ASPOCOMP GROUP INTERIM REPORT 1.1. - 30.9.2004

ASPOCOMP GROUP OYJ STOCK EXCHANGE RELEASE Nov, 4 2004 at 8:00 AM 1(11)

ASPOCOMP GROUP INTERIM REPORT 1.1. – 30.9.2004

THIRD QUARTER BETTER THAN IN THE PREVIOUS YEAR

Aspocomp’s third quarter net sales increased compared to the corresponding
period in the previous year and were EUR 52.2 million (48.6). Earnings per share
amounted to EUR 0.18 (0.14). Net sales during January-September 2004 rose to EUR
152.7 million (131.8), and earnings per share increased to EUR 0.61 (-0.48).

Highlights of the third quarter 2004 (all comparisons are year on year to 2003
third quarter results):

– Net sales increased to EUR 52.2 million (48.6). Aspocomp’s Chinese subsidiary
ACP Electronics and the Mechanics and Modules segment achieved strong growth.
The net sales of the Finnish PCB plants and the Thai subsidiary P.C.B. Center
remained at the 2003 levels.

– Operating profit increased to EUR 4.0 million (0.7). The higher operating
profit was attributable to the improved profitability of the PCB segment, but
the Mechanics and Modules segment also achieved clearly better results than
during the same quarter in the previous year.

– Profit before tax increased to EUR 3.5 million (0.4), and earnings per share
increased to EUR 0.18 (0.14).

– Cash flow from operations totaled EUR 8.6 million (4.6) and investments
amounted to EUR 2.8 million (2.7).

Prospects:

– Aspocomp’s fourth quarter net sales are forecasted to be on the level of the
same period during the previous year. The business mix will change in October-
December: Aspocomp’s PCB segment is expected to show moderate growth, while
Mechanics and Modules segment net sales are expected to be lower than in
equivalent period previous year. Therefore the Group’s operating profit is
expected to be lower than last year during the fourth quarter.

– The net sales, operating profit and earnings per share for the entire year
will be significantly better than in the previous one.

MAIJA-LIISA FRIMAN, PRESIDENT AND CEO OF ASPOCOMP:

“The healthy demand for Aspocomp’s products continued in the third quarter. The
most solid growth was experienced in the HDI boards manufacturing line of the
Chinese ACP Electronics. The share of high-tech PCBs of the PCB segment’s net
sales increased to 61% in the third quarter.

During the current year, the sales of the Mechanics and Modules segment have
grown at a very fast pace: during the last quarter, the growth was as much as
32%. However, the demand will slow down in the short run which will curb
Aspocomp’s growth during the rest of the year and early in the new year. The
decline in demand is because the high volume product of the Oulu plant, which is
aimed at the telecommunications market, is approaching the final phase of its
life cycle. An equivalent product, based on new technology is under development.
2(11)
In the short term, Aspocomp continues to improve the operational efficiency of
Salo plant. This will be achieved by optimizing and upgrading the plant’s
manufacturing processes to respond to the rapid pace of technological changes
required by new products.

In the medium term, Aspocomp intends to grow significantly faster than the PCB
industry in average. In the PCB industry, we aim to strengthen our market share
and to balance our position in PCBs supplied to the mobile devices,
telecommunications and automotive industries. Our other core business comprises
modules where we intend to use our new module technologies to cover more of the
needs of the electronics manufacturing value chain. The new technologies based
on our solid expertise allow customers to pack more performance into a smaller
space in their end products.

Our strong balance sheet and cash flow allow significant growth and development
projects in our core businesses that are aimed at further increasing the return
on equity and enhancing shareholder value while maintaining a solid financial
standing.”

NET SALES AND PROFIT, JULY-SEPTEMBER 2004 (comparison figures are for Q3
2003)

Net sales totaled EUR 52.2 million for the third quarter compared with EUR
48.6 million during the corresponding period of the previous year. Profit
before depreciation totaled EUR 10 million, 19.1% of net sales (EUR 7.3
million, 15%). The operating profit was EUR 4 million (0.7).

Net financial expenses amounted to EUR 0.4 million (0.3). Profit before taxes
amounted to EUR 3.5 million (0.4), and profit after taxes and minority
interests was EUR 1.8 million (1.4). Earnings per share totaled EUR 0.18
(0.14). Cash flow from operations totaled EUR 8.6 million (4.6).

