16 November 2004
Quick Report for the First Nine Months of 2004
Below is the consolidated and unaudited financial statements for the first nine
months of 2004 which were prepared in accordance with the International
Financial Reporting Standards (IFRS).
Main events and most important features influencing the operations and financial
management of the Group in the first nine months of 2004 are as follows:
• On September 24, 2004, the Altalanos Ertekforgalmi Bank Rt announced that
it had disposed of its 50.11 % stake in Zalakeramia Rt through a stock
exchange dealing. At the same time, Lasselsberger Ceramics Kft announced
that it had acquired the ownership of 2,683,113 ordinary shares issued by
Zalakeramia Rt and representing a 50.11 % control over the company, by
executing the Share Purchase Agreement entered into with Altalanos
Ertekforgalmi Bank Rt on July 21, 2004. Thereby, the direct control of
Lasselsberger Ceramics Kft over Zalaekramia Rt increased to 89.7 %.
• The Raiffeisen Zentralbank Osterreich AG (RZB), and the
Raiffeisenlandesbank Niederosterreich-Wien AG, the Raiffeisenlandesbank
Oberosterreich AG and the Investkredit Bank AG (Creditors) announced that
RZB and the Creditors acquired conditionally a control of about 89.7 % over
Zalakeramia Rt under the Share Pledge Agreement entered into between RZB as
Creditor and Depositary and Lasselsberger Ceramics Kft ('Lasselsberger') as
Borrower and Depositor on September 28, 2004. Under the Share Pledge
Agreement, the actual control is subject to making a breach of contract by
Lasselsberger during the term of the credit agreement, based on the relevant
credit agreement between RZB and Lasselsberger, and exercising their rights
provided in the Share Pledge Agreement by RZB and the Creditors.
• On September 28, 2004 the officers delegated by Altalanos Ertekforgalmi
Bank Rt resigned from their functions. That day, the Board of Directors of
Zalakeramia Rt held a Board meeting where Mr. Peter Marton was appointed the
chairman of the Board of Directors.
• On June 18, 2004, Zalakeramia Rt entered into a sales contract for selling
its 100 % business share in Jasz-Gold Ingatlanfejleszto Kft in the amount of
HUF 352 million. the purchase price was fully paid on September 27, 2004
therefore the right of ownership transferred to the buyer. It was
consolidated in the period of the first nine months of 2004.
Main data for Q3 2004 of Zalakeramia Rt parent company (based on the financial
statements of the parent company prepared in accordance with the International
• Production of tiles amounted to 4,733 th sq.mtrs and that of stove tiles
it was 412 th tile units. In case of tiles, production exceeded the level of
basis by 2 % and in the case of stove tiles, lag from the basis was 12.4 %.
• 4,657 th sq.mtrs were sold of own-produced tiles and 88 th sq.mtrs of
purchased tile thus total sales of tiles amounted to 4,744 th sq.mtrs being
2.1 % lower than the figure for Q3 2003.
• Sales revenue was 2 % behind the basis level representing the realization
of HUF 6,587 million sales revenue.
• Gross margin was HUF 1,956 million being 9.4 % lower than the figure for
• Gross margin percentage amounted to 29.7 % in Q3 2004 being 2.4 % points
lower than in Q3 2003.
• General expenses exceeded by HUF 57 million the figure of the basis level.
• Relating to the long term credit the Company recognised HUF 203 million
foreign exchange gains in Q3 2004 as a result of the strengthening of Forint
against Euro. The amount of interest expenses was HUF 84 million as against
the HUF 161 million in the basis period. Reduction of the interest expenses
is the result of a decrease in the credit facility.
• Profit before tax of the parent company is HUF 1,280 million containing
dividend income from the subsidiaries in the amount of HUF 759 million.
Profit after tax of the Company is HUF 1,272 million.
