ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE Feb 13, 2003,8:00 AM 1(10)ASPOCOMP GROUP FINANCIAL PERFORMANCE 2002
OCTOBER – DECEMBER (Comparable figures, 7-9/2002)
– Net sales for the fourth quarter grew by 15.2 % compared with the
third quarter and totaled EUR 51.6 million (EUR 44.8 million).
– Operating profit totaled EUR 4.8 million or 9.3 % of the net sales
(EUR 1.6 million; 3.6 %).
– Operative cash flow was EUR 17.4 million (EUR 3.7 million).
– Earnings per share were EUR 0.51 (EUR 0.36).JANUARY – DECEMBER (Comparable figures, 1-12/2001)
– Net sales for the period totaled EUR 182.9 million (EUR 221.8
million).
– Operating loss was EUR 23.2 million (loss of EUR 27.4 million).
– Operating profit without Aspocomp S.A.S was EUR 4.5 million.
– Earnings per share were EUR -1.86 (EUR -2.66).
– Equity ratio was 61.0 % (56.5 %) and equity per share EUR 10.85
(EUR 13.01).
– The dividend proposal will be EUR 0.25 per share.BUSINESS REVIEW
Production
Aspocomp’s capacity utilization rate for the fourth quarter was
better than the other quarters of 2002. Printed wiring board (PWB)
demand is growing most rapidly in Asia, especially in China. Aspocomp
has two subsidiaries in Asia, P.C.B. Center in Thailand and ACP
Electronics in China. The production of the Asian units has grown
during the full year 2002 almost 44 % compared to the full year 2001.Research and Development
On March 1, 2002, Aspocomp Group Oyj and Perlos Corporation founded a
joint research and development company, Asperation Oy. The ownership
of the company is shared equally between the parent companies.
Asperation Oy focuses on research and development of integrated
components for the telecommunications and electronics industry. The
target of the co-operation is to produce innovations beneficial for
the both owner companies in their activities as well as to shorten
the time-to-market of the innovations.On April 12, 2002, Aspocomp Group Oyj and Elcoteq Network Corporation
established a joint venture, Imbera Electronics Oy, which
concentrates on the development and commercialization of the
Integrated Module Board (IMB) technology. Imbera Electronics Oy’s
ownership is shared equally between the parent companies. The target
of the company is to develop an innovative production process using
the IMB technology to integrate active components inside the printed
wiring board structure. The use of the IMB technology in demanding2(10)
consumer electronic applications is expected to start up within a
couple of years.Both of the joint venture companies made good progress during 2002.
BUSINESS ENVIRONMENT
Telecommunications industry, especially the mobile phone sector, grew
strongly during the years 1999 and 2000. Our main target was to
create enough capacity for our customers. Now the mobile phone growth
is moderate and in the telecommunications networks the market
shrinks. The companies in the electronics industry strive for
profitability by trying to reach controlling position in the value
chain. New technologies change the market by enabling the
manufacturing of products that have more functions with lower price.
