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Zalakeramia RT (ZALD)

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Thursday 15 August, 2002

Zalakeramia RT

Interim Results

Zalakeramia RT
15 August 2002

                                ZALAKERAMIA RT.

                  Quick Report for the first half year of 2002

Below is the consolidated and unaudited financial statements for H1 2002 of the
Zalakeramia Group which were prepared in accordance with the International
Accounting Standards (IAS).

We wish to note that the change from the basis period to the period under review
of the subsidiaries' data converted into Forints does not correspond to the
changes calculated in ROL and HRK, respectively as the Forint considerably
strengthened last year as against the national currencies and EUR and USD while
the national currencies of the subsidiaries weakened as against the mentioned
two currencies.

We have briefly summarised the most important features and main events of our
financial management in the followings.

Main events materially concerning the operations of the Group:

  • The USD 50 million syndicated credit facility dated 23 April 1998 and
    managed by Credit Suisse First Boston and as amended on 24 July 2000 was
    redeemed by a new credit facility. The new credit facility agreement was
    signed with a new syndicate of banks on March 18, 2002 and its amount is EUR
    37,300 thousand.

        We repaid EUR 33,282,341 (HUF 8,114,235 th) old syndicated credit
        facility at the end of March and EUR 4,047,000 (HUF 997,055 th)
        investment credit facility on 2nd April from the new credit facility.

        The first instalment in the amount of EUR 900,000 of the new syndicated
        credit was due on June 30 which was repaid on July 1 due to a bank
        holiday that day. This liability was included in the amount of HUF
        219,150 th in 'Current portion of long term liabilites' line in our
        balance sheet as of June 30. On June 28, EUR 452,781 (HUF 116,288 th)
        interest was repaid relevant to the credit.

  • Within the frames of the B-IV plant investment in Tofej the construction
    of the following buildings has been completed:

  • a complete production line for the production of fired and glazed wall
    tiles with an annual capacity of 2,039,000 sq mts.

  • body mass and pressing powder production equipment of 8.9 t/h capacity,

  • finished goods warehouse of 6000 sq mts area,

  • roads and other complementary public utilities.

        Following the successful tests and performance test of the wall tile
        production line and pressing powder production equipment, the technical
        takeover took place on May 22, 2002 in accordance with the contract and
        trial operation is in process.

        The costs connected to the investment, considering also the preparation
        plant and buildings, amounted to HUF 2 billion.

Main data for H1 2002 of Zalakeramia Rt parent company (based on the financial
statements of the parent company prepared in accordance with the International
Accounting Standards):

  • Sales revenue increased by 5.7 % as compared to the basis representing a
    realization of almost HUF 3,944 million sales revenue.

  • Production of tiles amounted to 2,970 th sq mts and that of stove tiles it
    was 295 th tile units. In the case of the former, growth by volume exceeded
    11.2 % as compared to the basis.

  • 2.445 th sq mts were sold of own-produced tiles and 330 th sq mts of
    purchased tiles.

  • Gross margin approximated HUF 1,247 million.

  • In H1 2002 gross margin percentage was 31.6 %.

  • The Company recorded HUF 6 million exchange rate loss on the syndicated
    credit facility in the first half year. The amount of the recognised
    interest expense was HUF 203 million.

  • Net profit/loss of the Company for the first half year was a loss of HUF
    118,491 th. This unfavourable amount relates to the high interests.

Main data for H1 2002 of our S.C. CESAROM S.A. subsidiary (based on the
financial statements of the subsidiary prepared in accordance with the
International Accounting Standards):

  • Sales revenue increased by 28.4 % in terms of Romanian Lei (ROL) as
    compared to the basis and the amount of the reduction was 4.0 % in terms of
    Forint as a consequence of relative change in value of the currencies.

  • In H1 2002 tile production reached almost 2,329 th sq mts and the
    production of sanitary ware exceeded 286 th pieces.

  • 2,021 th sq mts of own-produced tiles and 179 th sq mts of purchased tiles
    were sold. It means that sold quantity at the subsidiary in Romania
    increased over 25.0 % as compared to H1 2001.

