NORDIC ALUMINIUM PLC FINANCIAL STATEMENTS BULLETIN 2001

NORDIC ALUMINIUM PLC FINANCIAL STATEMENTS BULLETIN 2001 Nordic Aluminium´s consolidated net sales in 2001 were EUR 86.45 million compared with EUR 90.84 million in the previous year. Consolidated operating profit was EUR 2.89 million (2000: EUR 6.99 million). Net profit was EUR 1.76 million (EUR 4.55 million). Return on investment was 8.5% (21.3%) and return on equity 8.5% (24.7%). The Board proposes the payment of a dividend of 0.13 euros per share for a total payment of EUR 0.6 million (2000: 0.34 euros per share). Group structure The Nordic Aluminium Group is made up of the parent company Nordic Aluminium Plc, operating at Kirkkonummi, Espoo and Nivala, and its subsidiaries Nordic Aluprofiler AB in Sweden and Nordic Aluminium, Inc. in the United States. The Group's business operations are divided into three business areas; Electrotechnical Products, Components and Profiles. Net sales and results Nordic Aluminium´s consolidated net sales in the fiscal year 2001 were EUR 86.45 million as compared with EUR 90.84 million in the year before. The decrease of net sales by 4.8 per cent was due to weaker market demand in all of the three business areas. The share of exports and international operations grew to 34.6 per cent of net sales as compared with 31.9 per cent the year before. The major export markets in 2001 were the Nordic countries, Western Europe and North America. Net sales per employee were EUR 0.18 million, i.e. the same as the year before. The company adapted in response to the changes in the market situation and the restructuring expenses incurred weakened the result for the last months of the year. Consolidated operating profit was EUR 2.89 million. The corresponding figure for the year before was EUR 6.99 million. The development of net sales and operating profit by business area are shown in the tables below. NET SALES BY BUSINESS AREA 2001 2000 (EUR million) 1-12 1-12 Electrotechnical Products 29.26 29.91 Components 21.07 21.26 Profiles 49.33 53.84 Internal invoicing -13.21 -14.18 Total 86.45 90.84 OPERATING PROFIT BY BUSINESS AREA 2001 2000 (EUR million) 1-12 1-12 Electrotechnical Products 4.42 5.25 Components -1.00 -0.96 Profiles 0.18 2.70 Corporate -0.71 0.00 Total 2.89 6.99 Business areas Nordic Aluminum's Electrotechnical Products did well in the difficult market situation. Net sales matched the level of the year before despite the estimated decrease of overall market demand. The Components business area which manufactures components for electrical and electronics industries managed to conclude new customer contracts and boost its profitability despite the weakened market demand. To the Nivala factory which mainly manufactures telecommunications components the year 2001 turned out to be a difficult one. The demand for Profiles was reasonably good at the beginning of the year but the situation deteriorated as the year progressed. Order backlog Nordic Aluminum's order book at the end of 2001 stood at EUR 5.47 million (2000: EUR 7.42 million). The order backlog reflects the cyclical nature and short throughput times of customer shipments. Nordic Aluminium has continued to develop its ability to respond to quick changes in customer demand by cutting down on lead times and improving the inventory service levels. Research and development expenses Nordic Aluminum's research and development expenses in 2001 were EUR 1.77 million (2000: EUR 1.73 million), 2.0 per cent of net sales (1.9 per cent). Product development focused on new product generations designed in close cooperation with the customers. Investments Gross investments in 2001 were EUR 7.80 million (2000:EUR 8.81 million) and they consisted of machinery and equipment. In Electrotechnical Products investments focused on increasing the level of automation in manufacturing, in Components the capacity was increased, and in Profiles the multi-year major investment program was concluded as the new paint shop was completed. The new paint shop is the first of its kind in the Nordic countries, and it marks a significant strengthening of the competitive advantages of Profiles business area. Profitability Return on investment (ROI) in Nordic Aluminium in 2001 was 8.5 per cent (2000: 21.3 per cent) and return on equity (ROE) was 8.5 per cent (2000: 24.7 per cent). Earnings per share were 0.38 euros (0.98 euros). Equity per share was 4.45 euros (4.40 euros). Balance sheet and financing The balance sheet total at the end of the 2001 fiscal year was EUR 51.45 million (2000: EUR 56.73 million). The contraction of the balance sheet was mainly due to the reduction of financial assets and inventories, and on the other hand non-interest bearing debt, that followed from a lower usage of capacity. Cash flow from operations was EUR 4.76 million (2000: EUR 8.76 million). At the end of 2001 the equity to assets ratio of the Nordic Aluminium Group was 40.0% (2000: 35.9%), interest-bearing debts were EUR 16.41 million (EUR 14.68 million) and gearing 76.1% (51.8%). The internal funding of investments ratio was 94% (106%). Authorisations The Board has no current authorisations for the increase of the company's share capital, the procurement of own shares or issuing of convertible bonds and/or option loans. Share capital The nominal value of Nordic Aluminium Plc`s share is 1.28 euros and the total number of shares at the end of the fiscal year 2001 was 4,616,132. The registered share capital is 5,908,648.96 euros. All shares have the same voting and dividend rights. Nordic Aluminium Plc`s shares have been listed on the Helsinki Exchanges since 1997. Nordic Aluminum's option rights were listed on the Helsinki Exchanges at the request of the company starting September 17, 2001 when 225,000 option rights were issued. Each right entitles to the subscription of one Nordic Aluminium Plc share in stages during the period May 1, 1999 - May 30, 2006. At the end of 2001 the subscription price was 10.05 euros. No shares were subscribed based on these rights in 2001. Turnover of shares A total of 577,449 Nordic Aluminium Plc shares were traded on the stock market in 2001. This corresponds to 12.5 per cent (2000:6.6 per cent) of the company's total capital stock. The year's highest quotation was 10.00 euros and the lowest 5.82 euros. The average quotation was 9.29 euros. On the last trading day of the year the share traded at an average price of 6.78 euros. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/11/20020211BIT00190/bit0002.doc The Full Report http://www.waymaker.net/bitonline/2002/02/11/20020211BIT00190/bit0002.pdf The Full Report