. million EEK million EUR
Key figures 1-12/2009 1-12/2008 1-12/2009 1-12/2008
Sales revenue 632.7 871.6 40.4 55.7
EBITDA 50.3 69.0 3.2 4.4
EBIT 29.5 50.1 1.9 3.2
Net profit for the period 22.8 42.1 1.5 2.7
incl equity holders of the Parent 20.4 38.6 1.3 2.5
EPS 1.20 EEK 2.29 EEK 0.08 EUR 0.15 EUR
At the end of the period
Total assets 619.6 602.0 39.6 38.5
Owners' equity 481.7 397.2 30.8 25.4
Average number of employees on the current period 452 501
Number of employees at the end of the period 464 515
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 fourth quarter was 158.4 million kroons (10.1
million euros), which was 22.6% less than the result of the comparable
quarter. During the reporting period the Group sold its products and
services 27.4% less, totally 632.7 million kroons (40.4 million euros). 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, which was traditionally the largest share of sales revenues -
approx. 90%. Real estate and income from other commercial activities together
formed 10% of the consolidated sales revenue.
Of the Group's products and services, 36.8% (37.2%) were sold on the
Estonian, 42.7% (44.8%) on the Finnish and 10.5% (11.3%) on the Lithuanian
markets; to the other European markets - Latvia, Germany, Denmark and
Portugal - a total of 3.7% (5.4%) were sold, which is approximately 24
million kroons (1.5 million euros) less than in the year before. In 2008, an
order in the amount of 16.6 million kroons (1.1 million euros) to Poland was
executed. In 2009, sales to the Polish market accounted to 1.2 million kroons
(75,000 euros). The drop in demand on domestic markets has forced a search
for new markets. Outside the European Union - in Russia, Belarus and Norway -
a total of 6.3% (1.3%) of products were sold. Sales by the Group outside the
European Union increased by 29.0 million kroons (1.8 million euros),
compensating for the drop in the volumes of sales into other European Union
countries.
Primarily due to a decline on both the Estonian and Finnish markets the sales
volume of the Estonian segment this year has declined by 23.9% and in Q4 the
decline was smaller - 18.4%. The companies in the Lithuanian segment produced
a strong Q4, in which the sales volume increased by as much as 11.7% compared
to the comparable quarter. The sale of products and services to the
Lithuanian market in Q4 was also 8.3% higher than in the same period of the
previous year. A sale by Lithuanian companies to clients outside of the Group
in 2009 was 106.5 million kroons (6.8 million euros), which was 16.8% less
than in 2008. At the same time, during the accounting year the sales volume
to the Lithuanian market declined by one-third, which is compensated by the
increasing of sales volumes to foreign markets. Recession reached Finland
somewhat later than the Baltic States. The sales volume of the Finnish
segment in the Q1 remained at the Q1 2008 level; however, in Q2, a decline in
sales volume began to decrease, which deepened further in Q4 due to a decline
in domestic demand in the Finnish market. Sale to the Finnish market fell by
40% in the accounting quarter and by 31% over 12 months.
As a result of the drop in demand, production and sales volumes, the Group
has been engaging in saving on and optimising both operational and fixed
expenses. The business expenses of the Group declined at the same rate as the
sales revenue - by -21.6% in Q4 and -26.5% in the year 2009. Compared to the
sales revenue, the expenses of products and services sold dropped even more:
by -28.2% in 12 months period and by -23.2% in the accounting quarter. The
marketing and general administration expenses for the accounting quarter is,
on average, 11.6% less than the indicators for the comparable period.
As at the balance day on 31 December, there were 464 people working in the
Group, whish is 51 people less than a year before. People left during the
accounting period of their own accord, due to retirement or as a result of
redundancy. In the fourth quarter, there was an average of 445 people working
in the Group (Q4 2008: 503), included 286 (327) employees in Estonia, 78 (88)
employees in Lithuania and 81 (88) employees in Finland. The annual average
number of employees was 452 (501). All labour cost in Q4 2009 were 39.1
million kroons (2.5 million euros), which was 13.4% less than in the
comparable period. Labour expenses in the 12 months dropped by over 14% to
147.6 million kroons (9.4 million euros). Spending on wages and salaries
decreased by more than 16.1% to 27.9 million kroons (1.8 million euros) in
the Q4 2009. Salaries, bonuses and termination payments of the twelve months
amounted to 114.3 million kroons (7.3 million euros) and 132.4 million kroons
(8.5 million euros) in the compared period.
