ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE February 17, 2006 at 8:00 AMASPOCOMP’S NET SALES: EUR 154.0 MILLION, OPERATING RESULT: EUR -16.7 MILLION
– Net sales in 2005 weakened by 16.7 per cent, as expected, and amounted to EUR
154.0 million (EUR 184.8 million in 2004). Net sales turned to growth in the
October-December period.– The operating result was down to EUR -16.7 million (10.4), representing -10.9
percent of net sales (5.6).– Earnings per share from continued operations weakened to EUR -1.26 (0.35).
– The Board of Directors proposes that shareholders will not be paid a dividend
for 2005 (EUR 0.30 in 2004), and that the funds be invested in growth in line
with the strategy.FOURTH-QUARTER HIGHLIGHTS (reference figures are for Q4/2004):
Net sales and operating result, EUR million
10-12/2005 change, % 10-12/2004
Group
Net sales 42.7 3.6 41.2
Operating result -5.7 -0.8Printed Circuit Boards
Net sales 39.2 12.0 35.0
Operating result -3.8 -0.6
Modules
Net sales 3.6 -43.8 6.4
Operating result -0.4 1.3As expected, consolidated net sales grew on the figure for July-September, EUR
35.8 million, primarily thanks to the Salo and Suzhou plants. Earnings per
share amounted to EUR -0.61 (0.0). Net financial expenses were EUR 0.3 million
(income 0.4). The result before taxes was EUR -6.0 million (-0.4) and the
result after taxes and minority interest was EUR -12.3 million (0.3).The Printed Circuit Boards division’s net sales and operational profitability
in the October-December period were up on the previous quarter, as estimated.
However, project costs that were transferred to the division from Group
Administration weakened overall profitability. The net sales and profitability
of the Modules division declined compared with the previous quarter, in line
with the estimates.The Group’s cash flow from operations was EUR 7.3 million (11.4), and
investments amounted to EUR 12.2 million (6.8). Investments in the October-
December period rose due to the extension of the Suzhou plant in China and the
Salo plant conversion project in Finland. Per-share cash flow after investments
was EUR -0.24 (0.23).OUTLOOK FOR THE FUTURE
The full year net sales and profitability of the Aspocomp Group’s Printed
Circuit Boards division are forecast to improve compared with the review
period, and the net sales and profitability of the non-core Modules division to
weaken further. The Group’s net sales in 2006 are expected to grow compared
with the review period and the result to become positive during the second half
of the year.MAIJA-LIISA FRIMAN, PRESIDENT AND CEO:
“The weak net sales and result for the fiscal year were disappointing. They
were affected particularly by the conversion process at the Salo plant.
However, we believe that the large-scale changes are crucial in enabling the
future growth of the Group in line with its objectives.The structural change in the printed circuit board (PCB) market towards larger
units and global companies continues. Consolidation is also ongoing among
Aspocomp’s customer industries. This implies that in the future, printed
circuit board manufacturers will make more products for ever-fewer and
increasingly demanding global customers. Globally operating, flexible and cost-
effective suppliers that are well-versed in customer-focused product design
will thrive in this evolving market.It falls particularly to a technology company such as Aspocomp, which masters
demanding PCB technology, to meet the need for intense renewal arising from
this change. For this reason, the company’s competitive edge hinges on a focus
on the essentials, innovation and close cooperation with key customers.During the review year, we made great outlays on renewing the company and
paving the way for future business growth. Technological cooperation with
customers, PCB research and development, and introduction of new technologies
and processes are centralized in the Finnish units in Salo and Oulu. They are
also responsible for the production of early stage PCBs and demanding specialty
products. The cost-effective manufacture of volume products, in its turn, is
centralized in the Group’s Asian units.In addition to the technological renewal of the Finnish plants, Aspocomp
continues its vigorous expansion in Asia. During the year just started, the
Group’s cost-effectiveness will be further boosted by the introduction of
augmented HDI production capacity in China at the end of 2005. The large-scale
project to improve profitability will continue in Thailand also this year. In
addition, during the present quarter the company announced its plan to start
cost-effective volume production in India. The printed circuit board plant to
be built in India will be the country’s first high-tech HDI production
facility, and it will further increase our ability to serve global customers
cost-effectively and to grow together with them.Further investments will be made in increasing net sales, and our medium-term
objective is to outpace global PCB market growth. To enable the company to
benefit from the market growth as much as possible, we wish to focus all our
resources on developing the Group’s market position and competitive ability, as
well as serving the main customers in increasingly fast-paced competition.
