NORMA

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO CONSOLIDATED FINANCIAL RESULTS 09/00



Sales and Revenues



The first nine-month in 2000 consolidated net sales of AS Norma 

totalled 456,7 million EEK, incl. parent company share of 382,7 

million EEK. Consolidated sales increased by 18,6% (+71,9 million 

EEK) from nine-month of 1999. Revenues of AS Norma accounted for 

84%. The group's main fields of activity include production and 

sales of safety belts, car components, tin sheet lithography and 

real estate administration. 

Sales structure by regions has remained unchanged from the 

previous periods. Exports accounted for 88,2% of sales revenue; 

78,5% of production was exported to the Eastern 

markets  and 21,5% to the West.

The average number of employees  was 1059.



Use of Capital



Accounts receivable at the end of the Q3 total 98,8  million

EEK, of which 67% is receivable from the Eastern markets.

Compared to the standing of 31.12.99. the volume of  accounts 

receivable  decreased by 31,4 million EEK. The share of 

accounts in arrears of total receivable was 23,6%. 

Provision for bad debts was (12,9 million EEK) and   

decreased by 6,8  million EEK.

As of  the  end Q3 2000, the consolidated balance sheet 

amounted to 558,7 million EEK (69,9 million EEK growth), 

increasing  due to the increase in current assets 

(82,7 million  EEK).

The total bank loans for AS Norma was 39,9 million EEK (EBRD).

The group's owners' equity has increased by 89,9 million EEK,

amounting to 475,2 million EEK (85% of balance sheet volume).

Return on equity by net profit (ROE) was 27,2%



Investments



To support existing production capacities and assure the

efficiency of production processes AS Norma invested a total 

of 23,1 million, of which 17,0 million EEK in machinery 

and equipment.



Profit and Earnings per Share



The company's consolidated unaudited profit after tax  was 129,5 

million EEK. The increase of 40,0 million EEK over comparable 

period of the previous year was caused mainly by changes in Tax 

Regulations. 2000 nine month period net profit before tax was 

EEK 7,1 million higher than that of nine month 1999. 

Earnings per share increased to 9,81 EEK in 

Q3 2000 from 6,78 EEK in Q3 1999.





Peep Siimon

Chairman of the Board

+372-6500-442