ASPOCOMP GROUP Oyj STOCK EXCHANGE RELEASE Feb 14,2002 at 8:00 AM 1(8)ASPOCOMP GROUP FINANCIAL PERFORMANCE 2001
Group net sales totalled 221.8 million euros (239.8 million euros).
Pre-tax loss amounted to 29.9 million euros (profit 22.0 million
euros). The result was affected by 17.2 million euros’ non-recurring
one-time costs. Earnings per share totalled -2.66 euros (1.59 euros).
The Board of Directors will propose that no dividend be distributed
for 2001.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, Aspocomp GmbH, P.C.B. Center (Thailand)
Co., Ltd. and ACP Electronics Co., Ltd. The Group’s business
activities cover printed wiring board and mechatronics technologies
as well as related services for the electronics industry, primarily
in Europe and South East Asia. The Group organization was changed in
relation to the consolidation of the new Asian companies. The sales
and production of printed wiring boards were arranged as separate
functions. This way the Group is able to serve the global clientel
optimally.NET SALES
The Group’s net sales were 221.8 million euros (239.8 million euros
for the previous year). Although the net sales from the European
operations decreased by 18.6%, the Group net sales decreased only
7.5% because of the consolidation of the new Asian companies. The
share of the Group’s five biggest customers, Nokia, Ericsson, SCI,
Philips and Tellabs in net sales was 62%. Direct exports from Finland
totalled 52.6 million euros (28.0 million euros) and the share of
offshore operations in net sales was 68.8 million euros (71.0 million
euros). The share of Aspocomp SAS in offshore operations net sales
was 41.4 million euros, of ACP Electronics 9.9 million euros and of
P.C.B Center 17.5 million euros. Printed Wiring Board operations
accounted for 179.0 million euros (187.7 million euros) and
Electronics Manufacturing Services generated 42.8 million euros in
sales (52.1 million euros). PWB sales decreased 4.6% and EMS sales
decreased 17.9%.EARNINGS
The Group generated an operating loss totalling 27.4 million euros
(profit 21.6 million euros) or -12.3% (9.0%) of net sales. The loss
after financial items totalled 29.9 million euros (profit 21.2
million euros). On EBIT level the PWB operations generated loss of
29.2 million euros (profit 15.9 million euros) while EMS-operations
produced 1.8 million euros profit (5.7 million euros). The
corresponding margins were -16.3% (profit 8.5%) for the PWB
operations and 4.3% (11.0%) for EMS. The Group offshore operations
were unprofitable. The major reason was the low loading based on the
general development of the electronics industry. The consequences
were most severe in France. The HDI capacity in the plant was built
2(8)
for the forecasted ramp-up of the 3G infrastructure and carefully
estimated growth of the handset demand based on the market
information available. However, these markets did not develop as
generally expected in 2001. The loading in France was very low and
the operations continued unprofitable for the third year in line,
generating loss of 23.9 million euros on EBIT level. Also the closed
Espoo plant generated EBIT level loss of 6.9 million euros.The Group figures include the following 17.2 million euros’ non-
recurring one-time costs, 12 million euros of which affected the
fourth quarter’s result. The total cost of closing the Espoo PWB
plant in 2001 was 4.7 million euros. The net downsizing expenses of
Aspocomp SAS in France are 9.1 million euros, 5.6 million euros of
which are related to the giving a notice to about 200 employees and
3.5 million euros to the impairment of assets. According to the Group
accounting principles the start-up costs at the Asian PWB plants are
booked as non-recurring costs. The start-up costs at ACP Electronics
in China were 0.8 million euros and at P.C.B. Center in Thailand 3.0
million euros. One-time costs of obsolete stock and scrapping of
fixed assets at Oulu and Teuva plants in Finland were 1.1 million
euros. The total income of accruals for the last quarter was 2.0
million euros including 0.5 million euros’ decrease in mandatory
reserve of the closing of the Espoo plant.The Group’s net financial expenses totalled 2.6 million euros (0.4
million euros). The Group’s loss before extraordinary items and taxes
totalled 29.9 million euros (profit 21.2 million euros), and its pre-
tax loss was 29.9 million euros (profit 22.0 million euros). The net
loss for the year stood at 26.9 million euros (profit 16.2 million
euros).