Although building success in a capital intensive business is a slow and long-
term effort, I firmly believe that our current strategy will be successful in
developing Aspocomp into a profitable, growing and globally competitive
technology company.”PRINTED CIRCUIT BOARD MARKET
In 2005, growth was vigorous in the end-markets of all the Group’s customer
segments, particularly so in the case of handheld devices. According to
estimates, net sales in the global PCB market amounted to over USD 40 billion
in the report year (more than EUR 33 billion). Of this, the share of the
technologically complex HDI PCBs was about 12 percent. The global PCB market
grew slightly over 2 percent during the review year, whereas the market for HDI
PCBs grew almost 20 percent from the previous year.The Asian PCB market saw growth of close to 6 percent compared with the
previous year, while markets in the rest of the world contracted slightly.
Almost 90 percent of the world’s HDI PCBs were manufactured in Asia.FULL-YEAR CONSOLIDATED NET SALES AND RESULT (reference figures are for
1-12/2004)The Aspocomp Group’s net sales for the financial year weakened by 16.7 percent
on the previous year to EUR 154.0 million (184.8). This was due particularly to
the strong contraction in the deliveries of the Salo PCB plant and the year-
long decline in the delivery volumes of the Oulu module plant. The growth in
the net sales of the PCB plants in China, Thailand and Oulu compared with the
previous year did not compensate for the declining deliveries. At the Chinese
plant, especially, net sales and the share of deliveries accounted for by HDI
PCBs featuring more complex technology rose towards the end of the year.The Aspocomp Group’s net sales for the financial year were divided by market
area as follows: Europe 62 percent (68%), Asia 30 percent (19%) and the
Americas 8 percent (13%). The Finnish plants’ share of net sales was 53.1
percent (66%), while the Asian plants accounted for 46.9 percent (34%). The
share of the Asian plants increased compared with the previous year, in line
with the Group’s strategy. Products used in cell phones and telecom systems
accounted for approximately 71 percent (70%) of consolidated net sales, and
approximately 29 percent (30%) came from automotive, industrial and consumer
electronics.The five largest customers – Elcoteq, Ericsson, Nokia, Philips and Sanmina-SCI
– accounted for 53 percent of net sales (59%) during the financial year.The operating result before depreciation was EUR 2.3 million (32.7), or 1.6
percent of net sales (17.7%). The operating result was EUR -16.7 million
(10.4). The result for the period was burdened by EUR 2.9 million in non-
recurring items, which were primarily due to the structural overhauls at the
Salo and Thai plants.The heavy losses of the Salo plant in particular cut into the Group’s
profitability in the financial year. Non-recurring costs at the plant – this
is, its large-scale conversion project, technological changes and personnel
reductions – weakened profitability substantially, as did the weaker-than-
expected structure of deliveries. Although the plant achieved readiness to
overhaul its product structure at the end of the year, as planned, PCBs
featuring new technology could not be put into production fast enough to
replace the old, lower-margin products.Thanks to the vigorous development of productivity, the profitability of the
Thai plant improved towards the end of the year. The operating income of the
plant was in the black, but its result for the financial year remained in the
red due to the recognition of non-recurring expenses.Deliveries by the Oulu module plant fell significantly and its result become
negative in the last quarter of the year. The weakening of profitability
gathered momentum towards the end of the year, as the telecom network products
manufactured at the plant neared the end of their life cycle. However, a multi-
year maintenance agreement has been made for these products. Deliveries to
other industries remained on a par with the previous year.The Group’s net financial expenses were EUR -0.9 million (-0.7) and the result
before taxes was EUR -17.6 million (9.7). The result for the period after taxes
and minority interest declined to EUR -23.4 million (9.2). The result includes
EUR 5.5 million in write-downs of deferred tax assets. Earnings per share from
continuous operations were EUR -1.26 (0.35). Cash flow from operations amounted
to EUR 12.7 million (29.8) and per-share cash flow after investments to EUR –
0.61 (0.71).The Group’s research and development expenditure amounted to EUR 4.8 million
(4.1), or 3.1 percent (2.2%) of net sales.THE GROUP’S DIVISIONS
Printed Circuit Boards
Net sales of the PCB division declined to EUR 137.1 million (152.8) during the
financial year. The extensive conversion project at the Salo plant cut sharply
into the net sales of the entire division, even though the Chinese plant
enjoyed favorable development later in the year and the plants in China,
Thailand and Oulu posted higher net sales than in the previous year.The total comparable net sales of the Salo and Oulu plants in Finland declined
by 24 percent (10%) due to the Salo conversion project. The net sales of the
Asian plants in China and Thailand were up 40 percent (20%).The division’s operating result for January-December was EUR -11.7 million
(8.6). Profitability was weakened particularly heavily by the conversion
process at the Salo plant and the weaker-than-expected structure of its
deliveries due to delays in the start-up of PCBs featuring new technology. The
boosting of production efficiency at the Thai plant was not as yet evident in
its result for the financial year, which remained significantly in the red. The
profitability of the Oulu plant was good.Modules
Net sales of the Modules division contracted by 43 percent (13%), as expected,
and amounted to EUR 18.6 million (32.5).The operating result of the division for the financial year declined to EUR 1.2
million (8.0). The weakening of net sales and profitability during the
financial year was primarily due to the fact that the telecom network products
manufactured at the Oulu plant gradually neared the end of their life cycle.
