------------------------------------------------- | Income tax expense | 0 | -33 | 0 | -2 | -------------------------------------------------------------------------------- | Net profit | 26 575 | 23 806 | 1 698 | 1 521 | -------------------------------------------------------------------------------- | Basic and diluted earnings | 2,01 | 6,49 | 0,13 | 0,12 | | per share (in kroons/euros) | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Consolidated cash flows | | | | | -------------------------------------------------------------------------------- | | Thousands of kroons Thousands of | | | euros | -------------------------------------------------------------------------------- | Cash flows from operating | 01.01.07- | 01.01.06- | 01.01.07- | 01.01.06- | | activities | 31.03.07 | 31.03.06 | 31.03.07 | 31.03.06 | -------------------------------------------------------------------------------- | Operating profit | 21 983 | 20 936 | 1 405 | 1 338 | -------------------------------------------------------------------------------- | Gain from disposals of | 0 | -1 | 0 | 0 | | property, plant and | | | | | | equipment | | | | | -------------------------------------------------------------------------------- | Depreciation and | 15 260 | 15 195 | 975 | 971 | | amortisation | | | | | -------------------------------------------------------------------------------- | Changes in assets related to | | | | | | operating activities, incl.: | | | | | -------------------------------------------------------------------------------- | Short-term receivables and | -16 499 | -21 982 | -1 054 | -1 405 | | prepaid expenses, except | | | | | | loans and interests | | | | | | | | | | | -------------------------------------------------------------------------------- | Inventories | -5 946 | -1 820 | -380 | -116 | -------------------------------------------------------------------------------- | Changes in liabilities, | | | | | | incl.: | | | | | -------------------------------------------------------------------------------- | Payables | 15 890 | 16 681 | 1 015 | 1 066 | -------------------------------------------------------------------------------- | Deferred income | 118 | -1 987 | 8 | -127 | -------------------------------------------------------------------------------- | Provision | 0 | -2 055 | 0 | -131 | -------------------------------------------------------------------------------- | Income tax paid | 0 | -33 | 0 | -2 | -------------------------------------------------------------------------------- | Total cash flows from | 30 806 | 24 934 | 1 969 | 1 594 | | operating activities: | | | | | -------------------------------------------------------------------------------- | Cash flows from investing | | | | | | activities | | | | | -------------------------------------------------------------------------------- | Proceeds from disposal of | 750 | 1 735 | 48 | 111 | | property, plant and | | | | | | equipment | | | | | -------------------------------------------------------------------------------- | Acquisition of property, | -21 536 | -8 956 | -1 376 | -572 | | plant and equipment and | | | | | | intangible assets | | | | | -------------------------------------------------------------------------------- | Loans granted | -18 | -18 | -1 | -1 | -------------------------------------------------------------------------------- | Loan repayments received | 18 | 23 | 1 | 1 | -------------------------------------------------------------------------------- | Acquisition of short-term | -86 056 | -123 362 | -5 500 | -7 884 | | financial investments | | | | | -------------------------------------------------------------------------------- | Proceeds from disposals of | 57 893 | 2 063 | 15 957 | 132 | | short-term financial | | | | | | investments | | | | | -------------------------------------------------------------------------------- | Interest received | 1 199 | 1 001 | 76 | 64 | -------------------------------------------------------------------------------- | Total cash flows from | -47 750 | -127 514 | -2 050 | -8 150 | | investing activities: | | | | | -------------------------------------------------------------------------------- | Net cash flow | -16 944 | -102 580 | -1 083 | -6 556 | -------------------------------------------------------------------------------- | Changes in cash and cash | | | | | | equivalents | | | | | -------------------------------------------------------------------------------- | Balance at the beginning of | 90 918 | 183 029 | 5 811 | 11 698 | | the year | | | | | -------------------------------------------------------------------------------- | Increase/decrease of cash | -16 944 | -102 580 | -1 083 | -6 556 | | and cash equivalents | | | | | -------------------------------------------------------------------------------- | Foreign exchange effect | -71 | 49 | -5 | 3 | -------------------------------------------------------------------------------- | Cash and cash equivalents at | 73 903 | 80 498 | 4 723 | 5 145 | | the end of the year, incl.: | | | | | -------------------------------------------------------------------------------- | Cash in hand and deposits | 31 726 | 56 445 | 2 028 | 3 607 | | with maturity up to 3 months | | | | | -------------------------------------------------------------------------------- | Shares of interest fund | 42 177 | 24 053 | 2 696 | 1 537 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Consolidated changes in | | | | | | owners` equity | | | | | -------------------------------------------------------------------------------- | | | Thousands of kroons | -------------------------------------------------------------------------------- | | Share | Statutory | Retained | Total | -------------------------------------------------------------------------------- | | capital | reserves | earnings | owners' | -------------------------------------------------------------------------------- | | | | | equity | -------------------------------------------------------------------------------- | 31.12.2005 | 132 000 | 13 200 | 702 620 | 847 820 | -------------------------------------------------------------------------------- | Net profit | | | 23 806 | 23 806 | -------------------------------------------------------------------------------- | 31.03.2006 | 132 000 | 13 200 | 726 426 | 871 626 | -------------------------------------------------------------------------------- | Dividends | | | -66 000 | -66 000 | -------------------------------------------------------------------------------- | Net profit | | | 61 926 | 61 926 | -------------------------------------------------------------------------------- | 31.12.2006 | 132 000 | 13 200 | 722 352 | 867 552 | -------------------------------------------------------------------------------- | Net profit | | | 26 575 | 26 575 | -------------------------------------------------------------------------------- | 31.03.2007 | 132 000 | 13 200 | 748 927 | 894 127 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | Thousands of euros | -------------------------------------------------------------------------------- | | Share | Statutory | Retained | Total | -------------------------------------------------------------------------------- | | capital | reserves | earnings | owners' | -------------------------------------------------------------------------------- | | | | | equity | -------------------------------------------------------------------------------- | 31.12.2005 | 8 436 | 844 | 44 906 | 54 186 | -------------------------------------------------------------------------------- | Net profit | | | 1 521 | 1 521 | -------------------------------------------------------------------------------- | 31.03.2006 | 8 436 | 844 | 46 427 | 55 707 | -------------------------------------------------------------------------------- | Dividends | | | -4 218 | -4 218 | -------------------------------------------------------------------------------- | Net profit | | | 3 958 | 3 958 | -------------------------------------------------------------------------------- | 31.12.2006 | 8 436 | 844 | 46 167 | 55 447 | -------------------------------------------------------------------------------- | Net profit | | | 1 698 | 1 698 | -------------------------------------------------------------------------------- | 31.03.2007 | 8 436 | 844 | 47 865 | 57 145 | --------------------------------------------------------------------------------