Market announcement
AS Harju Elekter Group
LEI code
5299009GM96I0NYKWS93
Size of the entity
Large group
Economic activities
Real Estate Activities
Industry sector(s)
Credit rating agency
Country of registered office
Estonia
General information
Categories
Management interim statement or quarterly financial report
Unique data record identifier
5743
Attachments
Submission date and time
27.10.2016 08:10:00
Content of announcement in Estonian
Title
Kontserni majandustulemused, 1-9/2016
Message
Konsolideeritud müügitulu oli aruandekvartalis 15,8 (2015 III kv: 18,1) miljonit eurot. Müügitulu kahanes aruandekvartalis tugeva võrdlusperioodi suhtes 12,7% ehk 2,3 miljonit eurot. 9 kuu konsolideeritud müügitulu jäi aasta varasemaga samale tasemele ja oli 44,8 (2015 9k: 45,6) miljonit eurot. Kontsern teenis 9 kuuga puhaskasumit 2,85 (2015 9k: 3,20) miljonit eurot. muutus juuli-september muutus jaanuar-september aasta (tuhat eurot) % 2016 2015 % 2016 2015 2015 Müügitulu -12,7 15 794 18 091 -1,9 44 759 45 626 60 656 Brutokasum -23,5 2 630 3 441 -4,5 7 852 8 220 10 299 Ärikasum enne kulumit-36,0 1 397 2 181 -10,1 3 883 4 321 4 819 Ärikasum -42,8 1 023 1 788 -15,7 2 694 3 197 3 276 Perioodi puhaskasum -46,3 870 1 620 -11,0 2 849 3 203 3 186 sh emaettevõtte omanike -47,0 862 1 627 -10,9 2 850 3 199 3 190 Aruandekvartali müügituludest saadi 91,2% (2015 III kv: 92,9%) Tootmise segmendist ning Kinnisvara ja Muud tegevusalad andsid kokku 8,8% (2015 III kv: 7,1%) müügimahust. Elektriseadmete müük on kolmandas kvartalis võrreldava perioodi suhtes kahanenud 16,1% ehk 2 566 tuhat eurot ja 9 kuu võrdluses 2,3% ehk 914 tuhat eurot andes 85,6% kogu Kontserni müügitulust. Teiste toodete ja teenuste osas on müügitulu aruandekvartalis kasvanud 12,4% olles 269 tuhat eurot suurem kui võrreldaval perioodil. Kontserni väljapoolt Eestit teenitud müügitulu moodustas 2016. aasta üheksa kuuga 79,1% (2015 9k: 76,5%) ja aruandekvartalis 81,2% (2015 III kv: 77,5%). Kontserni suurim turg – Soome - on kasvanud aastaga 7,6% ehk 2 185 tuhat eurot. Aruandekvartalis müüdi 68,8% Kontserni toodetest ja teenustest (2015 III kv: 65,4%) Soome turule. Müügitulu Rootsi turule on kasvanud kolmandas kvartalis 68,3% ja aastaga 57,8%. Nii 2015. kui ka 2016. aastal on Kontserni Rootsi-suunalise tegevuse eest vastutav AS Harju Elekter Elektrotehnika teinud väga aktiivselt tööd nii müügi kui ka tootearenduse vallas, et suurendada Kontserni müügimahtusid Rootsi turule. Kontserni Norra turu müügitulu on 9 kuuga vähenenud 45,6% tulenevalt Leedu ettevõtte põhikliendi omanikuvahetusest, mistõttu on müügitellimused edasi lükkunud järgnevatesse perioodidesse. Kontsern müüs 2016. aasta 9 kuuga Eesti turule 20,9% (2015: 23,5%) oma toodetest ja teenustest. Aastaga vähenesid tarned Eesti turule 1,1 miljoni euro võrra ehk 12,7%. Langus on tingitud investeeringute jätkuvas vähenemises Eesti energiajaotussektoris. Äritegevuse kulud kahanesid aruandekvartalis 9,3% ja 9 kuuga 0,8% võrreldes eelmise aasta samade perioodidega. Müüdud toodete ja teenuste kulu kahanes aruandekvartalis 10,1% ja üheksa kuu võrdluses 1,3%. Turustuskulud kasvasid aruandekvartalis 14,7% ja üheksa kuuga 13% võrreldavate perioodide suhtes. Turustuskulude määr moodustas müügitulust 5,0% (2015 9k: 4,3%). Turustuskuludes on enim kasvanud tööjõukulud, seda nii ettevõtetes toimunud struktuurimuudatuste kui ka lisatasude maksmise tõttu. Seevastu üldhalduskulud kahanesid aruandekvartalis 10,9% ja üheksa kuuga 3,8% võrreldavate perioodide suhtes. Üldhalduskulude määr moodustas müügitulust 6,6%, kahanedes 0,2 protsendipunkti võrra. Aruandeperioodi lõpu seisuga töötas Kontsernis 454 inimest, (30.9.2015: 477). Aasta algusega võrreldes on töötajate arv vähenenud 16 töötaja võrra. 