Last update: 24.11.2024 20:42 (GMT+2)
NORMA
ANNOUNCEMENT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1999
In thousands of Estonian kroons (EEK), unless otherwise
stated
1. Cash and bank accounts
1999 1998
Cash and bank accounts 3 665 4 424
Short-term bank deposits 87 527 62 468
Total 91 192 66 892
At the end of the year the company had EEK 4 918.1 thousand,
EUR 66.2 thousand and USD 76.0 thousand in overnight deposits.
DEM 8290 thousand, SEK 250 thousand and USD 900 thousand
were deposited as short-term bank deposits (under 3-months term).
In order increase the flexibility of cash management and
to reduce interest expenses and need for borrowing, a group account
was opened. This allows all companies in the group to
use the group's funds within pre-set limits established by AS
Norma (ref. note 26).
2. Marketable securities
1999 1998
Money Market Fund shares 58 000 -
Limited chequebook 143 148
Total 58 143 148
At the end of the year there were 58,000 thousand kroons
in Money Market Fund shares, with average intrest rate of
4.08%.
3. Accounts receivable
1999 1998
Accounts receivable 130 169 149 005
Reserve for unrecoverable accounts (note 19) -19 690 -12 33
Total 110 479 136 666
4. Other receivables and prepayment
1999 1998
Accounts receivable from associated companies 667 912
Other receivables, incl. 2 983 3 092
short-term loans 1 419 1 919
advances to employees 35 130
prepayments for services 1 530 1 043
Interest yield 95 -
Prepaid expenses 466 951
Prepaid income tax 462 9 778
Prepaid VAT 6 230 4 963
Total 10 904 19 696
The most significant prepayments concerning expenses for future
reporting periods are: insurance premiums (130 thousand kroons),
subscription to newspapers (163 thousand kroons) and heating oil
(103 thousand kroons).
5. Inventories
1999 1998
Raw materials 25 791 26 219
Work in process 12 156 11 408
Finished goods 14 335 15 143
Goods for resale 924 303
Prepayments to suppliers 1 479 3 617
Total 54 685 56 690
Inventories are reflected on the balance sheet at lower of cost
or market value (net of transaction costs). Inventories are valued
according to the average cost method. Obsolete and substandard
materials are written-down to the amount of 1275 thousand kroons and
materials unsuitable for production and sale have been
written off to 3054 thousand kroons.
6. Long-term financial assets
1999 1998
Shares of associated companies 1 679 1 774
Other shares 2 27
Other long-term receivables 1 493 2 674
Total 3 174 4 475
Shares of associated companies
AS Norsafe
Number of shares 5 000
Par value (kroons) 10
Acquisition cost 1 404
Participation in share capital 50,0%
Financial investment as of 31.12.98. 1 774
Equity method revaluation 1999 -95
Financial investment as of 31.12.99. 1 679
Investments to associated companies are re-valued on
the group's balance sheet using the equity method on
monthly basis; the last valuation was 31.12.99.
Subsidiaries
Name of company Participation Country
Eksamo Automaatika AS 100% Estonia
AS Metaprint 100% Estonia
AS Tööriistavabrik 100% Estonia
AS Norma Maja 100% Estonia
Norma-Osvar Ltd. 100% Cyprus and Russia
AS Norma subsidiaries have issued only common shares.
There were no transactions with subsidiaries' shares in
1999.
Other long term receivables consist of long term loans to
employees of AS Norma.
Long-term loans to individuals
Purpose Balance Issued Paid Balance Inc. Interes
as of loans back 31.12.9 classified t rate
31.12.9 in 1999 in 9. as short- in per
8. 1999 term cents
Real property 3 337 1 620 1 717 1 171 13
Student loans 494 230 56 668 17 -
Other 762 - 235 527 231 9
4 593 230 1 911 2 912 1 419
AS Norma has issued loans to employees in accordance with
the internal loan policy. Loans are secured by guarantees
from two private persons, real estate or share pledges.
7. Pledges to AS Norma
1999 1998
AS Norma Grupp shares 440 610
Buildings 50 50
Apartments 150 350
Total 640 1 010
Pledges to AS Norma are related with loans to individuals.