  • Gross margin percentage was 29.0 % in the period under review..

  • A loss of HUF 117 million as deferred tax and a loss of HUF 317 million in
    the Net Monetary Position line was recorded. Considering the above profit/
    loss after tax of the Romanian subsidiary was a loss of HUF 77 million.

Main data for H1 2002 of our Inker d.d. subsidiary (based on the financial
statements of the subsidiary prepared in accordance with the International
Accounting Standards):

  • In terms of Forint, growth of sales revenue of the subsidiary was 2.2 % as
    compared to the basis period.

  • In the sanitary ware business produced quantity increased 7.1 % compared
    to the basis period. Rate of growth was 7.4 % for the porcelain tableware
    representing the production of over 5.9 million pcs of porcelain products.

  • 175 th pcs were sold of sanitary ware exceeding by 10.2 % the quantity of
    the basis period. 6 million pcs were sold of porcelain tableware being 10.0
    % more than the quantity sold in the basis period.

  • Gross margin percentage was 17.0 %, same as the figure of the basis

  • Ratio of selling, general and administrative expenses to sales revenue was
    11.9 %. Growth of general expenses to the basis was created mainly by the
    increase in insurance premiums and maintenance costs of the informatics

  • Profit after tax of the subsidiary in Croatia was HUF 103.5 million.

 I. Analysis of the consolidated and unaudited profit and loss statement

Sales revenue

Sales revenue of the Group is shown below:
                                                                                                                th HUF
Company                                        H1 2002                                         H1 2001
                               Domestic         Export          Total         Domestic         Export           Total
Zalakeramia Rt.              3 163 615          458 040      3 621 655       2 901 233         488 708       3 389 941
Inker d.d.                     925 075        1 114 176      2 039 251       1 050 263         966 519       2 016 782
S.C.Cesarom S.A.             2 464 957          420 201      2 885 158       2 622 582         404 138       3 026 720
Inker Trgovina                  32 215                          32 215                                               0
Total:                       6 585 862        1 992 417      8 578 279       6 574 078       1 859 365       8 433 443

Sales revenue on group level exceeded that of the basis period by 1.7 %. Growth
of revenue was 6.8 % at the parent company and growth of revenue was 1.1 % at
the Croatian subsidiary. The Romanian subsidiary's sales revenue reduced by 4.7
%. Average price of tiles calculated in ROL was the same as the basis level
however converting it into Forints the average price declined 20 %. Its negative
effect was eased by the growth of volume. Export revenue increased by 7.2 % on
group level and 23.2 % of the sales revenue originated from export sales.


In H1 2002 Zalakeramia Group sold total 4,540,057 sq mts of own-produced tiles
and 508,609 sq mts of purchased tiles. Purchased tiles were placed on the market
under the own brand names of Zalakeramia Group therefore these can be redeemed
when the new production line starts manufacturing.

Sanitary ware (in H1 2002)

                                     Production (pcs)                 Sales (pcs)
Inker d.d.                                168,421                       175,185
S.C. Cesarom S. A.                        286,460                       271,783

 Volume of production increased by 7.1 % compared to the basis period at the
subsidiary in Croatia despite of some technical and technological problem
occurring. Growth of the production volume was 9.0 % at the Romanian subsidiary.

Sales increased by 10.2 % at the Croatian subsidiary while it was the same as
the basis level at S.C. Cesarom S.A.

At Inker d.d. sold quantity reduced 0.8 % in the domestic market while the rate
of growth was more than 20 % in the export markets. However, sales revenue
declined 1.2 % in the domestic market. Sales revenue from sanitary ware exports
increased by 33.1 % because in addition to volume, average export prices also
grew by 7.2 %. 11.4 % increase of total sales revenue is also due to this.

At the subsidiary in Romania the quantity of sanitary ware sold in the period
under review was 271.783 pcs corresponding to a basis level sale. Sales revenue
in terms of ROL grew by 27.2 % and calculating in Forints it was the same as the
basis level.