Main data for Q3 2004 of S.C. CESAROM S.A. subsidiary (based on the financial
statements of the subsidiary prepared in accordance with the International
• In the first nine months of 2004 production of tiles amounted to 3,568 th
sq.mtrs which is nearly the same as the quantity produced in the basis
period (3,545 th sq.mtrs). 410 th pcs of sanitary ware were produced and
this exceeded the basis figure by 8.4 %
• The company sold 2,939 th sq.mtrs of own-produced tiles, 200 th sq.mtrs of
the parent company's tiles and 111 th sq.mtrs of other purchased tiles. It
means that the company sold 3,250 th sq.mtrs being 19.1 % lower than in Q3
• On drawing up the IFRS statements of the Romanian subsidiary the figures
had been inflated up to the first half year of 2004 but not in the third
quarter as the accounting method specified for the hyperinflationary
economies has been terminated based on the agreement of the audit companies
On converting into Forint the following exchange rates were used:
December 31, 2003 156.250 ROL/HUF
March 31, 2004 161.290 ROL/HUF
June 30, 2004 161.290 ROL/HUF
September 30, 2004 166.666 ROL/HUF
• Sales revenue, calculated in ROL, decreased 4.7 % compared to the basis
period and calculated in Forint it remained 17.2 % below the basis level.
• Gross margin was HUF 1,370 million in the current period and gross margin
percentage was 29.4 %.
• Profit before tax of the Romanian subsidiary is HUF 629 million and its
profit after tax is HUF 344 million.
Main data for Q3 2004 of our Inker d.d. subsidiary (based on the financial
statements of the subsidiary prepared in accordance with the International
• Sales revenue of the subsidiary in terms of Forint was HUF 3,203 million
exceeding the basis level by 4.6 %. In terms of the Croatian national
currency, the sales revenue increased 2.1 %.
• In the sanitary ware business produced quantity increased 7.6 % compared
to the basis period exceeding 300 th pcs. The produced quantity of the
porcelain tableware amounted to 7.8 million pcs which lags behind the basic
period's figures by 9.5 %.
• Inker d.d sold 311 th pcs of sanitary ware which exceeded the basis period
by 12.0 %. Slightly less than 8 million pcs were sold of porcelain tableware
which is 6.3 % lower than the figure of the basis period.
• Gross margin exceeded the corresponding figure of the previous year by 5.6
% representing the realization of HUF 609 million gross margin.
Gross margin percentage was 19.0 % being slightly - by 0.2 % points -
higher than the figure in Q3 2003.
• Ratio of selling, general and administrative expenses to sales revenue was
• Profit after tax of the subsidiary in Croatia was HUF 177 million.
I. Analysis of the consolidated and unaudited profit and loss statement
Consolidated sales revenue of the Group is shown below:
Company Q3 2004 Q3 2003
Domestic Export Total Domestic Export Total
Zalakeramia Rt. 5 509 106 849 426 6 358 532 5 216 147 1 032 368 6 248 515
Inker d.d. 1 465 084 1 726 922 3 192 006 1 333 432 1 725 772 3 059 204
S.C.Cesarom S.A. 4 059 449 553 923 4 613 372 4 978 345 601 383 5 579 728
Inker Trgovina 140 399 140 399 118 083 118 083
Total: 11 174 038 3 130 271 14 304 309 11 646 007 3 359 523 15 005 530
Group sales revenue was 4.7 % lower than the corresponding sales revenue in
Zalakeramia Rt could achieve HUF 110 million and Inker d.d HUF 133 million extra
sales revenue compared to the basis period however the sales revenue of S.C.
Cesarom S.A. reduced as compared to Q3 2003.
Export sales revenue shows also a reduction the rate of which is 6.8 % and
export represents 21.9 % within total sales.
In the first nine months of 2004, Zalakeramia Group sold total 7,685 th sq.mtrs
of own-produced tiles and 199 th sq.mtrs of purchased tiles which is 8.0 % below
the sales figures of the basis period. The parent company's sales outside the
Group - to third parties - was the same as in the basis period however the sales
of tiles of the Romanian subsidiary was more than 750 th sq.mtrs lower than the
In the case of Zalakeramia Rt a shift in proportion occurred in favour of
wholesale trade. The sales revenue of the retail activities exceeded only
slightly the basis figure while wholesale trade expanded by 7.2 %. Sales of
own-produced tiles increased 6.6 % compared to the basis which was mainly the
result of the increasing sales of frost-resistant tiles.