The maintenance agreement made for the products will be in force for several
years. The result became negative in the last quarter.The figures of the division do not include the Mechanics business, which was
divested in September 2005.FINANCING, INVESTMENTS AND EQUITY RATIO
The Group’s liquidity during the period under review was good. At the end of
the report period, the Group’s liquid assets amounted to EUR 16.1 million
(33.2). Interest-bearing net debt rose to EUR 25.2 million (10.7) due to the
negative result in the financial year. The figure includes EUR 19.6 million
(22.7) in financial lease liabilities included in the consolidated balance
sheet. Gearing was 23.5 percent (8.6%) and exclusive of consolidated financial
lease liabilities, gearing was 5.2 percent (-9.6%). Non-interest-bearing
liabilities amounted to EUR 37.1 million (29.8).Investments amounted to EUR 25.9 million (15.7), representing 16.8 percent of
net sales (8.5%). They were primarily earmarked for the expansion of the HDI
line at the Chinese plant, raising of the Group’s holding in the Thai plant to
75 percent (whole Group’s holding about 83%), and technological investments at
the Salo plant. Capital expenditures in Asia were EUR 14.8 million (5.1) and
EUR 11.1 million (10.7) in Europe. Net financial expenses were 0.6 percent of
net sales (0.4%).The Group’s equity ratio at the end of the year was 57.8% (63.1%).
SHARES AND SHARE CAPITAL
The total number of Aspocomp’s shares at December 31, 2005, was 20,082,052. The
nominal value of the share was EUR 1.00 and the share capital stood at EUR
20,082,052. Of the total shares outstanding, the company held 200,000 treasury
shares with a book counter value of EUR 200,000, representing 1.0 percent of
the aggregate votes conferred by all the shares. The number of shares adjusted
for by the treasury shares was 19,882,052.A total of 8,582,505 Aspocomp Group Oyj shares were traded on the Helsinki
Stock Exchange during the period from January 1 – December 31, 2005. The
aggregate value of the shares exchanged was EUR 36,715,286. The shares traded
at a low of EUR 3.43 (November 2, 2005) and a high of EUR 5.30 (March 8, 2005).
