Harju Elekter                 FINANCIAL RESULTS                 03/03/2003



FINANCIAL RESULTS OF THE GROUP OF 2002



Sales and export

The consolidated net sales of AS Harju Elekter for the 12 months of 2002 were

EEK 271.2m/EUR 17.3m (EEK 195.5m/EUR 12.5m in 2001). The sales increased by

38.7% compared to the previous year. The sales of the parent company amounted

to EEK 189.7m/EUR 12.1m (EEK 168.8m/EUR 10.8m in 2001), which is 12.4% more

than in 2001.

Sales on the Estonian market amounted to EEK 150.5m/EUR 9.6m, implying a 29.3%

growth and forming 55.5% of the total net sales (59.6% in 2001). Owing to

increased demand on the building market, domestic sales of electrical

equipment increased 35.9% over the year; intermediation sales of various

electrical products increased 22.8%, i.e. by EEK 7.9m/EUR 0.5m, of which EEK

4.2m/EUR 0.3m was attributable to the Tartu electrical equipment store that

was opened in April.

Sales on export markets increased 1.5-fold. The share of foreign markets in

consolidated net sales grew to 44.5% in 2002 (40.4% in 2001). Sales on the

Finnish market increased by EEK 40.9m/EUR 2.6m during the year (1.65-fold).

The sales of the 100% subsidiary in Finland for four months account for 12% of

the consolidated net sales and the bulk of the increase in sales in Finland.

The export of the electrical equipment factory to Finland increased from EEK

10.7m/EUR 0.7m in 2001 to EEK 24.8m/EUR 1.6m in 2002, compensating for the

sales forgone due to the selling of the cable harnesses factory and providing

for growth.

The manufacture and sales of electrical equipment doubled in 2002. The sales

of the Finnish subsidiary for the four months account for EEK 33.9m/EUR 2.2m

of the increased volume of this product group.

The growth in the output of the electrical equipment factory was 1.5-fold.



Profit

The operating profit of the group for the 12 months was EEK 15.5m/EUR 1.0m,

which exceeds last year’s result (EEK 11.6m/EUR 0.7m) by one-third. While the

operating profit to net sales ratio was the same as in the previous year,

operating profit mainly increased on account of the manufacture and sales

figures of the electrical engineering segment.

The result of financing activities was EEK 7.1m/EUR 0.45m (EEK 9.1m/EUR 0.6m

in 2001). The financial income for 2001 included the sales proceeds of shares

in PKC Group Oyj, EEK 2.8m/EUR 0.2m.

The final net profit of the group for 2002 was EEK 53.3m/EUR 3.4m, including

the extraordinary sales proceeds of the shares and fixed and current assets of

the subsidiary AS AJT Harju Elekter in a total of EEK 30.6m/EUR 2.0m. The

profit margin for 2002 was 19.7% (10.6% in 2001).



Investments and financing

The total investments of the group in tangible and intangible assets

amounted to EEK 14.0m/EUR 0.9m during the reporting period (EEK 20.7m/

EUR 1.3m in 2001). The major investments were:

     washing equipment for the powder coating line     EEK 3.8m (EUR 0.24m)

     reconstruction of production buildings and facilities

                                                       EEK 5.1m (EUR 0.32m)

     computing and office machines                     EEK 0.8m (EUR 51,000)

     licenses acquired                                 EEK 1.1m (EUR 70,000)

In March, Harju Elekter paid EEK 6.0m/EUR 0.4m as a contribution into the

share capital of AJT Harju Elekter, a 100% subsidiary founded on the basis of

the cable harnesses factory. Satmatic Oy was acquired in September for EEK

4.7m/EUR 0.3m, paid for the existing shares and for increasing the share

capital. The parent company granted its subsidiaries long-term loans of EEK

10.2m/EUR 0.65m for the acquisition of fixed and current assets. The parent

company’s financial investments totalled EEK 20.9m/EUR 1.3m. The sales

proceeds of financial investments amounted to EEK 19.9m/EUR 1.3m.

The group companies repaid EEK 7.8m/EUR 0.5m of long-term loans and EEK

0.8m/EUR 51,000 of financial lease principal in 2002. Owners were paid EEK

7.6m/EUR 0.5m of dividends for the year 2001.



Balance sheet

The consolidated balance sheet total was EEK 224.0m/EUR 14.3m at the end of

September in 2002, having increased by EEK 47.5m/EUR 3.0m over the year. The

main reasons for this were the sale of AJT Harju Elekter and the acquisition

of the subsidiary Satmatic Oy, as well as the significant increase in orders

for the energy sector products when compared to the previous year. The balance

sheet structure also changed. Owners’ equity increased by a total of EEK

45.4m/EUR 2.9m, accounting for 76.3% of the value of assets. This is 5.3

percentage points more than in the previous year.

