During the first quarter of 2004, Aspocomp increased its net sales
by 16% to EUR 47.6 million, thanks to the strong increase in volume,
while the earnings per share increased to EUR 0.17 (-0.04).

Highlights first quarter 2004 (all comparisons are year on year to
first quarter 2003 results):

– Net sales increased to EUR 47.6 million (41.1). Most of the
increase in net sales was contributed by the Chinese subsidiary ACP
Electronics, but the Finnish PCB factories and the Mechanics and
Modules business segment also started the year well.

– Operating profit increased to EUR 2.7 million (-1.7), representing
5.6% of net sales (-4.1%). Profitability was in particular improved
by increased volume, better efficiency and the increased share of
high-tech PCBs (printed circuit boards) in Aspocomp’s product

– The profit before tax increased to EUR 2.3 million (-2.2), and
earnings per share increased to EUR 0.17 (-0.04).

– Cash flow from operations totalled EUR 4.6 million (2.9).

– Investments increased to EUR 2.4 million (1.4). The most
significant investment was starting the extension of the production
line for High Density Interconnection PCBs at the ACP Electronics


– The net sales and earnings in April-June are expected to remain at
the same level as in the first quarter. The net sales, operating
profit and earnings per share for the whole year are expected to be
significantly better than in the previous year.


“During the first quarter, the business of Aspocomp developed
favourably: sales increased significantly, and internal efficiency
in the Group improved. Net sales increased by 16% compared with the

same period in the previous year, and the results were clearly in
the profit.

Our key objectives for 2004 include the expansion of our customer
base and intensifying the co-operation with our current customers as
well as improvement in internal efficiency. The investments made in
our subsidiary in China improve particularly our position in high-
tech HDI printed circuit boards.

Our methods of operation include close co-operation with customers
in product development and design, a quick development path from R&D
to serial production and further to cost-effective large series. The
well-focussed technology development of Aspocomp also provides our
customers with opportunities to improve the features of their new
products as pioneers. The total benefits for our customers are based
on the combination of this method of operation, the product range
and technological development. The combination gives Aspocomp a
significant competitive edge over nearly all other PCB

NET SALES AND PROFIT, JANUARY-MARCH 2004 (comparison figures are for
Q1 2003)

During the first quarter, the net sales of the Aspocomp Group
increased to EUR 47.6 million (41.1). The increased sales in the PCB
segment, resulted mainly from markedly increased volumes, and in the
Mechanics and Modules segment due to several large deliveries in the
first quarter. The changes in the USD-EUR exchange rate had a 6%
negative effect on net sales.

During the first quarter, the net sales of the Aspocomp Group were
divided by region as follows: Europe 67% (70%), Asia 17% (12%) and
the Americas 16% (18%).

Roughly 70% of Group net sales were accrued by products used in
mobile phones and telecom infrastrucure and approximately 30% was
made up by automotive, industrial and consumer electronics.

The Group’s five largest customers, Nokia, Ericsson, Sanmina-SCI,
Philips and Siemens, made up 61% of net sales (61%). Philips
returned among the Group’s five largest customers.

Operating profit before depreciation was 18.4% of net sales (13.1%),
amounting to EUR 8.8 million (5.4). Operating profit was EUR 2.7
million (-1.7). The improved profitability was in particular
attributable to the considerably increased delivery volumes from PCB
factories and the restructuring carried out in the Group during
2003. Profitability was also improved by better efficiency at ACP
Electronics, and the increased share of high-tech PCBs in Aspocomp’s
product portfolio.

The net financing costs amounted to EUR 0.4 million (0.5), and
profit before taxes was EUR 2.3 million (-2.2). The profit for the
period after taxes and minority interests increased to EUR 1.7
million (-0.4), and earnings per share increased to EUR 0.17 (-
0.04). The cash flow from operations totalled EUR 4.6 million (2.9).

Printed Circuit Boards

During the first quarter, the net sales of the PCB segment increased
to EUR 36.4 million (32.0), thanks to the positive growth in
volumes. The increased share of high-tech products resulted in
improved profitability compared with the previous year.

