Notes to the Financial Statements
 
The Year in Brief
  Letter to the Shareholders
  Shares and Shareholders
  Board of Directors' Report
  Consolidated Income Statement
  Pro forma Income Statement
  Consolidated Balance Sheet
  Consolidated Cash Flow Statement
  Income Statement of Parent Company
  Balance Sheet of Parent Company
  Cash Flow Statement of Parent Company
  Accounting Principles
Notes to the Financial Statements
  Proposal for Profit Distribution
  Auditors' Report
  Financial Indicators 1997-2001
  Calculation of Financial Ratios
  Quarterly Development
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
 
Displaying Notes 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 out of total 41 notes
(Figures are in EUR thousands unless otherwise stated) 2001 2000
NOTES TO THE CONSOLIDATED BALANCE SHEET    
 
9. FIXED ASSETS
  Intangible assets Tangible assets
  Intangible
rights		 Goodwill Consoli-
dated goodwill		 Other capita-
lised expen-
diture		 Land areas Buildings Machinery
and
equipment		 Other
tangible
assets		 Advance
pay-
ments
and con-
struction
in progress
Acquisition value 1 Jan 11,838 1,562 49,080 3,638 11,765 139,346 89,855 533 3,259
Increase 613 62,752 11,290 2,281 52 7,396 21,685 945 823
Decrease -1 -118 - - -19 -956 -1,935 -230 -617
Other changes -952 - - - - 1,035 2,949 14 -3,196
Acquisition value 31 Dec 11,499 64,195 60,370 5,919 11,799 146,820 112,554 1,262 269
                   
Accumu-
lated
depr. 1 Jan		 -7,448 -831 -29,795 -2,587 - -27,930 -63,272 -57 0
Increase -1,204 -2,280 -22,132 -1,126 - -6,185 -11,737 -113  
Decrease 1 118 - - - 834 1,337 162  
Other changes 417 -336 - -594 - -114 -881 -361  
Accumu-
lated depr. 31 Dec		 -8,234 -3,328 -51,927 -4,307 0 -33,395 -74,553 -369 0
                   
Value adjustments
1 Jan & 31 Dec		       420 2,355      
                   

Translation
difference

 -35 13 - 5 -234 -894 -102 -3 -2
Bookvalue 31 Dec 2001 3,229 60,881 8,443 1,617 11,985 114,886 37,899 890 267
                   
Bookvalue 31 Dec 2000 4,390 731 19,285 1,051 12,186 113,771 26,583 476 3,259
                   
Value adjustments relate to the parent company only (from 1988). Deferred tax liability (EUR 805,000) has not been accounted for. Value adjutments related to fixed assets are not considered as a normal accounting practice of the Group.
 
(Figures are in EUR thousands unless otherwise stated) 2001 2000
Machinery and equipment in production use, book value 1,175 1,337
     
10. OTHER FINANCIAL ASSETS
     
Government bonds - 32,205
Other receivables 748 724
  748 32,929
   
EUR 10 million portion of the government bonds was sold in 2001 and the remaining portfolio was transferred to the short-term investments  
 
11. AFFILIATED COMPANIES
     
Opening balance 22,885 14,090
  New affiliated companies 12,723 5,810
  Omitted affiliated companies -19,265  
  Share of net results 1,893 3,281
  Translation differences -83 -873
  Share of adjusted deferred tax in affiliated company    
  Other changes -4,640 577
Closing balance 13,513 22,885
     
12. PREPAID EXPENSES AND ACCRUED INCOME
     
Receivable from sales of shares 73,109 -
Income tax receivable 123 14,384
Financial income 2,297 2,605
Prepaid expenses 1,957 2,579
Other income 3,164 1,487
Other prepaid expenses and accrued income 300 1,105
Total 80,950 22,160
     
13. SHARE CAPITAL AND SUBSCRIPTION TERMS AND CONDITIONS
     
The company's share capital as at 31 Dec 2001 totalled 114,837,083 euros, divided into 114,837,083 shares, each of which carries one vote. The total of 341,000 shares are owned by the company.    
     
