ASPOCOMP GROUP PLC STOCK EXCHANGE RELEASE May 5, 2006 at 8:00 AMASPOCOMP GROUP PLC INTERIM REPORT FOR JANUARY 1 – MARCH 31, 2006:
NET SALES: EUR 40.7 MILLION, OPERATING RESULT: EUR -3.6 MILLION– Consolidated net sales in the January-March period amounted to EUR 40.7
million (EUR 39.9 million in 1-3/2005), remaining on a par with the reference
quarter.– Net sales of the Printed Circuit Board division grew by 9.1 percent to EUR
37.2 million (34.1). Net sales of the Asian plants grew by 33 percent.– Consolidated operating result weakened to EUR -3.6 million (-1.8),
representing -8.7 per cent of net sales. As expected, the decline was mostly
due to the ongoing conversion project at the Salo PCB plant and the sharp
decrease in the profitability of the Modules division.– Earnings per share were EUR -0.23 (-0.11).
– Cash flow from operations was EUR 1.7 million (2.1) and investments
amounted to EUR 5.7 million (1.9). Per-share cash flow after investments was
EUR -0.20 (0.01).The figures in the report do not include the Mechanics division divested in
September 2005.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 previous
year. The net sales and profitability of the non-core Modules division are
expected to improve on the first quarter and the full-year result to be
positive due to increasing deliveries under the current maintenance agreement.
The Group’s net sales in 2006 are expected to grow compared to the previous
year and the result to rise into the black during the second half of the year.MAIJA-LIISA FRIMAN, PRESIDENT AND CEO:
“Aspocomp’s first-quarter performance was not satisfactory. It was affected by
the gradual decline in the profitability of the Modules division and
particularly the conversion project at the Salo printed circuit board (PCB)
plant. The Salo plant’s product margins were reduced by the delayed
introduction of HDI PCBs manufactured with new technologies as well as a weaker
yield in the new products’ ramp-up phase. As a result, the plant’s sales did
not reach the level of the reference quarter.Growth in the global handheld device market was strong during the quarter and
the segment reported increases in the average price and product complexity.
This surge has even led to a global supply shortage of HDI PCBs, used
particularly in more complex mobile phones. The trend presents substantial
growth potential.The changes we are carrying through are taking the Group to the next
technological level. The present growth in the global demand for high
technology HDI PCBs is more than twice as fast as the growth for other PCBs.
Market researchers forecast that the overall PCB market will grow to around USD
42 billion (almost EUR 34 billion) in 2006, with technologically complex HDI
PCBs accounting for about 12 percent. The Asian market is forecast to grow over
8 percent, whereas the market in the rest of the world is expected to decline
somewhat.Given this development, our recent decision to invest in India was well timed.
It deepens our cooperation with our global, fast-growing key customers. The
plant will be the first HDI PCB production facility in India and is expected to
be operational during the second half of 2007. The project has begun on
schedule with the hiring of key personnel and the finalization of the plant
engineering.Although the investment in India will strengthen our position as a global PCB
supplier, we are actively looking to expand further in Asia to supply our
present and future growing customers. One priority is to secure sufficient
production capacity in China. Our medium-term objective is to outpace
technological high-end global PCB market growth, and to achieve that, we need
to move on as swiftly as possible.”PRINTED CIRCUIT BOARD MARKET
In the global telecom network and automotive segments, demand for HDI PCBs
remained at a healthy level during the review period. Strong growth continued
in the handheld devices segment. The Aspocomp Group’s customers in the handheld
segment reported outstanding results and higher average prices, which indicated
a boost in sales of high-end devices that utilize demanding HDI PCBs.
Consequently, global HDI PCB demand during the quarter exceeded supply.