8. Property, plant and equipment
The property, plant and equipment are depreciated using
the straight-line depreciation method based on the useful
life.
1998 Acquis Depre Net Addi Net book Deprec Acqui Depr Net
ition ciati book tion amount iation s. ecia book
cost on as amount s charge cost tion amount
as of of as of as of as of as of
01.01. 01.01 01.01 Sale Writ 31.12 31.12 31.12
98 .98 .98 ten .98 .98 .98
off
Buildings 36937 4 274 32663 22482 4 807 59415 3822 55593
Machinery 173493 90215 83278 50166 1905 164 26689 218313 110599 107714
and Equip.
Equip being 3762 - 3762 - - - - 2593 - 2593
installed
Prepayments 3358 - 3358 - - - - 0 - -
Other asset 1472 800 672 812 192 1 172 2199 971 1228
Intangible 3572 1858 1714 1589 - - 1001 5161 2859 2302
assets
-----------------------------------------------------------------------------
Total 222594 97147 125447 75049 2097 169 28669 287681 118251 169430
1999 Acquis Depre Net Addi Net book Deprec Acqui Depr Net
ition ciati book tions amount iation s. ecia book
cost on as amount charge cost tion amount
as of of as of as of as of as of
01.01. 01.01 01.01 Sale Writ 31.12 31.12 31.12
99 .99 .99 ten .99 .99 .99
off
Buildings 59415 3822 55593 2526 3465 4261 3249 58554 5727 52827
Machinery 218313 110599 107714 26406 1117 5201 26175 227510 125620 101890
and Equip.
Equip being 2593 - 2593 - - - - 0 - 0
installed
Prepayments 0 - - - - - - 1178 - 1178
Other asset 2199 971 1228 92 - 16 308 2228 1221 1007
Intangible 5161 2859 2302 1808 - - 800 6969 3659 3310
assets
-----------------------------------------------------------------------------
Total 287681 118251 169430 30832 4582 9478 30532 296439 136227 160212
Acquisition cost of fully depreciated fixed assets (0 book value)
as of 31.12.98 was 50 239 thousand kroons; of 31.12.99 56 117
thousand kroons. In 1999 motor vehicles were revalued in the amount
of 22 000 kroons, and building (Polish modul) in the amount of 4 257
thousand kroons. According to the ineffective productivity
subsidiary's AS Metaprint fixed assets are revalued in the amount
of 4000 thousand kroons.
9. Intangible assets
Goodwill Other Prepayments Total
1998
Opening net book amount - 1 432 282 1 714
Additions 756 833 -282 1 307
Amortisation charge -202 - 517 - -719
Closing net book amount 554 1 748 - 2 302
At 31. December 1998
Acquisition cost 756 4 405 - 5 917
Accumulated amortisation -202 -2 657 - -2 859
Net book amount 554 1 748 - 2 302
1999
Opening net book amount 554 1 748 - 2 302
Additions - 1 302 506 1 808
Amortisation charge -151 -649 - -800
Closing net book amount 403 2 401 506 3 310
At 31 December 1999
Acquisition cost 756 6 213 - 6 969
Accumulated amortisation -353 -3 306 - -3 659
Net book amount 403 2 907 - 3 310
Other intangible assets include the cost of purchased
patents and licences.
10. Accounts payable and accrued expenses
1999 1998
Customer prepayments 2 875 2 804
Accounts payable 22 282 18 500
Salaries payable 12 888 9 695
Accrued expenses 36 38
Interest payable 271 439
Social security tax and other 1 817 2 503
Other prepaid expenses 47 -
Payables to associated companies 488 -
VAT payable 310 1 935
Total 41 014 35 914
11. Loans 1999 1998
Current portion of long-term debt 26 656 16 416
Long term bank loan 26 672 63 584
AS Norma Grupp loan to AS Norma Maja - 845
Total 53 328 80 845
The total of bank loans of AS Norma as of 31.12.99 was
53328 thousand kroons, including 26 656 thousand kroons
with a maturity of less than one year. Total interest
paid in 1999 was 4 555 thousand kroons at DEM LIBOR rate
of 6M + 2.75%. Loan period is 29.05.1998 - 28.11.2001.