The net sales figures for the previous year include the Teuva
factory that was divested by Aspocomp in 2003. During the same
period in 2003, the factory had net sales amounting to EUR 2.2
million. The comparable net sales of the factories in Finland (Salo
and Oulu) increased by approximately one quarter, while the
factories in Asia (China and Thailand) increased their net sales by
46%. The Asian factories’ share of the PCB segment net sales
increased to 45%.

During the first quarter, the net sales of the PCB segment were
divided by region as follows: Europe 57% (61%), Asia 22% (16%) and
the Americas 21% (23%).

The operating profit of the PCB segment was EUR 1.3 million (-2.7).
The improvement in profitability was strongest at the subsidiary ACP

Mechanics and Modules

The net sales of the Mechanics and Modules business segment during
the first quarter increased by 23% to EUR 11.2 million (9.1). The
increase in net sales was attributable to large deliveries being
scheduled for the first quarter, as well as to the fact that the
telecom network markets picked up.

The operating profit for the segment increased to EUR 1.4 million
(1.0), mainly due to increased volumes.


The Group’s liquidity during the period under review was good. The
Group’s liquid assets totalled EUR 28.5 million (21.6). Interest-
bearing net debt totalled EUR 23.3 million (38.0), including EUR
25.4 million (30.3) in financial leasing liabilities consolidated in
the Group Balance Sheet. The gearing was 18.6% (28.7), while gearing
without the consolidated financial leasing liabilities was -1.7%
(5.9%). Non-interest-bearing debts amounted to EUR 35.6 million

Investments totalled EUR 2.4 million (1.4), or 5.0% of net sales
(3.4%). EUR 1.4 million of the investments were made in Asia and EUR
1.0 million in Europe. Net financial expenses as a percentage of net
sales totalled 0.8% (1.3%).

The Group’s equity ratio at the end of March was 58.9% (60.4%).


On March 31, 2004, the total number of Aspocomp shares was
10,041,026 and the share capital was EUR 10,041,026. Of the total,
100,000 shares are held by the company itself. The number of shares
adjusted for Aspocomp’s own shareholding was 9,941,026. During the
period, a total of 882,371 shares in Aspocomp Group Oyj were
exchanged on the Helsinki Exchanges. The grand total of these
transactions amounted to EUR 11,091,282.73. The lowest price paid
for the shares was EUR 11.63, the highest was EUR 14.54, and the
average was EUR 12.57. The closing price on March 31, 2004 was EUR
12.00, and the market capitalization of the company was EUR
119,292,312.00. Nominee registered shares represented 11.00% of
share capital while 0.88% was held directly by foreign shareholders.

On April 2, 2004, the Annual General Meeting of Aspocomp Group Oyj
authorized the Board of Directors to decide on acquiring and/or
conveying its own shares and on a shares issue and/or taking
convertible loans. The authorizations are valid for one year from
the date of the Annual General Meeting. At the same time, the Annual
General Meeting cancelled the similar authorizations granted on
April 4, 2003.


The average number of employees in the Aspocomp Group during the
period January 1 – March 31, 2004 was 3,277 (3,053). At the end of
March 2004, there were 3,304 employees (3,041).

Average number Average number Number Number
2004 2003 2004 2003
1.1.-31.3. 1.1.-31.3. 31.3. 31.3.

Europe 963 1,154 966 1,053
Thailand 1,206 1,037 1,206 1,079
China 1,108 862 1,132 909
Total 3,277 3,053 3,304 3,041


On February 2, 2004, the Board of Directors of Aspocomp Group Oyj
appointed Ms Maija-Liisa Friman M.Sc. (Chem. Eng.) as the President
and CEO of the company. She started in her new position on April 1,

The Annual General Meeting of Aspocomp Group Oyj held on April 2,
2004 approved the Board’s proposal for changing Articles 6 and 15 of
the Articles of Association, relating to the term of office of Board
Members, so that the Members are now elected for one year at a time.