As regards assets, the value of current assets increased the most, totalling

EEK 26.6m/EUR 1.7m. Together with the subsidiary Satmatic Oy, current assets

with a total real value of EEK 21.4m/EUR 1.4m were acquired, including EEK

15.3m/EUR 1.0m of inventories.

As of the balance sheet date, the group’s long-term and current debts

totalled EEK 18.1m/EUR 1.15m (EEK 27.2m/EUR 1.7m in 2001), of which EEK

5.7m/EUR 0.4m are long-term debts.



Personnel and wages

In 2002, the group employed 351 people on average (673 in 2001), including 273

in the parent company (607 in 2001). As of the balance sheet date, 31.12.2002,

the group employed 282 people, including 173 in the parent company and 53 in

the Finnish subsidiary. The significant change in the number of the parent

group’s employees was due to the sale of the cable harnesses factory (minus

425 people).



Important events

On 3 January, Bureau Veritas Quality International certified the conformity

of the quality management system of the subsidiary AS Eltek to the

international ISO 9001:2000 standard. The system of AS Eltek covers the

manufacture of sheet metal products, product development and marketing, and

the manufacture of fibre optical products, and imposes standards and rules for

the organisation of the company’s operations.



The Harju Elekter group implemented the ISO 14001 environmental management

system, certified by the international certification company BVQI as

conforming to the ISO 14001:1996 international quality standard. The

certificate was solemnly presented on 23 April. The implemented system

establishes rules for constant monitoring and adequate response to any

environmental impact, contributing to a clean and healthy working and living

environment in the area of the enterprise.



In April, Harju Elekter opened its third store of electrical products in

Tartu. The store has 300 m2 of sales and storage space. A considerable

customer base has been established over the six months of operation and the

store has managed to occupy a firm position on the local electrical equipment

market.



On 8 March, the 100% subsidiary AS AJT Harju Elekter (AJT) was founded

on the basis of the cable harnesses factory; its share capital is EEK 6

million. The company launched independent operations on 1 April. On 4 June,

AS Harju Elekter and PKC Group Oyj (PKC) signed a sales contract under which

PKC acquired all the shares of AJT, a 100% subsidiary of Harju Elekter. The

transaction price was EUR 2.07 million. The transaction was closed on 1 July.

Since November, the name of the company has been PKC Eesti AS. The business

risks of Harju Elekter were significantly reduced by the sale of the

subsidiary,

which was a level 2 subcontracting enterprise, while the group maintained its

skills in the area of cable harness and fibre optical product manufacture.



On 19 September, AS Harju Elekter and Siemens Osakeyhtiö signed a sales

contract under which Harju Elekter acquired all the shares of Satmatic Oy, a

100% subsidiary of Siemens. Located in Ulvila, Finland, the main business of

Satmatic is the manufacture of industrial automation and control equipment and

heating equipment for car parks. The main product range of Harju Elekter

broadened and its Finnish market share increased substantially as a result of

the acquisition.



Proposal for payment of dividends

The management board decided to propose to the general meeting that the

dividends for the year 2002 should be EEK 2.00 per share, totalling EEK

10.8m/EUR 0.7m. The dividends paid for the year 2001 amounted to EEK 1.4 per

share, totalling EEK 7.6m/EUR 0.5m. The company has no income tax obligations

concerning the payment of dividends.