Earnings per share totalled EUR -2.66 (EUR 1.59). Equity per share
totalled EUR 13.01 (EUR 15.96).FINANCING, INVESTMENTS AND CAPITAL STRUCTURE
The Group’s financial status was healthy during the period. The Group
had a liquid reserve at the year-end totalling 20.3 million euros
despite a 75.0 million euros investment program totalling
approximately 33.8% of net sales. 34.8 million euros of the
investments were aimed primarily at the development of the Chinese
operations, while 34.9 million euros were invested in PWB operations
in Europe and the remaining approximately 1.8 million euros were
invested in EMS. About 3.5 million euros were invested in other
operations. Net financial expenses totalled 1.2 % of net sales (0.2%)
and the non-interest-bearing debts totalled 47.1 million euros (53.8
million euros). The net interest-bearing debts totalled 59.3 million
euros (0.9 million euros). The Group’s equity ratio was 56.5%
(64.6%).INVESTMENTS IN JOINT VENTURES AND R&D
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 is
approximately 35 million euros, and of the joint venture partner,
3(8)
Chin-Poon Industrial Co., Ltd., 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 plant’s sales
volume is expected to reach 100 million euros per annum over the next
5 years. During 2001 the sales were 9.9 million euros. The plant’s
personnel amounted 511 on December 31, 2001.On March 1, 2001 Aspocomp Group signed an agreement increasing its
ownership in the Thai printed wiring board (PWB) company P.C.B.
Center (Thailand) Co., Ltd. to a majority of 51%.
The share of Aspocomp Group from a minority (12.5%) to a majority
required an extra investment of approximately 4.2 million euros. The
total investment in shares is 5.3 million euros.
P.C.B. Center is the second biggest PWB-company in Thailand and it
has QS-9000 and ISO-9001 cerfications. The factory has a total
production area of 10 000 square meters and it had 882 employees on
December 31, 2001. Since March, 2001 the company generated net sales
totalling 17.5 million euros.The strategic goal of our R&D activities is to create solutions to
meet the increasing functionality of devices and component density,
higher heat dissipation and smaller line width. In the short-term the
development is focused on interconnection reliability issues,
embedded passives and new ceramic substrates. During the period
Aspocomp has submitted four patent applications in relation to the
embedded components and micro mechanics.THE SHARES AND SHARE CAPITAL
The Aspocomp Group Oyj Annual General Meeting of March 23, 2001
decided to authorize the Board of Directors to decide on acquiring
and conveying own shares. The authorization is valid for one year
from the date of the AGM. At its meeting of July 16, 2001 the Board
of Directors decided to acquire a maximum of 100 000 Aspocomp shares
through public trading. The company Svenska Handelsbanken was
authorized to execute the acquiring in practise. The repurchases were
commenced on July 30, 2001 and on October 5, 2001 the maximum of 100
000 shares was achieved. At its meeting of October 24, 2001 the Board
of Directors decided to continue to use the authorization and acquire
maximum of 100 000 own shares through public trading in addition to
the already acquired own shares. The repurchases were commenced on
November 1, 2001 and by December 31, 2001 900 own shares were
acquired. After the financial period, on January 31, 2002, a total of
100 900 own shares were repurchased.