NET SALES AND PROFIT, JANUARY-SEPTEMBER 2004 (comparison figures are for Q1-
Q3 2003)

In January-September, Aspocomp Group’s net sales increased to EUR 152.7
million (131.8). The growth in net sales was due to strongly increased
delivery volumes in both business segments. The changing dollar-euro exchange
rate had the same dampening effect on the growth of net sales as in the first
half of the year, i.e. some 3%.

Aspocomp Group’s net sales were divided by region as follows: Europe 67%
(66%), Asia 18% (17%), and the Americas 15% (17%). The Finnish plants’ share
of net sales was 65% while the Asian plants accounted for 35%. Products used
in mobile phones and telecom systems accounted for approximately 72% of Group
net sales, and approximately 28% were amassed by automotive, industrial and
consumer electronics.

The Group’s five largest customers – Nokia, Ericsson, Sanmina-SCI, Philips
and Siemens – accounted for 62% of net sales (60%) during the period under
review.

The operating profit before depreciation was 18.8% of net sales (12.2%),
amounting to EUR 28.7 million (16.1). The operating profit was EUR 10.4
3(11)
million (-7.3). The operating loss of the previous year includes the non-
recurring costs of EUR 4.8 million. The improved profitability was
specifically attributable to the considerably increased delivery volumes and
the organizational 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 expenses amounted to EUR 1.1 million (1.1), and profit
before taxes was EUR 9.4 million (-8.4). The profit for the period after
taxes and minority interests increased to EUR 6.1 million (-4.8), and
earnings per share increased to EUR 0.61 (-0.48). The cash flow from
operations totaled EUR 18.4 million (9.1).

BUSINESS SEGMENTS

Printed Circuit Boards

The third-quarter net sales of the PCB segment increased by 2% to EUR 40.7
million (39.9). The comparable increase in net sales was much faster because
last year’s figures include the Teuva plant, divested in 2003, which during
the comparison period had net sales amounting to EUR 1.8 million. The net
sales figures were in particular boosted by ACP Electronics.

During the third quarter, the PCB segment net sales were divided by region as
follows: Europe 61% (55%), Asia 26% (23%) and the Americas 13% (22%). The
Finnish plants’ share of net sales was 54% while the Asian factories
accounted for 46%.

The operating profit of the segment during the third quarter was EUR 1.9
million (-0.7).

In January-September 2004, the PCB segment net sales increased to EUR 117.6
million (104.0), thanks to the strong growth in volumes. The figures for the
previous year include both the Teuva plant, divested in August 2003, and
Padasjoki plant which role was changed as a laminate producer. Their total
net sales was EUR 9.7 million. The comparable net sales of the plants in
Finland (Salo and Oulu) increased by 16% while the plants in Asia (China and
Thailand) increased their net sales by 33%. The increased share of high-tech
products and bigger volumes resulted in improved profitability compared with
the previous year. The January-September operating profit of the segment was
EUR 4.4 million (-11.0). The operating loss of the previous year includes the
non-recurring costs of EUR 4.8 million. The financial results of the segment
include Aspocomp’s full share of the expenses of the joint venture companies
Asperation and Imbera Electronics.

Mechanics and Modules

The net sales of the Mechanics and Modules business increased during the
third quarter by 32% to EUR 11.5 million (8.7). The increase in net sales was
mainly attributable to positive growth in volume. The demand was particularly
strong in the telecommunications market. The number of products delivered to
the other branches of industry remained at a fair level.

4(11)
The exceptionally high capacity utilization rate in the segment during the
third quarter resulted in better profitability than in the previous year. The
operating profit of the segment was EUR 2.1 million (1.4).

In January-September, the net sales of the Mechanics and Modules business
increased by 26% to EUR 35.1 million (27.8). The growth was primarily
attributable to strong demand in the telecommunication networks market. The
operating profit improved to EUR 6.0 million (3.7).

