NORMA

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO CONSOLIDATED FINANCIAL RESULTS Q1 Y2001



(unaudited)



Sales and Revenues

The Q1 Y2001 consolidated net sales of AS Norma totalled 

166,5 MEEK,of which those of the parent company were 160,3 MEEK. 

Consolidated sales increased by 9,8% (+14,9 million EEK) from

Q1 Y2000. Sales to Russian customers rose by 10% and to Western

customers by 113%. Revenues of AS Norma accounted for 96%.

The group's main fields of activity include production and

sales of safety belts, car components and also real estate 

administration. Exports accounted for 97% of sales revenue, 

71% of production was exported to Russian customers.

The number of employees at the end of the year was 1053.



Use of Capital

Accounts receivable at the end of the Q1 Y2001 totalled 

120,6 MEEK, of which 71% related to the Russian customers. 

During the Q1 Y2001 volume of accounts receivable has 

increased by 2,2  MEEK. The share of accounts in arrears of 

total receivable was 22%. The provision for bad debts was 

decreased by 3,7 MEEK. At March 31,2001 the reserve totalled 

17,2 MEEK. As of the Q1 Y2001, the consolidated balance sheet 

size was 616,1 MEEK, a growth of 47,9 MEEK, increased mainly 

due to the  in current assets (46,6 MEEK).

Total liabilities amounted 64,5 MEEK. The company has no long 

term liabilities.The group's owners' equity increased by 48,4 

MEEK, amounting to 551,6 MEEK (89,5% of balance sheet size).



Investments

AS Norma invested a total of 9,9 million, to support existing 

production capacities and assure the efficiency its production 

processes. Of the total 5,0 million EEK was invested in machinery 

and equipment.



Profit and Earnings per Share

The company's consolidated unaudited net profit was 48,4 MEEK. 

Net profit remained on the same level (48,4 MEEK) as at Q1 Y2000. 

Earnings per share was 3,67 EEK in Q1 Y2001 (Q1 Y2000 3,67 EEK)



Significant Events and Changes in Business Activities

In order to contsentrate on core business, AS Norma sold its 100% 

subsidiary AS Metaprint.

The assembly of seat belts for Autoliv Sweden AB was started at 

next two production lines.



The Q2 Y2001 results of AS Norma will be released at July 26,2001.





Peep Siimon

Chairman of the Board

+372-6500-442