ASPOCOMP GROUP Oyj STOCK EXCHANGE BULLETIN Feb 15,2001 at10.50AM(1/7)ASPOCOMP GROUP FINANCIAL PERFORMANCE 2000
Operating profit after depreciation totalled EUR 21.6 million (EUR
21.5 million) and after financial items EUR 21.2 million (EUR 20.1
million). Pre-tax profit amounted to EUR 22.0 million (EUR 19.4
million). Group net sales totalled EUR 239.8 million (EUR 201.3
million). Earnings per share totalled EUR 1.59 (EUR 1.64). The
dividend proposal will be EUR 0.50 per share.GENERAL ABOUT ASPOCOMP GROUP
Aspocomp Group Oyj acts as the parent company of the Group. Business
activities take place in the Group’s subsidiaries, Aspocomp Oy,
Aspocomp S.A.S., Aspocomp AB and Aspocomp GmbH. The Group’s business
activities cover printed circuit board and mechatronics technologies
as well as related services for the electronics industry, primarily
in Europe and South East Asia. The business is organized in two
divisions, Electronics Manufacturing Services (EMS) and Printed
Wiring Boards (PWB). PWB sales were divided into the Mobile, Telecom
and Auto & Industry customer segments.
The fiscal period under review was the Group’s first complete fiscal
year, as the operations were launched on October 1, 1999 after the
division of the Aspo Group. For this reason pro forma financial
statements have been used for purposes of fiscal comparison.NET SALES
The Group’s net sales increased by EUR 38.5 million to EUR 239.8
million for the year. There was over 17% growth in Finland and
approximately 23% growth in France. The share of the company’s three
biggest customers, Nokia, Ericsson and Philips, in net sales was 62%.
Direct export from Finland totalled EUR 28.0 million (EUR 19.7
million) and the share of offshore operations in net sales was EUR
71.0 million (EUR 57.7 million).
The share of the Printed Wiring Board Sector of Aspocomp’s total net
sales was EUR 187.7 million (EUR 160.2 million) and the share of
Electronics Manufacturing Services Sector was EUR 52.1 million (EUR
41.1 million). PWB sales rose 17.2% and EMS sales rose 26,8%.EARNINGS
The Group generated an operating profit totalling 21.6 million euros
(21.5 million euros) or 9.0% (10.7%) of net sales. The profit after
financial items totalled 21.2 million euros (20.1 million euros). PWB
operations generated earnings of 15.9 million euros (17.0 million
euros) while EMS-operations produced 5.7 million euros profit (4.5
million euros). The corresponding margins were 8.5% (10.6%) for the
PWB sector and 11.0% (11.0%) for EMS. Operations in France remained
unprofitable, despite a dramatic, approximately 23% increase in net
sales and a 150% jump in operating earnings before depreciation. The
second straight year of losses resulted from significant increases in
depreciation from the investment program currently under way.(2/7)
The Group’s net financial expenses totalled 0.4 million euros (1.3
million euros). The company’s May share issue improved liquidity.
Funds from the issue were used to pay off an active credit facility
and the rest was invested in a variety of money market funds. As a
result, net interest expenses declined sharply from June onward.The Group’s profit before extraordinary items and taxes totalled 21.2
million euros (20.1 million euros), and its pre-tax profit was 22.0
million euros (19.4 million euros). The net profit for the year stood
at 16.2 million euros (13.7 million euros).Earnings per share totalled EUR 1.59 (EUR 1.64), diluted including
the option rights EUR 1.52. Equity per share totalled EUR 15.96 (EUR
7.87).FINANCING, INVESTMENTS AND CAPITAL STRUCTURE
Thanks to the Group’s share issue, its financial status was very
healthy after June. The company had a liquid reserve at the year end
totalling 33.8 million euros despite a 68.3 million euros investment
program totalling approximately 28.5% of net sales. 27.4 million
euros of the investments were aimed primarily at the development of
French operations, while 32.3 million euros were invested in PWB
operations in Finland and the remaining approximately 7.4 million
euros were invested in EMS. About 1.4 million euros were invested in
other operations. Net financial expenses totalled 0.2 % of net sales
(0.7%) and the non-interest-bearing debts totalled 53.8 million euros
(51.5 million euros). Following the share issue the Group’s equity
ratio rose to over 64.6% (43.9%).THE SHARES AND SHARE CAPITAL
The Aspocomp Group Oyj Board of Directors made a decision on May,
2000 to initiate a share issue aimed at Finnish and international
institutional investors, the general public in Finland and the
Group’s personnel. The decision rested on an authorization given at
the Annual Shareholders’ Meeting held on March 17, 2000. Merrill
Lynch International was the lead manager for the international issue,
while the lead organizer for the domestic issue was Conventum
Corporate Finance Oy. The issue comprised a total maximum of 1 200
000 shares, of which two of Aspocomp Group Oyj’s shareholders, the
Kaleva Mutual Insurance Company and European Strategic Investors
Holdings NV, offered a maximum of 570 000 shares for sale. The
institutional placement offered a total of 1 700 000 shares for sale
and subscription, while the public issue offered 60 000 shares and
the personnel offering released 10 000 shares.