Together with gradually growing material prices, it created pressure to raise
HDI PCB prices.According to market estimates, overall global PCB production during the report
period grew slightly over 2 percent on the previous quarter. In Asia, PCB
demand grew markedly over 3 percent. Furthermore, HDI PCB production increased
even faster and in China, in particular, it was estimated to have grown by
about 10 percent since the end of last year.CONSOLIDATED NET SALES AND RESULT, JANUARY-MARCH
(reference figures are for 1-3/2005)Net sales and operating result, EUR million
1-3/2006 change, % 1-3/2005
Group
Net sales 40.7 1.9 39.9
Operating result -3.6 -1.8Printed Circuit Boards
Net sales 37.2 9.1 34.1
Operating result -2.5 -1.5
Modules
Net sales 3.7 -44.0 6.6
Operating result 0.0 1.3The Aspocomp Group’s net sales for the period were EUR 40.7 million (39.9),
remaining at the same level as in the reference quarter. While the net sales of
the smaller Oulu PCB facility grew satisfactorily, the total net sales of the
Finnish plants did not reach the level of the reference quarter. This was
mainly due to the Salo PCB plant’s conversion project and the gradual weakening
of net sales at the Oulu modules plant. However, the decline was clearly offset
by the strong growth at the Asian plants, particularly in China, where sales of
the higher-margin HDI PCBs were brisk.The Aspocomp Group’s net sales for the quarter were divided by market area as
follows: Europe 57 percent (71%), Asia 29 percent (22%) and the Americas 14
percent (7%). The Finnish plants’ share of net sales was 46 percent (62%),
while the Asian plants accounted for 54 percent (38%). The share of the Asian
plants increased compared with the reference quarter, in line with the Group’s
strategy. Products used in handheld devices and telecom networks accounted for
68 percent (72%) of consolidated net sales, and 32 percent (28%) came from
automotive, industrial and consumer electronics.The five largest customers – Elcoteq, Ningbo Bird, Nokia, Philips and Siemens –
accounted for 51 percent of net sales (55%) during the January-March period.The operating result before depreciation was EUR 1.1 million (3.3), or 2.6
percent of net sales (8.3%). The operating result was EUR -3.6 million (-1.8).The heavy losses of the Salo plant cut into the Group’s profitability during
the quarter. The Oulu modules plant, while performing markedly better than in
the previous quarter, made a zero result. The result declined on the reference
quarter as the plant’s telecom network products neared the end of their life
cycle.The Group’s net financial expenses were EUR -0.3 million (-0.3) and the profit
for the period was EUR -3.8 million (-2.1). Earnings per share from continuous
operations were EUR -0.23 (-0.11). Cash flow from operations amounted to EUR
1.7 million (2.1) and per-share cash flow after investments to EUR -0.20
(0.01).The Group’s research and development expenditure amounted to EUR 1.1 million
(1.1), or 2.7 percent (2.8%) of net sales.THE GROUP’S DIVISIONS
Printed Circuit Boards
First-quarter net sales of the PCB division grew by 9.1 per cent to EUR 37.2
million (34.1). Development particularly at the Chinese plant remained
favorable. The project to increase HDI production capacity in China by
approximately 50 percent compared with last year’s average was nearing
completion, and the capacity was fully booked. In contrast, introduction of the
PCBs manufactured with new technologies at the Salo plant was more challenging
than expected. It cut into the yield and the share of total production
accounted for by new technology products. In addition, installation of a new
plating line in February shut down the line for about a week, shrinking plant
capacity considerably. As a result, the plant’s net sales for the report period
did not reach the figures of the reference quarter.Although the Oulu plant posted clearly higher net sales than in the
corresponding quarter of last year, the total comparable net sales of the Salo
and Oulu plants in Finland declined by 11 percent (down 13%) due to the Salo
conversion project. The net sales of the Asian plants in China and Thailand
were up 33 percent (0%), attributable mainly to the HDI capacity expansion in
China. The net sales of the Thai plant also grew somewhat.The regional breakdown of the PCB division’s net sales was as follows:
Europe 53 percent (67%), Asia 31 percent (24%) and the Americas 16 percent
(9%). The Finnish plants’ share of net sales was 41 percent (52%) while
the Asian factories accounted for 59 percent (48%).During the review period, the share of Aspocomp’s overall PCB production
accounted for by HDI PCBs totaled 54 percent.The division’s operating result for January-March was EUR -2.5 million (-1.5).
