Rigas Raugs					            07.04.2005. 



JSC ”Rigas Raugs”council report to the meeting of shareholders 



1. Activities and financial condition of the company in 2004



The company prepared a new strategy to meet the challenges of the access of 

the Baltic countries into the EU. New sales opportunities were exploited in 

export. Activities on the domestic market were improved.



To secure increased sales both in quality and in volume, a program of 

establishing development projects was initiated and plans for projects prepared. 

Realization of the projects will be mainly in year 2005.



Investments in year 2004 were mainly in maintenance of the buildings and equipment 

and accounted for LVL 50.891.



The total sales was 3781 tons compared with 2957 tons in previous year. Domestic 

sales was on the same level as in 2003, export to Estonia was 204  % better, to 

Lithuania 24 % less and to Russia (Kaliningrad) 41 % better than in year 2003. 

Export to Czech Republic started in 2004 and continues on increasing monthly 

volumes. The total turnover amounted to LVL 1.354.045, increase of  32 % compared 

with the previous year.



The profit of the financial year was LVL 53.392, including the profit of the 

daughter company Nordic Yeast Eesti, LVL 9765.



The volume and the profitability of the company developed in accordance with the 

plans and budget. The company´ s financial situation is good and stable.



2. Work of the Board of Directors and the Council



The annual shareholders´ meeting, held on 22.4.2004, approved the new Articles of 

Association of the company. Consequently the annual shareholders´ s meeting elected 

new members of the Board of Directors and new members of the Council. The new Board 

of Directors consists of persons in the management of the Company.



The Board of Directors has concentrated in its work on sales and marketing issues 

and on preparing the development projects. The Board of Directors had 8 meetings 

in 2004. The work of the Board of Directors in the new constellation has been 

according to the expectations.



The new Council has concentrated on strategic issues. An important task of the 

Council was search for and appointment of the new Managing Director of the 

Company. The Council has applied a mentoring role in relation to the management. 

The Council has monitored the business of the company in accordance with law, the 

articles of association and the decisions of the shareholders´ meetings. The Council 

had 7 meetings in 2004. 



The means to monitor the financial situation of the company has been monthly budget 

and other financial reports and related matters on the agenda of the Council meetings. 



The Council recommends to the shareholders´ meeting that the annual accounts will 

be approved and the meeting decides to pay dividends as proposed by the Board of 

Directors, LVL 0,03 per share, in total LVL 23.190 and to reserve LVL 388.287 as 

retained earnings.



The Council has got acquainted with the plans and budget for 2005 and recommends 

to the shareholders´ meeting that the plans and budget will be approved.



Chairman of the Council						

Juha Ylä-Anttila



Deputy Chairman of the Council					

Per Vidar Bredesen



Member of the Council						

Johan Bohman



Member of the Council						

Arne Bernt Dahle



Member of the Council						

Pentti Heinonen



Member of the Council						

Pertti Heiskanen