JSC "VALMIERAS STIKLA ŠĶIEDRA" Reg.No Not audited. Financial report. as at 30.September 2006 as at 30.September 2005

Transcription

1 JSC "VALMIERAS STIKLA ŠĶIEDRA" Reg.No Not audited Financial report as at 30.September 2006 as at 30.September 2005

2 COMPANY NAME LEGAL STATUS REGISTRATION NUMBER, PLACE AND DATE TYPE OF BUSINESS ADDRESS THE BOARD Valmieras Stikla Skiedra Joint Stock Company No Riga, 30 September 1991 Production of glass fibre products 13 Cempu Street, Valmiera, LV- 4201, Latvia Chairman of the Board: Andris Oskars Brutāns, president Members of the Board: Andre Heinz Schwiontek, vicepresident Wilfried Queißer Karl Heinz Will Imants Saulītis Bernd Preiβler Friedhelm Schwender THE COUNCIL Chairman of the Council: Jürgen Preiss-Daimler Members of the Council: Andris Bērziņš Hans Peter Cordts Guntis Strazds Aivars Lošmanis 2 Valmiera, Cempu St. 13

3 TABLE OF CONTENTS MANAGEMENT REPORT 4-5 BALANCE SHEET 6-7 STATEMENT OF PROFIT AND LOSS 8 STATEMENT OF CASH FLOWS 9 STATEMENT OF SHAREHOLDERS' EQUITY 10 ANNEX Valmiera, Cempu St. 13

4 MANAGEMENT REPORT The Company's primary business is the manufacture and sale of fibreglass produkcts. The Company has been operating in international fibreglass market for 12 years; in 2005 the production was sold in 29 countries. 70% of total produkction is sold to European Union companies. Since 2000 the Company operates in accordance with DIN EN 9001:2000 quality management certifikate, which was issued and is audited every 3 years by a German Quality management system certifikation company located in Frankfurt. The unaudited financial statements have been prepared in accordance vith International Reporting Standards (IFRS),the Latvian law"on the Annual Reports of Enterprises" and Latvian accouting standards. In the first 9 months of 2006 the Company's sales amounted to LVL million compared to 2005 when the sales were LVL million. The net sales increase is LVL 1.118million or 4.3%. The sales increase is related to the increase in turnover and number of customers in USA and Europe.The sales increase was caused by the succesful operation of fibreglass manufacturindg plants, the high qualification of employees, new product development, improvement of production and sales process. During 2006, the Company has invested LVL 13.8 million in fixed assets to increase the manufacturing capacity. The table below shows the fibreglass products, which were produced in 2006, and their respective share of total fibreglass sales: Fibreglass nets and ravings 32% Fibreglass fabrics 62% Other 6% The net profit for the first 9 months of 2006 was LVL 0.04 million, which is a decrease of LVL million or 97.2% and by LVL million or 96.3% less than planed compared to 2005.The decrease in net profit is related to an increase of actual expenditure for certain types of costs ( transportation, imported semi finished products,electricy,gas,depreciation and amortisation, exchange rate fluktuations,etc.) in comparision to budgeted and fact in the first 9 months of The share value of A/S Valmieras Stikla Šķiedra listed in Riga Stock Exchange decreased by LVL 0.30 or 11.4%, I.e., from LVL 2.64 as of 30 December 2005 to LVL 2.34 as of According to a decision made during the shareholders meeting on 12 May 2006,a part of the net profit for 2005 vas paid out as dividends to the Company's shareolders,1.3 santimes per share. As of september , the share capital of JSC Valmieras Stikla Šķiedra was LVL During 2006, the Company was successfully continung to implement the Development concept for the years 2004 to The main goals of the Development concept and the investment projects are the following: increase in manufacturing capacity; reduction of costs; improvement of work organization; development of new products; search for new markets; The Company plans to invest in several large projects that will affect all production units and technological equipment. 4

5 The Company's budgeted sales for 2006 are LVL million, net profit- LVL 1.0 million.in 2007 the Company plans sales of LVL 43.7 million, and have profit of LVL 1.5 million. Total budgeted investments for 2006 egual LVL million. 5

6 JSC VALMIERAS STIKLA ŠĶIEDRA BALANCE SHEET AS AT 30 september 2006 AND 30 september CURRENCY 2005 CURRENCY LVL EXCHANGE RATE LVL EXCHANGE RATE ASSETS on30/09/2006eur on 30/ EUR Non-current assets 0, , Intangible assets Patents and licenses Other intangible assets Total intangible assets Fixed assets Land and buildings Equipment and machinery Other fixed assets Construction in progress Advence payments for fixed assets Total fixed assets Total non-current assets Current assets Inventory Raw materials Work in progress Finished goods Advance payments for inventories Total inventory Accounts receivable Trade receivables Other receivables Deferred expenses Total accounts receivable Cash and cash eguivalets Total current assets TOTAL ASSETS

7 JSC VALMIERAS STIKLA ŠĶIEDRA BALANCE SHEET AS AT 30 september 2006 AND 30 september CURRENCY 2005 CURRENCY LVL EXCHANGE RATE LVL EXCHANGE RATE on 30/ EUR on 30/ EUR LIABILITIES & SHAREHOLDERS EQUITY 0, , Shareholders equity Share capital Reserves Retained earnings: a) retained earnings b) current year profit Total shareholders equity Liabilities Non-current liabilities Due to credit institutions Finance lease Deferred tax Total non-current liabilities Current liabilities Due to credit institutions Finance lease Advance payments from custom Trade payables Taxes and social security paym Other accounts payable Accrued liabilities Dividend for the financial year Total current liabilities Total liabilities TOTAL LIA

