JANUARY – MARCH (comparable figures, 1-3 / 2002)
– Q1 net sales decreased by 7.1 % and totaled EUR 41.1 million (EUR
44.3 million)
– PWB production in Asia grew by about 21 % to EUR 11.1 million
– Operating loss was EUR 1.7 million (loss of EUR 28.2 million)
– Free cash flow after investments improved to EUR 1.6 million (EUR –
12.3 million)
– The full year net sales are expected to grow and the free cash flow
after investments is expected to be clearly positive


General economic environment continued to be unstable and Euro
continued its rapid appreciation, especially compared to the US

The overcapacity in the global printed wiring board (PWB) market
prevailed and led the price erosion to continue. At the same time
more electronics manufacturing was moved to low labor cost countries
in Asia, especially to China.

During Q1 2003 the mobile handset PWB sales decreased due to the
normal seasonality pattern, but are expected to recover. Also the
telecom infrastructure PWB sales were slow. However, both automotive
and industry PWB and Mechanics and Modules (MM) sales increased.


Reported net sales decreased by 7.1 % and totaled EUR 41.1 million
for the period from January 1 to March 31, 2003, compared with the
reported EUR 44.3 million during the corresponding period previous
year (EUR 41.6 million without the French operations discontinued in
Q1 2002). The production volume of the continued operations increased
by about 10 %, but the appreciation of Euro and the price erosion
lead the comparable net sales to be on the same level as in Q1 2002.

The share of the sales to company’s five biggest customers, Nokia,
Sanmina-SCI, Siemens, Tellabs and Elcoteq, was 61 % (the share of the
five biggest in Q1 2002 was 63 %).

Profit before depreciations increased compared to the corresponding
period previous year and totalled EUR 5.4 million (EUR -19.8 million,
EUR 6.9 million without the discontinued French operations).
Operating loss for the period totaled EUR 1.7 million (EUR 28.2
million, operating profit EUR 0.3 million without the discontinued
French operations). Net financial costs were EUR 0.5 million (EUR 0.7
The loss before extraordinary items was EUR 2.2 million (loss of EUR
29.0 million). The loss before taxes was EUR 2.2 million (loss of EUR
29.0 million), and the net loss for the period was EUR 0.4 million
(loss of EUR 26.2 million). Earnings per share totaled EUR -0.04 (EUR
-2.61). The operational cash flow totalled EUR 2.9 million (EUR -4.2
million) and the free cash flow after investments was EUR 1.6 million
(EUR -12.3 million).


Printed Wiring Boards (PWB)

First-quarter net sales for the PWB segment decreased by 9.7 %
compared to the corresponding period previous year and totaled EUR
32.0 million (EUR 35.4 million, EUR 32.7 million without the
discontinued French operations). The impact of the appreciation of
Euro on the PWB net sales was about EUR -2.5 million. The EBIT for
the PWB segment was EUR -2.7 million (EUR 0.3 million without the
discontinued French operations).

Mechanics and Modules, MM (former EMS, Electronics Manufacturing

Net sales for the Mechanics and Modules business segment increased by
2.2 % and totaled EUR 9.1 million (EUR 8.9 million). The EBIT for the
Mechanics and Modules segment was EUR 1.0 million (EUR 0.1 million).

The research and development companies Asperation Oy and Imbera
Electronics Oy made good progress according to their plans during the
period under review.

Business by area

During the first quarter of the year 2003 the Aspocomp Group net
sales were divided by area as follows: Europe 70 % (62 %), Asia 12 %
(14 %) and the Americas 18 % (24 %).

The Group’s reported sales of PWBs manufactured in Asia grew by 21 %,
despite the appreciation of Euro. The reported sales of products
manufactured in Europe decreased by 20 % (11 % without the
discontinued French operations) reflecting the price erosion in PWBs.
The total manufacturing by area was as follows: Europe 73 % (80 %)
and Asia 27 % (20 %).