The average share price was EUR 4.26. The closing price at December 30, 2005,
was EUR 3.75 and the company had a market capitalization of EUR 74.6 million,
adjusted by the number of treasury shares. Nominee-registered shares accounted
for 7.59 percent of the shares at year’s end and 0.69 percent were directly
held by non-Finnish owners.On February 22, 2005, the company received an announcement, made pursuant to
Section 9, Chapter 2 of the Securities Market Act, that the sum of the holdings
in Aspocomp Group Oyj of Erkki Etola and Etra Invest Oy, a company controlled
by him, had risen to 6.02 percent.Aspocomp Group Oyj and Kaupthing Bank Oyj entered into a market making
agreement for the Aspocomp Group Oyj share in accordance with the Helsinki
Stock Exchange’s Liquidity Providing (LP) arrangements. Market making began on
April 1, 2005. By virtue of the agreement, Kaupthing Bank Oyj shall provide
bids and offers for at least 500 Aspocomp Group Oyj shares at one time. The
maximum difference between a bid and offer price is 1.50 percent of the best
bid price at that time. Bids and offers shall be made in the trading system of
the Helsinki Stock Exchange’s Main List on each trading day for at least 85
percent of the time of continuous trading I and in the opening and closing
auction procedures of the day. The market making agreement seeks to facilitate
trading by small investors, increase the liquidity of the share and reduce the
volatility of the share price.Aspocomp Group Oyj’s Annual General Meeting held on April 7, 2005, authorized
the Board of Directors to decide on buying back and/or transferring a maximum
of 1,000,000 own shares with the company’s distributable funds. The Board of
Directors was also authorized to increase the share capital by means of one or
more rights issues and/or to issue convertible bonds in one or more issues such
that the share capital can be raised by a maximum total of EUR 4,000,000. The
authorizations are valid for one year from the decision of the Annual General
Meeting.The Extraordinary General Meeting of Aspocomp Group Oyj that was held on July
26, 2005, decided, in accordance with the Board’s proposal, that EUR
45,989,038.00 shall be transferred from the premium fund to the special reserve
fund administered by the General Meeting. The assets to be transferred to the
special reserve fund are non-restricted equity. The lowering of the premium
fund is intended to balance out non-restricted and restricted equity at the
Group level. The Trade Register authorities granted permission to the fund
transfer, and the company transferred the assets on November 7, 2005.The stock option scheme that began in 1999 ended in November 2005.
PERSONNEL
During the financial year, the Aspocomp Group had an average of 3,393 employees
(3,434). The personnel count on December 31, 2005 was 3,387 (3,377). Of them,
2,396 are non-salaried and 991 salaried employees. The figures do not include
the personnel of the Mechanics business that was divested in September.Personnel by region and division, average
2005 change, % 2004
Europe 912 -1.0 921
Asia 2,481 -1.3 2,513
Total 3,393 -1.2 3,4342005 change, % 2004
PCBs 3,201 -0.8 3,238
Modules 177 -2.2 181
Group Administration 15 0.0 15
Total 3,393 -1.2 3,434During the final quarter, the Group adopted a HR development process to achieve
consistency in operating methods and documentation in different countries.
Personnel development seeks to put the Group’s values to practice and achieve a
competitive edge with competent, committed and competitive employees.A job satisfaction survey was carried out at the Thai plant during the report
year. As the plant conversion process was under way, the employees were most
satisfied with the effectiveness of communications, personal development and
teamwork. About two-thirds of the employees were either very or moderately
satisfied with these aspects. Distinctly over half of the employees were either
very or moderately motivated to work. Wages, salaries and benefits were
considered the most important development area. In Finland, a similar study was
completed in 2004 and is performed every other year.On August 10, 2005, codetermination negotiations were started up at the loss-
making Salo unit, which concerned a total of 540 persons in Salo and Padasjoki.
The negotiations ended on December 14, 2005, and resulted in a total of 30
redundancies. Of those dismissed, 22 were non-salaried employees and 8 salaried
and senior salaried employees. Following the personnel cuts, the permanent
employee count of the Salo organization is 412 non-salaried employees and 60
salaried employees.Maire Laitinen, LL.M., was appointed General Counsel and a member of the
Group’s Executive Committee effective May 1, 2005. Laitinen joined Aspocomp
from the TeliaSonera Group, where her last position was as Vice President,
Legal Affairs, at the TeliaSonera International unit.On October 5, 2005, the Group management was divided into an Executive
Management Committee and an Extended Executive Management Committee. This aimed
to refocus responsibility areas in operational management as well as strategy
preparation and execution. The Executive Management Committee is responsible
for the Group’s business operations and includes Maija-Liisa Friman, President
and CEO; Rami Raulas, Senior Vice President, Sales and Marketing; Jari
Ontronen, Senior Vice President, Operations, PCB; Reijo Savolainen, Senior Vice
President, Modules; Pertti Vuorinen, CFO; and Maire Laitinen, General Counsel.