2016. aasta 9 kuuga töötas Kontsernis keskmiselt 451 inimest, mis oli keskmiselt 24 töötajat vähem kui võrreldaval perioodil. Aruandekvartalis vähenes keskmine töötajate arv 32 töötaja võrra 447ni. Kontserni Soome ettevõtete head majandustulemused 2016. aastal on kaasa toonud lisatasude väljamaksmise ja reservide tõusu, millega kaasnes ka Kontserni tööjõukulude kasv. Aruandekvartalis maksti töötajatele palkade ja tasudena välja 2 722 (2015 III kv: 2 454) tuhat eurot ning 9 kuuga 7 430 (2015 9k: 7 256) tuhat eurot. Keskmine töötasu kuus Kontserni töötaja kohta oli 1 829 (2015 9k: 1 696) eurot. Kontserni metallitehaste liitmisel teises kvartalis tehtud ühekordsetele kuludele 71 tuhat eurot lisandus kolmandas kvartalis 58 tuhat eurot, kokku 129 tuhat eurot. Metallitehase liitmine on aruandeperioodil jõudnud lõpusirgele. Masinate ja seadmete kolimisest ning ümberseadistamisest tekkinud tootmistõrked on suures jaos kolmanda kvartali lõpuks likvideeritud. Tootmistõrked tekitasid ajutisi seisakuid tootmises, mistõttu on olnud probleeme tarnetähtaegadest kinni pidamisel, mis omakorda on avaldanud mõju nii üheksa kuu kui ka aruandekvartali müügituludele ja ka kasumlikkusele. Üheksa kuu konsolideeritud brutokasum oli 7 852 (2015 9k: 8 220) tuhat eurot. Brutokasumi marginaaliks kujunes 17,5% (2015 9k: 18,0%). Aruandekvartali brutokasumi marginaal oli 16,7% (2015 III kv: 19,0%). Kontserni esimese üheksa kuu ärikasum oli 2 694 (2015 9k: 3 197) tuhat eurot ja ärikasum enne kulumit 3 883 (2015 9k: 4 321) tuhat eurot. Aruandeperioodi ärirentaabluseks kujunes 6,0% (2015 9k: 7,0%) ja ärirentaabluseks enne kulumit 8,7% (2015 9k: 9,5%). Aruandekvartali konsolideeritud ärikasum oli 1 023 (2015 III kv: 1 788) tuhat eurot ja ärikasum enne kulumit 1 397 (2015 III kv: 2 181) tuhat eurot. Aruandekvartali ärirentaabluseks kujunes 6,5% (2015 III kv: 9,9%) ja ärirentaabluseks enne kulumit 8,8% (2015 III kv: 12,1%). Aruandekvartali konsolideeritud puhaskasum oli 870 (2015 III kv: 1 620) tuhat eurot, millest emaettevõtte omanike osa moodustas 862 (2015 III kv: 1 627) tuhat eurot. Puhaskasum aktsia kohta oli aruandekvartalis 0,05 (2015 III kv: 0,09) eurot. Puhaskasumi marginaaliks kujunes 5,5% (2015 III kv: 9,0%). Kokkuvõttes oli üheksa kuu konsolideeritud puhaskasum 2 849 (2015 9k: 3 203) tuhat eurot. Emaettevõtte omanikele kuuluv osa oli 2 850 (2015 9k: 3 199) tuhat eurot, puhaskasumi marginaal oli 6,4% (2015 9k: 7,0%). Puhaskasum aktsia kohta oli 0,16 (2015 9k: 0,18) eurot. Kontsern on 9 kuuga investeerinud materiaalsesse põhivarasse ja kinnisvarasse kokku 1 336 (2015 9k: 2 240) tuhat eurot. 2015. aasta I poolaastas investeeris Kontserni Allika Tööstusküla tootmishoonesse 1 272 tuhat eurot. 2016. aasta kolmandas kvartalis investeeriti Allika Tööstuskülas järgmise suurema tootmiskompleksi ehitusse 637 tuhat eurot. Sündmused ja bilansipäevajärgsed sündmused Šveitsi varahaldusfirma CEAMS-CE Asset Management AG koos Balti partneritega kuulutas oktoobris välja järjekordsed Corporate Excellence Award nominendid. AS Harju Elekter oli Eesti börsifirmadest parim ja Baltimaades 3.kohal. Kõrge tunnustus pälviti, kuna ettevõte on Põhja-Euroopas jõuliselt laienenud ja oma ärisid hajutanud, ettevõttel on konservatiivne bilanss ning stabiilne ja