Domestic tiles sales processes are characterised by the following tendencies:
• production of the domestic manufacturers has increased over the past
period of 2004 and their domestic sales have moderately increased,
• not only the market but also the rate of growth of import declined. Within
this, the import of glazed products slightly increased however the import of
unglazed products decreased nearly 10 %,
• it should be outlined that the share of the main supplier, Italy,
significantly declined again while the share of Spain increased to a smaller
extent than that,
• Growth of import was mainly the result of the increase of the Czech,
Chinese, Slovakian and Polish supplies,
• of late years, it was the first time that the growth of sales of
own-produced tiles exceeded the growth of import sales,
• change in the composition of demand within floor tiles has continued and
the market of gres tiles has further expanded,
• the public demand coming more and more into the limelight in the tile
market, further increased price sensitivity in the market while strong price
increase tendencies dominated,
• the structure of investments attaching to construction has modified, civil
engineering requiring a minimum quantity of tiles, has started up (road
construction, road reconstruction),
• house building run up in the previous year, has not continued to increase
however the proportion of homes with smaller living space and requiring less
tiles has increased and these together had an adverse effect on the demand
for wall tiles,
• the increased home modernization and reconstruction has increased the
public floor tile demand,
• office and shopping centre constructions have declined,
• increase in sales of wall tiles has considerably moderated.
In the life of Zalaekramia Rt the past period of year 2004 was characterised by
the renewal of the product structure representing the stopping of the production
of outdated products and their withdrawal from the market on the one hand, and
development of large number of new products and their market launch, on the
other. The development means not only new design but also the establishment of a
new size (20x30 cm) which is to replace mainly 20x25 cm tiles - not so popular
size already - on the market. Developments continue throughout the whole year
and newer and newer tiles appear almost each week. Their reception on the market
is favourable and, among others, it is due to the launch of new products that
sales of the chains of stores got new dynamism. It is especially important
because 30 to 35 % of tiles are sold through this sales channel.
Tile export for Q3 2004 of the parent company was about 290 th sq.mtrs behind
the figure of the basis period and the sold quantity amounted to 902 th sq.mtrs.
These export sales are behind both the expectations and estimation which is the
result of the market difficulties, slack of this line of business and enormous
We have lost some of our export markets due to the more and more considerable
spreading of very cheap tiles from China. In Germany the small size (15x15,
15x20 cm) wall tiles can be obtained at a price of EUR 2 per sq.mtrs delivered
to Hamburg. None of the European manufacturers is able to compete with it.
In the corresponding period of the previous year about 47 th sq.mtrs of tiles
were sold in France, 34 th sq.mtrs in Germany and 50 th sq.mtrs in the Ukraine
which failed this year due to loss of market and partner. In Romania sales were
lower by 100 th sq.mtrs due also to the difficulties on the market. 127 th
sq.mtrs were sold here however still in the first half year.
I the corresponding period of last year 200 th sq.mtrs were sold in Russia and
only the half of it this year. In the case of new customers still the prices and
inadequacy of product presentation mean the biggest problem as a strong price
competition has emerged on this market as well. New Russian manufacturers
appeared with good quality products and border tiles having modern designs. The
Italians and Spanish provide very intense marketing promotion in order to
represent and sell their own products in the best possible way. It is very
difficult to compete with all these and increase our sales.
The Company has made and makes major efforts to maintain and strengthen its
market position in all markets. A lot of newly developed tile families have been
launched in the export markets however to have them accepted and present them
needs a lot of time and marketing expenditures.
We could sell the most tiles, 22 % of total export, in Austria, further on.
Sales to the Czech Republic stays on the second place with its 16 % and Romania
is on the third with 14 %. On the Croatian market sales are made through our
self-owned Inker-Trgovina d.o.o. and three other direct customers which amounts
to 13 % in the total quantity of export sales.