FINANCING, INVESTMENTS and EQUITY RATIO

The Group’s liquidity during the period under review was good. The Group’s
liquid assets totaled EUR 30.2 million (19.2). Interest-bearing net debt
totaled EUR 16.9 million (39.8), including EUR 23.6 million (27.1) financial
leasing liabilities consolidated in the Group Balance Sheet. Gearing was
13.2% (32.7%), while gearing without the consolidated financial leasing
liabilities was -5.2% (10.4%). Non-interest-bearing debts amounted to EUR
33.5 million (32.9).

Investments totaled EUR 8.9 million (8.9), or 5.8% of net sales (6.8%). EUR
3.7 million of the investments were made in Asia and EUR 5.2 million in
Europe. Net financial expenses as a percentage of net sales totaled 0.7%
(0.8%).

The Group’s equity ratio at the end of September was 61.5% (56.9%).

SHARES AND SHARE CAPITAL

On 30 September 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 book counter value of these shares is EUR 100.000,
and these shares represent 1% of the total votes of all shares. The number of
shares adjusted for Aspocomp’s own shareholding was 9,941,026. During the
period, a total of 2,954,407 shares in Aspocomp Group Oyj were exchanged on
the Helsinki Exchanges. The grand total of these transactions amounted to EUR
37.7 million. The lowest price paid for the shares was EUR 11.63, the highest
was EUR 14.54, and the average was EUR 12.75. The closing price on 30
September 2004 was EUR 12.95, and the market capitalization of the company
was EUR 128.7 million. Nominee-registered shares represented 10.3% of share
capital while 1.1% was held directly by foreign shareholders.

On 2 April 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 of 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 similar authorizations
granted on 4 April 2003. The Board of Directors has not used the
authorizations granted by the Annual General Meeting on 2 April 2004.

PERSONNEL

5(11)
The average number of employees in the Aspocomp Group during the period 1
January – 30 September 2004 was 3,515 (3,123). At the end of September 2004
there were 3,546 employees (3,183).

Average number Average number Number Number
2004 2003 2004 2003
1.1.-30.9. 1.1.-30.9. 30.9. 30.9.

Europe 997 1,074 985 966
Thailand 1,392 1,108 1,423 1,176
China 1,126 941 1,138 1,041
Total 3,515 3,123 3,546 3,183

MANAGEMENT

On 2 February 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 took up her new position on 1 April 2004.

The Annual General Meeting of Aspocomp Group Oyj held on 2 April 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 2 April 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. The
authorized public accounting firm PricewaterhouseCoopers Oy was appointed as
the Auditor for the company.

In its organization meeting on 2 April 2004, the Board re-elected Tuomo
Lähdesmäki as Chairman of the Board, while Karl Van Horn was elected as 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 or an entity
under his influence shall spend 40% of his annual remuneration in buying
shares in the company during the period 10 May – 18 June 2004, which took
place within the limitations of insider trading rules. The Board also decided
not to convey the acquired shares before the Annual General Meeting of 2005.

The company amended its Corporate Governance system in June so that it now
complies with the recommendation given to the listed companies by the
Helsinki Exchanges in December 2003.

ASPOCOMP S.A.S.

In May, the Evreux Labour Court rendered its decision on redundancy notices of
the closing of the heavily unprofitable Aspocomp S.A.S. in Evreux, France in
2002. According to the decision, Aspocomp should pay to 388 persons issued with
6(11)
notice a compensation equivalent to six months remuneration due to unfair
dismissal. The estimated compensation totals to approximately EUR 6.6 million.

According to Aspocomp’s legal advisors, the decision is not in line with
established court practice. Aspocomp has appealed against the decision and,
based on current assessments, the legal processes are expected to continue for
some years before a final decision is made.

IFRS IMPLEMENTATION

The Aspocomp Group will introduce IFRS (International Financial Reporting
Standards) at the beginning of 2005. Aspocomp has already been recording all
financial leasing agreements as assets and liabilities since 1999. The fixed
expenditure of finished product stores has been capitalized, and imputed tax
liabilities and receivables have been recorded.

In line with the decision taken in March 2004, the disability pension portion
of the Finnish TEL system (TEL=Employees’ Pension Act) is to be treated as a
benefit arrangement in accordance with IFRS, which means that the disability
pension is to be entered as a long-term liability. The negotiating group
consisting of central organizations in the labor market has, on 14 October,
decided on a recommendation that the major employers’ own risk regarding
disability pensions in the TEL insurance would be replaced by an arrangement
based on different premium payment categories. The change would eliminate the
obligation to enter disability benefits as a liability in IFRS-based final
accounts.