On April 2, 2004, the Annual General Meeting of Aspocomp Group Oyj
decided that the Board of Directors shall consist of six Members.
Aimo Eloholma, Roberto Lencioni, Tuomo Lähdesmäki, Gustav Nyberg and
Karl Van Horn were re-elected as Board Members, and Anssi Soila was
elected as a new Member. Authorized Public Accounting Firm
PricewaterhouseCoopers Oy was appointed as the Auditor for the

In its meeting on April 2, 2004, the Board re-elected Tuomo
Lähdesmäki as the Chairman of the Board, while Karl Van Horn was
elected as the Vice-Chairman. As members of the Compensation and
Nomination Committees, the Board elected Aimo Eloholma, Roberto
Lencioni and Tuomo Lähdesmäki, who was also appointed as Chairman
for both committees. Karl Van Horn, Gustav Nyberg and Anssi Soila
were elected by the Board as members of the Audit Committee. The
Board appointed Gustav Nyberg as Chairman of the Audit Committee.

On 2 April 2004, the Board decided that each Member of the Board
shall spend 40% of his annual remuneration in buying shares in the
company during the period May 10 – June 18, 2004, subject to the
limitations of insider trading rules. The Board also decided not to
convey the acquired shares before the Annual General Meeting of


The Aspocomp Group will introduce IFRS reporting in the beginning of
2005. The Aspocomp Group has already been recording all financial
leasing agreements as assets and liabilities since 1999. The fixed
expenditure of finished product stores have been capitalized, and
imputed tax liabilities and receivables have been recorded. The
guidelines for recording the disability pension part of the Finnish
statutory pension system renewed in March 2004. According to these
new guidelines this part of the pension system should be recorded
under IFRS as defined benefit pension plan. This means that a long
term liability must he recorded for this part of the pension plan.
The amount of the long term liability will be determined as soon as
the actuary calculations will be finished. It is assumed that the
adoption of the IFRS standards will not have any other significant
effects on the Group equity.


The growth of mobile phone markets intensified significantly during
the first quarter which increased the demand for Aspocomp PCBs,
particularly towards the end of the quarter. The estimates given by
research institutes and equipment manufacturers regarding the size
of the total market in 2004 vary between 540 and 600 million (just
over 470 million in 2003). The estimates regarding the growth of
telecom network markets have been increased during recent months,
and the growth is now estimated at close to 10%. The vehicle and
industrial electronics manufacturing is expected to continue its
steady growth of a few per cent annually.

The net sales of Aspocomp’s PCB segment are expected to increase
considerably in 2004. The net sales of the Mechanics and Modules
segment are expected to show slower growth for the whole year than
that experienced during the first quarter. Aspocomp’s operating
profit and earnings per share are expected to be significantly
better than in the previous year.

The net sales and profits of Aspocomp for the second quarter are
expected to be in line with those of the first quarter.

In 2004, gross investments are expected to amount to a little less
than 10% of the Group’s net sales.

1-3/04 1-3/03 1-12/03

NET SALES 47.6 100.0 41.1 100.0 182.3 100.0

Other operating income -0.2 -0.3 -0.1 -0.2 1.2 0.7
Depreciation and write-downs 6.1 12.8 7.1 17.3 29.7 16.3

OPERATING PROFIT/LOSS 2.7 5.6 -1.7 -4.1 -5.3 -2.9

Financial income
and expenses -0.4 -0.8 -0.5 -1.3 -1.3 -0.7

EXTRAORDINARY ITEMS AND TAXES 2.3 4.9 -2.2 -5.4 -6.6 -3.6

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 0.0

PROFIT/LOSS BEFORE TAXES 2.3 4.9 -2.2 -5.4 -6.6 -3.6

Taxes -0.1 -0.1 1.1 2.8 3.5 1.9
Minority interests -0.5 -1.1 0.7 1.7 2.2 1.2

PROFIT/LOSS FOR THE PERIOD 1.7 3.6 -0.4 -0.9 -0.9 -0.5

EARNINGS PER SHARE 0.17 -0.04 -0.09

Accrued taxes for this interim period have been calculated in
accordance with the corporate tax rate in force during the period
under review and they include taxes brought forward from earlier