At S.C. Cesarom S.A. all the tiles are sold in the Romanian market which
represented the sales of 3,250 th sq.mtrs of tiles in Q3 2004. Unfortunately,
sales of the third quarter, considered to be the season, were lower than the
sales of the basis which resulted in the fact that the Romanian subsidiary'
sales were 750 th sq.mtrs lower than the sales in the Q3 2003. Imported tile
products are gaining more and more ground in Romania and the sellers try to push
out the domestic manufacturers from the market with longer payment dates and
Production (pcs) Sales (pcs)
Inker d.d. 304,189 311,453
S.C. Cesarom S. A. 410,382 421,917
Volume of production increased by 12.1 % as compared to the basis period at the
Croatian subsidiary. With regard to product structure, production of higher
weight and higher standard products has been realized. Regarding the product
structure, the breakdown of production volume of sanitary ware was as follows:
46 % toilet bowls, 36 % wash basins and 18 % other sanitary ware. Sanitary ware
production of the Romanian subsidiary also increased the rate of which was 8.4
Sold quantity shows an increase at both subsidiaries as compared to the first
nine months of 2003 (Inker: 12.1 %, Cesarom: 2.9 %).
At Inker d.d, sold quantity increased 14.5 % in the domestic market and 9.7 % in
the export markets. The growth of the quantity of domestic sales could be
achieved so that the sales of each sanitary ware product family were striven to
be increased through different discounts - average 7 % - both before the
commencement of the season in April and before the end of the season in
With respect to sanitary ware export, though significant fluctuations show among
the months we could achieve such a result in the first nine months of 2004 that
the indicators by both volume and value are better than in the corresponding
period of 2003 (quantity 10 %, sales revenue 8 %). Discounted sales of Julija
Nova product family in the Bosnian market should be outlined where the sales
could be increased besides a 10 % discount.
At Cesarom S.A. sold quantity increased 18.8 % in Romania however export
decreased 5 %. In the latter segment, a dominant role is played by Austria,
Hungary and France, these three countries represent over 85 % of the export
In 2004, total quantity of produced porcelain tableware was 9.5 % below the
basis level and exceeded 7.8 million pcs. Average weight of the porcelain ware
is 0.24 kg/piece which slightly increased as compared to the corresponding
period of 2003. As regards the structure of production the percentage of white
and decorated goods is 56.5 % to 43.5 %.
Sold quantity approached 8 million pcs being 6.3 % lower than the quantity of
porcelain ware sold in the first nine months of 2003. Though the quantity sold
in the domestic market exceeded minimally - by 1 % - the basis level but in the
export representing a larger portion within total sales, a 9.2 % decrease
occurred. Within export, the most considerable decrease occurred in the Italian
markets representing a 20 % decrease compared to the corresponding period of
last year. The reason of the decrease was the unfavourable tendency of tourism
season, the decrease in demand for traditional products and the fact that the
very low priced Chinese porcelain products and also Turkish and Polish products
the prices of which are 20 to 25 % lower than that of the products of Inker,
appeared in the Italian market. Besides the Turkish and Polish products, the
domestic Italian producers are becoming stronger and stronger. The reduction in
the Italian market could partly be offset by the sales in new markets but the
market launch also needs some time. Considering that Italy is the largest export
market, it is very difficult to substitute the lost turnover within a short
397 thousand tile units were sold of stove tiles representing a 11.5 % decline
compared to the basis. HUF 209 million sales revenue originated from the sales
of stove tiles being 8.2 % lower than the basis level.
Company Q3 2004 Q3 2003 Index %
Zalakeramia Rt. 1 986 457 2 046 275 97.1
Inker d.d. 597 863 566 346 105.6
S.C. Cesarom S.A. 1 581 525 2 155 905 73.4
Inker Trgovina 32 282 28 858 111.9
Total: 4 198 127 4 797 384 87.5
In the first nine months of 2004 the gross margin of Zalakeramia Group reduced
by 12.5 % or nearly HUF 600 million. The drastic decline in gross margin of the
Group was definitely caused by the underperformance of the Romanian subsidiary
compared to the basis because a significant loss of sales occurred as compared
to the basis.
