THE ASPOCOMP GROUP’S FINANCIAL INFORMATION FOR 2004 ACCORDING TO IFRS


ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE Apr 26, 2005 at 1:00 PM 1(12)

THE ASPOCOMP GROUP’S FINANCIAL INFORMATION FOR 2004 ACCORDING TO IFRS

From the beginning of 2005, the Aspocomp Group has adopted financial statement
rules according to International Financial Reporting Standards (IFRS) in its
financial reporting. The date of the transition to IFRS is January 1, 2004. The
interim reports for 2005 will be published in accordance with the principles of
recognition and measurement laid down in the IFRS. Interim report for January-
March 2005 will be published on May 4, 2005. The opening IFRS balance sheet has
been prepared as at January 1, 2004.

Principal changes in making the transition to IFRS financial statement practice

Since 1999, Aspocomp has capitalized all its finance lease assets and recognized
all its lease liabilities. In measuring inventories of finished goods and work
in progress, a portion of the fixed costs and depreciation has been recognized
in stating the value of inventories. For Finnish Group companies, the past
service cost of defined benefit plans under IAS 19 have been booked as expenses
and liabilities. Deferred tax assets and liabilities have also been recognized
since 1999.

Aspocomp has not booked as a liability in its opening IFRS balance sheet the
disability pension component under the Finnish Employees’ Pensions System (TEL).
This is in line with certain changes to the bases of calculating the disability
pension component under the Finnish TEL system as approved by the Ministry of
Social Affairs and Health in December 2004. These changes will enter into effect
on January 1, 2006, after which said disability component will be treated as a
defined contribution system. Because Aspocomp is not recording the above-
mentioned liability in the opening balance sheet, it is accordingly not recorded
as an income in the fourth-quarter figures for 2004, and thereby improves the
comparability of Aspocomp’s results for 2004 and 2005.

Because in its previous financial statements according to Finnish Accounting
Standards (FAS) Aspocomp has already booked the largest items requiring
adjustment according to IFRS, the transition to the new reporting standards will
not cause significant changes to the income statement or to the balance sheet.
The most important change in shareholders’ equity in the opening balance sheet
is the derecognition of the acquisition cost of treasury shares to an amount of
EUR 0.8 million. The biggest change in net profit at the annual level is the EUR
0.5 million reversal of Group goodwill amortization.

Segment information

According to FAS, Aspocomp’s operations were divided into two business segments,
Printed Circuit Boards and Mechanics & Modules.

In line with IFRS, Mechanics & Modules segment (FAS) is presented as two
separate segments. The allocation of Group head-office expenses has also been
altered. Previously, head-office expenses were allocated in full to each
segment. Under IFRS, head-office expenses are allocated to the segments only to
the extent that this is justified in accordance with the IFRS practice.

According to the previous reporting practice, the costs of research and
development associates had been booked in full as costs of the Printed Circuit
Boards’ segment. Under IFRS, the costs of the above-mentioned companies are
allocated in full as head-office expenses.
2(12)
IFRS COMPARATIVE FIGURES FOR JANUARY-MARCH

Income statement
FAS IFRS Change
1-3/2004 1-3/2004

Net sales 47.6 47.6 0.0

Change in inventories of finished
goods and work in progress, +/- 1.6 1.6 0.0
Other operating income 0.2 0.2 0.0
Materials and services -21.5 -21.5 0.0
Personnel costs -10.5 -10.5 0.0
Depreciation and amortization -6.1 -5.9 0.2
Other operating expenses -8.0 -8.0 0.0
Share of losses of associated companies -0.6 -0.6 0.0
Operating profit 2.7 2.9 0.2

Financial income and expenses -0.4 -0.4 0.0
Profit before tax 2.3 2.5 0.2

Income tax expense -0.1 -0.1 0.0
Profit before minority interest 2.2 2.4 0.2

Minority interest -0.5 -0.5 0.0
Net profit for the period 1.7 1.9 0.2

Earnings/share, EUR 0.09 0.09 0.0

Segments

Net sales by segment
FAS IFRS Change
1-3/2004 1-3/2004

Printed Circuit Boards 36.4 36.4 0.0
Modules 7.9 8.0 0.1
Mechanics 3.3 3.3 0.0
Intra-Group sales 0.0 -0.1 -0.1
Net sales, total 47.6 47.6 0.0