Porcelain ware

Total quantity of porcelain tableware produced in H1 2002 approached 6 million
pcs being 7.4 % higher than the quantity of the corresponding period of the
previous year. Sold quantity exceeded the produced quantity which was 10.0%
higher than the 5.5 million pcs sold in H1 2001. Domestic revenue was behind the
basis by 6.9 % due to some liquidity problem in the country and uncertainty
caused by the privatisation being in process now in the hotel segment. At the
same time, sales revenue of total porcelain products increased by 6.1 % because
the export revenue representing a proportion of 71.3 % increased by 13.1 %.

Stove tiles

281.431 tile units of stove tiles were sold representing a 9.9 % decline. Sales
was 4.8 % behind the level of the basis period in terms of sales revenue.

Gross margin
                                                                                           th H
Company                                        H1 2002                      H1 2001        Index %
Zalakeramia Rt.                              1 117 840                    1 169 209         95.6
Inker d.d.                                     346 362                      341 051        101.6
S.C. Cesarom S.A.                              978 222                    1 372 448         71.3
Inker Trgovina                                   7 360
Total:                                       2 449 784                    2 882 708         85.0

Gross margin of Zalakeramia Group was behind the figure of the corresponding
period last year. It was Inker d.d. only who could repeate its last year's

Gross margin reduced at the parent company due to the increase in the sales
volume of purchased tiles in the lower price segment which were not included in
the product assortment, and were used for market acquiring promotions. In
addition, specific costs of sales of own tiles exceeded the figure of the basis
period however, growth remained below the rate of inflation.

Gross margin at S.C. Cesarom S.A. declined as a result of the effects of
reasonable market acquiring means (benefits) with a view to trade policy.
Average prices in terms of ROL remained on the basis level however, converting
into Forint there was a 20 % decline in average prices which could not fully
offset either the increase of sales volume.

  Gross margin percentages
Company                             H1 2002                      H1 2001                 Index %
Zalakeramia Rt.                      30.87%                       34.49%                    89.5
Inker d.d.                           16.98%                       16.91%                   100.4
S.C. Cesarom S.A.                    33.91%                       45.34%                    74.8
Inker Trgovina                       22.85%
Total:                               28.56%                       34.18%                    83.5

Selling, general and administrative expenses
                                                                                             th HUF
Company                                           H1 2002                      H1 2001       Index %
Zalakeramia Rt.                                   976 843                      844 624        115.7
Inker d.d.                                        239 813                      224 323        106.9
S.C. Cesarom S.A.                                 384 369                      264 528        145.3
Total:                                          1 601 025                    1 333 475        120.1
Inker Trgovina                                     16 056
Jaszberenyi uti Kft.                                1 504                          349        430.9
Lakopark Kft.                                       3 486                        2 996        116.4
Keramialand Kft                                     2 475
Hussar Holding AG                                  21 873                       12 371        176.8
Grand total:                                    1 646 419                    1 349 191        122.0

Selling, general and administrative expenses on group level grew by 22.0 %.

In the case of the parent company the costs of the due diligence were included
in the company general costs and besides this the marketing costs caused an

At Inker d.d. the increase in the general costs resulted from the growth of
insurance premiums and costs of informatics.

For an efficient market expansion S.C. Cesarom S.A. applied various marketing
means and the insurance expenses also increased. As a result of it its general
costs increased.

Other operating income and other operating expenses

The increase in other operating income was caused by the provisions of HUF 50
million released in the period under review which had been made for the
recultivation costs related to Pietra mining sites.

Other operating expenses inlcuded the recultivation costs of Pietra mining areas
in the amount of HUF 100 million in the basis period which have not occurred
this year. At Inker d.d. growth of local rates caused almost HUF 30 million
surplus costs.

 Exchange rate loss/exchange rate gains

Exchange rate loss/exchange rate gains are shown in a separate line in a grossed
up manner the balance of which is a profit.

Exchange rate gains:      HUF 324,543 thousand

Exchange rate loss:      HUF (273,472) thousand

Balance: HUF 51,071 thousand

Exchange rate loss/exchange rate gains resulted, on the one side, from the
movements of exchange rates generating continuously on the receivables and
liabilites and, on the other side, from the restating of the investments.