Business activity of the Group in Q4 was profitable - the operating profit
was 7.2 million kroons (0.46 million euros), decreased more than 38% compared
to the Q4 2008. The operating margin was 4.6% (5.7%). Depreciation of fixed
assets in Q4 was 5.1 million kroons or 0.33 million euros (during the
comparable period, 4.5 million kroons or 0.30 million euros), EBITDA was 12.4
million kroons (0.79 million euros), which is 25% less than in the comparable
period. EBITDA was 7.8%, which is 0.3 percentage points better than the
figure for the comparable period.
The operating profit for the 12 months was 29.5 million kroons or 1.88
million euros (50.1 million kroons or 3.20 million euros during the
comparable period), with the operating profit margin for the account period
at 4.7% (5.7%). Depreciation of fixed assets amounted to 19.9 million kroons
(1.28 million euros) and 18.9 million kroons (1.21 million euros) during the
comparable period. EBITDA was 7.8% (7.9%).
The consolidated net profit of the Q4 2009 was 5.7 million kroons or 0.36
million euros (in Q4 2008:2.6 million kroons or 0.17 million euros), of which
the share of the owners of the parent company was 5.0 million kroons or 0.32
million euros (in Q4 2008: 1.1 million kroons or 0.07 million euros). The net
profit margin on the turnover was 3.6%, which is 2.3 percentage points better
than the figure for the comparable period. EPS of the reporting period was
0.30 kroons or 0.02 euros (in Q4 2008: 0.07 kroons or 0.00 euros).
The consolidated net profit of 2009 was 22.8 million kroons or 1.46 million
euros (in 2008:42.1 million kroons or 2.69 million euros), of which the share
of the owners of the parent company was 20.4 million kroons or 1.30 million
euros (in 2008: 38.6 million kroons or 2.46 million euros). The net profit
margin on the turnover came out at 3.6% (4.8%). EPS of the reporting period
was 1.20 kroons or 0.08 euros (in 2008: 2.29 kroons or 0.15 euros).
In 2009 the Group invested 9.2 million kroons or 0.6 million euros in real
estate (in 2008: 5.2 million kroons or 0.3 million euros), 16.3 million
kroons (1.0 million euros) in tangible fixed assets and 30.9 million kroons
(2.0 million euros) in the compared period and 3.8 million kroons or 0.2
million euros in tangible fixed assets (in 2008: 1.1 million kroons or 71
thousand euros).
During the year 2009 the liability of the Group decreased by 68.7 million
kroons (4.4 million euros) to 114.5 million kroons (7.3 million euros).
During the 12 months, the Group companies repaid a total of 16.3 million
kroons (1.04 million euros) of the long-term loan and the short-term loan in
the amount of 14.9 million kroons (0.95 million euros) along with the capital
lease in the amount of 2.1 million kroons, i.e. 137,000 euros. Interest-
bearing debt obligations declined on the balance sheet by a total of 33.2
million kroons (2.1 million euros) to 25.2 million kroons (1.6 million
euros).
The cash flow from operations amounted to 77.5 million kroons, i.e. 5.0
million euros (45.0 million kroons, i.e. 2.9 million euros in the comparable
period). The cash flow from investments was a negative 14.4 million kroons,
i.e.917,000 euros (in the accounting period 12.9 million kroons i.e.825,000
euros). In financing activity, 50.7 million kroons or 3.2 million euros in
cash was disbursed (34.9 million kroons or 2.2 million euros during the
comparable period). In 2009 cash and cash equivalents increased by 12.4
million kroons (790,000 euros) up to 35.6 million kroons (2.3 million euros)
and decreased by 2.8 million kroons (181,000 euros) to the 23.4 million
kroons (1.5 million euros) during the comparable period.
Andres Allikmäe
Chairman of the Board
+372 674 7400
For more information: Internal report 1-12/2009 of Harju Elekter and Mrs.
Karin Padjus, Member of the Board (phone +372 674 7403).