The value chains force companies to geographically relocate their
operations in order to save labour costs. Original equipment
manufacturers concentrate on the sales and marketing and the role of
the electronics manufacturing service companies as well as the
original design manufacturer companies grows in importance. The
supply chains become more complicated, the production is getting
global and the ownership concentrates in fewer hands. The growth
focus of the electronics industry will be in Asia also in 2003.GROUP NET SALES AND PROFIT, OCTOBER – DECEMBER (Comparable figures 7-
9/ 2002)Fourth-quarter net sales grew by 15.2 % compared to the third quarter
and totaled EUR 51.6 million (EUR 44.8 million, 7-9/2002).Fourth-quarter EBITDA increased by 37.3% and totaled EUR 12.2 million
(EUR 8.9 million). EBIT totaled EUR 4.8 million or 9.3 % of the net
sales (EUR 1.6 million; 3.6 %). Earnings per share totaled EUR 0.51
(EUR 0.36). Operative cash flow was EUR 17.4 million (EUR 3.7
million).GROUP NET SALES AND PROFIT, JANUARY – DECEMBER (Comparable figures 1-
12/2001)Net sales totaled EUR 182.9 million for the period from January 1 to
December 31, 2002, compared with EUR 221.8 million during the
previous year. Other operating income totaled EUR 0.2 million (EUR
0.9 million, 1-12/2001). The share of net sales by the company’s five
biggest customers, Nokia, Sanmina-SCI, Siemens, Tellabs and Ericsson,
was 68 % (the share of the five biggest in 2001 was 62 %). Net sales
by region were as follows: Europe 56 % (81 %), Asia 17 % (8 %), and
the Americas 27 % (11 %).Operating loss for the period totaled EUR 23.2 million or -12.7 % of
net sales (EUR -27.4 million; -12.3 %). Operating profit for the
period, net of the write-downs and losses related to the French
subsidiary Aspocomp S.A.S. in the first quarter, totaled EUR 4.5
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million. Net financial costs totaled EUR 2.7 million (EUR 2.6
million).The loss before extraordinary items was EUR 25.9 million (loss of EUR
29.9 million). The loss before taxes was EUR 25.9 million (loss of
EUR 29.9 million), and the net loss for the period was EUR 18.6
million (loss of EUR 26.9 million). Earnings per share totaled EUR –
1.86 (EUR -2.66).BUSINESS UNITS, OCTOBER – DECEMBER
Printed Wiring Boards (PWB)
Fourth-quarter net sales for the PWB business unit increased by 21.1
% compared to the third quarter and totaled EUR 43.7 million(EUR 36.1
million, 7-9/2002). Net sales for the Mobile segment reached EUR 25.1
million (EUR 19.1 million), net sales for the Telecom segment totaled
EUR 7.7 million (EUR 5.6 million) and for the Auto & Industry segment
totaled EUR 10.9 million (EUR 11.4 million).Electronics Manufacturing Services (EMS)
Net sales for the EMS business unit decreased by 9.7 % and totaled
EUR 7.9 million (EUR 8.8 million).BUSINESS UNITS, JANUARY – DECEMBER
Printed Wiring Boards (PWB)
The downturn in net sales for the PWB business unit was 16.2%
compared to the same period in the previous year. Net sales for the
PWB business unit were EUR 150.0 million (EUR 179.0 million, 1-
12/2001). Net sales of the Mobile segment decreased by 9.3 % and
totaled EUR 79.0 million (EUR 87.1 million). Net sales of the Telecom
segment declined by 41.8 % and totaled EUR 27.8 million (EUR 47.8
million). The downturn in net sales for the Auto & Industry segment
was 2.0 % and totaled EUR 43.2 million (EUR 44.1 million).
The EBIT of the PWB business unit for the period was EUR -24.0
million (EUR -29.2 million).ELECTRONICS MANUFACTURING SERVICES (EMS)
Net sales of the EMS business unit decreased by 23.0 % and totaled
EUR 32.9 million (EUR 42.8 million, 1-12/2001). The EBIT of the EMS
business unit for the period was EUR 0.8 million (EUR 1.8 million).FINANCING, INVESTMENTS AND EQUITY RATIO
The Group’s liquidity during the period under review was good. The
liquid reserve at the year-end was EUR 19.7 million (EUR 20.3
million). Net interest-bearing debt for the period totaled EUR 40.5
million, including EUR 30.5 million in financial leasing liabilities
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(EUR 58.7 million; EUR 34.9 million). The non-interest-bearing debts
totalled EUR 26.1 million (EUR 47.8 million). Gross investments for
the period totaled EUR 19.8 million (EUR 73.3 million) or 10.8 % of
the net sales (33.0 %). The investments were primarily in Asia (EUR
13.5 million). Investments in Finland totaled EUR 6.3 million,