Change in HUF/EUR rate may be a factor significantly influencing the results of
the Group due to the syndicated credit included in the books of the parent

Result of financial activities

Interest income, interest expense

Decrease in the balance of interest income and interest expense relates to the
credit facility reduced as a result of the scheduled repayments and, on the
other hand, the continuously generating funds were used for the tile plant
investment of the parent company. Relating to the syndicated credit HUF 303
million interest expense arose in the basis period and HUF 203 million in the
period under review.

Net monetary position

In the period under review the value of monetary assets exceeded that of the
monetary liabilities therefore the Company generated loss on net monetary
position. Its reason is that the foreign currency investments mentioned earlier
were not inflated but restated. Its influence is shown in the exchange rate
gains line.

Corporate tax liability

This line includes the corporate tax liability on the profit originated at our
S.C. Cesarom S.A. subsidiary in H1 2002 (calculated in accordance with the
Romanian Accounting Standards) and payable in accordance with the Romanian tax

Deferred tax

Deferred tax reported in the income statement includes, on the one side, the
part of total deferred tax liability incurring by S.C. Cesarom S.A. as a result
of the adjustment for inflation of the financial items, falling on the period
under review. The considerable decline was caused by the significant decrease of
inflation being 9.3 % in the first half year.

Net profit/loss

With all these items taken into consideration, the consolidated and unaudited
profit of the Group amounted to HUF 58,150 thousand in the first half of 2002.

II. Analysis of the consolidated and unaudited balance sheet

Balance sheet total of the Group increased by 3.5 % in the period under review.


 Current assets

Increase in current assets amounts to 14.9 %.

Cash and cash equivalents increased by 72.5 %. This was caused, on the one side,
by the fact that the repayment of the syndicated credit in the amount of EUR
900,000 was made on July 1 therefore this line still includes this amount and,
on the other side, gains and receivables, respectively on the disposal of
investment were shown here.

Accounts receivable increased 5.9 % as compared to the corresponding figure of
the previous year..

The amount of inventory increased by 12.6 % or HUF 569 million. Within this, The
amount of raw material inventory increased by HUF 46 million, goods by HUF 138
million, WIP by HUF 63 million and finished godds inventory by HUF 322 million.

Short term investments have decreased by more than 63.5 % which is mainly caused
by the decrease of government securities appearing in this row. We have used
these funds for the current investment as well as for fulfilment of liabilities
in connection with syndicated loan.

The amount of other current assets increased by 37.9 % which corresponds to the
receivables from the disposal of an investment.

 Fixed assets and others

Fixed assets and others decreased by 4.3 %.

The 4.5 % increase in tangible assets was a result of the current investment at
the parent company.

The net value of intangible assets was lower by 31.9 % compared to the basis
period because the replacement of assets falls behind the amount of amortization
accounted for in this row and the amortization of foundation costs of Hussar
Holding AG.

The deferred tax line includes the deferred tax formed due to the deferred loss
of Zalakeramia Rt. according to the tax law.

Reduction of financial investments was caused by the disposal of the investment
mendtioned before.

  Liabilities and shareholders' equity

Current liabilities have increased by 14.7 %.

Accounts payable and accrued expenses have increased by 33.9 %. As a result of
persistant negotiations at all three manufacturing companies amount of suppliers
increased by HUF 626 million in total improving the financing position of the

The amount of short term debts has met the basis level.

Current portion of long term debts

Included in this line is the current portion of syndicated credit repayment
liability in the amount of EUR 4,000 and appears here the principal repayment of
EUR 900 thousand for the second quarter 2002 - paid on July 1 - which is
detailed above.

Long term liabilities

Long term liabilities

Rate of growth in long term liabilities is 11.1 %.

The increase was caused by the growth of syndicated credit facility as the
credit raised for the investment realized at the parent company became a part of
the redeemed and rescheduled syndicated credit in the first quarter of this

Deferred tax

S.C. Cesarom S.A. indexes the value of its tangible assets in the IAS financial
reports according to the regulations regarding inflated economies. The deferred
tax payment liability shown in the balance sheet represents the tax payment due
after the difference of the revalued Romanian book value and the Romanian book
value forming the tax base to be calculated according to IAS.