The introduction of IFRS is not expected to have any substantial influence on
the Group’s equity at the time of changeover.

PROSPECTS

The strong growth in the mobile phone markets continued during the third
quarter. During the current year, research institutions and device
manufacturers have estimated that the volume of mobile phone sales this year
will grow much faster than was estimated previously. At present, most of them
estimate the total volume of the market in 2004 to be approximately 600
million mobile phones or slightly more (the market in 2003 was over 470
million phones).

During the first part of the year, the telecommunication networks market grew
faster than expected, albeit recent reports suggest that the growth rate is
slowing down. The PCB demand in the automotive industry is expected to
develop favorably.

Aspocomp’s fourth quarter net sales are forecasted to be on the level of the
same period during the previous year. The business mix will change in October-
December: Aspocomp’s PCB segment is expected to show moderate growth, while
Mechanics and Modules segment net sales are expected to be lower than in
equivalent period previous year. Therefore the Group’s operating profit is
expected to be lower than last year during the fourth quarter.

The net sales, operating profit and earnings per share for the entire year will
be significantly better than in the previous one.
7(11)
In 2004, gross investments are expected to amount to approximately 7% of the
Group’s net sales.

ASPOCOMP GROUP INCOME STATEMENT, JULY – SEPTEMBER

7-9/04 7-9/03
MEUR % MEUR %

NET SALES 52.2 100.0 48.6 100.0

Other operating income 0.3 0.6 0.1 0.1

Depreciation and write-downs 6.0 11.5 6.5 13.5

OPERATING PROFIT/ LOSS 4.0 7.6 0.7 1.5

Financial income and expenses -0.4 -0.8 -0.3 -0.6

PROFIT/ LOSS BEFORE
EXTRAORDINARY ITEMS AND TAXES 3.5 6.8 0.4 0.9

Extraordinary income 0.0 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0 0.0

PROFIT/ LOSS
BEFORE TAXES 3.5 6.8 0.4 0.9

Taxes -0.9 -1.7 0.4 0.9

Minority interests -0.9 -1.7 0.6 1.3

PROFIT/ LOSS
FOR THE PERIOD 1.8 3.4 1.4 2.9

EARNINGS PER SHARE 0.18 0.14

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 periods.

ASPOCOMP GROUP INCOME STATEMENT, JANUARY – SEPTEMBER

1-9/04 1-9/03 1-12/03
MEUR % MEUR % MEUR %

NET SALES 152.7 100.0 131.8 100.0 182.3 100.0

Other operating income 0.8 0.5 0.0 0.0 1.2 0.7

Depreciation and write-downs 18.2 11.9 23.4 17.8 29.7 16.3

OPERATING PROFIT/LOSS 10.4 6.8 -7.3 -5.5 -5.3 -2.9

Financial income
8(11)
and expenses -1.1 -0.7 -1.1 -0.8 -1.3 -0.7

PROFIT/LOSS BEFORE
EXTRAORDINARY ITEMS AND TAXES 9.4 6.1 -8.4 -6.4 -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 9.4 6.1 -8.4 -6.4 -6.6 -3.6

Taxes -1.0 -0.7 1.6 1.2 3.5 1.9

Minority interests -2.3 -1.5 2.0 1.5 2.2 1.2

PROFIT/LOSS
FOR THE PERIOD 6.1 4.0 -4.8 -3.6 -0.9 -0.5

EARNINGS PER SHARE 0.61 -0.48 -0.09

BALANCE SHEET

9/04 9/03 Change 12/03
MEUR MEUR % MEUR
Fixed assets

Intangible assets 3.3 4.8 -31.0 4.2
Tangible assets 97.1 111.3 -12.7 105.2
Investments 1.7 1.7 -1.3 1.7

Current Assets

Stocks 25.0 21.3 17.4 20.8
Receivables 52.8 55.9 -5.5 52.7
Investments 16.0 0.0 – 20.8
Cash and bank deposits 14.2 19.2 -26.2 8.9