3/04 3/03 Change 12/03
Fixed Assets
Intangible assets 3.9 5.8 -33.7 4.2
Tangible assets 103.3 124.0 -16.6 105.2
Investments 1.1 1.4 -21.8 1.7

Current Assets

Stocks 23.9 21.3 12.3 20.8
Receivables 52.8 46.2 14.3 52.7
Investments 21.4 0.0 20.8
Cash and bank deposits 7.1 21.6 -67.4 8.9

TOTAL ASSETS 213.5 220.3 -3.1 214.2

Shareholders’ equity

Share capital 10.0 10.0 0 10.0
Other shareholder’s equity 94.3 97.4 -3.1 92.1
Minority interest 21.8 25.9 -15.8 20.5
Mandatory reserves 2.1 2.0 3.9 1.7
Long-term liabilities 27.8 37.6 -25.9 28.7
Short-term liabilities 57.5 47.4 21.3 61.3

SHAREHOLDERS’ EQUITY 213.5 220.2 -3.1 214.2

1-3/04 1-3/03 1-12/03

Cash flow from operations 4.6 2.9 25.4
Cash flow from investments -2.4 -1.3 -11.3
Cash flow before financial items 2.2 1.6 14.1
Decrease in long-term financing -0.9 -0.1 -7.0
Decrease/increase in short-term financing -2.4 0.3 5.0
Dividends paid – – -3.0
Total financing -3.3 0.2 -5.0
Decrease/increase in liquid assets -1.1 1.8 9.0
Liquid assets at the end of the period 28.5 21.6 29.8

1-3/04 1-3/03 1-12/03

Printed Circuit Boards
Net sales 36.4 32.0 142.5

Printed Circuit Boards
Operating profit 1.3 -2.7 -11.1

Mechanics and Modules
Net sales 11.2 9.1 39.8

Mechanics and Modules
Operating profit 1.4 1.0 5.8

3/04 3/03 12/03

Return on Investment (ROI), % 3.7 -3.1 -5.2

Return on Equity, % 7.7 -3.2 -2.4

Equity/share, EUR 10.41 10.74 10.20

Equity ratio, % 58.9 60.4 57.1

Gearing, % 18.6 28.7 20.3

Gross investments, MEUR 2.4 1.4 13.8

Average number of personnel 3,277 3,053 3,330

3/04 12/03

Securities on Group liabilities 8.1 8.0
Operational leasing liabilities 0.2 0.2
Other liabilities 26.1 24.4

TOTAL 34.4 32.6

3/04 12/03

Foreign Currency Forward Contracts
Market Value 0.1 0.0
Nominal Value 3.9 4.6

Electricity Forward Contracts
Market Value 0.0 0.0
Nominal Value 0.4 0.7

All figures are unaudited.

Vantaa, May 10, 2004


Board of Directors

For further information, please contact CEO Maija Liisa Friman,
tel. +358 09 7597 0711.


Maija-Liisa Friman
President and CEO


A press conference intended for investors, analysts and media
representatives will be held on 10 May at 11:00 a.m. in the Paavo
Nurmi conference hall of Hotel Kämp at Pohjoisesplanadi 29,


The Aspocomp Group serves the electronics industry by supplying
high-tech electronic components and services such as PCBs (printed
circuit boards), and PCB-related designs as well as mechanics and
modules. Aspocomp’s products are used in the electronics industry,
mobile handsets, telecommunications infrastructure, automotive and
other industrial applications. The Aspocomp Group’s production
facilities are located in Finland, China and Thailand. In 2003, the
Group net sales were EUR 180 million approximately, and the Group

had some 3,300 employees. The parent company, Aspocomp Group Oyj,
has been listed on the Helsinki Exchanges since 1999.

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 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 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.

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