kogenud juhtimismeeskond. Positiivse tunnustuse pälvis ka Kontserni Soome ettevõte Finnkumu Oy, kes saavutas Lõuna- Põhjamaa edukate ettevõtete pingereas kõrge 2.koha. AS Harju Elekter ostis 14. oktoobril 2016 lepingu kinnisvaraettevõtte Kiinteistö Oy Uutvallinkulma, mis hakkab tehingu järel kandma nime Harju Elekter Kiinteistöt Oy. Lepingu hinnaks kujunes 518 tuhat eurot. Soetatud firma on senini rentinud 2 470 m2 ulatuses tootmispindasid Kontserni Soome ettevõttele Finnkumu Oy ning lähitulevikus koondatakse kinnisvaraettevõtte alla ka Satmatic Oy kasutuses olevad tootmispinnad Keraval ja Ulvilas, kokku 5 185 m2. Tegevus järgib Kontserni poliitikat, vastavalt millele kuuluvad Kontserni firmade kasutuses olevad tootmispinnad Kontserni omandusse. 21. oktoobril 2016 asetati Tallinna piiril Allika Tööstuspargis nurgakivi kahele olulisele hoonele: HE tootmis-ja laoboksidele ning mehaaniliste ja elektromehaaniliste seadmete ning komponentide seeriatootja Stera Technologies Oy tootmis- ja laohoonele. Eelnevalt, aprillis 2016 oli Stera Technologies Oy-ga sõlmitud eelleping neile tootmishoonete ehitamiseks ja hilisemaks rentimiseks ning teostatud hange projektijuhi leidmiseks, kelleks kvalifitseerus Ehitusfirma Rand ja Tuulberg AS. Planeeritud investeeringute maht on 8,2 miljonit eurot. See kaetakse omavahenditest ja pangalaenuga, milleks sõlmiti laenulepingud Swedpank ASiga kogumahus 7 miljonit eurot. Kokku ehitatakse 12 700 m2 erineva otstarbega pindasid, I etapp on valmis rentnikele üleandmiseks 2017. aasta esimesel poolaastal. 28. aprillil 2016 toimus ASi Harju Elekter aktsionäride korraline üldkoosolek, kes kinnitas 2015. majandusaasta aruande ja kasumijaotuse ning otsuse maksta aktsionäridele 2015. aasta eest dividende 0,05 eurot aktsia kohta, kokku 887 tuhat eurot. Lisaks otsustas üldkoosolek võtta kasutusele nimiväärtuseta aktsia ning kinnitada ASi Harju Elekter põhikirja uue redaktsiooni. Üldkoosoleku otsuse kohaselt vähendatakse ASi Harju Elekter aktsiakapitali 1 242 tuhande euro võrra 11 176 124,40 euroni aktsiate arvestusliku väärtuse vähendamise teel. Aktsiakapitali vähendamine kanti äriregistrisse 18. oktoobril 2016 ning aktsionäridele tehakse väljamaksed 0,07 eurot aktsia kohta seaduses sätestatud kolme kuu möödumisel aktsiakapitali vähendamise äriregistrisse kandmisest, so. 20. jaanuaril 2017. Nii dividendiõiguslike kui ka aktsiakapitali vähendamises osalevate aktsionäride nimekiri fikseeriti 12.05.2016 kell 23.59. Dividendid kanti aktsionäride pangakontodele 17. mail 2016. ASi Harju Elekter nõukogu otsustas oma 5. aprilli 2016. aasta koosolekul liita Kontserni Eesti tütarettevõtete metallitehased, koondades kogu Kontserni lehtmetalli töötlemise ressursi, võimekuse ja oskusteabe ASi Harju Elekter Teletehnika. Restruktureerimise tulemusena saavutatakse kokkuhoid nii tootmis- kui ka tööjõukulude osas. Pärast muudatusi keskendub AS Harju Elekter Teletehnika lehtmetalltoodete ja –detailide tootmisele elektrotehnika- ja telekommunikatsiooni sektori tarbeks, säilitades ka telekommunikatsioonitoodete ning fiiberoptiliste kaablite tootmise. 3.kvartali lõpuks, 30.septembriks on nii tehaste varade jagamine kui ka töötajate üleviimised lõpuni viidud. PKC Group Oyj aktsionäride korraline üldkoosolek 4. aprillil 2016 otsustas maksta dividende 0,70 eurot aktsia kohta. Dividendid kanti aktsionäride pangakontodele 15. aprillil 2016. ASile Harju Elekter kuulub 1 094 641 aktsiat. Dividenditulu 766 tuhat eurot kajastub 2016. aasta II kvartali kasumis. Soomes dividendidelt kinni peetud tulumaks 15% moodustas 115 tuhat eurot. PKC Groupi dividendid lisasid II kvartali investeerimistegevuse rahavoole 651 tuhat eurot. AS Harju Elekter andis 2. ja 3. kvartalis Skeleton Technologies OÜle 660 tuhat eurot laenu. 