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Electronics Production | August 24, 2010

Sales down for Harju Elekter

The consolidated sales revenue of the group in the second quarter was 8.3 million euros, which was 24% less than the result of the comparable quarter.
The consolidated sales revenue of the H1 2010 was 16.9 million euros, which was 25% less than the result of the comparable period. The core business of the Group is the production and sales of electrical distribution systems and control panels as well as other supportive side activities (hereinafter „Production“), which was traditionally the largest
share of sales revenues, 86-87% (90%). The sales revenue on production received from customers outside of the Group decreased by 27% to 7.2 million euros in second quarter and were 14.7 million euros in H1 2010. The main reason for decline was the market recession in Finland.

Of the markets, the domestic markets (Estonia, Lithuania and Finland) of the group's companies prevailed, where 78.3% (93.7%) of the Group's products and services were sold. 65% (69%) of Group products were sold outside of Estonia.

Sales to the Estonian market decreased by 600,000 euros within the reporting quarter and by 1.2 million euros
for the half-year. The decrease in sales volumes was, on the one hand, caused by the alterations in the product groups of the energy sector, and on the other hand, by the decrease in the sales volumes of metering boards which was caused by the decrease in connections.

The recession of the Finnish economy continues, although there are a few signs of an upturn, mainly regarding export. The domestic investments of Finland during the accounting period were irrelevant. Finnish metallurgical and engineering industry enterprises are still struggling. The revenues from sales to the Finnish market decreased the most - by one-third within the second quarter and over 40% during the half-year. However, the sales volume
of the Finnish company to the domestic market, compared to the first half of 2009, decreased nearly twice within the half-year. The decrease in sales volume of the Finnish segment was 27% during the second quarter and 31%
during the half-year. The domestic decrease is partly compensated by the increase in export to Sweden.

In 2009, 60% of the sales revenue of the Lithuanian segment was obtained from the domestic market and 40% from foreign markets, with the Norwegian and Danish markets being the largest. This year supplies to those markets have been modest. Finland, France and the Czech Republic were added as new markets. In June several major projects were carried out on the Lithuanian market, as a result of which two-thirds of the sales volumes for the half- year was earned within the reporting quarter. Almost 80% of the sales revenue for the half-year was obtained from Lithuanian customers.

During the first 6 months the sales to other states of the European Union have increased almost twice, including sales to the market of Sweden which increased 1.4 million euros. France, Czech Republic and Malaysia have been added as new markets and the Group has sold during the H1 2010 its products to those markets totally in amount 1.2
million euros. The Group has also sold its products to Latvia, Portugal and Poland and outside of the European Union to the markets of Belarus, Ukraine, Russia and Norway.

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November 14 2017 8:30 PM V8.8.9-2