The value change within environmental provisions is caused by the release of
provisions for the recultivation works in progress in the former Pietra mining

 Minority interests decreased by 14.1 % compared to the basis period.

Zalakeramia Rt. carried out a capital increase at S.C.Cesarom S.A. in the summer
of 2001 and as a result, its share in the Romanian subsidiary increased to 98.67

 Owners' equity has met the basis level.

Issued capital and capital reserves remained unchanged compared to the basis.

Translation adjustment is the balance of exchange rate differences generating on
translating into Forint during the consolidation. The difference here was caused
by the changes in the cross-rates of foreign currencies.

III.      Cash Flow

Our funds increased in the first half year 2002. Causes of this increase were
detailed in the analysis of balance sheet lines.

IV.     Financial ratios
                                                                     2002. 06.30.              2001.06.30.
Pecuniary standing
1. Ratio of accounts payable within total liabilities:                43.0 %                    41.0 %
2. Efficiency of stocks:                                              168.0 %                   185.9 %
3. Stock turn ratio:                                                  1.74                      2.02
4. Chronological average of stocks                                    4,920,545                 4,180,573

Financial condition
1. Rate of indebtedness:                                               43.0 %                    41.0 %
2. Liquidity ratio I.:                                                 3.36                      3.35
3. Liquidity ratio (quick ratio):                                      2.21                      2.19

Companies involved in the consolidation

           Company name                    Share capital             Stake (%)        Voting rate
Hussar Holding Ag                       EUR 50,736 thousand            100.0             100.0
S.C Cesarom S.A.                        USD 18,000 thousand            97.94             97.94
Inker d.d.                             HRK 145,189 thousand            93.79             93.79
Inker Trgovina                          HRK 4,991 thousand             100.0             100.0
Jaszberenyi uti Ingatlanfejleszto      HUF 750,000 thousand            100.0             100.0
Lakopark Kft.                          HUF 271,138 thousand            100.0             100.0
Keramialand Kft.                       HUF 220,000 thousand            100.0             100.0

Balance Sheet
Amounts in HUF thousands
                                                                  2002. 06. 30.         2001. 06. 30.            Index
Cash and cash equivalents                                            2 734 216              1 585 158             172.5%
Trade accounts receivable                                            3 252 957              3 071 741             105.9%
Inventory                                                            5 105 262              4 535 934             112.6%
Short term investments                                                 511 206              1 402 271              36.5%
Investment in associates
Other current assets                                                 3 387 336              2 457 066             137.9%
Total current assets                                                14 990 977             13 052 170             114.9%
Tangible assets, net                                                17 466 926             16 707 020             104.5%
Intangible assets, net                                                  79 493                116 645              68.1%
Deferred tax                                                           793 635                464 196             171.0%
Investments                                                             22 970              1 900 334               1.2%
Total fixed assets and others                                       18 363 024             19 188 195              95.7%
TOTAL ASSETS                                                        33 354 001             32 240 365             103.5%
Accounts payable and accrued expenses                                2 447 422              1 827 939             133.9%
Short term loans payable                                               778 371                771 701             100.9%
Current portion of long term debt                                    1 238 845              1 291 322              95.9%
Total current liabilities                                            4 464 638              3 890 962             114.7%
Long term loans                                                      8 035 906              7 234 140             111.1%
Deferred tax                                                         1 691 834              1 891 826              89.4%
Environmental provisions                                               139 214                203 150              68.5%
Total long term liabilities                                          9 866 954              9 329 116             105.8%
Minority interests                                                     616 271                717 212              85.9%
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                                                    2 816 503              2 457 868             114.6%
Translation adjustment                                                 815 071              1 070 643              76.1%
Total owners' equity                                                18 406 138             18 303 075             100.6%
TOTAL LIABILITIES AND OWNERS' EQUITY                                33 354 001             32 240 365             103.5%