3.kvartalis toimus täiendav rahastamisvoor ja uute investorite kaasamine ning laen konverteeriti Skeleton Technologies OÜ omakapitalis. Vastav kanne Äriregistris registreeriti 24. augustil 2016. a. Soome tütarettevõte Satmatic Oy ja Finnkumu Oy osalesid veebruaris piirkondlikul erialamessil Sähkö-Tele-Valo-AV Jyväskyläs ning oktoobris messil Energia 2016 Tamperes. AS Harju Elekter Elektrotehnika tutvustas septembris oma tootevalikut SLO sügismessil ning aprillis osales ASi Harju Elekter Kaubandusgrupp rahvusvahelisel ehitusmessil Eesti Ehitab Tallinnas. Andres Allikmäe Juhataja Tel 674 7400 Lisainformatsioon: Tiit Atso, Kontserni finantsjuht, tel 674 7400 ASi Harju Elekter 3.kvartali ja 9 kuu vahearuanne KONSOLIDEERITUD BILANSS 30.09.2016 Auditeerimata Kontsern EUR'000 VARAD 30.09.16 31.12.15 Raha, pangakontod 2 593 5 711 Äritegevuse ja muud nõuded 9 219 6 678 Ettemaksed 440 278 Ettevõtte tulumaks 26 28 Varud 10 169 7 148 KÄIBEVARA KOKKU 22 447 19 843 Edasilükkunud tulumaksu vara 57 57 Pikaajalised finantsinvesteeringud 23 512 20 188 Kinnisvarainvesteeringud 13 493 12 990 Materiaalne põhivara 7 802 8 010 Immateriaalne põhivara 5 436 5 491 PÕHIVARA KOKKU 50 300 46 736 VARAD KOKKU 72 747 66 579 KOHUSTUSED JA OMAKAPITAL Võlakohustused 75 296 Võlad tarnijatele ja muud võlad 7 470 6 043 Võlg aktsionäridele 1 242 0 Maksuvõlad 1 307 944 Ettevõtte tulumaks 138 146 Lühiajalised eraldised 16 34 LÜHIAJALISED KOHUSTUSED KOKKU 10 248 7 463 PIKAAJALISED KOHUSTUSED 912 912 KOHUSTUSED KOKKU 11 160 8 375 Aktsiakapital 12 418 12 418 Registreerimata aktsiakapital -1 242 0 Ülekurss 804 804 Reservkapital 20 734 18 047 Jaotamata kasum 28 756 26 817 Emaettevõtte osalus omakapitalis 61 470 58 086 Mitte-kontrolliv osalus 117 118 OMAKAPITAL KOKKU 61 587 58 204 KOHUSTUSED JA OMAKAPITAL KOKKU 72 747 66 579 KONSOLIDEERITUD KASUMIARUANNE 01.01.-30.09.2016 Auditeerimata EUR’000 Kontsern KV32016 KV32015 9k 2016 9k 2015 Müügitulud 15 794 18 091 44 759 45 626 Müüdud toodete kulud -13 164 -14 650 -36 907 -37 406 Brutokasum 2 630 3 441 7 852 8 220 Turustuskulud -704 -614 -2 216 -1 961 Üldhalduskulud -922 -1 035 -2 973 -3 088 Muud äritulud 31 5 83 66 Muud ärikulud -12 -9 -52 -40 Ärikasum 1 023 1 788 2 694 3 197 Finantstulud 2 3 769 788 Finantskulud -6 -11 -17 -40 Kasum enne maksustamist 1 019 1 780 3 446 3 945 Tulumaks -149 -160 -597 -742 Perioodi puhaskasum, sh 870 1 620 2 849 3 203 emaettevõtte omanike osa 862 1 627 2 850 3 199 mitte-kontrolliv osa 8 -7 -1 4 Tava puhaskasum aktsia kohta (EUR) 0,05 0,09 0,16 0,18 Lahustatud puhaskasum aktsia kohta (EUR) 0,05 0,09 0,16 0,18
Content of announcement in English
Title
Financial results, 1-9/2016
Message
In the reporting quarter, the Group’s consolidated revenue was 15.8 (Q3 2015: 18.1) million euros. During the reporting quarter, sales revenue decreased 12.7% or 2.3 million euros in relation to the comparison period. 