Profitability was hit particularly by the poor yield of the new products at the
Salo plant. The operating result at the Group’s other plants was in the black,
particularly so in China and Oulu. The Thai plant showed improved
profitability.Modules
As expected, net sales of the Modules division contracted significantly by 44.0
percent, and amounted to EUR 3.7 million (6.6). The operating result of the
division declined to EUR 0.0 million (1.3).The weaker net sales and profitability were primarily attributable to the
gradual end of the life cycle of the telecom network products manufactured at
the Oulu plant. The maintenance agreement made for the products will be in
force for several years and the delivery volumes are expected to increase from
the review period towards the year-end. Deliveries to other industries remained
on a par with the reference period.FINANCING, INVESTMENTS AND EQUITY RATIO
The Group’s liquidity during the quarter under review was good. The Group’s
liquid assets at the end of the period amounted to EUR 17.2 million (31.6).
Interest-bearing net debt rose to EUR 30.2 million (10.6) mainly due to the
decline in cash and cash equivalents. The figure includes EUR 19.1 million
(21.9) in financial lease liabilities included in the consolidated balance
sheet. Gearing was 29.5 percent (8.4%) and non-interest-bearing liabilities
amounted to EUR 39.1 million (31.6).Investments amounted to EUR 5.7 million (1.9), representing 14.0 percent of net
sales (4.3%). They were primarily earmarked for the expansion of the HDI line
at the Chinese plant and technological investments at the Salo plant. Capital
expenditures in Asia were EUR 2.9 million (0.4) and EUR 2.8 million (1.5) in
Europe. Net financial expenses were 0.6 percent of net sales (0.8%).The Group’s equity ratio at the end of March was 54.3% (63.1%).
SHARES AND SHARE CAPITAL
The total number of Aspocomp’s shares at March 31, 2006, 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 1,704,444 Aspocomp Group Plc shares were traded on the Helsinki
Stock Exchange during the period from January 1 – March 31, 2006. The aggregate
value of the shares exchanged was EUR 6,154,788. The shares traded at a low of
EUR 3.35 (March 7 and 8, 2006) and a high of EUR 4.06 (January 9, 2006). The
average share price was EUR 3.61. The closing price at March 31, 2006, was EUR
3.50 and the company had a market capitalization of EUR 69.6 million, adjusted
for the number of treasury shares. Nominee-registered shares accounted for 7.66
percent of the shares at the end of the period and 0.77 percent was directly
held by non-Finnish owners.On March 13, 2006 the Board of Directors of Aspocomp Group Plc decided on a
share-based incentive plan, which consequently came into force due to the
decision of the Annual General Meeting on April 10 to issue stock options. The
plan is directed at around 12 members of the senior management. The potential
reward from the plan will be paid in 2007 partly as shares in the company and
partly in cash. The reward includes a prohibition to transfer the shares within
two years from the end of the payment period. The potential reward from the
plan will be based on the earnings per share (EPS) of the Group. In addition,
the CEO and the Executive Committee of the company must own the shares in a
certain proportion to their annual gross salary as long as they remain in the
employ or service of the Group.PERSONNEL
During the review period, the Aspocomp Group had an average of 3,479 employees
(3,360). The personnel count on March 31, 2006 was 3,459 (3,351). Of them,
2,503 were non-salaried and 956 salaried employees.Personnel by region and division, average
January-March2006 change, % 2005
Europe 866 -6.0 918
Asia 2,613 6.6 2,442
Total 3,479 3.7 3,3602006 change, % 2005
PCBs 3,282 3.4 3,173
Modules 174 3.0 169
Group Administration 23 27.8 18
Total 3,479 3.5 3,360During the quarter, the Group continued to implement the HR development
process, adopted during the previous quarter, to achieve consistency in
operating methods and documentation in different countries.As part of an equality plan in Finland, a study was published during the period
to compare compensation levels of the genders, and guidelines were issued to
promote equality. The study showed no significant differences in remuneration
between the genders.On March 1, 2006, Balachandran a/l Lakshmanan was appointed as Project Manager
and Petri Kangas as Chief Financial Officer of the India HDI PCB plant project.