Income Statement
Amounts in HUF thousands
                                                                      2002. 06. 30.          2001. 06. 30.         Index
Turnover                                                                  8 578 279              8 433 443        101.7%
Cost of sales                                                           (6 128 495)            (5 550 735)        110.4%
GROSS MARGIN                                                              2 449 784              2 882 708         85.0%
Selling, general and administrative expenses                            (1 646 419)            (1 349 191)        122.0%
Other operating income                                                      140 343                124 251        113.0%
Other operating expenses                                                  (196 186)              (257 656)         76.1%
OPERATING PROFIT                                                            747 522              1 400 112         53.4%
Exchange rate loss/gains, net                                                51 071                953 878          5.4%
Interest income                                                              73 654                132 301         55.7%
Interest expense                                                          (242 148)              (352 586)         68.7%
Permanent diminution in affiliates                                                                                   -
NMP                                                                       (316 639)                105 702           -
NET PROFIT BEFORE TAX                                                       313 460              2 239 407         14.0%
Corporate tax                                                             (108 462)              (178 609)         60.7%
Deferred tax                                                              (141 446)              (328 099)         43.1%
NET PROFIT AFTER TAX                                                         63 552              1 732 699          3.7%
Result of interests in associated companies                                       0                                  -
Minority interests                                                          (5 402)               (13 922)           -
NET PROFIT AFTER TAX & MINORITY INTEREST                                     58 150              1 718 777          3.4%

Cash Flow Statement

                    Cash Flow Statement                                                    HUF th
Opening cash and cash equivalents                                                         1 975 448
Net profit                                                                                   58 150
Depreciation                                                                                713 983
Depreciation of investments
Decrease/increase in inventory                                                              167 710
Decrease/increase in trade receivables                                                  (1 800 619)
Short term investments                                                                    2 575 414
Decrease/increase in liabilities                                                            146 796
Decrease/increase in minority interest                                                     (14 282)
Environmental provisions                                                                   (50 000)
Unrealized exchange rate differences                                                      (718 746)
Decrease/increase in deferred tax                                                         (257 519)
Cash flow provided by operations                                                            820 887
Addition to/disposal of investments                                                       (736 871)
Decrease/increase in financial investments                                                   23 467
Cash flow used in investing activities                                                    (713 404)
Increase/decrease in loan                                                                   651 285
Cash flow generated by financial activities                                                 651 285
Free Cash flow (HUF thousand)                                                               758 768
Closing cash and cash equivalents (HUF th)                                                2 734 216

There are no material off-balance sheet items.

Number of full time employees (persons)

     Company Group x
                                 End of basis period       Beg. of year u. review        End of year u. review
Zalakeramia Group                       2949                        2921                          2932

Data relating to share structure and shareholders

Owners structure, rate of shareholding

                                                                   Total share capital=Listed series
                                                          Beginning of period                  End of period
           Description of shareholders
                                                             (on 1 January)                    (on 30 June)
                                                        %*               Pcs              %*             Pcs
Hungarian institutional/corportaion                    40.76          2,182,508         53.93         2,887,427
Foreign institutional/corporation                      14.32           766,798          13.59          727,773
Hungarian individuals                                  0.03             1,867            0.11           5,880
Foreign individuals                                    0.03             1,521            0.03           1,521
Employees, senior officers                              0.2             10,565           0.12           6,552
Treasury                                                 0                0               0               0
Shareholders belonging to state finances               0.18             9,796            0.18           9,796
International Development Institutions                   0                0               0               0
Other                                                  44.48          2,381,408         32.04         1,715,514
T O T A L                                              100.0          5,354,463         100.0         5,354,463

* Owners' stake equals to voting rate

Number of treasury shares (pcs) in the year under review
       1 January               31 March             30 June            30 September          31 December
           0                      0                    0

Shareholders having more than 5 % stake (June 30, 2002)

      Shareholder          Quantity        Stake (%)     Voting rate
Arago Rt                   1,396,590        26.0827        26.0827
Altalanos                  1,121,030        20.9364        20.9364
Ertek-forgalmi Bank Rt