At the end of the year the company had also issued the following subscription warrants and share option rights which entitle their holders to the following share subscriptions:    
     
  Number of shares Holding
Issue of bonds with warrants 1997 4,552,000 3.74%
Share option rights 2000 2,330,000 1.91%
Total no of shares incl. warrants and share option rights 121,719,083 100.00%
   
Terms of subscription    
     
Issue of bond with warrants 1997  
Number of warrants 2,276,000  A  
  2,276,000  B  
Subscription period A: 1 Dec 2000 to 31 Jan 2004
  B: 1 Dec 2001 to 31 Jan 2004
Subscription terms and conditions One warrant entitles its holder to subscribe to one Tamro Corporation share with a nominal value of EUR 1 at a subscription price of EUR 6.56 per share less ordinary dividends paid after loan issuance.
     
Share option rights 2000  
Number of share option rights 1,165,000  A  
  1,165,000  B  
Subscription period A: 1 Apr 2002 to 30 Apr 2006
  B: 1 Apr 2004 to 30 Apr 2006
Subscription terms and conditions One class A share option right entitles its holder to subscribe to one Tamro Corporation share with a nominal value of EUR 1 at a subscription price of EUR 4.00 and one class B share option right entitles its holder to subscribe to one Tamro Corporation share with a nominal value of EUR 1 at a subcription price of EUR 4.80, less any dividends exceeding 50% of the earnings per share for the relevant accounting period, declared after 12 April 2000 and paid out before the time of subcription. If dividends are distributed for loss-making accounting periods, the whole amount paid out is to be deducted from the subscription price. However, the subscription price must be at least the nominal value of the share.
   
The Group owns a total of 390,000 year 1997 warrants.  
 
14. CHANGES IN SHAREHOLDERS' EQUITY
               
  Share capital Share premium account Revaluation reserve Fund for own shares Other reserves Retained earnings Total equity
Equity 1 Jan 2000 120,365 143 1,137 13,608 449 215,512 351,214
Subscription of new shares 1 1         2
Decrease -5,529 5,495       34 0
Cancelled own shares       -17,372     -17,372
Pooling adjustment             0
Dividend           -17,174 -17,174
Net profit for the year           -12,240 -12,240
Translation differences           -3,714 -3,714
Fund for own shares       4,739   -4,739 0
Write-down of own shares       -406     -406
Adjustment of share in affiliated company           594 594
Transfers within equity   1 -1   16 -16 0
Other change             0
Equity 31 Dec 2000

114,837

 5,640 1,136 569 465 178,258 300,905
               
Subscription of new shares             0
Decrease             0
Cancelled own shares             0
Dividend           -5,725 -5,725
Net income for the year           38,132 38,132
Translation differences           -1,368 -1,368
Fund for own shares             0
Write-down of own shares       406     406
Adjustment of share in affiliated company           311 311
Transfers within equity         -143 143 0
Other change     -1       -1
Equity 31 Dec 2001 114,837 5,640 1,135 975 322 209,751 332,660
               
Distributable equity              
Retained earnings     209,751        
Accumulated appropriations, net of tax     -25,616        
Distributable equity 31 Dec 2001     184,135        
 
(Figures are in EUR thousands unless otherwise stated) 2001 2000
15. OBLIGATORY RESERVES
     
Pension commitments 840 1,031
Reserve for taxes 2,588 2,758
Other reserves 292 538
  3,720 4,327
Changes in the obligatory reserves in the income statement    
Expenses -1,014 -1,588
Extraordinary items - -2,155
  -1,014 -3,743
16. LONG-TERM LIABILITIES
     
Long-term liabilities fall due as follows:    
  2003 18,512 55
  2004-2006 34,168 5,432
  2007- 402 428
  On special conditions 10,043 10,301
  63,125 16,216
Foreign currency breakdown of long-term loans:    
  NOK 33,641 -
  EUR 13,561 -
  SEK 9,961 10,216
  DKK 5,881 5,915
  Others 81 85
  63,125 16,216
     
Of the above pension loans EUR9,961,000 (10,216,000) equals the pension provision of the Swedish subsidiary Tamro AB, which according to local practise can be booked as a liability. The pension provision has a parent company guarantee.  
     