Balachandran a/l Lakshmanan (50) has 15 years of experience in the start-up and
management of new plants in Asia as well as the development of quality,
customer service and productivity at numerous international companies. Petri
Kangas (39) has served in international management positions in financial
administration at both Finnish and foreign companies. He has broad experience
in corporate financial management, growing companies and M&As.EXPANSION IN ASIA
On January 3, 2006, Aspocomp Group Plc announced that its subsidiary P.C.B.
Center (Thailand) Co., Ltd was renamed Aspocomp (Thailand) Co., Ltd. The
Group’s total holding in the Thai subsidiary amounts to about 83 percent.In order to meet the future needs of its customers, Aspocomp made a decision in
principle on January 17, 2006 to expand its HDI business by building a printed
circuit board plant in Chennai, India. It will be the first high-tech HDI PCB
plant in India. The total investment is expected to amount to about EUR 75
million, of which about EUR 60 million is earmarked for building and machinery
and EUR 15 million for working capital and start-up costs. The project will be
financed with long-term loans raised by the parent company and the Indian
subsidiary. The unit is scheduled to go on stream in the second half of 2007.
The name Aspocomp Electronics India Pvt. Ltd. was registered in April.EVENTS AFTER THE REPORT PERIOD
On April 10, 2006, Tapio Engström (42), M.Sc.(Econ), was appointed Chief
Financial Officer and Deputy to the CEO, effective July 1, 2006. Mr. Engström
is currently Director, Finance, at Vaisala Corporation. Aspocomp’s current
Chief Financial Officer, Pertti Vuorinen (56), was appointed Chief Financial
Officer for Aspocomp’s Asia-Pacific operations and a member of the Extended
Management Team of the Aspocomp Group, effective July 1, 2006. He will be based
in Suzhou, China, where Aspocomp’s subsidiary ACP Electronics is located. In
financial matters, Mr. Vuorinen will report to Tapio Engström, and in expansion
projects to CEO Maija-Liisa Friman.The Annual General Meeting of Aspocomp Group Plc on April 10, 2006, decided
that the number of Board members is six. Aimo Eloholma, Roberto Lencioni, Tuomo
Lähdesmäki, Gustav Nyberg and Anssi Soila were re-elected as Board members and
Yoshiki Sasaki, a Japanese citizen, was elected as a new member. At its
organization meeting the Board re-elected Tuomo Lähdesmäki as Chairman, and
Yoshiki Sasaki was appointed as Vice Chairman. The Board elected Aimo Eloholma,
Roberto Lencioni and Tuomo Lähdesmäki as members of the Compensation and
Nomination Committees. Gustav Nyberg, Anssi Soila and Yoshiki Sasaki were
elected as members of the Audit Committee.The Annual General Meeting re-appointed the authorized public accounting firm
PricewaterhouseCoopers Oy as auditor for 2006.The meeting decided that the annual and per-meeting remunerations to the
members of the Board of Directors remain the same as in 2005. In addition to
the annual remuneration, the member of the Board residing abroad will receive
EUR 1,500 per meeting and be reimbursed for reasonable travel and accommodation
expenses.The meeting authorized the Board of Directors to decide on increasing the share
capital through one or several new subscriptions and/or to take up one or
several convertible loans and/or issuing option rights. The share capital may
be increased by a maximum of EUR 4,016,410.The Board was authorized to decide on the conveyance of a maximum of 200,000 of
the company’s own shares. The shares may be used to finance and facilitate
corporate acquisitions or other arrangements, or for key personnel incentives,
or they may be sold in public trading.The meeting decided to issue stock options to the key personnel of the Aspocomp
Group as well as to a wholly owned subsidiary of Aspocomp Group Plc as part of
an incentive and commitment program. The maximum total number of stock options
issued is 930,000. The share subscription period for the stock options 2006A,
2006B and 2006C commences only if certain criteria, decided by the Board of
Directors, have been fulfilled. The share subscription periods will be 1 May
2008 – 31 May 2010, 1 May 2009 – 31 May 2011, and 1 May 2010 – 31 May 2012,
respectively.On May 5, 2006, the Board of Directors decided to use 40 percent of the
remuneration paid by Aspocomp Group Plc to acquire the company’s shares from
the market, conforming to insider regulations and other relevant legislation.
