VIISNURK

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO FINANCIAL RESULTS, 9M 2000



AS Viisnurk activities continued to be a success in year 2000. In 9 months 

the company's net sales and profit have grown ca 50% y-o-y. in 9m 2000 

Viisnurk net sales grossed EEK 203.8 mln (EEK 135.5 mln in 9m 1999) and net 

profit EEK 24 mln (EEK 15.5 mln in 9m 1999).



Viisnurk's operating profit has grown substantially in comparison with the 

previous years. The company's operating profit has almost doubled (EEK 26 mln 

in 2000 vs. EEK 13.1 mln in 1999) and operating margin (operating profit/net 

sales) is ~3% higher. Growth in operating profit proceeds mainly from 

successful exploitation of favorable economic conditions on target markets, 

general growth in production efficiency from investments made in the previous 

years, and continuous improvement of production management.



As at 30.09.2000 Viisnurk did not have any subsidiaries, thus all statements 

reflect results of the parent company.



This year's developments on Viisnurk's target markets have been favorable to 

the company, thus the turnover of all Viisnurk's sub-units is higher than in 

previous years. 

9m net sales by sub-units (EEK mln):



                     9m 2000   9m 1999 	   Growth

Ski factory            53.7      39.6       +35%

Furniture factory      85.4      44.2       +93%

Particle board factory 55.9      47.2       +18%

Other                   8.8       4.5       +96%



In 9 months AS Viisnurk balance sheet size grew ca EEK 80 mln. Growth in 

balance sheet size was mainly due to construction of a new glued solid wood 

panels production factory. The company raised additional capital in the 

amount of EEK 61.3 mln during the current financial year, in accordance with 

financing agreements made with Hüvitusfond and Eesti Ühispank on 24.05.2000. 

Viisnurk glued solid wood panels production factory will be launched in Q1 

2001.





Andrus Aljas

CFO

+372 44 78 355