An interest-free loan given by AS Norma Grupp (due in
2004) has been totally repaid in the year of 1999.
Pledges of AS Norma
1999 1998
Commercial pledge: raw materials, work in
process, finished goods, equipment 65 000 65 000
Liabilities secured by pledges:
Long-term loan 10 000 000 DEM
Bank warranty 1 400 000 EEK
Share pledge: 100% of AS Norma Maja shares
(owner's equity as of 31.12.1999) 110 633 100 806
Pledged fixed assets: Land 2 974 2 974
Buildings 98 303 102 588
Machinery & Equip. 5 251 8 163
Other inventory 22 60
Liabilities secured by pledge:
Long-term loan 10 000 000 DEM
Total 175 633 165 806
13. Share capital
1999 1998
Share capital par value
(10 kroons per share) 132 000 132 000
AS Norma has issued 13.2 million common shares which
grant one vote per share. 39.6 million kroons was paid
out in dividends for 1998 at 3 kroons per share.
AS Norma shares are listed in the main list of the
Tallinn Stock Exchange and are quoted on the Frankfurt
and Munich Stock Exchanges.
AS Norma shareholders with participation over 5% as of
31.12.1999:
Autoliv Ab 49.5%
Merita Bank Ltd. Clients Account 13.2%
Hansabank 6.1%
Earnings per share
1999 1998
Net profit 107 588 47 578
Average number of shares (in thousands) 13 200 13 200
Earnings per share (EPS)kroons 8,15 3,60
The company has no unissued common shares and therefore
primary and fully diluted earnings per share are equal.
14. Retained earnings and other reserves
Retained earnings Reserve Compulsory reserve Total
capital
31 December 1997 76 261 2 436 13 200 91 897
Net profit for the year 146 728 - - 146 728
Adjustments 5 369 - - 5 369
Dividends-common shares -105 600 - - -105 600
31 December 1998 122 758 2 436 13 200 138 394
Net profit for the year 47 578 - - 47 578
Adjustments -672 - - -672
Dividends common shares -39 600 - - -39 600
31 December 1999 130 064 2 436 13 200 145 700
15. Segment information by prodyct lines
Safety Other Total Safety Other Total
belts Products of belts Products of
1999 1999 1999 1998 1998 1998
Net sales 405 542 110 893 516 435 381 036 101 616 482 652
Net income 115 501 6 079 121 580 79 845 4 202 84 047
Assets 389 973 40 816 488 789 412 885 41 113 453 998
Liabilities 39 399 10 774 103 501 30 306 8 082 190 830
Investments 20 220 10 612 30 832 49 468 25 581 75 049
Depreciation 23 976 6 556 30 532 22 633 6 036 28 669
charge
Fixed assets' 4 257 5 014 9 271 - 1 500 1 500
revaluation
Segments are based on the production of the company where
main product group is safety belt and other products (car
components, sheet metal products) have separately less
than 10% of total sales. Costs are in line with the product's
importance in profit. Assets are divided by the assets'
relation with the main product groups. Liabilities
(ecxept bank loans) are divided proportionally by products
groups. Investments are divided by the actual
needs for production. Depreciation charge and revaluation
are divided by relations with the main product groups.
Segmets' information by market Net sales Net sales
1999 1998
Estonia 51 422 31 415
Latvia 5 547 11 684
Lithuania 2 162 3 644
Switzerland 216 894
CIS 386 314 361 956
Sweden 20 884 21 235
Austria 11 329 8 293
Germany 1 113 2 659
France 7 538 400
Netherlands 3 131 1 740
Finland 4 291 2 934
Great Britain 4 566 1 175
USA 9 031 14 401
Other countries 8 891 20 223
Total: 516 435 482 653
The inventories and tangible assets of the AS Norma group
are located in Estonia, with the exception of a building
(Polish modul) in the AS Norma balance sheet with net
value of 83 thousand Estonian kroons which is located in
the Russian Federation, and with the exception of the
assets of Norma-Osvar Ltd., which are located in the
Russian Federation. Value of the net assets of Norma-
Osvar Ltd. is 9 336 thousand kroons, of which teh value of
fixed assets is 1 261 thousand kroons. Geografic segments are
divided by location of clients and assets.