 
17. DEFERRED INCOME TAXES
           
  1 Jan 2000 Charged/ (credited) to P/L income tax Charged/ (credited) to P/L extraord Other changes 31 Dec 2000
Deferred income tax liabilities        
Untaxed reserves and acc depr 18,399 -317 -96 -126 17,860
  18,399 -317 -96 -126 17,860
Deferred income tax assets        
Tax loss carry forwards 6,773 -3,504 0 34 10,243
Other temporary timing differences 8,407 -54 -3,011 41 11,431
  15,180 -3,558 -3,011 75 21,674
           
Net deferred income tax liability(+) / receivable(-) 3,219 -3,875 -3,107 -51 -3,814
           
  1 Jan 2001 Charged/ (credited) to P/L income tax Charged/ (credited) to P/L extraord Other changes 31 Dec 2001
Deferred income tax liabilities        
Untaxed reserves and acc depr 17,860 -1,369   -156 16,335
  17,860 -1,369 0 -156 16,335
Deferred income tax assets        
Tax loss carry forwards 10,243 -1,782   -9,208 21,233
Other temporary differences 11,431 8,371   -1,896 4,956
  21,674 6,589 0 -11,104 26,189
           
Net deferred income tax liability(+) / receivable(-) -3,814 5,220 0 -11,260 -9,854
           
Deferred tax liability (EUR 805,000) related to the value adjustments has not been accounted for.  
     
(Figures are in EUR thousands unless otherwise stated) 2001 2000
18. ACCRUED EXPENSES AND DEFERRED INCOME
     
Personnel expenses 11,700 10,419
Cost of goods 397 2,830
Income tax liability 5,528 1,890
Financial expenses 1,011 809
IT-expenses 99 160
Other accrued expenses and deferred income 4,576 5,522
Total 23,311 21,630
     
OTHER NOTES    
 
19. CONTINGENT LIABILITIES
     
Mortgages    
  For own debts (1) 23,600 4,201
     
Pledges 44,180 -
     
Guarantees    
  For debts of the group companies' management 752 -
  For debts of others 11,229 1,659
  11,981 1,659
     
Other commitments    
  Leasing commitments    
    Next year 2,135 2,661
    Over one year 1,248 1,661
  Rent commitments 9,620 1,589
  Repurchase commitments 28 37
  Other commitments 181 81
  13,212 6,029
     
Group liabilities, secured by mortgages, pledges and other commitments:    
  Mortgages (1) 19,541 24,314
  Pledges 41,502 -
  61,043 24,314
     
20. DERIVATIVE FINANCIAL INSTRUMENTS
     
Derivatives - notional amounts    
Currency instruments    
  Currency forward contracts 141,561 99,474
  Currency options - purchased - 21,494
  Currency options - sold - 21,494
Interest rate instruments    
  Interest rate forward contracts and futures - 0
  Interest rate option contracts - 53,598
  Interest rate swaps 10,000 -
     
Derivatives - market value    
Currency instruments    
  Currency forward contracts 616 777
  Currency options 0 0
Interest rate instruments    
  Interest rate forward contracts and futures - 0
  Interest rate option contracts - -1
  Interest rate swaps 29 -
     
The notional amounts of derivatives summarised here do not represent amounts exchanged by the parties and are thus not a measure of Tamro's derivatives-related exposure. According to the Finance Policy derivatives are used only to hedge the underlying business.  
     
 
Displaying Notes 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 out of total 41 notes
 
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