Vilniaus Baldai AB - Other information

Vilniaus baldai AB sales for 2012 were LTL 230.141 million, while net profit was LTL 26.835 million

Vilnius, Lithuania, 2013-02-18 09:03 CET (GLOBE NEWSWIRE) -- In 2012, sales of
Vilniaus baldai AB, in which investment company Invalda holds a controlling
interest, were LTL 230.141 million or 3.5 per cent lower than in 2011 (LTL
238.368 million). Earnings before Interest, Taxes, Depreciation and
Amortization (EBITDA) were LTL 34.780 million (in 2011 - LTL 36.103 million).
Having eliminated the influence of one-off costs in 2012,  EBITDA was LTL
37.780 million and exceeded year 2011 EBITDA by 2.4 per cent (LTL 36.898
million). In 2012, the Company earned a net profit of LTL 26.835 million (in
2011 - LTL 26.811 million). 

In 2012 the market of raw materials remained stable, while due to improvement
in production process, the Company managed to use raw materials more
effectively, increasing the gross margin by 1 per cent, and reducing production
costs even under higher labour costs. In 2012, average gross wages were 7 per
cent higher than in 2011, while labour efficiency grew by almost 14 percent. 

Lower sales were caused by changes in product portfolio that had started in 4th
quarter of 2012. Within the period between the 4th quarter of 2012 and 1st and
2nd quarters of 2013, the Company intends to change approximately 50 per cent
of product portfolio. The Company will cease production of various structure
shelves that have been included into product range so far, and launch
production of children's furniture, writing-desks and other new products. New
production items are more elaborate, they require more sophisticated production
technologies, and will provide higher added value. All this is the evidence of
high degree of Vilniaus baldai AB competitiveness. 

In order to be able to manufacture new production and ensure required volumes,
the Company has embarked on a series of reforms: new equipment was introduced
and advanced technologies implemented, while planned investments in
technological equipment to be made in 2012-2013 will amount to approximately
LTL 27 million. In connection with the changes above, labour process will
change as well.  In the 2nd and 3rd quarters of 2013, the Company will
concentrate its production operations in the main factory and increase a number
of work shifts there (the other factory will be rearranged in terms of
technical equipment, and this would not be possible to execute when operation
takes place). From September 2013 Vilniaus baldai AB will be operating in usual
conditions. 

In connection with the abovementioned changes, the Company does not predict
that sales of 2012 will be achieved in 2013 but still expects to be profitable
and preserve all jobs. 

Vilniaus baldai AB exports all its production, which is purchased by Swedish
concern IKEA. 

Investment company Invalda holds a controlling interest in Vilniaus baldai AB.
The shares of Vilniaus baldai AB are listed on the Official Trading List of the
NASDAQ OMX Vilnius Stock Exchange. 





         Aidas Mackevičius
         General Manager, Vilniaus baldai AB,
         tel. (8-5) 2525700