9 month consolidated revenue remained at the same level as the previous year and was 44.8 (9m 2015: 45.6) million euros. The consolidated net profit of the 9m 2016 was 2.85 (9m 2015: 3.20) million euros. Change July-September Change January-September Year (thousand euros) % 2016 2015 % 2016 2015 2015 Sales revenue -12.7 15,794 18,091 -1.9 44,759 45,626 60,656 Gross profit -23.5 2,630 3,441 -4.5 7,852 8,220 10,299 EBITDA -36.0 1,397 2,181 -10.1 3,883 4,321 4,819 EBIT -42.8 1,023 1,788 -15.7 2,694 3,197 3,276 Profit for the period -46.3 870 1,620 -11.0 2,849 3,203 3,186 incl attributable to Owners of the Company -47.0 862 1,627 -10.9 2,850 3,199 3,190 91.2% (Q3 2015: 92.9%) of revenue was earned from the Manufacturing segment, Real Estate and Unallocated activities contributed 8.8% (Q3 2015: 7.1%) of the consolidated sales volume. In the reporting quarter the sale of electrical equipment had decreased by 16.1% or 2,566 thousand euros in comparison with the comparison period and by 2.3% or 914 thousand euros in 9 month comparison, providing 85.6% of the sales revenue of the Group. In terms of other products and services, sales revenue in the reporting quarter has increased by 12.4%, being by 269,000 euros more than in the comparable period. In 9m 2016, 79,1% (9m 2015: 76,5%) of the Group’s products and services were sold in foreign markets, outside Estonia and in the reporting quarter 81,2% (Q3 2015: 77,5%). The Finnish market, which is the Group’s largest, has grown by 7.6% or 2,185 thousand euros year-on-year. In the reporting quarter, 68.8% of the Group’s products and services were sold on the Finnish market (Q3 2015: 65.4%). Sales revenue from the Swedish market has increased by 68.3% in the third quarter and 57.8% during the year. AS Harju Elekter Elektrotehnika, which is responsible for the Sweden-oriented business activity, has been quite active in 2015 as well as in 2016 in sales as well as product development work, in order to increase the sales volumes of the group on the Swedish market. The Group’s sales revenue from the Norwegian market have decreased by 45.6% over the 9 month period due to a change in the ownership of the main client of the Lithuanian company, as a result of which sales orders have been deferred to the following periods. In the first 9 months of 2016, the Group sold 20.9% of its products and services to the Estonian market (2015: 23.5%). Year on year, supply to the Estonian market decreased by 1.1 million euros or 12.7%. The decline was precipitated by the continued decline in investments in the energy distribution sector in Estonia. Operating expenses decreased 9.3% in the reporting quarter and 0.8% in the nine months compared to the reference period. Cost of sales decreased 10.1% in the reporting quarter and 1.3% in nine months compared to the reference period. Distribution costs increased by 14.7% in the reporting quarter and by 13% in 9m in relation to the comparison periods, the rate of distribution costs to revenue accounted for 5.0% (9m 2015: 4.3%). In the case of distribution costs, labour costs have increased the most, both due to structural changes in the companies as well as due to payment of additional remuneration. Administrative expenses decreased by 10.9% in the reporting quarter and 3.8% in 9m in relation to the comparison periods, and the rate of administrative expenses to revenue accounted for 6.6%, having decreased by 0.2 percentage points. As at the end of the reporting period, the Group had 454 employees (30 September 2015: 477). Compared to the beginning of the year, the number of employees has decreased by 16. In the first 9 months of 2016, an average of 451 employees worked in the Group, which is 24 people less than in the comparable period. In the reporting quarter, the average number of employees decreased by 32, to 447. The sound