The information regarding the repurchases of own shares is stated on
the table below.Period of time Amount Average Total price,
of shares price/share euros
euros
July 1-31, 2001 1 550 8.97 13 905.00
August 1-31, 2001 29 150 9.74 284 017.50
September 1-30, 2001 38 500 9.95 382 895.00
October 1-31, 2001 30 800 10.39 319 925.00
November 1-30, 2001 900 10.00 9 000.00
4(8)
Total 100 900 10.01 1 009 742.50The Annual General Meeting of 2001 decided to authorize the Board of
Directors to decide on increasing the share capital by a share issue
and/or by taking a convertible loan. The authorization is valid until
March 23, 2002 and so far the Board of Directors has not used it.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 7.0% 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 current
subscription price is 24 euros. 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. The Board of Directors of
Aspocomp Group Oyj resolved to apply for listing of all the A Options
1999 on the main list of the Helsinki Exchanges so that the listing
commenced on November 23, 2001. In relation to the listing both A and
B Options were transferred to book-entry securities system.A total of 3 110 035 Aspocomp Group Oyj shares changed hands during
the period under review on the Helsinki Stock Exchange with a total
trading value of 45 075 903.17 euros. The shares reached a low of
8.90 euros, a high of 30.00 euros and maintained an average share
price of 14.49 euros during the fiscal year. The closing price as of
December 28, 2001 was 12.06 euros. The share of the nominee
registered shares and foreign ownership was 22.64%.PERSONNEL
The Group experienced growth in personnel during the year as
operations globalized. The number of personnel employed by the Group
averaged 3 314 between January 1 and December 31, 2001, compared with
2 007 for the corresponding period last year. There were a total of 3
178 people working for the Group at the year-end (1 948). Within the
parent company there was a total of 14 people at the year-end and the
staff averaged 11 individuals during the year.Average Average Number Number
number number
2001 2000 2001 2000
Jan 1-Dec 31 Jan 1-Dec 31 Dec 31 Dec 31Europe 1902 2007 1785 1948
5(8)
Thailand 1074 — 882 —
China 338 — 511 —
Total 3314 2007 3178 1948At its meeting of July 12, 2001 the Board of Directors decided to
close down the Aspocomp Oy PWB factory in Espoo, based on both
productional and economical reasons. The personnel negotiations with
all personnel groups started on May 23 and ended on July 12, 2001. As
a consequence of the decision the whole personnel of the Espoo
factory, total of about 130 persons, was given a notice.
Among the reasons for the closing of the Espoo factory were the
continuous unprofitability of the factory, the price pressure in the
standard technology PWB market and the global overcapacity situation.
The Espoo plant’s share of the Group net sales in 2000 was 5 % and
its share of the Group personnel 7 %.Negotiations with the Working Council at Aspocomp SAS PWB plant in
Evreux, France were started on October 18, 2001 regarding possible
personnel reductions. The negotiations were concluded after the
financial period, on January 24, 2002, and the decision was to give a
notice to approximately 200 persons based on both productional and
economical reasons. The personnel reductions were started immediately
and the number of the personnel after the reductions will be about
350.Other Group factories have also adapted their operations to the
current demand situation during the fiscal period.PROPOSAL FOR THE DISTRIBUTION OF DIVIDEND
The Board of Directors will propose at the Annual General Meeting to
be held on April 5, 2002, that no dividends be distributed for the
year 2001.PROSPECTS FOR 2002
Our strategy is to be cost-effective and one of the leading
manufacturers of technologically advanced PWB’s globally. To reach
this objective we have intensified co-operation with other players in
the supply chain and continued investments in R&D and new capacity in
Asia, at the same time sustaining our solid balance sheet. Our
planned investments in capacity for 2002 will be substantially lower
than the previous years’ average level, totalling about 10 million
euros.
We have reached a strong market position in Europe and as the first
European PWB company we have started HDI production in China. Our
customer base includes several major players in the global
telecommunication industry. We believe our strategy will enable us to
resume our profitable secular growth. Based on our customers’
estimates the development during 2002 in telecom infrastructure
business will be flat to 10% down. In mobile business global growth
is forecasted to be 10-15%. The first half and especially the first
quarter will be difficult and growth will be focused on the second
half of the year.
6(8)
Despite the continued capacity modifications and the cost cutting
program the EBIT-level result of the first quarter will be negative.