For the institutional and public offerings a subscription and sale
price of 62.00 euros per share was approved on May 23, 2000. A
subscription price of 55.80 euros was approved for personnel.
A total of 73% of the offered shares were placed with international
investors and 27% with Finnish institutional investors. A total of 1
745 960 shares were placed with institutional investors, while 14 040
went to the general public and 1 510 shares were placed with
personnel. The resulting increase in the share capital of Aspocomp
Group Oyj from 8 770 416 euros to 9 961 926 euros was registered on
(3/7)
May 29, 2000. The quotation of the registered shares on the main list
of the Helsinki Stock Exchange began on May 30, 2000.
On June 5, 2000 Merrill Lynch International decided to exercise its
authorization to increase the total stock offered by 180 000 shares
in order to cover the over-subscription. Consequently, the company’s
share capital rose by 180 000 euros to 10 141 926 euros. The increase
was registered on June 7, 2000 and the quotation of the new shares on
the main list of the Helsinki Stock Exchange began on June 8, 2000.
In the aftermath of the share issue described above, the Board remain
authorized, as of the year end, to arrange additional share issues
covering a total maximum 382 573 of the shares that remain from the
original 1 754 083 shares covered by the authorization. The
authorization will remain valid until the Annual Shareholders’
Meeting in spring 2001. The shares issued through the offerings carry
the same shareholder privileges as other shares. This includes
dividend rights for fiscal 2000 and the fiscal years that follow.
The company received a total of 85.0 million euros in funds from the
issue before organizing fees and expenses. The funds will be used to
finance the company’s future operational expansion in Europe, and to
finance investments and acquisitions in Asia. The company paid
organizers fees totalling 3.9 million euros. The fees have been
deducted from share issue gains. The remaining related costs,
totalling 0.7 million euros, have been written off directly against
the income statement.
At an Extraordinary Aspocomp Group Oyj Shareholders’ Meeting held on
October 22, 1999, it was decided that 750 000 stock options would be
given to key persons to be named separately by Aspocomp Group Oyj and
to a wholly owned subsidiary of the Group. Of this total, 375 000
were subscribed as A Options and 375 000 as B Options. The options
allow for conversion into a total maximum of 750 000 Aspocomp Group
Oyj shares, representing a total of 7.4% of the company’s post-
subscription stock outstanding. Share capital will rise by a maximum
total of 750 000 euros at a subscription price of 25 euros, net of
pre-subscription dividends paid on the stock. The shares, once
subscribed, entitle the holder to dividend rights starting from the
period during which they were converted. Other shares offer dividend
rights from the point of registration. The subscription period is
staggered, starting with the A Options on November 1, 2001 and with
the B options following on November 1, 2003. The subscription period
for all options will expire on November 30, 2005. The above-mentioned
options were registered on December 29, 1999.A total of 3 560 823 Aspocomp Group Oyj shares changed hands during
the period under review on the Helsinki Stock Exchange with a total
trading value of 192 650 366.73 euros. The non-Finnish share in the
ownership of the stock was 26.44 %. The shares reached a low of 24.50
euros, a high of 86.96 euros and maintained an average share price of
54.10 euros during the fiscal year. The year end price as of December
29, 2000 was 30.00 euros.PERSONNEL
The Group’s personnel totalled 1,948 (1,858) at the year-end 2000 and
averaged 2,007 (1,886) from January 1 to December 31, 2000. The Group(4/7)
employed an average of 303 office workers and an average of 1,645
other employees during the period under review.POST FISCAL EVENTS
After the year end, on January 5, the Group acquired a 51% interest
in ACP Electronics Co., Ltd. a PWB producer operating out of Suzhou,
China. Aspocomp’s share of the investments in this Chinese joint
venture, whose holdings it acquired at the beginning of 2001, will
total approximately 35 million euros, and its joint venture partner,
Chin-Poon Industrial Co., Ltd., will invest 21 million euros, in
addition to the 12 million euros it has already put in to the
operation. This brings the total investment program to 68 million
euros. The aim of the program is to build up a PWB plant for
telecommunication customers employing HDI technology. The plant’s
sales volume is expected to reach 100 million euros per annum over
the next 5 years and the plant’s personnel will rise to about 600
people by the year end.