Operating profit by segment
FAS IFRS Change
1-3/2004 1-3/2004

Printed Circuit Boards 1.3 2.4 1.1
Modules 1.6 1.8 0.2
Mechanics -0.2 -0.1 0.1
Head-office expenses 0.0 -1.3 -1.3
Operating profit, total 2.7 2.9 0.0

Consolidated balance sheet
FAS IFRS Change
1-3/2004 1-3/2004
3(12)
ASSETS
Intangible assets 3.9 4.0 0.2
Tangible assets 103.3 101.4 -1.9
Long-term investments 1.1 0.3 -0.7
Long-term receivables 0.4 2.3 1.9

Inventories 24.0 24.0 0.0
Trade and other receivables 52.4 52.5 0.1
Marketable securities 21.4 21.4 0.0
Cash and cash equivalents 7.1 7.1 0.0
TOTAL ASSETS 213.5 213.1 -0.4

SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital 10.0 10.0 0.0
Share premium fund and other funds 84.7 83.9 -0.8
Retained earnings 9.5 9.6 0.1
Equity attributable to shareholders 104.3 103.6 -0.7
Minority interest 21.7 21.7
Total equity 104.3 125.3 21.0

Minority interest, FAS 21.8 -21.8

Long-term liabilities 27.8 28.0 0.2
Long-term provisions 2.1 2.3 0.2
Current liabilities 57.5 57.5 0.0
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 213.5 213.1 -0.4

Financial key ratios:

Return on investment (ROI), % 3.7 3.6 -0.1
Equity/share, EUR 5.2 5.2 0.0
Equity ratio, % 58.9 58.8 -0.1
Gearing, % 18.6 18.8 0.2

IFRS COMPARATIVE FIGURES FOR APRIL-JUNE

Income statement
FAS IFRS Change
4-6/2004 4-6/2004

Net sales 52.9 52.9 0.0

Change in inventories of finished
goods and work in progress, +/- -0.4 -0.0 0.0
Other operating income 0.3 0.3 0.0
Materials and services -22.8 -22.8 0.0
Personnel costs -11.5 -11.5 0.0
Depreciation and amortization -6.2 -6.0 0.2
Other operating expenses -7.9 -7.9 0.0
Share of losses of associated companies -0.6 -0.6 0.0
Operating profit 3.8 4.0 0.2

Financial income and expenses -0.3 -0.2 0.0
Profit before tax 3.5 3.7 0.2
4(12)
Income tax expense -0.1 -0.1 0.0
Profit before minority interest 3.4 3.6 0.2

Minority interest -0.9 -0.9 0.0
Net profit for the period 2.6 2.8 0.2

Earnings/share, EUR 0.13 0.14 0.01

Segments

Net sales by segment
FAS IFRS Change
4-6/2004 4-6/2004

Printed Circuit Boards 40.5 40.7 0.3
Modules 9.3 9.3 0.0
Mechanics 3.1 3.1 0.0
Intra-Group sales -0.0 -0.3 -0.3
Net sales, total 100.5 100.5 0.0

Operating profit by segment
FAS IFRS Change
4-6/2004 4-6/2004

Printed Circuit Boards 1.3 3.5 2.2
Modules 2.6 2.5 -0.1
Mechanics 0.0 -0.1 0.0
Head-office expenses 0.0 -2.0 -2.0
Operating profit, total 3.8 4.0 0.2

Consolidated balance sheet
FAS IFRS Change
4-6/2004 4-6/2004
ASSETS
Intangible assets 3.7 4.0 0.4
Tangible assets 101.2 99.3 -1.9
Long-term investments 1.6 0.8 -0.7
Long-term receivables 0.0 1.9 1.9

Inventories 25.0 25.0 0.0
Trade and other receivables 55.0 55.2 0.2
Marketable securities 13.0 13.0 0.0
Cash and cash equivalents 13.1 13.1 0.0
TOTAL ASSETS 212.5 212.2 -0.3

SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital 10.0 10.0 0.0
Share premium fund and other funds 84.7 83.9 0.8
Retained earnings 9.0 9.3 0.3
Equity attributable to shareholders 103.8 103.3 -0.5
Minority interest 22.8 22.8
Total equity 103.8 126.0 22.8

Minority interest, FAS 22.8 -22.8
5(12)
Long-term liabilities 25.4 25.6 0.2
Long-term provisions 2.3 2.4 0.2
Current liabilities 58.2 58.2 0.0
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 212.5 212.3 -0.2

Financial key ratios:

Return on investment (ROI), % 8.0 8.8 0.8
Equity/share, EUR 5.2 5.2 0.0
Equity ratio, % 59.4 59.4 0.0
Gearing, % 19.6 19.7 0.1

IFRS COMPARATIVE FIGURES FOR JULY-SEPTEMBER

Income statement
FAS IFRS Change
7-9/2004 7-9/2004

Net sales 52.1 52.1 0.0

Change in inventories of finished
goods and work in progress, +/- -0.5 -0.5 0.0
Other operating income 0.3 0.3 0.0
Materials and services -23.1 -23.1 0.0
Personnel costs -10.3 -10.3 0.0
Depreciation and amortization -6.0 -5.8 0.2
Other operating expenses -8.2 -8.2 0.0
Share of losses of associated companies -0.4 -0.4 0.0
Operating profit 4.0 4.2 0.2

Financial income and expenses -0.4 -0.5 0.0
Profit before tax 3.5 3.7 0.2

Income tax expense -0.9 -0.9 0.0
Profit before minority interest 2.6 2.8 0.2

Minority interest -0.9 -0.9 0.0
Net profit for the period 1.8 2.0 0.2

Earnings/share, EUR 0.09 0.10 0.01

Segments

Net sales by segment
FAS IFRS Change
7-9/2004 7-9/2004

Printed Circuit Boards 34.8 34.9 0.1
Modules 6.4 6.4 0.0
Mechanics 3.6 3.6 0.0
Intra-Group sales 0.0 -0.1 -0.1
Net sales, total 152.7 152.7 0.0

6(12)
Operating profit by segment
FAS IFRS Change
7-9/2004 7-9/2004

Printed Circuit Boards 1.9 3.3 1.5
Modules 2.2 2.4 0.2
Mechanics -0.1 0.0 0.1
Head-office expenses 0.0 -1.5 -1.4
Operating profit, total 4.0 4.2 0.2

Consolidated balance sheet
FAS IFRS Change
7-9/2004 7-9/2004
ASSETS
Intangible assets 3.3 3.9 0.6
Tangible assets 97.1 95.2 -1.9
Long-term investments 1.7 1.0 -0.7
Long-term receivables 0.0 1.9 1.9

Inventories 25.0 25.0 0.0
Trade and other receivables 52.8 52.9 0.1
Marketable securities 16.0 16.0 0.0
Cash and cash equivalents 14.2 14.2 0.0
TOTAL ASSETS 210.2 210.1 -0.1

SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital 10.0 10.0 0.0
Share premium fund and other funds 84.7 83.9 -0.8
Retained earnings 10.4 10.8 0.4
Equity attributable to shareholders 105.1 104.8 -0.3
Minority interest 24.4 24.4
Total equity 105.1 129.2 24.1

Minority interest, FAS 24.4 -24.4

Long-term liabilities 24.6 24.7 0.1
Long-term provisions 2.5 2.7 0.2
Current liabilities 53.5 53.5 0.0
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 210.2 210.1 -0.1

Financial key ratios:

Return on investment (ROI), % 8.5 8.9 0.4
Equity/share, EUR 5.25 5.27 0.02
Equity ratio, % 61.5 61.5 0.0
Gearing, % 13.2 13.2 0.0

