Aug 31 2006
Today, Pannonplast Nyrt. has held a meeting with the representatives of the media, as well as the investors to explain and expand the information having been disclosed in the subject of “The evaluation of the financial position by Pannonplast Nyrt’s Management” on August 28 2006. The purpose of this information is the disclosure of the material details that have been exposed at the above-mentioned meeting.
Pannonplast Nyrt’s Management has performed the evaluation of the major assets directly or indirectly owned by the Company as of June 30 2006 (participations, real-estate properties, etc.) on the basis of independent market information sources, as well as the Company’s own professional and transaction experience gained in the recent period.
In the light of the findings of the analysis, the Company’s Management estimates the net assets per share to be between HUF 4,500 and HUF 4,700.
Plastic packaging
Just in a few days, Pannonplast is founding its 66% Serbian subsidiary to be involved in the manufacture of plastic packaging implements. The immediate investment demand of such a move towards expansion is HUF 355 million. Production is to be launched in Q1 of 2007. With the locally available production capacities, the division will be exempt from paying the 20% Serbian protective duties. In the first year, the Serbian subsidiary is expected to realize sales revenues in an amount of HUF 400 million, while within the next three years this volume should be doubled. With respect to the EBITDA, the first year of operations is foreseen to generate a HUF 70 million value, while within three years HUF 140–150 million is expected on an annual basis.
Our presence in Romania is projected to be transformed both in terms of trading operations and the technology applied. The associated outcomes have a potential to generate an additional amount of HUF 120 million EBITDA within three years, with gradual increases. In 2007, plastic packaging activities are planned to generate HUF 1,250 million EBITDA.