NORMA

COMMENTARY TO FINANCIAL RESULTS



COMMENTARY TO H1 2001 FINANCIAL RESULTS



(unaudited)



Sales and Revenues

The H1 Y2001 consolidated net sales of AS Norma totalled 362.7 

MEEK,of which those of the parent company were 351.7 MEEK. 

Consolidated sales increased by 22.4% (+66.4  MEEK) from

H1 Y2000. Sales to Russian customers rose by 19% and to Western

customers by 92%. Revenues of AS Norma accounted for 97%.

The group's main fields of activity include production and

sales of safety belts, car components and also real estate 

administration. Exports accounted for 98% of sales revenue, 

68% of production was exported to Russian customers.

The number of employees at the end of the period was 1051.



Use of Capital

Accounts receivable at the end of the H1 Y2001 totalled 169.0 

MEEK, of which 66% related to the Russian customers. 

During the H1 Y2001 volume of accounts receivable has 

increased by 50.6  MEEK, including Autoliv receivable 37.2 

MEEK.  The share of accounts in arrears of total receivable 

was 21% (54% in H1Y2000). 

The provision for bad debts was decreased by 0.5 MEEK. 

At June 30,2001 the reserve totalled 20.4 MEEK. 

As of the H1 Y2001, the consolidated balance sheet size was 

618.3 MEEK, a growth of 50.2 MEEK, increased  due to the  

current assets (+30.4 MEEK) and non-current assets (+20.2 MEEK).   

Dividends  of 66.0 MEEK were paid for the year 2000 business 

activities. Tax for dividends was paid 2.2 MEEK.

Total liabilities amounted 93.7 MEEK.

The company has no long term liabilities.

The group's owners' equity increased by 21.5 MEEK, amounting to

524.6 MEEK (85% of balance sheet size).



Investments

AS Norma invested a total of 36.7 MEEK, to support existing 

production capacities and assure the efficiency its production 

processes. Of the total 17.3 million EEK was invested 

in machinery and equipment.



Profit and Earnings per Share

The company's consolidated unaudited net profit was 87.5 MEEK. 

Net profit was 3.2 MEEK higher than  H1 2ooo (84.3 MEEK). 

Earnings per share was 6.63 EEK in H1 Y2001 (H1 Y2000 6.39 EEK)



Significant Events and Changes in Business Activities

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

3 production lines. New component warehouse began to operate.



The Q3 Y2001 results of AS Norma will be released at 

October 18, 2001.





Peep Siimon

chairman of the board

+372-6500-442