IFRS COMPARATIVE FIGURES FOR OCTOBER-DECEMBER
FAS IFRS Change
10-12/2004 10-12/2004

Income statement

7(12)
Net sales 44.7 44.7 0.0

Change in inventories of finished
goods and work in progress, +/- -0.6 -0.6 0.0
Other operating income 0.5 0.5 0.0
Materials and services -19.1 -19.1 0.0
Personnel costs -11.1 -11.1 0.0
Depreciation and amortization -5.7 -5.5 0.2
Other operating expenses -9.2 -9.2 0.0
Share of losses of associated companies -0.3 -0.3 0.0
Operating profit -0.8 -0.6 0.2

Financial income and expenses 0.0 0.4 0.4
Loss before tax -0.7 -0.2 0.6

Income tax expense 0.6 0.5 -0.1
Loss (profit) before minority interest -0.1 0.3 0.4

Minority interest 0.0 0.0 0.0
Loss (profit) for the period -0.1 0.3 0.5

Earnings/share, EUR -0.01 0.02 0.03

Segments

Net sales by segment
FAS IFRS Change
10-12/2004 10-12/2004

Printed Circuit Boards 34.8 35.0 0.2
Modules 6.4 6.4 0.0
Mechanics 3.6 3.6 0.0
Intra-Group sales 0.0 -0.1 -0.1
Net sales, total 44.7 44.7 0.0

Operating profit by segment
FAS IFRS Change
10-12/2004 10-12/2004

Printed Circuit Boards -2.1 -0.6 1.5
Modules 1.2 1.3 0.1
Mechanics 0.2 0.3 0.1
Head-office expenses 0.0 -1.5 -1.5
Operating profit, total -0.8 -0.6 0.2

Consolidated balance sheet
FAS IFRS Change
10-12/2004 10-12/2004
ASSETS
Intangible assets 3.4 4.1 0.7
Tangible assets 91.7 89.7 -1.9
Long-term investments 1.7 1.0 -0.7
Long-term receivables 0.1 2.0 1.9

8(12)
Inventories 22.6 22.6 0.0
Trade and other receivables 46.6 46.5 0.0
Marketable securities 25.0 25.0 0.0
Cash and cash equivalents 8.2 8.2 0.0
TOTAL ASSETS 199.2 199.2 -0.1

SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital 20.1 20.1 0.0
Share premium fund and other funds 74.7 73.9 -0.8
Retained earnings 8.5 9.4 0.9
Equity attributable to shareholders 103.2 103.4 0.1
Minority interest 22.3 22.3
Total equity 103.2 125.6 22.4

Minority interest, FAS 22.3 -22.3

Long-term liabilities 21.1 20.8 -0.3
Long-term provisions 1.9 2.1 0.2
Current liabilities 50.7 50.7 0.0
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 199.2 199.2 -0.1

Financial key ratios:

Return on investment (ROI), % 6.3 6.9 0.6
Equity/share, EUR 5.15 5.20 0.05
Equity ratio, % 62.9 63.1 0.2
Gearing, % 8.6 8.3 0.3

IFRS COMPARATIVE FIGURES FOR 2004

Income statement
FAS IFRS Change
2004 2004

Net sales 197.4 197.4 0.0

Change in inventories of finished
goods and work in progress, +/- 0.0 0.0 0.0
Other operating income 1.3 1.3 0.0
Materials and services -86.5 -86.5 0.0
Personnel costs -43.4 -43.4 0.0
Depreciation and amortization -23.9 -23.1 0.7
Other operating expenses -33.3 -33.3 0.0
Share of losses of associated companies -2.0 -2.0 0.0
Operating profit 9.7 10.4 0.7

Financial income and expenses -1.0 -0.7 0.4
Profit before tax 8.6 9.8 1.1

Direct taxes -0.4 -0.5 -0.1
Profit before minority interest 8.2 9.2 1.0

Minority interest -2.3 -2.3 0.0
Net profit for the period 6.0 6.9 1.0
9(12)
Earnings/share, EUR 0.30 0.35 0.05

Segments

Net sales by segment
FAS IFRS Change
2004 2004

Printed Circuit Boards 152.4 152.8 0.4
Modules 32.5 32.5 0.0
Mechanics 12.6 12.6 0.0
Intra-Group sales 0.0 -0.4 -0.4
Net sales, total 197.4 197.4 0.0