The Extended Executive Management Committee attends to strategy preparation and
business support. In addition to the persons named above, it includes the
directors in charge of global functions: Tarja Rapala, R&D Director, Sami
Holopainen, Vice President, Corporate Development, and Hannu Päärni, Senior
Vice President, Technology.CORPORATE GOVERNANCE
The Annual General Meeting of Aspocomp Group Oyj on April 7, 2005, resolved
that the number of members of the Board of Directors be set at five. Re-elected
to seats on the Board were Aimo Eloholma, Roberto Lencioni, Tuomo Lähdesmäki,
Gustav Nyberg and Anssi Soila. Authorized Public Accountants
PricewaterhouseCoopers Oy was elected as the Group’s auditor.The Annual General Meeting decided that the Chairman of the Board’s
remuneration is EUR 35,000 per year, the Vice Chairman’s EUR 25,000 per year
and the other Board members’ EUR 15,000 per year. In addition, EUR 1,500 per
actual Board Meeting shall be paid to the Chairman of the Board and EUR 1,000
to the other Board Members. EUR 500 per Committee meeting shall be paid to
Committee members. The auditor will be paid according to invoice.At its organization meeting on April 7, 2005, the Board of Directors re-elected
Tuomo Lähdesmäki as its Chairman. Gustav Nyberg was elected as Vice Chairman.
The Board elected as members of the Compensation and Nomination Committees Aimo
Eloholma, Roberto Lencioni and Tuomo Lähdesmäki, who was chosen Chairman of
both the committees. The Board appointed two members to the Audit Committee:
Gustav Nyberg and Anssi Soila, of whom Nyberg was elected Chairman of the
committee. Tuomo Lähdesmäki started out as the third member of the Audit
Committee on September 27, 2005.The Board of Directors decided that each director will spend 40 percent of his
annual remuneration on purchasing the company’s shares between May 6 and June
17, 2005, taking into account the restrictions set by insider regulations. The
shares purchased shall not be transferred before the Annual General Meeting in
2006.The Board of Directors convened 21 times during the 2005 financial year. The
participation rate of members in the meetings was 100 percent. The Audit
Committee convened 4 times, the Compensation Committee 3 times and the
Nomination Committee 2 times.An external assessment of Board activities and working methods was commissioned
during the report year.The remuneration paid to the Board of Directors in 2005 totaled EUR 168,500 and
the remuneration of the committees totaled EUR 8,250.The salaries, other remuneration and fringe benefits of the CEO and the
Management Team of the Group’s parent company totaled EUR 986,370.The chief auditor during the financial year was Jouko Malinen of
PricewaterhouseCoopers Oy, Authorized Public Accountants. The fees paid to the
accounting firm for the actual audit in 2005 amounted to EUR 142 thousand. The
firm was paid a total of EUR 99 thousand for other consultation.GROUP RESTRUCTURINGS
On April 27, 2005, Aspocomp Group Oyj and Perlos Corporation announced that
they had agreed on dividing their joint R&D company Asperation Oy. Asperation
was established in 2002 to create solutions for the integration of components
used in the products of the cell phone and electronics industries. The company
generated dozens of innovations that can be utilized by the parent companies in
their own operations. Asperation Oy’s demerger and dissolution were entered in
the Trade Register on August 31, 2005. Its operations have been divided between
the established companies Aspocomp Technology Oy and Perlos Technology Oy, such
that Aspocomp Technology obtained printed circuit board-related and Perlos
Technology mechanics-related innovations in radio frequency, optical and
materials technology. All of Asperation’s employees have transferred into the
employ of the new companies.Product development continued in line with plans at the joint venture Imbera
Electronics Oy.On June 3, 2005, Aspocomp Group Oyj announced that it would increase its stake
in its Thai subsidiary P.C.B. Center Co., Ltd (now Aspocomp (Thailand) Co.,
Ltd.) from 51 to 75 percent. The Group increased its holding by purchasing 24
percent of the shares from the company’s minority shareholders for EUR 3
million. The Group’s total holding of the Thai subsidiary amounts to about 83
percent. The Saha Group stayed on as the company’s other main shareholder.On September 15, 2005, the Group company Aspocomp Oy signed an agreement to
sell its Mechanics business to Mecanova Oy so that the Group can focus on its
PCB and Modules businesses. The transaction comprised the sale of the business
operations, inventory, and fixed assets of Aspocomp’s Klaukkala, Finland plant.
Aspocomp and Mecanova also signed a long-term lease agreement on the Klaukkala
plant property owned by Aspocomp. All the 70 employees of the Mechanics
business transferred into the new owner’s employ under their current terms of
employment.ASPOCOMP S.A.S.