financial results of the Group’s companies in Finland in 2016 have resulted in the payment of additional remuneration and an increase in reserves, which also led to higher labour costs for the Group. In the reporting quarter, the employees were paid as salaries and fees 2,722 (Q3 2015: 2,454) thousand euros and in nine months, 7,430 (9m 2015: 7,256) thousand euros. The average monthly salary for an employee of the Group was 1,829 (9m 2015: 1,696) euros. Another 58,000 euros was added in the third quarter to the one-off expense of 71,000 euros incurred in the second quarter upon the merger of the metal factories, totalling 129,000 euros. The merger of the metal factories has reached the finishing line in the reporting period. Failures in production, caused by the moving and readjustment of machinery and equipment, had been eliminated to a large extent by the end of the third quarter. Production failures resulted in temporary standstills in production; accordingly, there have been problems in compliance with the delivery deadlines, which in turn have influenced the sales revenue for the first 9 months as well as of the reporting quarter and also the operating profit. In nine months the gross profit of the Group was 7,852 (9m 2015: 8,220) thousand euros. The gross profit margin was 17.5% (9m 2015: 18.0%). In Q3 the gross profit margin was 16.7% (Q3 2015: 19.0%). The operating profit of the Group in the nine months was 2,694 (9m 2015: 3,197) thousand euros and the EBITDA was 3,883 (9m 2015: 4,321) thousand euros. The operating margin of the reporting period was 6.0% (9m 2015: 7.0%) and the EBITDA margin was 8.7% (9m 2015: 9.5%). The consolidated operating profit of the reporting quarter was 1,023 (Q3 2015: 1,788) thousand euros and the EBITDA was 1,397 (Q3 2015: 2,181) thousand euros. The operating margin of the reporting quarter was 6.5% (Q3 2015: 9.9%) and the EBITDA margin was 8.8% (Q3 2015: 12.1%). In Q3 2016, the consolidated net profit was 870 (Q3 2015: 1,620) thousand euros, of which the share of the owners of the Company was 862 (Q3 2015: 1,627) thousand euros. EPS in the Q3 2016 was 0.05 (Q3 2015: 0.09) euros. The net margin was 5.5% (Q3 2015: 9.0%). Overall, the consolidated net profit of the nine months 2016 was 2,849 (9m 2015: 3,203) thousand euros. The share of the owners of the Company was 2,850 (9k 2015: 3,199) thousand euros. EPS was 0.16 (9m 2015: 0.18) euros. In nine months, the Group has made a total of 1,336 (9m 2015: 2,240) thousand euros worth of investments to property, plant and equipment and investment properties. In the 1st half of 2015, the Group invested 1,272 thousand euros to the production facilities at Allika Industrial Park. In Q3 2016 the Group invested 637,000 euros to the building of the next larger production complex at Allika Industrial Park. Main events and post-balance events Swiss CEAMS-CE Asset Management, along with its Baltic partners, announced the next nominees for the Corporate Excellence Award. AS Harju Elekter was recognised as the best listed company in Estonia while being the third in the overall Baltic assessment. It was recognised thanks to a significant improvement compared to the previous year, which was possible thanks to the continued expansion in Northern Europe, conservative balance sheet management as well as a stable and experienced management team. Positive recognition was awarded also to the Group's Finnish company Oy Finnkumu, who reached high, 2nd ranking on the list of the