Operating profit by segment
FAS IFRS Change
2004 2004

Printed Circuit Boards 2.3 8.6 6.3
Modules 7.5 8.0 0.5
Mechanics -0.1 0.1 0.2
Head-office expenses 0.0 -6.3 -6.3
Operating profit, total 9.7 10.4 0.7

Supplementary information on the effects of the transition to IFRS on balance
sheet reconciliations

1. Intangible assets

In accordance with Finnish Accounting Standards, the Group goodwill has been
booked to intangible assets. The Group goodwill has arisen from the difference
between the acquisition cost and the shareholders’ equity of the acquired
subsidiary at the time of acquisition. Group goodwill has been amortized, in
accordance with FAS. The amortization period has been 5 years.

The Group goodwill in the opening IFRS balance sheet has remained unchanged in line
with the transitional exemptions permitted under IFRS 1. Under IFRS, goodwill will
no longer be amortized. Goodwill will be tested for impairment annually or when any
particular reason becomes evident. Goodwill will be tested at the level of cash-
generating units. The effect of the reversal of goodwill amortization in 2004 is
EUR 0.5 million.

2. Tangible assets

According to FAS, the long-term land lease of ACP Electronics Ltd, a subsidiary
located in China, has been booked to tangible assets. Said land lease agreement
has been made for a period of 50 years and it is allocated to the balance sheet
item “Land areas”.

Under IFRS practice, said prepayments on the land lease have been booked to long-
term receivables. In the opening balance sheet, the carrying amount of said long-
term land lease agreement is EUR 1.9 million.

10(12)
3. Investments

Treasury shares

In accordance with FAS, the Group’s treasury shares (own shares) have been
booked to balance sheet assets and to the Treasury share fund. Under IAS 32, the
acquisition cost of treasury shares has been subtracted from balance sheet
assets and shareholders’ equity. The effect of this change is EUR 0.8 million in
both the opening balance sheet and the closing balance sheet for 2004.

Available-for-sale assets

Available-for-sale assets include shares in listed and unlisted companies.
Shares in listed companies are measured at the share price on the balance sheet
date. Shares in unlisted companies are measured at the original acquisition cost
or a possible lower value. According to Finnish Accounting Standards, all the
available-for-sale financial assets have been recognized at cost. The effect of
this change in accounting policies on balance sheet assets is less than EUR 0.1
million.

4. Deferred tax assets

According to FAS, the Aspocomp Group has recorded deferred tax assets and
liabilities since 1999. The IFRS adjustments on the deferred tax asset have been
recorded in the opening IFRS balance sheet. The effect of these adjustments on
the opening IFRS balance sheet is an increase of EUR 0.1 million, as against a
decrease of EUR 0.1 million in the closing balance sheet for 2004.

5. Shareholders’ equity

The adjusting profit or loss items that have arisen from the transition to IFRS
have been entered in shareholders’ equity in the opening IFRS balance sheet. The
most important changes in shareholders’ equity are set out in the table below.

2003 2004 2004 2004 2004
Dec. 31 Mar. 31 Jun. 30 Sept. 30 Dec. 31

Shareholders’ equity, FAS 102.1 104.3 103.8 105.1 103.2

IFRS adjustments:
IAS 19, Employee benefits -0.1 -0.1 -0.1 -0.1 -0.1
IAS 32, Treasury share fund -0.8 -0.8 -0.8 -0.8 -0.8
IAS 39, Derivatives -0.1 0.0 0.1 0.0 0.0
IFRS 3, Reversal of goodwill
amortization 0.0 0.2 0.4 0.5 0.7
IAS 39, Reversal of hedging
of shareholders’ equity 0.0 -0.1 -0.2 -0.1 0.2
IAS 1, Minority interest 20.4 21.7 22.8 24.4 22.3
IFRS adjustment, total 19.5 21.0 22.3 24.0 22.4

Shareholders’ equity, IFRS 121.7 125.3 126.0 129.2 125.6

In accordance with the exemptions permitted under IFRS 1. The cumulative
translation differences have been set to zero. Under FAS, the foreign exchange
difference on a long-term loan taken out by the parent company has been booked
against shareholders’ equity in order to hedge shareholders’ equity. According
11(12)
to IFRS, this hedging instrument is not judged to be effective and the foreign
exchange difference on said loan has been recorded under financial income and
expenses. The effect of this adjustment on the shareholders’ equity at the end
of 2004 is EUR 0.2 million.