Andres Allikmäe

Chairman of Management Board

67 47 400





BALANCE SHEETS

BALANCE SHEET, 31.12.2002

Consolidated, unaudited



Group

in thousand                        EEK             EUR

ASSETS                           31.12.02 31.12.01 31.12.02 31.12.01

Cash, bank                          11 620   11 039      743      706

Marketable securities                    0      468        0       30

Total customer receivables          28 705   15 305    1 835      978

Other current receivables            2 052    3 343      131      214

Accrued income                          14       35        1        2

Prepaid expenses                       753    1 242       48       79

Total current receivables           31 524   19 925    2 015    1 273

Raw materials and inventories       30 999   21 557    1 981    1 378

Goods                                4 528    3 730      289      238

Prepayments to suppliers             4 616        0      295        0

Total inventories                   40 142   25 286    2 566    1 616

TOTAL CURRENT ASSETS                83 287   56 718    5 323    3 625

Stock and shares in ass.companies   26 587   22 580    1 699    1 443

Other shares                        17 038    4 521    1 089      289

Other long-term receivables            379      473       24       30

Total financial investments         44 003   27 574    2 812    1 762

Plant and equipment                 77 556   75 284    4 957    4 812

Other equipment and fixtures        46 385   43 845    2 965    2 802

Other inventory                      3 277    3 757      209      240

Accumulated depreciation           -35 288  -31 751   -2 255   -2 029

Construction-in-progress             3 556      716      227       46

Prepayments for fixed assets            28        0        2        0

Total tangible assets               95 514   91 851    6 104    5 870

Licences                             1 206      309       77       20

Goodwill                                16      112        1        7

Total intangible assets              1 222      421       78       27

TOTAL NON-CURRENT ASSETS           140 740  119 845    8 995    7 660

TOTAL ASSETS                       224 027  176 563   14 318   11 284

LIABILITIES AND OWNERS' EQUITY

Debt obligations                    12 360   14 929      790      954

Customer prepayments                   193       94       12        6

Supplier payables                   22 438   12 433    1 434      795

Other short-term borrowings          1 268      499       81       32

Tax liabilities                      5 405    4 931      345      315

Accrued expenses                     5 869    6 010      375      384

TOTAL CURRENT LIABILITIES           47 533   38 896    3 038    2 486

TOTAL NON-CURRENT LIABILITIES        5 707   12 254      365      783

TOTAL LIABILITIES                   53 240   51 150    3 403    3 269

Share capital                       54 000   54 000    3 451    3 451

Restricted reserves                  8 600    6 510      550      416

Retained earnings                   54 933   44 161    3 511    2 822

Net profit for the year             53 254   20 742    3 404    1 326

TOTAL OWNERS' EQUITY               170 786  125 413   10 915    8 015

TOTAL LIAB.AND OWNERS' EQUITY      224 027  176 563   14 318   11 284





BALANCE SHEET OF THE PARENT COMPANY, 31.12.2002

unaudited



Parent company

in thousand                        EEK             EUR

ASSETS                           31.12.02.31.12.01.31.12.02.31.12.01.

Cash, bank                          11 165   10 260      714      706

Marketable securities                    0      468        0       30

Total customer receivables          12 075   10 718      772      978

Other current receivables            8 073    5 422      516      214

Accrued income                           0       35        0        2

Prepaid expenses                       564      938       36       79

Total current receivables           20 712   17 113    1 324    1 273

Raw materials and inventories       14 111   13 030      902    1 378

Goods                                2 579    1 246      165      238

Prepayments to suppliers             4 575    3 679      292        0

Total inventories                   21 265   17 954    1 359    1 616

TOTAL CURRENT ASSETS                53 141   45 795    3 396    3 625

Stock and shares in subsidiaries    13 759    8 602      879    1 443

Other long-term receiv.from subs.    6 780        0      433

Stock and shares in ass.companies   26 587   22 580    1 699      289

Other shares                        17 038    4 521    1 089       30

Other long-term receivables            379      473       24    1 762

Total financial investments         64 543   36 175    4 125    4 812

Plant and equipment                 77 428   75 151    4 949    2 802

Other equipment and fixtures        26 033   25 665    1 664      240

Other inventory                      1 751    2 693      112   -2 029

Accumulated depreciation           -28 798  -27 426   -1 841       46

Construction-in-progress             3 556      716      227        0

Prepayments for fixed assets            28        0        2    5 870

Total tangible assets               79 998   76 799    5 113       20

Licences                               750      309       48        7

Total intangible assets                750      309       48       27

TOTAL NON-CURRENT ASSETS           145 290  113 283    9 286    7 660

TOTAL ASSETS                       198 432  159 078   12 682   11 284

LIABILITIES AND OWNERS' EQUITY

Debt obligations                     5 516    7 299      353      954

Customer prepayments                   193       11       12        6

Supplier payables                   13 501   10 703      863      795

Other short-term borrowings          1 286      483       82       32

Tax liabilities                      2 525    4 345      161      315

Accrued expenses                     3 191    5 320      204      384

TOTAL CURRENT LIABILITIES           26 212   28 161    1 675    2 486

TOTAL NON-CURRENT LIABILITIES        1 433    5 503       92      783

TOTAL LIABILITIES                   27 646   33 664    1 767    3 269

Share capital                       54 000   54 000    3 451    3 451

Restricted reserves                  8 600    6 510      550      416

Retained earnings                   54 933   44 161    3 511    2 822

Net profit for the year             53 254   20 742    3 404    1 326

TOTAL OWNERS' EQUITY               170 786  125 413   10 915    8 015

TOTAL LIAB.AND OWNERS' EQUITY      198 432  159 078   12 682   11 284





INCOME STATEMENTS

INCOME STATEMENT,  2002

Consolidated,unaudited



in thousand                      EEK               EUR

Group                                 2002     2001     2002     2001

NET SALES                          271 212  195 494   17 334   12 494

Cost of goods sold                 222 367  158 227   14 212   10 113



Gross profit                        48 845   37 267    3 122    2 382



Operating expenses, incl.           33 063   25 243    2 113    1 613

Marketing expenses                  12 322    9 567      788      611

Administrative expenses             20 741   15 676    1 326    1 002

Other revenue                          381      399       24       26

Other expenses                         668      818       43       52



Operating profit                    15 494   11 605      990      742



Financial income, incl.