TOTAL ASSETS 210.2 214.3 -1.9 214.2

Shareholders’ equity

Share capital 10.0 10.0 – 10.0
Other shareholder’s equity 95.1 89.9 5.8 92.1
Minority interests 24.4 22.4 9.0 20.5
Mandatory reserves 2.5 1.9 31.4 1.7
Long-term liabilities 24.6 31.7 -22.6 28.7
Short-term liabilities 53.5 58.3 -8.2 61.3

TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 210.2 214.3 -1.9 214.2

9(11)
CASH FLOW STATEMENT
7-9/04 7-9/03
MEUR MEUR

Cash flow from operations 8.6 4.6
Cash flow from investments -2.8 -0.4
Cash flow before financial items 5.8 4.2
Decrease in long-term financing -0.8 -1.5
Decrease/Increase in short-term financing -2.2 3.4
Minority interest in the subsidiary share issue 1.2 –
Total financing -1.8 1.9
Increase in liquid assets 4.0 6.1
Liquid assets at the end of the period 30.2 19.2

CASH FLOW STATEMENT
1-9/04 1-9/03 1-12/03
MEUR MEUR MEUR

Cash flow from operations 18.4 9.1 25.4
Cash flow from investments -8.9 -6.5 -11.3
Cash flow before financial items 9.5 2.7 14.1
Decrease in long-term financing -4.1 -5.7 -7.0
Decrease/increase in short-term financing -3.2 4.6 5.0
Dividends paid -3.0 -2.5 -3.0
Minority interest in the subsidiary share issue 1.2 – –
Total financing -9.0 -3.6 -5.0
Increase/decrease in liquid assets 0.5 -0.9 9.0
Liquid assets at the end of the period 30.2 19.2 29.8

BUSINESS SEGMENTS

7-9/04 7-9/03 1-9/04 1-9/03 1-12/03
MEUR MEUR MEUR MEUR MEUR
Printed Circuit Boards
Net sales 40.7 39.9 117.6 104.0 142.5

Printed Circuit Boards
Operating profit 1.9 -0.7 4.4 -11.0 -11.1

Mechanics and Modules
Net sales 11.5 8.7 35.1 27.8 39.8

Mechanics and Modules
Operating profit 2.1 1.4 6.0 3.7 5.8

KEY FINANCIAL INDICATORS

9/04 9/03 12/03

Return on Investment (ROI), % 8.5 -7.6 -1.9

Return on Equity, % 8.9 -7.1 -2.4

10(11)
Equity/share, EUR 10.50 9.98 10.20

Equity ratio, % 61.5 56.9 57.1

Gearing, % 13.2 32.7 20.3

Gross investments, MEUR 8.9 8.9 13.8

Average number of personnel 3,515 3,123 3,330

CONTINGENT LIABILITIES
9/04 12/03
MEUR MEUR

Securities on Group liabilities 8.0 8.0
Operational leasing liabilities 0.2 0.2
Other liabilities 25.5 24.4

TOTAL 33.7 32.6

DERIVATIVE CONTRACTS

9/04 12/03
MEUR MEUR
Foreign Currency Forward Contracts
Market Value 0.0 0.0
Nominal Value 0.0 4.6

Electricity Forward Contracts
Market Value 0.0 0.0
Nominal Value 0.6 0.7

All figures are unaudited.

Vantaa 4.11.2004

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 CEO

PRESS CONFERENCE
11(11)
A press conference intended for investors, analysts and media representatives
will be held on 4 November 2004 at 11:00 a.m. in the Paavo Nurmi conference
hall of Hotel Kämp at Pohjoisesplanadi 29, Helsinki.

ASPOCOMP IN BRIEF

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, 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 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.

Distribution:
The Helsinki Exchanges
Major Media
www.aspocomp.com

ASPOCOMP GROUP INTERIM REPORT 1.1. – 30.9.2004

Inside Information: Manu Skyttä starts as the President and CEO of Aspocomp Group Plc

Decisions of Aspocomp Group Plc’s Annual General Meeting 2024 and Board of Directors’ organization meeting

Correction: Aspocomp’s Interim Report January 1 – March 31, 2024: Net sales and operating result decreased from the comparison period

Aspocomp’s Interim Report January 1 – March 31, 2024: Net sales and operating result decreased from the comparison period

Aspocomp has published its Annual Report 2023 and Corporate Governance Statement 2023