6. Provisions

In preparing the transition to IFRS, the benefits of the Group’s employees have
been classified as defined contribution and defined benefit schemes. As a change
to the entries according to FAS is that the subsidiary in Thailand, P.C.B.
Center (Thailand) Co., Ltd, has under IFRS recorded the liability for the
defined benefit scheme in the opening IFRS balance sheet. The effect of
recording this liability on the opening IFRS balance sheet as well as on the
IFRS balance sheet at the end of 2004 is EUR 0.2 million. Other employee
benefits according to IFRS have already been recorded as expenses and
liabilities in the financial statements according to Finnish Accounting
Standards.

Supplementary information on the effects of the transition to IFRS on
reconciliations in the income statement

1. Goodwill amortization

According to Finnish Accounting Standards, goodwill has been amortized according to
plan. The amortization period for the goodwill has been 5 years.

Under IFRS, goodwill is not amortized. The effect of reversing these
amortization entries on the net profit for 2004 is EUR 0.5 million.

2. Financial income and expenses

According to FAS, the foreign exchange difference on a long-term loan taken out
by the parent company has been booked against shareholders’ equity in order to
hedge shareholders’ equity. Under IFRS, this hedge has not been judged effective
and the foreign exchange difference on said loan has been recorded under
financial income and expenses. The effect of this adjustment on the net profit
for 2004 is EUR 0.2 million.

3. Derivative contracts

Aspocomp does not apply hedge accounting at the time of transition or to
derivative contracts in effect in 2004. For this reason, the changes in the fair
value of these contracts are recorded as a credit or charge to income. According
to FAS, derivative contracts have been reported only in the notes to the
financial statements. The effect of this change in accounting policy on the net
profit for 2004 is less than EUR 0.1 million.

4. Income taxes

A deferred tax asset or tax liability has been entered for all the changes and
adjustments resulting from the transition to IFRS standards. The effect of the
these tax entries on the net profit for 2004 is less than EUR 0.1 million.

5. Net profit

12(12)
The effect of IFRS adjustments on the Aspocomp Group’s net profit is shown in
the table below:

2004 2004 2004 2004 2004
1-3 4-6 7-9 10-12 1-12

Net profit, FAS 1.7 2.6 1.8 -0.1 6.0

IFRS adjustments:
IAS 39, Derivatives 0.1 0.0 -0.1 0.0 0.0
IFRS 3, Reversal of goodwill amortization 0.2 0.2 0.2 0.2 0.7
IAS 39, Reversal of hedging of
shareholders’ equity -0.1 0.0 0.1 0.3 0.2
IFRS adjustments, total 0.2 0.2 0.2 0.5 1.0

Net profit, IFRS 1.9 2.8 2.0 0.3 6.9

The figures according to IFRS standards are unaudited.

For further information, please contact Group Financial Controller Hannu Hiillos,
tel. +358 9 7597 0715.

ASPOCOMP GROUP OYJ

Maija-Liisa Friman
President and CEO

Aspocomp: Innovative interconnection solutions for the electronics industry

The Aspocomp Group offers and develops innovative interconnection solutions for
the electronics industry in close cooperation with its customers. We hold a
strong and recognised position as a supplier of mobile data terminal equipment
components and we aim to further strengthen our position as a supplier to the
automotive industry and data communications networks. We offer our global
customers a fast road to mass production through flexible and cost-effective
adaptation of new technologies, to which our balanced production structure in
Europe and Asia is well adapted.

We strive to offer solutions to our customers that enable increased flexibility
in their own product development. Our belief is that this advantage will bear
increasing significance for our customers as end product lifecycles continue to
shorten.

The Aspocomp Group’s production facilities are located close to its customers in
Finland, China and Thailand. In 2004 Group turnover stood at around 200 million
euros with a staff of some 3,500.

Distribution:
The Helsinki Stock Exchange
Major Media
www.aspocomp.com