Fin.income from ass.companies        6 219    4 625      397      296

Fin.income from other holdings       2 247    6 202      144      396

Other interest and fin.income          293      364       19       23

Total financial income               8 759   11 191      560      715



Financial expenses, incl.

Fin.expenses from ass.companies        152        0

Interest expense                     1 353    1 908       86      122

Other financial expenses                92      147        6        9

Total financial expenses             1 597    2 055      102      131



Profit from normal operations       22 656   20 741    1 448    1 326

External income                     30 641             1 958        0

Income tax                              44

Net profit for the year             53 254   20 741    3 404    1 326



Bas.and dil.earnings per share        9,86     3,84     0,63     0,25





INCOME STATEMENT,  Q4 2002

Consolidated,unaudited

in thousand                      EEK               EUR

Group                            Q4  2002 Q4  2001 Q4  2002 Q4  2001

NET SALES                           84 576   59 870    5 405    3 826

Cost of goods sold                  70 044   49 494    4 477    3 163



Gross profit                        14 532   10 376      929      663



Operating expenses, incl.           11 356    8 207      726      525

Marketing expenses                   3 900    3 166      249      202

Administrative expenses              7 456    5 041      477      322

Other revenue                           91       97        6        6

Other expenses                         243      150       16       10



Operating profit                     3 023    2 116      193      135



Financial income, incl.

Fin.income from ass.companies            0    1 260        0       81

Fin.income from other holdings         237       12       15        1

Other interest and fin.income            0      149        0       10

Total financial income                  70    1 421        4       91

                                       307

Financial expenses, incl.

Fin.expenses from ass.companies        175        0

Interest expense                       502      467       32       30

Other financial expenses                33       51        2        3

Total financial expenses               710      518       45       33



Profit from normal operations        2 620    3 019      167      193

Income tax                              44        0        3        0

Net profit for the year              2 576    3 019      165      193



Bas.and dil.earnings per share        1,91     2,24     0,12     0,14





INCOME STATEMENT,  2002

Consolidated,unaudited

in thousand                      EEK               EUR

Parent company                        2002     2001     2002     2001

NET SALES                          189 731  168 833   12 126   10 790

Cost of goods sold                 151 715  138 994    9 696    8 883



Gross profit                        38 016   29 839    2 430    1 907



Operating expenses, incl.           23 426   19 026    1 497    1 216

Marketing expenses                   9 113    6 587      582      421

Administrative expenses             14 313   12 439      915      795

Other revenue                          262      328       17       21

Other expenses                         540      736       35       47



Operating profit                    14 311   10 405      915      665



Financial income, incl.

Financial income from subsid.          627      272       40       17

Fin.income from ass.companies        6 219    4 626      397      296

Fin.income from other holdings       2 392    6 215      153      397

Other interest and fin.income          295      494       19       32

Total financial income               9 533   11 607      609      742



Financial expenses, incl.

Fin.expenses from ass.companies        400        0

Fin.expenses from subsidiaries         152        0      228        0

Interest expense                       664    1 196       18       43

Other financial expenses                17       74        1        2

Total financial expenses             1 233    1 270      247       45



Profit from normal operations       22 611   20 742    1 445    1 326

External income                     30 641             1 958        0

Net profit for the year             53 253   20 742    3 403    1 326



Bas.and dil.earnings per share        9,86     3,84     0,63     0,25





INCOME STATEMENT,  Q4 2002

in thousand                      EEK               EUR

Parent company                   Q4  2002 Q4  2001 Q4  2002 Q4  2001

NET SALES                           48 362   51 517    3 091    3 293

Cost of goods sold                  38 469   42 872    2 459    2 740



Gross profit                         9 893    8 645      632      553



Operating expenses, incl.            6 985    5 931      446      379

Marketing expenses                   2 613    2 148      167      137

Administrative expenses              4 372    3 783      279      242

Other revenue                            9       63        1        4

Other expenses                         215      144       14        9



Operating profit                     2 702    2 633      173      168



Financial income, incl.

Financial income from subsid.                     0        0        0

Fin.income from ass.companies          237    1 260       15       81

Fin.income from other holdings          95       14        6        1

Other interest and fin.income           70      165        4       11

Total financial income                 400    1 439       26       92



Financial expenses, incl.

Fin.expenses from ass.companies         73      804        5       51

Fin.expenses from subsidiaries         175        0       11        0

Interest expense                       273      242       17       15

Other financial expenses                 5        6        0        0

Total financial expenses               526    1 052       34       67



Profit from normal operations        2 576    3 020      165      193

Net profit for the year              2 576    3 020      165      193



Bas.and dil.earnings per share        1,91     2,24     0,12     0,14







Karin Padjus

Chief accountant

67 47 403





Moonika Vetevool

PR manager

+372 6 712761