Selling, general and administrative expenses
Company Q3 2004 Q3 2003 Index %
Zalakeramia Rt. 1 247 798 1 190 730 104,8
Inker d.d. 399 386 366 979 108,8
S.C. Cesarom S.A. 783 810 889 941 88,1
Total: 2 430 994 2 447 650 99,3
Inker Trgovina 22 132 22 192 99,7
Jasz-Gold Kft.* 7 354 12 051 61,0
Lakopark Kft. 162
Keramialand Kft 5 639 4 875 115,7
Grand total: 2 466 119 2 486 930 99,2
* Previously called Jaszberenyi uti Kft.
On the Group level, selling, general and administrative expenses show a minimum
decrease in total.
Expenses relating to property valuations, extraordinary audit and changes in the
management occurring in the second quarter, are included in the selling, general
and administrative expenses of the parent company the total cost impact of which
amounted to HUF 100 million. The performance of S.C. Cesarom S.A. is slightly
improved by the fact that it could make over HUF 106 million savings in the
Other operating income and other operating expenses
Other operating income shows a 52.8 % increase. The increase was caused by the
release of provisions - after the disposal of Jasz-Gold Kft - of HUF 139,214 th
made for the recultivation expenses.
Other operating expenses increased minimally, by 5.0 %.
Exchange rate gains/exchange rate expenses
Exchange rate loss/exchange rate gains are shown in a separate line in a grossed
up manner the balance of which is gains of HUF 177,254 th in the first half of
figures in HUF thousands 2004 2003
First nine months
Exchange rate gains: 293.532 921.396
F/x gains on long term loan: 203.260 170.352
Consolidated f/x rate gains on the disposal of Lakopark Kft - 561.805
F/x rate gains on the settlement of receivables from the - 85.387
disposal of Hussar Holding AG
Other f/x rate gains on receivables/liabilities: 90.272 103.852
Exchange rate expenses 116.278 786.505
F/x losses on syndicated credit facility - 623.221
F/X losses on the settlement of liabilities against Hussar Holding AG - 13.651
F/x loss on financial investments: 3.730
Loss of value of investments: 835
Other f/x losses on receivables/liabilities: 111.713 149.633
Result of financial activities
Interest income, interest expense
Amount of interest income amounted to HUF 63 million exceeding by HUF 25 million
the figure of the basis period. Considering our better financial position in
2004, higher interest income could be realized on our bank deposits.
The amount of interest expenses decreased more than 50 %. Mainly it was caused
by the decrease in long term loan of the parent company on which HUF 84 million
interest expenses incurred in the first nine months of 2004 as against the
amount of over HUF 160 million in the basis period. At the parent company
interest expenses did not arise in connection to it due to the stopping of
factoring which amounted to HUF 7 million in the basis period.
Net monetary position
In the period under review the value of monetary assets slightly exceeded that
of the monetary liabilities therefore the Company generated HUF 9 million losses
on net monetary position.
Corporate tax liability
This line includes the corporate tax liability on the profit originated at our
S.C. Cesarom S.A. subsidiary in Q3 2004 (calculated in accordance with the
Romanian Accounting Standards) and payable in accordance with the Romanian tax
laws in the amount of HUF 252 million, the dividend tax of the Group in the
amount of HUF 39 million and corporate tax at Jasz-Gold Kft in the amount of HUF
7 million. The decline in this line was caused by the decrease in corporate tax
liability at the Romanian subsidiary the rate of which was HUF 22 million.
Deferred tax liabilities
Deferred tax in the profit and loss statement includes the amounts of deferred
tax shown for S.C. Cesarom S.A. and Zalakeramia Rt. The amount of deferred tax
was HUF 8 million at Zalakeramia Rt and HUF 33 million at S.C. Cesarom S.A. In
the basis period, HUF 172 million deferred tax incurred at Zalakeramia Rt and
HUF 128 million at the Romanian subsidiary.