In 2002, Aspocomp Group Oyj decided to close the heavily loss-making plant of
Aspocomp S.A.S in Evreux, France, and to dismiss its employees. A ruling on the
redundancies was first made by the Labor Court, after which the case was heard
in the Appellate Court. On March 24, 2005, Aspocomp Group Oyj published the
decision of the Appellate Court, according to which the company must pay the
388 dismissed employees compensation for unfair dismissal corresponding to six
to eighteen months’ wages and salaries. The total amount of the compensation
would thus be about EUR 11 million. Annual interest of about 7 percent is
calculated on the sum.Aspocomp Group Oyj appealed the ruling to the French Supreme Court and, on
December 2, 2005, announced that the Supreme Court had withdrawn the case from
its list of pending cases on the grounds that as yet, the company has not paid
the compensation of approximately EUR 11 million plus interest to the former
employees of Aspocomp S.A.S. According to French legislation, a decision of the
Appellate Court must normally be executed even though an appeal has been lodged
against it in the Supreme Court. In order for the case to be reinstated in the
list of pending cases, Aspocomp Group Oyj would have to first pay the
compensation set by the Appellate Court. The company sought the Supreme Court
to admit the case even though the decision of the Appellate Court had not been
executed. The company also announced that it would examine various options and
announce its further actions later. The legal proceedings on the dismissals are
expected to continue for several years.Aspocomp Group Oyj has not expensed the possible compensation in its accounts.
The decision is based on expert statements presented to the company.On May 16, 2005, the company announced that, in separate legal proceedings, the
liquidators of Aspocomp S.A.S. waived their claim that Aspocomp Group Oyj
should be held liable for the debts of Aspocomp S.A.S. Due to the waiver the
proceedings were terminated by the decision of the court on May 12, 2005.EFFECT OF IFRS ON THE FINANCIAL STATEMENTS
Aspocomp Group Oyj’s first IFRS financial statements have been drafted for the
2005 financial year. Interim reports in 2005 were also drafted in line with
IFRS.In a stock exchange release dated April 26, 2005, the company presented the
major effects of the transition on the accounting policy applied in the
consolidated financial statements as well as the comparison information for
2004. The release can be read on the company’s Internet site at
www.aspocomp.com.BOARD OF DIRECTORS’ DIVIDEND PROPOSAL
The Board of Directors will propose to the Annual General Meeting to be held on
April 10, 2006, that shareholders will not be paid a dividend for 2005 (EUR
0.30 in 2004). The Board suggests that the assets be invested on developing the
Group’s market position and competitive ability, and serving the main customers
in the escalating competition.EVENTS AFTER THE END OF THE FINANCIAL YEAR
In order to meet the future needs of its customers, the company made a decision
in principle on January 17, 2006 to expand its HDI business by building a
printed circuit board (PCB) plant in Chennai, India. This is the first high-
tech HDI PCB plant in India. It is believed that the investment will amount to
about EUR 60 million and that the unit will go on stream in the second half of
2007. It was estimated that the final investment will be decided upon in the
next few months.On January 3, 2006, Aspocomp Group Oyj announced that its subsidiary P.C.B.
Center (Thailand) Co., Ltd had been renamed Aspocomp (Thailand) Co., Ltd.OUTLOOK FOR THE FUTURE
Aspocomp’s main priority in 2006 is to increase the competitive edge and cost-
effectiveness. The decision to build a HDI plant in India supports the growth,
and the company continuously investigates various options for growth in Asia.