including the share capital in the joint venture companies Asperation
Oy and Imbera Electronics Oy as well as the share buybacks totaling
EUR 2 million. The development of the exchange rate between the Euro
and the USD during the period under review strengthened the price
competitiveness of the Asian units, but on the other hand weakened
the price competitiveness of the European units. Net financial costs
as a percentage of the net sales totaled 1.5 % (1.2 %). The equity
ratio at the end of the period was 61 % (56.5 %).SHARES AND SHARE CAPITAL
The number of Aspocomp’s issued shares on December 31, 2002, was
10,041,026 and the share capital was EUR 10,041,026. 100,000 shares
of the total issued number were in the possession of the company. The
average number of shares, adjusted by buybacks, was 9,984,654. During
the period extending from January 2 to December 30, a total of
2,309,047 shares with a value of EUR 17,450,476.52 were traded on the
Helsinki Stock Exchange. The nominee-registered proportion of the
stockholdings was 15.34 % and the non-domestic share 0.78 % at the
end of the period. The share price reached a high of EUR 13.25 and a
low of EUR 4.22 between January 2 and December 30, 2002. The average
price was EUR 7.56. The closing price on December 30, 2002, was EUR
6.25 and the market capitalization of the company was EUR 62,131,413.The Aspocomp Group Oyj’s Annual General Meeting of April 5, 2002,
authorized the Board of Directors to decide on acquiring and
conveying of own shares and on increasing the share capital by a
share issue and/or by taking a convertible loan. The authorizations
are valid for one year from the date of the Annual General Meeting.
On May 7, 2002, the Board of Directors decided to exercise the
authorization regarding share buybacks by acquiring a maximum of
100,000 company shares on the market by the end of June 2002. The
acquisition began on May 14, 2002, and by June 28, 2002, the maximum
amount of 100,000 own share was reached. After the financial period,
by January 31, 2003, the amount of own shares in the possession of
the Company was still 100,000. The information on the share buybacks
is given in the table below.Period of time Amount Average price/ Total price,
of shares share, EUR EURMay 1 – 31, 2002 24,400 7.99 194,982.50
June 1 – 30, 2002 75,600 7.45 563,122.50Total 100,000 7.58 758,105.00
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The counter book value of the shares was EUR 100,000, representing
1.0% of the company’s share capital and voting rights. The share
buybacks did not have any significant impact on the distribution of
the shareholdings or the voting rights in the companyThe other authorizations have not been used yet.
On April 5, the Annual General Meeting passed a resolution to
decrease the company’s share capital by invalidating 100,900 company
shares. The new share capital, EUR 10,041,026, and the number of
shares, 10,041,026, were entered in the Finnish Trade Register on
April 9.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 7.5 % 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.On May 17, 2002, the insurance company If Skadeförsäkring Ab
announced that its share in the voting rights and share capital of
Aspocomp Group Oyj exceeds 5 %.PERSONNEL
The number of employees averaged 3,075 from January 1 to December 31,
2002, compared with 3,314 for the same period in the previous year.
At the end of the financial period there were 2,907 employees in all
(3,178).Average number Average number Number Number
2002 2001 2002 2001
Jan 1-Dec 31 Jan 1-Dec 31 Dec 31 Dec 31
Europe 1,503 1,902 1,076 1,785
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Thailand 862 1,074 973 882
China 710 338 858 511
Total 3,075 3,314 2,907 3,178Negotiations with the Working Council at Aspocomp S.A.S. PWB plant in
Evreux, France began on October 18, 2001, and were concluded on
January 24, 2002, and the decision was to give notice to
approximately 200 persons based on both productional and economical
reasons. Aspocomp S.A.S. filed for bankruptcy at the local French
Commercial Court on March 6, 2002, and as a result the Liquidator of
the bankruptcy estate gave notice to the whole personnel of the
company. Aspocomp S.A.S. has not been included in the Aspocomp Group
figures after February 28, 2002.
The adjustment of personnel amount at all production sites continued
during the financial period.ASPOCOMP S.A.S.