Net profit after tax and minority interest
With all these items taken into consideration, the consolidated and unaudited
profit of the Group amounted to HUF 1,371 thousand in the first nine months of
2004 exceeding by 9 % the corresponding figure of the basis period.
I. Analysis of consolidated unaudited balance sheet
The balance sheet total of the Group has decreased by 2.9 %.
Rate of increase in current assets is 4.0 %.
Cash and cash equivalents have increased by 48.4 %.
This line includes an income from the disposal of Jasz-Gold Kft in the
amount of HUF 352.
Trade accounts receivable remained on the basis level.
The value of inventory amounted to HUF 6,128 million which increased by 5.2
% compared to the basis period.
The figure of other current assets for Q3 of 2004 includes the receivables -
in the amount of HUF 300 million - of the parent company originating from
the disposal of Lakopark Kft. These receivables of Zalakeramia Rt have been
received therefore it is not included in other current assets in the period
Fixed assets and others
Fixed assets and others reduced 7.8 %.
Tangible assets, net decreased by 7.8 %. The decrease is the result of the
difference between the investments realized in the Group and the recognised
Intangible assets, net was 3.5 % lower than in the basis period because the
rate of investments was behind the rate of amortisation accounted for in
Deferred tax line includes deferred tax of Zalakeramia Rt. The amount of
this line reduced by 5.9 % as a consequence of deferred tax recognised on
the basis of the parent company's profit for last year in accordance with
the Hungarian Accounting Standards.
Financial investments line includes the house building loans granted to
employees and long term receivables given for other purposes, as well as
Liabilities and shareholders' equity
Current liabilities decreased 9.8 %.
Accounts payable and accrued expenses reduced by 5 % (or HUF 121 th). This
reduction was caused by the decrease in suppliers.
The amount of provisions reduced by 45.7 %. The reduction was caused by the
release of provisions detailed under section profit and loss statement.
Short term liabilities remained on the basis level.
Current portion of long term liabilities
This line includes the current portion of the parent company's long term
loans in the amount of EUR 2,842 th or HUF 702 million. In the basis period,
the amount of the current portion was EUR 3,042 th.
This line includes also the current portion of long term liabilities of
Inker d.d. in the amount of HUF 44 th which is almost the same as the basis
figure (HUF 41 million). In the period under review, current portion of long
term liabilities includes the current portion of leasing fees for cars
leased by the parent company, in the amount of HUF 15 million.
Long term liabilities
Long term liabilities
The amount of long term liabilities decreased by 29.7 % as a result of
principal repayments. This line includes Zalakeramia Rt's long term credit
in the amount of HUF 2,106 million (EUR 8,526 th), long term liability of
Inker d.d. in the amount of HUF 47 million and long term portion of leasing
fees for cars leased by the parent company, in the amount of HUF 48 million.
S.C. Cesarom S.A. indexed the value of tangible assets in IFRS financial
reports according to rules regarding inflationary economies up to June 30,
2004. The deferred tax payment liability stated in the balance sheet covers
the tax calculated according to IFRS on the difference between the revalued
and the Romanian book value forming the taxation base.
Minority interest has decreased by 8.3 % compared to the basis period. The
decrease was the result of the conversion into Forint.
Owners' equity has increased by 4.7 % compared to the basis period.
Issued capital and share premium reserves remained unchanged compared to the
Retained earnings has increased by the profit of the previous year.
Translation adjustment is the balance of exchange rate differences
generating on translating into Forint during the consolidation. Difference
here is caused by the changes of the cross-rates of foreign currencies.
II. Cash Flow
In the first nine months of 2004, our cash and cash equivalents have
increased as compared to the basis period based on those described above in
the analysis of the balance sheet however a decrease of HUF 72 million
occurred compared to the opening cash as of 1st January. Two major factors
should be underlined: on the one part, the increase of trade accounts
receivable - resulting from the turnover - as compared to the end of the
year and the change in credit facility which reduced by over HUF 700 million
compared to the beginning of the year, on the other. Taking all these into
consideration, the closing funds of the Group exceeded HUF 1,870 million.