16. Cost of goods sold
1999 1998
Raw materials 173 092 149 819
Wages 76 011 83 691
Depreciation 29 500 24 024
Utilities 13 163 13 394
Repairs 6 806 7 228
Transport services 1 235 1 639
Other 532 1 618
Change in inventories of work in process -3 543 3 844
Change in inventories of finished goods -550 -7 883
Total 296 246 277 374
17. Marketing expenses
1999 1998
Salaries 3 170 3 637
Consultations 5 148 6 206
Transport services 8 415 6 401
Other 3 569 4 522
Total 20 302 20 766
18. Administrative and general expenses
1999 1998
Salaries 38 148 36 873
Product development 9 017 9 151
Depreciation 3 620 3 539
Utilities 782 1 237
Repairs 1 733 2 455
Advertising, promotion 1 890 1 901
Travel 1 993 3 166
Telephone, office supplies 1 802 3 225
Raw materials 950 3 138
Other services 1 394 1 718
Training 414 774
Other 5 213 12 881
Total 66 956 80 148
19. Bad debt provisions
1999 1998
In reserve 19 690 12 339
Written-off
Krips - 6 553
Other 2 356 939
Total 2 356 7 492
Provisions for doubtful receivables made in 1999 14 840 thousand kroons
Write-off of irredeemable receivables 2 356 thousand kroons
Received from the allowance of previous years -8 528 thousand kroons
The amount of receivables charged to expenses 8 668 thousand kroons
20. Other operating profit
1999 1998
Other sales 2 319 11 001
Property, plant and equipment sold 2 045 235
Foreign exchange gain 7 742 -
Other 106 5 239
Total 12 212 16 475
21. Other operating expenses
1999 1998
Membership fees of unions, other associations 139 187
Foreign exchange loss - 28 261
Property, plant and equipment write-offs 120 110
Sponsorship 796 552
Cost of other sales 4 785 772
Other 372 372
Devaluation of property, plant and equipment 8 683 270
Total 14 895 30 524
22. Financial income
1999 1998
Shares in associated companies - 1 640
Other long-term financial assets - 1
Foreign exchange gains 5 027 -
Bank interest received 2 497 1 646
Deposit interest received 1 994 1 354
Loan interest received from companies - 5
Loan interest received from individuals 281 540
Other 138 206
Total 9 937 5 392
23. Financial expenses
1999 1998
On shares of associated companies 95 -
Foreign exchange loss - 13 997
Loan interest paid 4 527 4 770
Changes in value of financial investments 25 954
Other 760 3 589
Total 5 407 23 310
24. Income tax
1999 1998
Income tax payable 34 341 12 728
Deferred income tax -15 819 5 823
Total 18 522 18 551
Profit before tax 126 110 66 129
26% income tax 32 789 17 194
Change due to different tax rates
in other countries - 2 839
Decrease due to
Income Tax Act -14 267 -1 482
Income tax 18 522 18 551
Income tax of Norma Osvar is calculated in line with
the Russian Federation's legislation. The corporate
income tax rate in the Russian Federation is 35 %. In the
year of 1999 Norma Osvar was in loss, therefore there
will be no income tax liability.
Income tax expense
Income tax charge 1994 - 1995 152 351
Net profit 1994 - 1999 512 231
k (152 351 / 512 231) 0,2974275
Retained earnings 130 063
Profit for the year 107 588
237 652
Taxable dividends 237 652
Income tax charge on dividends (237651x26/76) 83 499
Deductible income tax paid (.2974275x237651) 70 684
Income tax payable 12 815
The retained earnings of the company amounted to EEK 237.652
thousand as at 31.12.1999. The maximum possible income tax
liability in case retained earnings are fully paid out as
dividends (in case all shareholders belonged to taxable
category as at the date of dividend paymant) is EEK 12 815
thousand. Accordingly, it would be possible to pay out at
least EEK 224.836 thousand as net dividends.
On distributing retained earnings arising after
31.12.1999, the related tax liability is 26/74 of the
amount of net dividends (if paid to taxable
shareholders).