Entrepreneurs of South Ostrobothnia. On 14 October 2016, AS Harju Elekter bought the real estate company Kiinteistö Oy Uutvallinkulma. Following the transaction, it will bear the name of Harju Elekter Kiinteistö Oy. The contract price was 518,000 euros. To date, the acquired company has been leasing 2,470 m2 of production premises to the Group’s Finnish company, Finnkulmu Oy, and in the immediate future the production premises used by Satmatic Oy at Kerava and Ulvila, totalling 5,185 m2, will also be consolidated under the acquired real estate company. This activity is consistent with the policy of the Group, whereby any production premises used by companies in the Group are owned by the Group. On 21 October 2016, in Allika Industrial Park, located on the city limits of Tallinn, the cornerstone was laid for two important buildings: the production and storage facilities of HE and the production and storage building of Stera Technologies Oy, the commercial producer of mechanical and electromechanical devices and components. Prior to that, in April 2016, a preliminary contract was concluded with Stera Technologies Oy for the construction and subsequent leasing of production facilities for the company and procurement conducted to identify a project manager, with construction company Rand and Tuulberg AS qualifying. The investment volume is 8.2 million euros, which will be covered from own funds and a bank loan. For this purpose, loan agreements in a total amount of 7 million euros, was signed with Swedbank AS. In total, 12,700 m2 of floor area for various purposes will be constructed. First stage will be ready for delivery to the tenants in the first half of 2017. AS Harju Elekter granted a loan of 660,000 euros to Skeleton Technologies OÜ. In Q3, an additional round of funding and involvement of investors was arranged and the loan was converted into the share capital of Skeleton Technologies OÜ. The respective entry in the Commercial Register was made on 24 August 2016. On 28 April 2016, the AGM of shareholders of AS Harju Elekter was held; it approved the 2015 annual report and distribution of profit as well as the decision to pay the shareholders a dividend of 0.05 euros per share, or a total of 887,000 euros, for 2015. In addition, the AGM decided to introduce a no par value share and approved the new version of the articles of association of AS Harju Elekter. By virtue of the decision of the AGM, the share capital of AS Harju Elekter will be reduced by 1,242,000 euros, to 11,176,124.40 euros, by means of a reduction of the book value of the shares. The reduction of share capital was entered in the Commercial Register on 18 October 2016 and disbursements to the shareholders will be made in amount of 0.07 euros per share after the three-month term, stipulated by law, has passed as of the registering of the reduction of share capital in the Commercial Register, i.e. on 20 January 2017. The list of shareholders eligible to receive dividends as well as those participating in the reduction of share capital was fixed as at 23.59 on 13 May 2016. Dividends were transferred to the shareholders’ bank accounts on 17 May 2016. At its 5 April 2016 meeting, the Supervisory Board of AS Harju Elekter decided to merge the metal factories of the Group’s Estonian subsidiaries, consolidating the sheet metal processing resources, capability and know-how of the entire Group into AS Harju Elekter Teletehnika. The outcome of restructuring is significant economy