We are confident in our ability to retain our market share at least
on the current level and even to increase penetration in our
specialized segment.ASPOCOMP GROUP INCOME STATEMENT
2001 2000 Change
MEUR MEUR MEUR %NET SALES 221.8 239.8 -18.0 -7.5
Other operating
income 0.9 3.0 -2.1 —
Depreciation and
write-downs 39.1 26.2 12.9 49.2OPERATING PROFIT/LOSS
AFTER DEPRECIATION -27.4 21.6 -49.0 —Financial income
and expenses -2.5 -0.4 -2.1 -525.0PROFIT/LOSS BEFORE EXTRAORDINARY
ITEMS AND TAXES -29.9 21.2 -51.1 —Extraordinary income 0.0 1.1 -1.1
Extraordinary expences 0.0 -0.3 0.3PROFIT/LOSS BEFORE TAXES -29.9 22.0 -51.9 —
MINORITY INTEREST 3.6 0.0 3.6
PROFIT/LOSS FOR THE PERIOD -26.9 16.2 -43.1 —
EARNINGS/LOSS PER SHARE, EUR -2.66 1.59 -4.25 —
Figures are unaudited.
ASPOCOMP GROUP BALANCE SHEET
2001 2000 Change
MEUR MEUR MEUR %Non-Current Assets
Intangible Assets 8.7 2.7 6.0 222.2
Tangible Assets 191.8 134.2 57.6 42.9
Investments 1.5 1.1 0.4 36.4Current Assets
Inventories 30.7 29.3 1.4 4.8
Receivables 39.1 49.4 -10.3 -20.9
7(8)
Investments 0.0 29.1 -29.1 —
Cash and bank deposits 20.3 4.7 15.6 331.9TOTAL ASSETS 292.1 250.5 41.6 16.6
Shareholders’ equity
Share capital 10.1 10.1 – –
Other shareholders’ equity 121.5 151.7 -30.2 -19.9
Minority interest 33.8 0.0 33.8
Mandatory reserves 10.8 5.5 5.3 96.4
Long-term liabilities 55.8 35.3 20.5 58.1
Short-term liabilities 60.1 47.8 12.3 25.7TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 292.1 250.5 41.6 16.6KEY FIGURES
Equity / share, EUR 13.01 15.96
Equity Ratio, % 56.5 64.6
Gearing, % 36.1 0.6
Return on Equity, % -18.7 13.2
Return on Investment, % -11.5 15.2
(ROI)Gross Investments, MEUR 75.0 68.3
Average Personnel 3 314 2 007
Figures are unaudited.
Accumulated excess depreciation and voluntary reserves totalling 13.5
million euros (13.8 million euros) have been divided among
shareholders’ equity and nominal tax liabilities.CONTINGENT LIABILITIES
2001 2000
MEUR MEURSecurities on Group liabilities 1.8 1.8
Operational Leasing liabilities 0.2 0.2
Other liabilities 1.7 0.0TOTAL 3.7 2.0
There are no derivative contracts.
8(8)
ANNUAL GENERAL MEETINGThe Aspocomp Group Oyj Annual General Meeting will be held on Friday,
April 5, 2002 at 2:00 p.m.ANNUAL REPORT 2001
The Aspocomp Group Annual Report 2001 will be published on week 13.
FINANCIAL INFORMATION IN 2002
The Aspocomp Group will release its quarterly reports during the year
2002 on May 7, August 1 and October 31.Statements in this stock exchange release relating to matters that
are not historical facts are forward-looking statements. All forward-
looking statements, involve known and unknown risks, uncertainties
and other factors, which may cause the actual results, performances
or achievements of Aspocomp Group to be materially different from any
future results, performances or achievements expressed or implied by
such forward-looking statements. Such factors include general
economic and business conditions; increases in PWB industry capacity
and competition; the ability of the company to implement its
investment program and to continue to expand its business outside the
European market.Vantaa February 14, 2002
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