The HDI capacity of the French plant was built for the forecasted
ramp-up of the 3G infrastructure and carefully estimated growth of
the handset demand based on market information available. However,
these markets did not develop as generally expected in 2001. The
loading in France was very low and operations continued unprofitably
for the third year in line; in 2001 the loss of 23.9 million euros on
EBIT level was generated. Aspocomp S.A.S. filed for bankruptcy on
March 6, 2002, and the liquidation of its assets was started on June
20, 2002.The administrators of the bankruptcy estate filed a lawsuit against
Aspocomp Group Oyj. The bankruptcy estate calls for the bankruptcy
proceedings of the subsidiary and liability for its debts to be
extended to include Aspocomp Group Oyj. Aspocomp Group Oyj submitted
its rebuttal to the Commercial Court in Evreux, France, on September
10, 2002. The plaintiff was supposed to submit its rebuttal after the
financial period, on January 14, 2003. However, the administrators
were not able to submit their rebuttal and the handling was postponed
March 2003. According to expert opinion available, the writ of
summons and the claims presented therein are unfounded. As a
consequence, it is estimated that the writ of summons will have no
effect on the profitability position of the company, its balance
sheet or financial position.PROPOSAL FOR THE DISTRIBUTION OF DIVIDEND
The Board of Directors will propose at the Annual General Meeting to
be held on April 4, 2003, that a dividend of EUR 0.25 per share to be
distributed to the shareholders. According to the proposal of the
Board the dividend record date will be April 9, 2003 and the
dividends will be paid on April 16, 2003.PROSPECTS
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The market situation continues to be uncertain. Based on the
estimations of our customers, we expect the total growth of the
mobile phone market in 2003 to be between 0 and 10 % and the
telecommunication infrastructure market to decrease. The first
quarter is expected to be the weakest due to seasonality, net sales
are expected to remain on the level of the corresponding quarter of
the previous year and the EBIT will be slightly negative. The latter
half of the year is expected to be stronger and the EBIT for the year
2003 clearly positive. Our current cash position is very strong and
will be strengthening throughout the year. We are confident in our
ability to increase our global market share by increasing our market
position in Asia. Asian units’ share of net sales in 2002 was 22 %
and is forecasted to be close to 40 % in 2003.ASPOCOMP GROUP INCOME STATEMENT, OCTOBER – DECEMBER
10-12/02 7-9/02 10-12/01
MEUR % MEUR % MEUR %NET SALES 51.6 100.0 44.8 100.0 54.0 100.0
Other operating
income 0.0 0.0 -0.1 -0.3 0.3 0.6
Depreciation and
write-downs 7.3 14.2 7.2 16.1 12.5 23.1OPERATING PROFIT/LOSS
AFTER DEPRECIATION 4.8 9.3 1.6 3.6 -15.2 -28.1
Financial income
and expenses -0.4 -0.8 -0.7 -1.7 -0.7 -1.2PROFIT/LOSS BEFORE EXTRAORDINARY
ITEMS AND TAXES 4.4 8.5 0.9 1.9 -15.9 -29.4
Extraordinary income 0.0 0.0 0.0 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0 0.0 0.0 0.0PROFIT/LOSS BEFORE TAXES 4.4 8.5 0.9 1.9 -15.9 -29.4
Minority interest 0.7 1.4 0.7 1.6 2.6 4.8PROFIT/LOSS FOR THE
PERIOD 5.1 10.0 3.7 8.2 -14.6 -27.0CASH FLOW STATEMENT, OCTOBER – DECEMBER
10-12/02 7-9/02 10-12/01
MEUR MEUR MEUR
Net operational cash flow 17.4 3.7 2.7