in terms of manufacturing as well as labour costs. After the changes, AS Harju Elekter Teletehnika will focus on the manufacturing of sheet metal products and details for the electrical engineering and telecommunications sector, while also maintaining the production line for telecommunications products and fibre-optic cables. By the end of Q3, 30 September, the distribution of assets of factories as well as transfer of employees has been completed. The annual general meeting of the shareholders of PKC Group Oyj, which gathered on 4 April 2016, decided to pay dividends in the amount of 0.70 euros per share. Dividends were transferred to the shareholders’ bank accounts on 15 April 2016. AS Harju Elekter owns 1,094,641 shares. The dividend income of 766,000 euros is reflected in the profit of Q2 2016. The 15% income tax withheld from the dividends in Finland comprised 115,000 euros. PKC Group dividends added 651,000 euros to the cash flow from investment activities in Q2. In February, our subsidiary Satmatic Oy in Finland and Finnkulmu Oy participated in the local trade fair Sähkö-Tele-Valo-AV, in Jyväskülä, and in October in the fair Energia 2016, in Tampere. In September, AS Harju Elekter Elektrotehnika presented its product range at the SLO autumn fair, and in April AS Harju Elekter Trade Group participated in the International Building Fair Estbuild, in Tallinn. Andres Allikmäe Managing director/ CEO +372 674 7400 For more information: Tiit Atso, CFO, +372 674 7400 Interim report 1-9/2016 AS HARJU ELEKTER CONSOLIDATED BALANCE SHEET, 30.09.2016 Unaudited EUR'000 ASSETS 30.09.16 31.12.15 Cash and cash equivalents 2 593 5 711 Trade receivables and other receivables 9 219 6 678 Prepayments 440 278 Prepaid income tax 26 28 Inventories 10 169 7 148 TOTAL CURRENT ASSETS 22 447 19 843 Deferred income tax asset 57 57 Other long-term financial investments 23 512 20 188 Investment property 13 493 12 990 Property, plant and equipment 7 802 8 010 Intangible assets 5 436 5 491 TOTAL NON-CURRENT ASSETS 50 300 46 736 TOTAL ASSETS 72 747 66 579 LIABILITIES AND OWNERS' EQUITY Interest-bearing loans and borrowings 75 296 Trade payables and other payables 7 470 6 043 Payables to shareholders 1 242 0 Tax liabilities 1 307 944 Income tax liabilities 138 146 Short-term provision 16 34 TOTAL CURRENT LIABILITIES 10 248 7 463 NON-CURRENT LIABILITIES 912 912 TOTAL LIABILITIES 11 160 8 375 Share capital 12 418 12 418 Unregistered share capital -1 242 0 Share premium 804 804 Restricted reserves 20 734 18 047 Retained earnings 28 756 26 817 TOTAL OWNERS' EQUITY 61 470 58 086 Non-controlling interests 117 118 TOTAL EQUITY 61 587 58 204 TOT.LIABILIT.AND OWNERS' EQUITY 72 747 66 579 CONSOLIDATED INCOME STATEMENT, 1-9/2016 Unaudited EUR’000 Q3 2016 Q3 2015 9m 2016 9m 2015 Revenue 15 794 18 091 44 759 45 626 Cost of goods sold -13 164 -14 650 -36 907 -37 406 Gross profit 2 630 3 441 7 852 8 220 Distribution costs -704 -614 -2 216 -1 961 Administrative expenses -922 -1 035 -2 973 -3 088 Other income 31 5 83 66 Other expenses -12 -9 -52 -40 Operating profit 1 023 1 788 2 694 3 197 Finance income 2 3 769 788 Finance costs -6 -11 -17 -40 Profit from normal operations 1 019 1 780 3 446 3 945 Corporate income tax -149 -160 -597 -742 Profit for the period, attributable to 870 1 620 2 849 3 203 owners of the Company 862 1 627 2 850 3 199 non-controlling interests 8 -7 -1 4 Basic earnings per share (EUR) 0,05 0,09 0,16 0,18 Diluted earnings per share (EUR) 0,05 0,09 0,16 0,18