III. Selected financial ratios
Q3 2004 Q3 2003
Operating profit 1 595 125 2 109 258
Amortisation 1 232 304 1 232 539
EBITDA 2 827 429 3 341 797
EBITDA/paid interests 40.7 21.8
Acid test ratio ((current assets-inventory)/current liabilities) 1.9 1.7
PROFITABILITY TO SALES
Gross margin 29.3% 32.0%
Operating profit 11.2% 14.1%
Profit/loss before tax 12.1% 12.6%
Profit/loss after tax 9.7% 8.5%
Balance sheet profit/loss 9.6% 8.4%
OTHER PROFITABILITY RATIOS
ROE 6.5% 6.2%
ROA 4.9% 4.4%
Percentage of fixed assets in total assets 55.0% 57.9%
Percentage of liabilities in total liabilities & owners' equity 22.1% 27.5%
Owners' equity/balance sheet total 75.9% 70.4%
Owners' equity/fixed assets 1.38 1.22
Capitalization ratio (owners' equity/(fixed assets+inventory)) 0.99 0.90
Efficiency of stocks (sales revenue/stocks) 233.4% 257.7%
Debt-to-equity ratio (debts/owners' equity) 29.1% 39.0%
Liquidity ratio I (current assets/current liabilities) 3.74 3.24
Quick ratio ((current assets-stocks)/current liabilities 1.92 1.68
Consolidated Balance Sheet, Unaudited
figures in HUF thousands 30/09/2004 30/09/2003 Index
Cash and cash equivalents 1 870 392 1 260 082 148.4%
Trade accounts receivable 4 257 266 4 339 878 98.1%
Inventory 6 128 070 5 823 548 105.2%
Short term investments 0 297 0.0%
Investments in associates
Other current assets 305 658 653 342 46.8%
Total current assets 12 561 386 12 077 147 104.0%
FIXED ASSETS AND OTHERS
Tangible assets, net 15 163 334 16 451 573 92.2%
Intangible assets, net 23 135 23 984 96.5%
Deferred tax 112 596 119 662 94.1%
Investments 36 855 44 132 83.5%
Total fixed assets and others 15 335 920 16 639 351 92.2%
TOTAL ASSETS 27 897 306 28 716 498 97.1%
LIABILITIES AND OWNERS EQUITY
Accounts payable and accrued expenses 2 321 983 2 443 367 95.0%
Provisions 167 441 308 123 54.3%
Short term loans 107 075 112 401 95.3%
Current portion of long term debts 761 498 859 902 88.6%
Total current liabilities 3 357 997 3 723 793 90.2%
LONG TERM LIABILITIES
Long term loans 2 203 384 3 134 444 70.3%
Deferred tax 606 168 1 028 629 58.9%
Total long term liabilities 2 809 552 4 163 073 67.5%
Minority interest 557 197 607 738 91.7%
Issued capital 5 354 463 5 354 463 100.0%
Treasury shares 0 -
Share premium reserve 9 420 101 9 420 101 100.0%
Retained earnings 5 508 739 4 434 013 124.2%
Translation adjustment 889 257 1 013 317 87.8%
Total owners' equity 21 172 560 20 221 894 104.7%
TOTAL LIABILITIES AND
OWNERS' EQUITY 27 897 306 28 716 498 97.1%
Consolidated Statement of Profit and Loss, Unaudited
figures in HUF thousands
30/09/2004 30/09/2003 Index
Sales revenue 14 304 309 15 005 530 95.3%
Cost of sales (10 106 182) (10 208 146) 99.0%
GROSS MARGIN 4 198 127 4 797 384 87.5%
Selling, general and administrative expenses (2 466 119) (2 486 930) 99.2%
Other operating income 237 226 155 266 152.8%
Other operating expenses (374 109) (356 462) 105.0%
OPERATING PROFIT 1 595 125 2 109 258 75.6%
Exchange difference expense/income,net 177 254 134 892 131.4%
Interest income 62 503 37 235 167.9%
Interest expense (98 314) (202 282) 48.6%
Permanent diminution in affiliates -
Net Monetary Position (9 264) (185 731) 5.0%
NET PROFIT BEFORE TAX 1 727 304 1 893 372 91.2%
Corporate tax (298 944) (317 563) 94.1%
