NORMA

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO Q4 AND Y2001 CONSOLIDATED FINANCIAL RESULTS



(unaudited)



Sales and Revenues

During the  period Y2001 consolidated net sales of AS 

Norma totalled 815.9 MEEK (52.1 MEUR),of which those of the parent 

company were 795.1 MEEK (50.8 MEUR). Consolidated sales increased 

by 29% (+181.7 MEEK, +11.6 MEUR) from  Y2000.Net sales for Q4 2000 

increased by 39%. Sales to Russian customers rose by 15% and to 

Western customers by 124%. Sales to Autoliv was Y2001 225.7 MEEK 

(14.4 MEUR). Revenues of AS Norma accounted for 97%.

The group's main fields of activity include production and sale of 

safety belts, car components and also real estate administration. 

Exports accounted to 98% of sales revenue, 63% of production was 

exported to Russian customers.

The number of employees at the end of the period was 1048.



Use of Capital

Accounts receivable at the end  Y2001 totalled 153.3 MEEK (9.8 MEUR), 

of which 63% related to the Russian customers. During the  

period Y2001 volume of accounts receivable has increased by 34.9 MEEK 

(2.2 MEUR), Autoliv receivables was 43.3 MEEK (2.8 MEUR). 

The share of accounts in arrears of total receivable was 20%(27% in Y2000). 

The provision for bad debts was decreased by 7.8 MEEK (0.5 MEUR). 

At December 31,2001 the reserve totalled 13.1 MEEK (0.8 MEUR). 

As of the Q4 Y2001, the consolidated balance sheet size was 

725.2 MEEK (46.3 MEUR), a growth by 157.0 MEEK(10.0 MEUR), 

increased  due to the current assets 104.9 MEEK (+6.7 MEUR) and 

non-current assets +52.1 MEEK (+3.3 MEUR).   Total liabilities amounted 

to 110.4 MEEK (7.1 MEUR). The company has no long term liabilities.

The group's owners' equity increased by 111.6 MEEK(7.1 MEUR), 

amounting to 614.8 MEEK (39.3 MEUR) (85% of balance sheet size).



Investments

AS Norma invested a total of 87.2 MEEK (5.6 MEUR), to support 

existing production capacities and assure the efficiency its 

production processes. Of the total 50.7  MEEK (3.2 MEUR) was 

invested in machinery and equipment.



Profit and Earnings per Share

The company's consolidated unaudited net profit was 177.6 MEEK (11.4 MEUR). 

Net profit was 20.2 MEEK (1.3 MEUR) higher than in the  Y 2000 

(157.4 MEEK, 10.1 MEUR). Net profit for Y2000 increased by 13% and for 

Q4 Y2000 increased by 62%. 

Earnings per share was 13,46 EEK (0,86 EUR) in Y2001. Y2000 it 

was 11,93 EEK (0,76 EUR)



Significant Events and Changes in Business Activities

Reconstruction works for the new premises for AS Tööriistavabrik 

(toolshop) were completed and toolshop was moved to the new premises.

For the first time more than 3.0 million pcs. of retractor seat belts 

were sold to eastern customers.

In the first phase of production movement to AS Norma 6 assembly 

lines were installed. In the next phase of production movement 4 

assembly lines will be installed.

The Y2002 quarterly results of AS Norma will be released at 

April 17,2002, July 17,2002, October 16, 2002, and Jan.22,2003.





Peep Siimon

Chairman of the Board

+372-6500-442