The shares will not be conveyed before the Annual General Meeting of 2007.The Board confirmed the plant investment decision in India on May 5, 2006. The
construction of the HDI PCB plant in Chennai will proceed according to plan.OUTLOOK FOR THE FUTURE
Aspocomp is entering a significant growth phase that will first reflect in the
strong growth of net sales. Due to investments required for the expansion and
start-up phase of the Indian plant, the strong positive effect of the growth on
the company’s result will become markedly visible starting 2008.Aspocomp’s main priority in 2006 is to focus the company’s resources on
developing its market position and competitiveness, serving the main customers
and increasing cost-effectiveness. The decision to build a HDI plant in India
supports 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 previous
year. The net sales and profitability of the non-core Modules division are
expected to improve on the first quarter and the full-year result to be
positive due to increasing deliveries under the current maintenance agreement.
The Group’s net sales in 2006 are expected to grow compared to the previous
year and the result to rise into the black during the second half of the year.INCOME STATEMENT,
JANUARY-MARCH 1-3/06 1-3/05 1-12/05
MEUR % MEUR % MEUR %NET SALES 40,7 100,0 39,9 100,0 154,0 100,0
Other operating income 0,6 1,5 0,1 0,0 1,3 0,8
Materials and services -21,4 -52,5 -18,2 -45,5 -72,7 -47,2
Personnel expenses -10,2 -25,1 -10,0 -25,1 -39,8 -25,8
Depreciation and amortization -4,6 -11,3 -5,1 -12,8 -19,0 -12,4
OPERATING PROFIT/LOSS -3,6 -8,7 -1,8 -4,5 -16,7 -10,9
Financial income and expenses -0,3 -0,6 -0,3 -0,8 -0,9 -0,6
PROFIT ON CONTINUING
OPERATIONS
BEFORE TAX -3,8 -9,4 -2,1 -5,3 -17,6 -11,4Taxes 0,0 0,0 0,4 1,0 -5,6 -3,6
PROFIT ON CONTINUING -3,8 -9,4 -1,6 -4,0 -23,2 -15,1
OPERATIONSProfit on discontinuing
operations 0,0 0,0 0,0 0,0 -0,2 -0,1PROFIT/LOSS FOR THE PERIOD -3,8 -9,4 -1,6 -4,0 -23,4 -15,2
Profit/loss attributable to
minority interest 0,8 2,0 0,6 1,5 1,9 1,2
Profit/loss attributable to
equity shareholders -4,6 -11,4 -2,2 -5,5 -25,3 -16,4CONSOLIDATED BALANCE SHEET
3/06 3/05 Change 12/05
ASSETS MEUR MEUR % MEURNON-CURRENT ASSETS
Intangible assets 5,2 4,0 30,0 4,7
Tangible assets 95,9 85,5 12,2 95,2
Investments in
associated companies 0,3 0,2 50,0 0,2
Investment property 2,8 2,7 3,7 2,9
Available for sale investments 0,3 0,3 0,0 0,3
Deferred income tax assets 5,5 11,5 -52,2 5,4
Other long term receivables 2,1 2,5 -16,0 2,3
TOTAL NON-CURRENT ASSETS 112,1 106,7 5,1 111,1CURRENT ASSETS
Inventories 20,0 19,3 3,6 18,5
Short-term receivables 39,3 37,1 5,9 38,6
Available for sale investments 0,0 20,0 -100,0 0,0
Cash and bank deposits 17,2 11,7 47,0 16,1
Assets held for sale 0,0 5,1 -100,0 1,3