During the fiscal year under review the Group acquired, in February,
a 12.5% minority holding in P.C.B. Center (Thailand) Co., Ltd. After
the year end the holding will be increased to 51.00%, giving the
Group a majority interest in the company.PROPOSAL FOR THE DISTRIBUTION OF DIVIDEND
The Board of Directors will propose at the Annual Shareholders’
Meeting to be held on March 23, 2001, that a dividend of EUR 0.50 per
share be distributed to the shareholders. The dividend record date
will be March 28, 2001 and the dividends will be paid on April 4,
2001 according to the proposal of the Board.PROSPECTS FOR 2001
We see that the increased uncertainty of the telecommunication market
softens the end user demand. This is mainly originating from the US
economy. Also the weak Christmas sales and too optimistic demand
expectations at the end of 2000 have created high inventory levels
within the whole supply chain.The above-mentioned have an impact on Aspocomp’s capacity utilization
rate, especially during the first three months and sales growth will
be flat compared to the same period previous year. Lower than planned
capacity utilization rate will partly continue also during the second
quarter of the year. Sales growth for the first six months is
expected to be over 10 % compared to previous year. A part of the
sales growth of the first half of the year 2001 is coming from
consolidating of the South East Asia operations into Group figures.
Loading situation is expected to recover in the beginning of the
third quarter of 2001 when new mobile phone models are ramped up and
the volume production of PWBs for the UMTS infrastructure is rolling
out. Sales growth for the whole year is expected to reach 30% and
EBIT-margin is expected to develop positively quarter-to-quarter
throughout the year.(5/7)
ASPOCOMP GROUP INCOME STATEMENT2000 1999 Change
MEUR MEUR MEUR %
(Pro Forma)NET SALES 239.8 201.3 38.5 19.1
Other operating
income 3.0 2.5 0.5 20.0
Depreciation and
write-downs 26.2 19.8 6.4 32.3OPERATING PROFIT
AFTER DEPRECIATION 21.6 21.5 0.1 0.5Financial income
and expenses -0.4 -1.3 0.9 69.2PROFIT BEFORE EXTRAORDINARY
ITEMS AND TAXES 21.2 20.1 1.1 5.5Extraordinary income 1.1 0.0 1.1 –
Extraordinary expences -0.3 -0.7 0.4 57.1PROFIT BEFORE TAXES 22.0 19.4 2.6 13.4
PROFIT FOR THE PERIOD 16.2 13.7 2.5 18.2
EARNINGS/SHARE, EUR 1.59 1.64 -0.05 -3.0
Figures are unaudited.
ASPOCOMP GROUP BALANCE SHEET
2000 1999 Change
MEUR MEUR MEUR %
(Pro Forma)
Non-Current AssetsIntangible Assets 2.7 3.2 -0.5 -15.6
Tangible Assets 134.2 93.4 40.8 43.7
Investments 1.1 0.1 1.0 –Current Assets
Inventories 29.3 23.4 5.9 25.2
Receivables 49.4 35.0 14.4 41.1
Investments 29.1 0.0 29.1 –
Cash and bank deposits 4.7 2.3 2.4 104.3TOTAL ASSETS 250.5 157.4 93.1 59.1
Shareholders’ equity
Share capital 10.1 8.8 1.3 14.8
Other shareholders’ equity 151.7 60.2 91.5 152.0
Mandatory reserves 5.5 4.8 0.7 14.6
(6/7)
Long-term liabilities 35.3 34.0 1.3 3.8
Short-term liabilities 47.8 49.5 -1.7 -3.4TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 250.5 157.4 93.1 59.1KEY FIGURES
Equity / share, EUR 15.96 7.87
Equity Ratio, % 64.6 43.9
Gearing, % 0.6 56.4
Return on Equity, % 13.2 23.2
Return on Investment, % 15.2 21.6
(ROI)Gross Investments, MEUR 68.3 41.1
Average Personnel 2,007 1,886
Figures are unaudited.
Accumulated excess depreciation and voluntary reserves totalling EUR
13.8 million (EUR 13.9 million) have been divided among shareholders’
equity and nominal tax liabilities.CONTINGENT LIABILITIES 2000 1999
MEUR MEURSecurities on Group liabilities 1.8 3.9
Operational Leasing liabilities 0.2 0.5Fixed assets financed by financial leasing are recorded in the
balance sheet.TOTAL 2.0 4.4
There are no derivative contracts.
ANNUAL SHAREHOLDERS’ MEETING
The Aspocomp Group Oyj Annual Shareholders’ Meeting will be held on
Friday, March 23, 2001 at 2:00 p.m. The summons to the Meeting will
be published on a separate stock exchange bulletin on February 19,
2001. The Board has decided to propose at the meeting that it be
authorized to repurchase and transfer own shares.(7/7)
ANNUAL REPORT 2000The Aspocomp Group Annual Report 2000 will be published on March 9,
2001.FINANCIAL INFORMATION IN 2001
The Aspocomp Group will release its quarterly reports during the year
2001 on May 2, 2001, July 30, 2001 and October 29, 2001.Helsinki February 15, 2001
ASPOCOMP GROUP Oyj
Board of Directors
For more information contact President and CEO Jarmo Niemi at int.
+358 9 759 70711ASPOCOMP GROUP Oyj
Jarmo Niemi
President and Chief Executive OfficerDistribution:
Helsinki Exchanges
Press and Media
www.aspocomp.com