The company anticipates that during the present year the building of the India
plant will proceed as planned, the benefits of the boosted capacity of the
Chinese plant will be increasingly reflected in the result, and
volume production will expand at the Asian plants. The benefits of the Salo
conversion project will increase in stages during the present year and the
plant is expected to start up the manufacture of products featuring new
technology during the first half of the present year.The full year net sales and profitability of the Aspocomp Group’s Printed
Circuit Boards division are forecast to improve compared with the review
period, and the net sales and profitability of the non-core Modules division to
weaken further. The Group’s net sales in 2006 are expected to grow compared
with the review period and the result to become positive during the second half
of the year.INCOME STATEMENT, OCTOBER-DECEMBER 10-12/05 10-12/04
MEUR % MEUR %NET SALES 42,7 100,0 41,2 100,0
Other operating income 0,5 1,1 0,3 0,7
Depreciation and amortization -4,5 -10,5 -5,3 -12,9
OPERATING PROFIT/LOSS -5,7 -13,3 -0,8 -2,0
Financial income and expenses -0,3 -0,8 0,4 1,0
PROFIT ON CONTINUING OPERATIONS
BEFORE TAX -6,0 -14,1 -0,4 -1,0Taxes -5,9 -13,8 0,5 1,1
PROFIT ON CONTINUING OPERATIONS -12,0 -28,0 0,0 0,1
Profit on discontinuing operations 0,0 -0,1 0,3 0,6
PROFIT/LOSS FOR THE PERIOD -12,0 -28,0 0,3 0,7
Profit/Loss attributable to
minority interest 0,3 0,7 0,0 -0,1
Profit/Loss attributable to
equity shareholders -12,3 -28,8 0,3 0,8INCOME STATEMENT, JANUARY-DECEMBER 1-12/05 1-12/04
MEUR % MEUR %NET SALES 154,0 100,0 184,8 100,0
Other operating income 1,3 0,8 1,0 0,6
Depreciation and amortization -19,0 -12,4 -22,3 -12,1
OPERATING PROFIT/LOSS -16,7 -10,9 10,4 5,6
Financial income and expenses -0,9 -0,6 -0,7 -0,4
PROFIT ON CONTINUING OPERATIONS
BEFORE TAX -17,6 -11,4 9,7 5,2Taxes -5,6 -3,6 -0,5 -0,3
PROFIT ON CONTINUING OPERATIONS -23,2 -15,1 9,1 4,9
Profit on discontinuing operations -0,2 -0,1 0,1 0,0
PROFIT/LOSS FOR THE PERIOD -23,4 -15,2 9,2 5,0
Profit/Loss attributable to
minority interest 1,9 1,2 2,3 1,2
Profit/Loss attributable to
equity shareholders -25,3 -16,4 6,9 3,8CONSOLIDATED BALANCE SHEET
12/05 12/04 Change
ASSETS MEUR MEUR %NON-CURRENT ASSETS
Intangible assets 4,7 1,0 390,3
Tangible assets 95,2 88,7 7,4
Investments in associated companies 0,2 0,7 -77,5
Investment property 2,9 3,0 -3,0
Available for sale investments 0,3 0,3 25,7
Deferred income tax assets 5,4 10,9 -50,2
Other long term receivables 2,3 2,0 13,7
TOTAL NON-CURRENT ASSETS 111,1 106,6 4,2CURRENT ASSETS
Inventories 18,5 20,5 -9,8
Short-term receivables 38,6 33,3 16,0
Available for sale investments 0,0 25,0 -100,0
Cash and bank deposits 16,1 8,2 96,7
Assets held for sale 1,3 5,6 -76,4
TOTAL NON CURRENT ASSETS 74,5 92,6 -19,5TOTAL ASSETS 185,6 199,2 -6,8
SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital 20,1 20,1 0,0
Share premium fund 27,9 73,9 -62,2
Special reserve fund 46,0 0,0
Revaluation and other funds 0,1 0,0
Retained earnings -17,8 9,4 -288,7
Equity attributable to shareholders 76,3 103,4 -26,2
Minority interest 30,9 22,3 38,8
TOTAL EQUITY 107,2 125,6 -14,7Non-current liabilities 18,0 20,8 -13,5
Current liabilities 23,3 22,9 2,0
Trade and other payables 35,7 26,2 36,4
Provisions 1,4 2,1 -30,5
Liabilities held for sale 0,0 1,7 -99,4
TOTAL LIABILITIES 78,4 73,6 6,6TOTAL SHAREHOLDERS’
EQUITY AND LIABILITIES 185,6 199,2 -6,8CONSOLIDATED CHANGES IN EQUITY, JANUARY-DECEMBER
Share Share Special Re- Trans- Retain- Minor- Total
cap- premium reserve valuat- lation ed earn- ity equity
ital fund fund ion and differ- ings inter-
other ences est
fundsBalance at