The Group’s liquidity during the period under review was good.
Interest-bearing net debt for the period totaled EUR 38.0 million
(EUR 61.4 million), including EUR 30.3 million in financial leasing
liabilities (EUR 32.8 million). The non-interest-bearing debts
totalled EUR 27.3 million (EUR 28.5 million). Gross investments for
the period totaled EUR 1.4 million (EUR 8.1 million the corresponding
period previous year) or 3.4 % of the net sales (18.3 %). Most of the
investments, EUR 0.8 million, were in Asia, while investments in
Finland totaled EUR 0.6 million. Net financial costs as a percentage
of the net sales totaled 1.3 % (1.7 %). The equity ratio at the end
of the period was 60.5 % (56.6 %) and at the end of the year 2002 61


The number of Aspocomp’s issued shares on March 31, 2003, was
10,041,026 and the share capital was EUR 10,041,026. 100,000 shares
were in the possession of the company. The number of shares adjusted
for the treasury shares was 9,941,026. During the period from January
1 to March 31, a total of 149,230 shares with a value of EUR
1,002,956.00 were traded on the Helsinki Exchanges. The nominee-
registered portion of the shareholding was 15.80 % and the foreign
portion 0.76 % at the end of the period. The share price reached a
high of EUR 7.10 and a low of EUR 6.11 between January 1 and March
31, 2003. The average price was EUR 6.72. The closing price on March
31, 2003, was EUR 6.50 and the market capitalization of the company
was EUR 64,616,669.00.

The Aspocomp Group Oyj’s Annual General Meeting of April 4, 2003,
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.


The number of employees averaged 3,053 from January 1 to March 31,
2003, compared with 3,154 for the same period in the previous year.
The average number of employees in the year 2002 was 3,075. At the
end of March 2003 there were 3,041 employees in all (2,681).

Average number Average number Number Number
2003 2002 2003 2002
Jan 1-March 31 Jan 1-March 31 March 31 March 31

Europe 1,154 1,720 1,053 1,194
Thailand 1,037 879 1,079 896
China 862 555 909 591
Total 3,053 3,154 3,041 2,681

A proposal related to the personnel negotiations of the possible
closing of the Padasjoki printed wiring board factory was given on
April 9, 2003. Possible personnel reductions and reorganization
concern all personnel groups, total of about 80 persons, at the

The Padasjoki factory’s share of the Group net sales in 2002 was
about 5 % and its share of the Group personnel about 3 %. The fixed
assets of the factory were about EUR 6.5 million at the end of the
first quarter 2003.
The adjustment of the number of personnel continued at all production
sites during the financial period.

The Aspocomp Group has incentive systems that cover the whole
personnel of the Group. In Finland factory personnel belong to a
result-related bonus system and other personnel is included in the
economic value added (EVA) based bonus system. The Group companies in
China and in Thailand have their own incentive systems.
The Board of Directors of Aspocomp Group Oyj has decided on a new
share price based incentive scheme for the management and certain key
persons. The bonus is based on the share price increase of the
Aspocomp Group Oyj share during the next two years. Precondition for
belonging to the incentive scheme is that the participants to the
scheme own Aspocomp Group Oyj shares by the end of June 2003 in
accordance with the instructions provided by the company. The
potential bonus will be paid in June 2005, provided that the person
is still employed by the Aspocomp Group.
The objective of the new incentive scheme is to increase the
shareholdings of the management and certain key persons in the
A person is able to belong only to one incentive system at a time.


The Annual General Meeting of Aspocomp Group Oyj decided at its
meeting on April 4, 2003, that the number of the Board Members is
six. Mr. Gustav Nyberg was re-elected as a Board Member.
At its meeting of April 4, 2003, the Board of Directors elected Mr.
Tuomo Lähdesmäki as Chairman of the Board and Mr. Jorma Eloranta as
Vice-Chairman of the Board. The Board elected also Members for the
Board Committees: Mr. Tuomo Lähdesmäki is Chairman of the
Compensation and Nomination Committees and Mr. Jorma Eloranta a
Member. The Chairman of the Auditing Committee is Mr. Gustav Nyberg,
Mr. Karl Van Horn being a Member.

The Annual General Meeting of Aspocomp Group Oyj decided that the
remuneration of the Board Members is paid on an annual basis. The
Members of the Board of Directors decided that they will acquire
directly or indirectly Aspocomp Group Oyj shares with 40% of their
gross remuneration during the time period from May 6 to June 15,
2003. The purchases will be made within the limits set by the
company’s insider regulations. The Board Members have decided not to
convey the shares before the Annual General Meeting of 2004.