Total cash flow from investments -6.1 -0.7 -16.3
Cash flow before financing 11.3 3.1 -13.6
Total financing -0.8 -5.8 4.3
Increase/Decrease in liquid funds 12.4 -2.7 -9.3
Liquid funds at the end of the period 19.7 7.3 20.3
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ASPOCOMP GROUP INCOME STATEMENT, JANUARY – DECEMBER1-12/02 1-12/01
MEUR % MEUR %NET SALES 182.9 100.0 221.8 100.0
Other operating
income 0.2 0.1 0.9 0.4
Depreciation and
write-downs 30.4 16.6 39.1 17.6OPERATING PROFIT/LOSS
AFTER DEPRECIATION -23.2 -12.7 -27.4 -12.3
Financial income
and expenses -2.7 -1.5 -2.6 -1.2PROFIT/LOSS BEFORE EXTRAORDINARY
ITEMS AND TAXES -25.9 -14.2 -29.9 -13.5
Extraordinary income 0 0 0 0
Extraordinary expenses 0 0 0 0PROFIT/LOSS BEFORE TAXES -25.9 -14.2 -29.9 -13.5
Minority interest 3.7 2.0 3.6 1.6
PROFIT/LOSS FOR THE
PERIOD -18.6 -10.1 -26.9 -12.1EARNINGS PER SHARE, EUR -1.86 -2.66
ASPOCOMP GROUP BALANCE SHEET
12/02 12/01 Change
MEUR MEUR MEUR %
Non-Current AssetsIntangible assets 5.7 5.3 0.4 7.8
Tangible assets 131.3 195.3 -64.0 -32.7
Investments 1.6 1.5 0.1 8.7Current Assets
Inventories 20.0 30.7 -10.7 -35.0
Receivables 43.9 39.1 4.8 12.3
Investments 0 0 0 0
Cash and bank deposits 19.7 20.3 -0.6 -3.0TOTAL ASSETS 222.2 292.1 -69.9 -23.9
Shareholders’ equity
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Share capital 10.0 10.1 -0.1 -1.0
Other shareholders’ equity 98.6 121.5 -22.9 -18.8
Minority interest 27.3 33.8 -6.5 -19.1
Mandatory reserves 2.1 11.5 -9.4 -81.5
Long-term liabilities 38.4 55.1 -16.7 -30.3
Short-term liabilities 45.7 60.1 -14.4 -23.9TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 222.2 292.1 -69.9 -23.9CASH FLOW STATEMENT
1-12/02 1-12/01
MEUR MEUR
Net operational cash flow 26.0 16.4
Total cash flow from investments -19.7 -72.3
Cash flow before financing 6.4 -55.8
Total financing -8.7 42.3
Increase/Decrease in liquid funds -2.4 -13.5
Liquid funds at the end of the period 19.7 20.3KEY FIGURES
12/02 12/01Equity/share, EUR 10.85 13.01
Equity ratio, % 61.0 56.5
Gearing, % 30.0 35.7
Return on Equity (ROE), % -14.9 -18.7
Return on Investment (ROI), % -10.2 -11.5
Gross investments, MEUR 19.8 73.3
Average Personnel 3.075 3.314
Accumulated excess depreciation and voluntary reserves totaling EUR
1.0 million have been divided among shareholders’ equity and nominal
tax liabilities.CONTINGENT LIABILITIES
12/02 12/01
MEUR MEUR
Securities on Group liabilities 9.6 3.2
Operational leasing liabilities 0.1 0.2
Other liabilities 0.3 0.3
TOTAL 10.0 3.7There are no derivative contracts.
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All figures are unaudited.ANNUAL GENERAL MEETING
The Aspocomp Group Oyj Annual General Meeting will be held on Friday,
April 4, 2003, at 2:00 p.m.ANNUAL REPORT 2002
The Aspocomp Group Annual Report 2002 will be published on week 13.
FINANCIAL INFORMATION IN 2003
The Aspocomp Group will release its quarterly reports during the year
2002 on May 6, July 31 and October 30.Some 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 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; fluctuation of
currency exchange rates; 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 13, 2003
ASPOCOMP GROUP OYJ
Board of Directors
For more information, please contact CEO Jarmo Niemi
at +358 9 7597 0711.ASPOCOMP GROUP OYJ
Jarmo Niemi
President and CEODISTRIBUTION:
Helsinki Exchanges
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