31.12.2004 20,1 73,9 0,0 0,0 -6,4 15,8 22,3 125,6Transfer -46,0 46,0 0,0
to special
reserve
fundTrans- 4,1 0,0 2,7 6,8
lation
differ-
encesNet profit -25,3 1,9 -23,4
Dividends -6,0 -6,0
Minority 4,1 4,1
share in
sub-
sidiary
share
issueRevaluat- 0,1 0,1
ion of
listed
sharesBalance at
31.12.2005 20,1 27,9 46,0 0,1 -2,2 -15,5 30,9 107,2CONSOLIDATED CHANGES IN EQUITY, OCTOBER-DECEMBER
Share Share Special Re- Trans- Retain- Minor- Total
cap- premium reserve valuat- lation ed earn- ity equity
ital fund fund ion and differ- ings inter-
other ences est
fundsBalance at
30.9.2005 20,1 73,9 0,0 0,0 -3,1 -3,2 29,8 117,4Transfer -46,0 46,0 0,0
to special
reserve
fundTrans- 0,9 0,0 -3,3 -2,3
lation
differ-
encesNet profit -12,3 0,3 -12,0
Dividends 0,0 0,0
Minority 4,1 4,1
share in
sub-
sidiary
share
issueRevaluat- 0,1 0,1
ion of
listed
sharesBalance at
31.12.2005 20,1 27,9 46,0 0,1 -2,2 -15,5 30,9 107,2CONSOLIDATED CASH FLOW STATEMENT 10-12/05 10-12/04
OCTOBER-DECEMBER MEUR MEURCash flow from operations 7,3 11,4
Cash flow from investments -12,2 -6,8
Cash flow before financial items -4,9 4,6
Change in long-term and short term financing 4,7 -2,1
Dividends paid 0,0 0,0
Minority interest in the subsidiary share issue
Cash flow from financing 4,7 -2,1
Change in cash and cash equivalents -0,1 3,1
Cash and cash equivalents at the end of period 16,1 33,2CONSOLIDATED CASH FLOW STATEMENT 1-12/05 1-12/04
JANUARY-DECEMBER MEUR MEURCash flow from operations 12,7 29,8
Cash flow from investments -24,7 -15,7
Cash flow before financial items -12,0 14,1
Change in long-term and short term financing -4,8 -9,4
Dividends paid -6,0 -3,0
Minority interest in the subsidiary share issue 4,0 1,2
Cash flow from financing -6,7 -11,2
Change in cash and cash equivalents -17,1 3,4
Cash and cash equivalents at the end of period 16,1 33,2BUSINESS DIVISIONS 10-12/05 10-12/04 1-12/05 1-12/04
MEUR MEUR MEUR MEURNet sales
Printed Circuit Boards 39,2 35,0 137,1 152,8
Modules 3,6 6,4 18,6 32,5
Intra-Group sales 0,0 -0,1 -1,7 -0,4
Total 42,8 41,2 154,0 184,8Operating profit
Printed Circuit Boards -3,8 -0,6 -11,7 8,6
Modules -0,4 1,3 1,2 8,0
Group administration -1,5 -1,5 -6,2 -6,3
Total -5,7 0,8 -16,7 10,4KEY FINANCIAL INDICATORS 12/05 12/04
Return on investment (ROI),% -9,9 6,9
Return on equity (ROE),% -19,9 7,5
Equity per share, EUR 3,84 5,20
Equity ratio, % 57,8 63,1
Gearing, % 23,5 8,3
Gross investments, MEUR 25,9 15,7
Average number of personnel 3 393 3 434CONTINGENT LIABILITIES 12/05 12/04
MEUR MEURMortgages given for security 23,7 27,3
for liabilities
Operating lease liabilities 0,1 0,1
Other liabilities 2,2 2,3
TOTAL 26,0 29,7All figures are unaudited.
Helsinki, February 17, 2006
ASPOCOMP GROUP OYJ
Board of Directors
For further information, please contact
CEO Maija-Liisa Friman, Tel. +358 9 7597 0711.ASPOCOMP GROUP OYJ
Maija-Liisa Friman
President and CEODistribution:
Helsinki Stock Exchange
Major media
www.aspocomp.comSome statements in this stock exchange release are
forecasts and actual results may differ materially
from those stated. Statements in this stock
exchange release relating to matters that are not
historical facts are forecasts. All forecasts
involve known and unknown risks, uncertainties and
other factors, which may cause the actual results,
performances or achievements of the Aspocomp Group
to be materially different from any future results,
performances or achievements expressed or implied
by such forecasts. Such factors include general
economic and business conditions, fluctuations in
currency exchange rates, increases and changes in
PCB industry capacity and competition, and the
ability of the company to implement its investment
programme and to continue to expand its business
outside the European market.