Outlook of the PWB segment remains divided. The growth of the mobile
phone market in 2003 is estimated to be between 0 and 10 %. In the
automotive and industrial business the steady growth is estimated to
continue. However, the decrease in the telecommunication
infrastructure market is estimated to continue. Outlook for the
demand of the Mechanics and Modules segment is stable.

Aspocomp’s global PWB market share is expected to increase during
2003 by improving the Group’s market position in Asia. The Asian
units’ share of the Group net sales is forecasted to be close to 40 %
by the end of 2003 (22 % in 2002). Also the good progress in the R&D
joint ventures, Asperation Oy and Imbera Electronics Oy, is expected
to continue.

The second quarter net sales and the EBIT excluding possible one-time
costs related to the Padasjoki factory are expected to be on the same
level as in the first quarter 2003. Both the net sales and the EBIT
during the latter half of the year 2003 are expected to be higher
than during the first half and the EBIT to be positive.


1-3/03 1-3/02 1-12/02

NET SALES 41.1 100.0 44.3 100.0 182.9 100.0
Other operating income -0.1 -0.2 0.6 1.4 1.0 0.1
Depreciation and
write-downs 7.1 17.3 8.4 19.0 30.4 16.6

AFTER DEPRECIATION -1.7 -4.1 -28.2 -63.8 -23.2 -12.7

Financial income
and expenses -0.5 -1.3 -0.7 -1.7 -2.7 -1.5

ITEMS AND TAXES -2.2 -5.4 -29.0 -65.4 -25.9 -14.2

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 -2.2 -5.4 -29.0 -65.4 -25.9 -14.2

Minority interest 0.7 1.7 0.8 1.7 3.7 2.0

PERIOD -0.4 -0.9 -26.2 -59.2 -18.6 -10.1

Earnings / Share, EUR -0.04 -2.61 -1.86

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


3/03 3/02 Change 12/02
Non-Current Assets

Intangible assets 5.8 4.1 41.5 5.7
Tangible assets 124.0 156.5 -20,8 131.3
Investments 1.4 2.6 -46.2 1.6

Current Assets

Inventories 21.3 24.1 -11.6 20.0
Receivables 46.2 44.2 4.5 43.9
Investments 0.0 0.0 – 0.0
Cash and bank deposits 21.6 17.1 26.3 19.7

TOTAL ASSETS 220.3 248.7 -11.4 222.2

Shareholders’ equity

Share capital 10.0 10.1 -1.0 10.0
Other shareholders’ equity 97.4 95.5 2.0 98.6
Minority interest 25.9 36.1 -28.3 27.3
Mandatory reserves 2.0 2.4 -16.7 2.1
Long-term liabilities 37.6 51.4 -26.8 38.4
Short-term liabilities 47.4 53.2 -10.9 45.7

SHAREHOLDERS’ EQUITY 220.3 248.7 -11.4 222.2

1-3/03 1-3/02 1-12/02

Net operational cash flow 2.9 -4.2 26.0
Total cash flow from investments -1.3 -8.1 -19.7
Cash flow before financing 1.6 -12.3 6.4
Total financing 0.2 9.1 -8.7
Increase/Decrease in liquid funds 1.8 -3.1 -2.4
Liquid funds at the end of the period 21.6 17.1 19.7

3/03 3/02 12/02

Equity/share, EUR 10.81 10.42 10.85

Equity ratio, % 60.5 56.6 61.0

Gearing, % 28.5 43.7 30.0

Gross investments, MEUR 1.4 8.1 19.8

Average Personnel 3,053 3,154 3,075

Accumulated excess depreciation and voluntary reserves totaling EUR
1.1 million have been divided among shareholders’ equity and nominal
tax liabilities.


3/03 12/02
Securities on Group liabilities 3.1 9.6
Operational leasing liabilities 0.1 0.1
Other liabilities 0.3 0.3

TOTAL 3.4 10.0

There are no derivative contracts.

All figures are unaudited.

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

Vantaa, May 6, 2003


Board of Directors

For more information, please contact CEO Jarmo Niemi
at +358 9 7597 0711.


Jarmo Niemi
President and CEO

Helsinki Exchanges
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