25. Personnel expenses
1999 1998
Wages and salaries 88 319 92 581
Social security 29 010 31 524
26. Related parties
1999 1998
Sales Purchases Sales Purchases
AS Norma Grupp (former shareholder) 41 97 479 7 110
AS Norsafe (associated company) 24 2 798 35 5 193
Intra-company transactions are based on market prices. AS Norma
produces components for ratchet buckles for AS Norsafe.
Group account
From 19.02.1999 to 19.10.1999 AS Norma Grupp was the parent company of the
group account. On 22.10.1999 Hansabank and AS Norma with its subsidiaries
entered into a contract of group account under which AS Norma is defined to
be the parent company. Subsidiaries of the group are Eksamo Automaatika AS,
AS Metaprint, AS Norma Maja and AS Tööriistavabrik.
Group account funds have been used by the members of the group account as
follows:
1999 1998
AS Norma Grupp 66 513 12 187
Group account members paid interest to AS Norma as follows:
1999 1998
AS Norma Grupp
Interest amount 2 069 1 347
EEK Interest rate 4.5 11
EUR Interest rate 3.7 -
DEM Interest rate 3.6 -
USD Interest rate 6 -
27. Product development expenses
In 1999, 7889 thousand kroons (in 1998 8557 thousand kroons) was invested
in product development as cost, which is equivalent to 2.0% (1998 2.1%)
of AS Norma's net sales.
28. Primary risks for the AS Norma group
Credit risk
Credit risk reflects the potential loss, which may be
caused by a business partner's inability to meet the
assumed obligations. This is particularly important in
regard to the ability of our major customers in the CIS
countries to pay for goods supplied. Credit is primarily
extended only to our long-term partners. In order to
ensure the accrual of paymenst from our long-term clients,
we are constantly monitoring and analysing their
financial situation and liquidity. If necessary, we
have requested bank guarantees to ensure payment. Accounts
receivable from customers in the CIS reached 130 252
thousand kroons at the end of 1998, and 104 281 thousand
kroons at the end of 1999. Prepayment or a letter of
credit is required for single transactions or new clients.
A provision has been made to cover unrecoverable accounts
receivable. This reserve encompasses all accounts
receivable which are the object of dispute with the other
party and receivables which the management board has
reason to believe are not collectible. Expenses related
to establishment of the reserve are recorded in the
income statement under "bad debt provisions" and in the
balance sheet as a negative "accounts receivable".
Interest risk
The interest rate of a long-term loan is dependent on 6
month LIBOR of DEM.
Currency risk
90% of AS Norma concern's sales are export sales, made
mainly in DEM. The concern's expenses are primarily in
Estonian kroons, German marks,US dollars and Russian roubles.
Since Q2 1999 the company is no longer exposed to the risk of
fluctuations in USD/DEM exchange rate, as the basic
buy and sell contracts have been re-entered to DEM-
basis. The risks related to other currencies were
hedged either by levelling the incoming and
outgoing cash flows of the same currency, or recording
contractual payments in German marks according to the
exchange rate on the date of payment. During 2000 the
company expects the importance of international transactions
made in Euros to increase.
Currency positions of the group
Thousands of kroons
31.12.1999 31.12.1998
Assets USD DEM RUR Other Total USD DEM RUR Other Total
Cash 866 999 877 704 3446 7 783 596 1092 2477
Customers 7142 108226 91 9777 123436 95270 40659 4 3725 139657
receivables
Prepayments 44 9 150 103 306 386 3 213 205 807
to suppliers
Total 8052 109234 1118 8784 127188 95633 41445 813 5022 142941
Liabilities
Prepayments 0 426 0 1338 1764 0 40 0 51 91
from customers
Accounts 2002 6644 1468 3701 13815 717 7782 388 2345 11232
payable
Bank Loan 0 53328 0 0 53328 0 80000 0 0 80000
Total 2002 60398 1468 5039 68907 717 87822 388 2396 91323
29. Fair value
The values of monetary assets and liabilities reflected
on the balance sheet are approximately of their market value.
Raivo Harand
Controller
+372 65 00 482
Sitemap