TOTAL CURRENT ASSETS 76,5 93,2 -17,9 74,5TOTAL ASSETS 188,6 199,9 -5,7 185,6
SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital 20,1 20,1 0,0 20,1
Share premium fund 27,9 73,9 -62,2 27,9
Special reserve fund 46,0 0,0 46,0
Revaluation and other funds 0,1 0,0 0,1
Retained earnings -22,8 8,2 -378,0 -17,8
Equity attributable
to shareholders 71,3 102,2 -30,2 76,3
Minority interest 31,0 23,9 29,7 30,9
TOTAL EQUITY 102,3 126,1 -18,9 107,2Long-term borrowings 17,5 21,4 -18,2 18,0
Short-term borrowings 29,7 20,3 46,3 23,3
Trade and other payables 37,7 29,0 30,0 35,7
Provisions 1,4 2,1 -33,3 1,4
Liabilities held for sale 0,0 1,0 -100,0 0,0
TOTAL LIABILITIES 86,3 73,8 16,9 78,4TOTAL SHAREHOLDERS’
EQUITY AND LIABILITIES 188,6 199,9 -5,7 185,6CONSOLIDATED CHANGES IN EQUITY, JANUARY-MARCH
Share Share Spec- Re- Trea- Trans- Ret- Minor- Total
cap- premium ial valu- sury lation ained ity equity
ital fund re- ation shar- differ- earn- inter-
serve and es ences ings est
fund other
fundsBalance at
31.12.2005 20,1 27,9 46,0 0,1 -0,8 -2,2 -14,8 30,9 107,2Trans- -0,8 0,0 -0,7 -1,5
lation
differ-
encesNet profit -4,6 0,8 -3,8
Other 0,4 0,0 0,4
itemsBalance at
31.3.2006 20,1 27,9 46,0 0,1 -0,8 -3,0 -19,0 31,0 102,3CONSOLIDATED CASH FLOW STATEMENT, 1-3/06 1-3/05 1-12/05
JANUARY-MARCH MEUR MEUR MEURCash flow from operations 1,7 2,1 12,7
Cash flow from investments -5,7 -1,9 -24,7
Cash flow before financial items -4,0 0,2 -12,0
Change in long-term and short-term financing 5,3 -1,4 -4,8
Dividends paid 0,0 0,0 -6,0
Minority interest in
the subsidiary share issue 0,0 0,0 4,0
Cash flow from financing 5,3 -1,4 -6,7
Change in cash and cash equivalents 1,1 -1,2 -17,1
Cash and cash equivalents at the end of period 17,2 31,7 16,1BUSINESS DIVISIONS 1-3/06 1-3/05 1-12/05
MEUR MEUR MEURNet sales
Printed Circuit Boards 37,2 34,1 137,1
Modules 3,7 6,6 18,6
Intra-Group sales -0,2 -0,7 -1,7
Total 40,7 39,9 154,0Operating profit
Printed Circuit Boards -2,5 -1,5 -11,7
Modules 0,0 1,3 1,2
Group administration -1,1 -1,6 -6,2
Total -3,6 -1,8 -16,7KEY FINANCIAL INDICATORS 3/06 3/05 12/05
Return on investment (ROI),% -9,5 -4,1 -9,9
Return on equity (ROE),% -14,6 -5,3 -19,9
Equity per share, EUR 3,59 5,14 3,84
Equity ratio, % 54,3 63,1 57,8
Gearing, % 29,5 8,4 23,5
Gross investments, MEUR 5,7 1,9 25,9
Average number of personnel 3 479 3 360 3 393CONTINGENT LIABILITIES 3/06 12/05
MEUR MEURMortgages given for
security for liabilities 23,7 23,7
Operating lease liabilities 0,1 0,1
Other liabilities 2,2 2,2
TOTAL 26,0 26,0All figures are unaudited.
Helsinki, May 5, 2006
ASPOCOMP GROUP PLC
Board of Directors
Maija-Liisa Friman
President and CEOFor further information, please contact CEO Maija-Liisa Friman,
tel. +358 9 7597 0711.Distribution:
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.