Deferred tax (41 697) (300 858) 13.9%
NET PROFIT AFTER TAX 1 386 663 1 274 951 108.8%
Result of interests in associated companies 0 -
Interim dividend 0
Minority interest (15 565) (16 502) 94.3%
NET PROFIT AFTER TAX AND 1 371 098 1 258 449 109.0%
Consolidated Cash Flow Statement, Unaudited
All figures in HUF thousands
Opening cash and cash equivalents 1 942 687
Net profit 1 371 098
Depreciation 1 232 304
Loss of value of investments
Decrease/increase in inventory 150 646
Decrease/increase in trade receivables (1 367 500)
Decrease/increase in short term investments 0
Decrease/increase in liabilities 150 902
Decrease/increase in minority interest (34 749)
Environmental provisions (162 379)
Unrealised exchange rate differences (646 647)
Deferred tax 3 510
Cash provided by operations 697 185
Addition to/disposal of investments (70 254)
Decrease/increase in financial investments 5 441
Cash used in investing activities (64 813)
Decrease/increase in capital
Decrease/increase in loans (704 668)
Cash used for financing activities (704 668)
Free Cash Flow (72 296)
Closing cash and cash equivalents 1 870 391
There are no material off-balance sheet items.
Data relating to share structure and shareholders
Owners structure, rate of shareholding and voting percentage
Total share capital=Listed series
Shareholders Beginning of year End of period
(on January 1) (on September 30)
%* Pcs %* Pcs
Hungarian institutional/corporation 58.75 3,145,531 89.70 4,803,131
Foreign institutional/corporation** 34.27 1,834,812 3.86 206,658
Hungarian individuals 0.22 11,740 0.16 8,696
Foreign individuals 0.03 1,521 0.00 21
Employees, senior officers 0.00 2 0.00 4
Treasury 0.00 0 0.00 0
Shareholders belonging to state finances 0.10 5,742 0.11 5,742
International Development Institutions 0.00 0 0.00 0
Other 6.63 355,115 6.17 330,211
T O T A L 100.00 5,354,463 100.00 5,354,463
* Ownership stake equals to voting percentage
Number of treasury shares (pcs) in the year under review
1 January 31 March 30 June 30 September 31 December
Company 0 0 0 0
Subsidiaries 0 0 0 0
Total 0 0 0 0
List of shareholders holding more than 5 % stake (at the end of period) with regard to listed
series and total share capital
Shareholder Quantity (pcs) Share Voting percentage (%) Note
Lasselsberger Ceramics Kft. 4,802,999 89.70 89.70 professional
Number of full time employees (persons)
End of basis period Beginning of year u/review End of period u/review
Company 1.004 1.006 976
Group 2.842 2.862 2.792
Senior officers, strategic employees influencing the operations of the Company
Name Title Beginning of End/termination of Own shares held
engagement engagement (pcs)
Peter Marton Chairman of Managing Board 2003.12.18. 2008.12.17. 1
Dr. Andras Walter Managing Board Member 2003.12.18. 2008.12.17. 1
Daniel Romeyer Managing Board Member 2003.12.18. 2008.12.17. 0
Ferencne Borsos Supervisory Board Member 2003.07.11. 2006.07.11. 2
Istvan Hanzel CEO 2003.04.15. indefinite 0
Sandor Hegyi Deputy CEO 2002.02.20. indefinite 0
Csaba Doszpoth Deputy CEO 2004.02.01. 2009.01.31. 0
Zoltan Hadnagy Deputy CEO 2004.06.18. 2005.06.17. 0
TOTAL own shares (pcs): 4
Zalaegerszeg, November 10, 2004
Chairman & CEO
This information is provided by RNS
The company news service from the London Stock Exchange