8 JSC VALMIERAS STIKLA ŠKIEDRA STATEMENT OF PROFIT AND LOSS FOR THE YEARS ENDED 30 SEPTEMBER 2006 AND 30 SEPTEMBER LVL EUR LVL EUR 0, , Revenues Changes in inventories ( ) ( ) ( ) Other operating income Raw materials and consumables ( ) ( ) ( ) ( ) Personnel expenses ( ) ( ) ( ) ( ) Depreciation and amortization ( ) ( ) ( ) ( ) Other operating expenses ( ) ( ) ( ) ( ) Profit from operations Interest - and similar income Interest - and similar expenses ( ) ( ) ( ) ( ) Profit before taxes Corporate income tax ( ) ( ) ( ) ( ) Net profit Basic earnings per share 0,0017 0,0024 0,0611 0,0869 8

9 A/S VALMIERAS STIKLA SKIEDRA 2006 Year 2006 Year 2005 Year 2005 Year STATEMENTS OF CASH FLOWS 9 months 9 months 9 months 9 months LVL EUR LVL EUR I OPERATING ACTIVITIES 0, , Profit before taxes Adjustaments: 2. Depreciation and amortization Depletion of precious metals Provisions for vacations and bonuses for board and council members ( ) ( ) Loss from disposal of fixed assets ( ) ( ) ( 1 441) ( 2 050) 6. Calculated interest income (1 163) (1 655) ( 0 398) ( 0 566) 7. Calculated interest expenses Changes in operating assets and liabilities: 1. Inventory ( ) ( ) 2. Accounts receveible ( ) ( ) ( ) ( ) 3. Accounts payable Cash provided by operating activities II INVESTING ACTIVITIES 1. Purchase of fixed assets ( ) ( ) ( ) ( ) 2. Proceeds from sale of fixed assets Received interest income Net cash provided by /(used) financing activities ( ) ( ) ( ) ( ) III FINANCING ACTIVITIES 1. Recevaid loan from credit institution Paid credit institution ( ) ( ) ( ) ( ) 3. Received credit line Paid credit line ( ) ( ) ( ) ( ) 5. Paid finance lease ( ) ( ) ( ) ( ) 6. Dividends paid ( ) ( ) ( ) ( ) 7. Interest expenses paid ( ) ( ) ( ) ( ) Net cash provided by/(used in)financing activities Net decrease in cash (59 050) (84 021) Cash at the beginning of the year Cash at the end of the period

10 A/S "Valmieras stikla šķiedra " Statements of shreholders"eguity In 9 months of 2006 Statutory reserves LVL rate of exchange 0, Retained earnings Share capital LVL Total LVL EUR Statutory reserveseu R Retained earnings EUR Share capital LVL Total EUR As of 31 December Current 9 Months2005profit Dividends paid ( ) ( ) ( ) ( ) As of 30.september Current X-XII 2005 profit ( ) ( ) ( ) ( ) As of 31.december Current 9 months Dividends paid ( ) ( ) ( ) ( ) As of 30september Andris Oskars Brutāns Chairman of the Board 10

11 1. SHARE CAPITAL ANNEX The kompanys registered share capital as of 30.September 2006 and 2005 was LVL The Company s paid share capital registered with the Enterprise Register as of 30 September 2006 and 2005 was consisting of ordinary shares with voting rights and ordinari shares without voting rights. The nominal value of each share is LVL1. As of 30 September 2006and 2005 the shareholders of the Company.in accordance with the records maintained by the Latvian Central Depository.were as follows: P-D Glasseiden Oschatz GmbH 45.3% 45.3% Vitrulan Textilglas GmbH 30.8% 30.8% Skandinavska Enskilda Banken Ab 4.4% 7.8% VAS VSAA 2.4% 2.4% Nordea Bank Finnland Plc 3.9% 2.6% P.D.P.Fiberglass Consulting Ltd 4.6% 4.6% Other 8.6% 6.5% 100,00% 100.0% 2.INFORMATION FOR "PROFIT OR LOSS ACCOUNT 1. MATERIAL EZPENSES Months EUR 9 months EUR LVL 0, , Raw materials Electricity Ore processing costs Natural gas Depletion of ore Other Total PERSONNEL EXPENSES Salaries Social security payments Illness and vacation expenses Provisions for bonuses of Board and Council #DIV/0! Other Total DEPRECIATION AND AMORTIZATION Fixed asset depreciation Intangible asset amortization Total OTXER OPERATING EXPENSES Transportation Commission Service costs Repairs Maintenance expenses Insurance Business trips Expenses relating to pessonnel Communications Leasing Property tax Office expenses Selling expenses Increase in doubtful debts Other Total

12 3.TRADE RECEIVABLES 2006 EUR 2005 EUR 9 month 9 month LVL 0, , P-D Glasseiden Oschatz GmbH P-D Aitec GmbH Vitrulan Textilglas GmbH Other trade receivables Andris Oskars Brutāns Chairman of the Board 12