Senior officers, strategic employees
 Type            Name                         Title                 Beginning of     End/termination of     Own shares
                                                                     engagement          engagement         held (pcs)
  BM          Imre Takats                Chairman & CEO              2001.04.28.         2006.04.28.            50
  BM        Agnes Sasinszki                 Director                 2001.04.28.         2006.04.28.          6.500
  BM       Gyorgy Doleschall                Director                 2001.04.28.         2006.04.28.            -
  BM        dr. Laszlo Zala                 Director                 2001.04.28.         2006.04.28.            -
  BM        Sandor Jellen *                 Director                 2001.04.28.         2002.04.25.            13
  BM        Viktor Polgar *                 Director                 2001.04.28.         2002.04.25.            -
  BM        Gyorgy Karikas                  Director                 2001.04.28.         2006.04.28.            -
  BM       Agnes Albrecht **         Deputy CEO for Finance          2002.04.25.         2007.04.25.            -
  BM        Istvan Toth **          Deputy CEO for Trade and         2002.04.25.         2007.04.25.            -
  SB       Janos Granicz ***                Chairman                 2002.04.25.         2005.04.25.            -
  SB         Ilona Borsos                    Member                  2000.06.01.         2003.05.31.            2
  SB      Dr. Ervin Toth ***                 Member                  2002.04.25.         2005.04.25.            -
  SB        Donald Sharpe*                   Member                  2000.06.01.         2002.04.25.            -
  SB         Sandor Egyed                    Member                  2000.06.01.         2003.05.31.            -
  SB      Dr. Laszlo Szoke **                Member                  2002.04.25.         2005.04.25.            -
  SP          Imre Takats                Chairman & CEO              1999.06.01.         2004.05.31             50
  SP        Agnes Albrecht           Deputy CEO for Finance          1999.06.01.         2004.05.31.            -
  SP          Istvan Toth           Deputy CEO for Trade and         1999.09.01.         2004.05.31.            -
  SP         Sandor Hegyi            Deputy Techn.&Prod. CEO         2002.02.20.        hatarozatlan            -

* resigned from their positions at the AGM on April 28, 2002

** appointed at the AGM on April 28, 2002

*** resigned and re-appointed at the AGM on April 28,2002

Extraordinary announcements published in the period under review
       Date             Published in                                Subject, brief content
2002. 01. 24.      Magyar Tokepiac         Deputy general and technical CEO position terminated
2002. 02. 13       BSE home page           Places to view Quick Report for year 2001
2002. 02. 14.      Magyar Tokepiac, BSE    Quick report for year 2001
                   home page
2002. 02. 22.      Magyar Tokepiac, BSE    Fill up the position of deputy technical & production CEO
                   home page
2002. 02. 26.      Magyar Tokepiac, BSE    Separationn of Lakopark Kft
                   home page
2002. 03. 19.      Magyar Tokepiac, BSE    Amendment of credit agreement
                   home page
2002. 03. 25.      Magyar Tokepiac, BSE    Notice of meeting
                   home page
2002. 03. 26.      Magyar Tokepiac, BSE    Altalanos Ertekforgalmi Bank Rt to acquire a stake
                   home page
2002. 04. 03.      Magyar Tokepiac, BSE    Complet items on the agenda of the AGM
                   home page
2002. 04. 05.      Magyar Tokepiac, BSE    Indirect acquisition of stake by AB Gazprombank ' ZAO'
                   home page
2002.04.09.        Magyar Tokepiac, BSE    HAS figures for year 2001 of Zalakeramia Rt
                   home page
2002. 04. 24.      Magyar Tokepiac         Annual Report of Zalakeramia Rt. completed
2002. 04. 26.      Magyar Tokepiac, BSE    AGM results
                   home page
2002. 05. 15.      Magyar Tokepiac, BSE    Quick Report for Q1 of Zalakeramia Rt and place to view
                   home page
2002. 06. 25.      Magyar Tokepiac, BSE    Notice of Meeting
                   home page

Zalaegerszeg, 13 August, 2002

                      Board of Directors of Zalakeramia Rt

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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