AS HARJU ELEKTER
BALANCE SHEET, 31.12.2009
Consolidated, unaudited
Group
in thousands EEK EUR
ASSETS 31.12.0931.12.0831.12.09 31.12.08
Cash and cash equivalents 35 640 23 379 2 278 1 494
Trade receivables and other receivables 70 238 99 449 4 489 6 356
Prepayments 2 499 3 217 160 205
Inclusive income tax 1 137 47 73 3
Inventories 80 852 123 351 5 167 7 884
TOTAL CURRENT ASSETS 189 229 249 396 12 094 15 939
Investments in associates 9 681 17 907 619 1 144
Other long-term financial investments 153 172 74 323 9 789 4 750
Investment property 137 176 133 737 8 768 8 547
Property, plant and equipment 124 575 123 423 7 962 7 889
Intangible assets 5 815 3 201 371 205
Total non-current assets 430 419 352 591 27 509 22 535
TOTAL ASSETS 619 648 601 987 39 603 38 474
LIABILITIES AND OWNERS' EQUITY
Interest-bearing loans and borrowings 18 166 41 958 1 161 2 682
Trade payables and other payables 76 243 112 395 4 873 7 183
Tax liabilities 10 367 11 216 663 717
Inclusive income tax 620 1 551 40 99
Short-term provision 1 156 1 294 74 83
Deferred income 1 565 0 100 0
TOTAL CURRENT LIABILITIES 107 497 166 863 6 871 10 665
NON-CURRENT LIABILITIES 7 016 16 381 448 1 046
TOTAL LIABILITIES 114 513 183 244 7 319 11 711
Share capital 168 000 168 000 10 737 10 737
Paid-in capital over/under par 6 000 6 000 384 384
Restricted reserves 149 760 69 746 9 571 4 457
Retained earnings 157 917 153 445 10 093 9 808
TOTAL OWNERS' EQUITY 481 677 397 191 30 785 25 386
Non-controlling interests 23 458 21 552 1 499 1 377
TOTAL EQUITY 505 135 418 743 32 284 26 763
TOT.LIABILIT.AND OWNERS' EQUITY 619 648 601 987 39 603 38 474
INCOME STATEMENT, 1-12/2009
Consolidated,unaudited
EEK'000
GROUP Q4 2009 Q4 2008 1-12/20091-12/2008
NET SALES 158 400 204 629 632 675 871 610
Cost of goods sold -128 958-167 808 -526 660-733 467
Gross profit 29 442 36 821 106 015 138 143
Marketing expenses -8 613 -11 410 -30 865 -38 785
Administrative expenses -13 533 -13 573 -46 185 -48 758
Other revenue 1 972 62 3 010 324
Other expenses -2 053 -285 -2 515 -860
Operating profit 7 215 11 615 29 460 50 064
Net financial incomes/expenses -35 -555 7 956 8 694
Income from subsidiaries -105 -7 811 -8 226 -4 068
Profit from normal operations 7 075 3 249 29 190 54 690
Corporate Income tax -1 404 -656 -6 356 -12 629
Profit after taxes, incl 5 671 2 593 22 834 42 061
Attributable to:
Equity holders of the parent 4 977 1 115 20 373 38 551
Non-controlling interests 694 1 478 2 461 3 510
Basic and diluted 0,3 0,07 1,21 2,29
earnings per share 0,29 0,07 1,21 2,29
EUR'000
GROUP Q4 2009 Q4 2008 1-12/20091-12/2008
NET SALES 10 124 13 078 40 435 55 706
Cost of goods sold -8 242 -10 725 -33 660 -46 877
Gross profit 1 882 2 353 6 775 8 829
Marketing expenses -550 -730 -1 973 -2 479
Administrative expenses -865 -867 -2 951 -3 117
Other revenue 126 4 192 21
Other expenses -131 -18 -161 -55
Operating profit 462 742 1 882 3 199
Net financial incomes/expenses -2 -35 508 556
Income from subsidiaries -7 -499 -525 -260
Profit from normal operations 453 208 1 865 3 495
Corporate Income tax -90 -42 -406 -807
Profit after taxes, incl 363 1661 459 2 688
Attributable to:
Equity holders of the parent 319 72 1 302 2 464
Non-controlling interests 44 94 157 224
Basic earnings per share 0,02 0 0,08 0,15
Diluted earnings per share 0,02 0 0,08 0,15
Karin Padjus
Financial manager
+372 674 7403