ASPOCOMP GROUP OYJ Quarterly report May 4, 2007 at 8:00 am
- Net sales: EUR 27.5 million (EUR 37.0 million in 1-3/2006). The
reference quarter figure includes the Chinese lower technology plant
that was divested in April. Eliminating the effect of the divesture,
comparable net sales declined by 13.1 percent (EUR 31.7 million in
1-3/2006). This was mainly due to weaker sales at the Salo plant.
Sales fell also at the Chinese plant due to general overstocking in
the local market. Net sales strengthened at the Oulu plant.
- Operating profit: EUR -6.6 million (-3.5). The decline was mostly
due to the weak sales at the Salo plant and the low capacity
utilization at the Thai plant. However, operating profit improved by
36 percent on the last quarter of 2006. The plant in Oulu continued
to turn a profit. Operating profit of the Asian plants declined but
remained good in China, where the sale of the lower technology plant
did not reduce profits.
- Earnings per share from continuing operations: EUR -0.42 (-0.23).
- Cash flow from operations: EUR -3.4 million (1.7).
- Investments: EUR 47.6 million (5.7). Investments consisted mostly
of the minority share purchase in the Chinese subsidiary.
- Per-share cash flow after investments: EUR -2.33 (-0.20).
The report and reference period figures do not include the Modules
division divested in August 2006. Unless otherwise stated, the
reference period figures include the Chinese lower technology plant.
All share-related reference figures have been calculated with the
share amount prior to the share offering in mind.
OUTLOOK FOR THE FUTURE
Aspocomp's main priority in 2007 is to focus the company's resources
on developing its market position and competitiveness, serving the
main global customers, increasing cost-effectiveness as well as
securing the liquidity and financing of the Aspocomp Group.
The full-year net sales of the Aspocomp Group from continuing
operations and excluding the sold plant in China are forecast to
increase compared to the previous year. Profitability is anticipated
to improve on 2006; however, it is expected that the full-year result
will be clearly unprofitable and liquidity will remain weak.
MAIJA-LIISA FRIMAN, PRESIDENT AND CEO:"The first quarter result declined considerably from the reference
quarter mostly due to the Salo plant. Although the plant's
performance improved markedly compared to the previous quarter, its
capacity utilization rate remained low and the expected profitability
was not attained. The Salo plant's conversion was started in 2005 but
the required results have not been achieved yet. A deadline has thus
been set for the project: the end of the first half of 2007. We must
consider all options, including the possible closing of the plant, to
rectify the current unsatisfactory situation.
The operational performance of the Thai plant improved but the
plant's competitiveness remained weak due to its lower technology
production.
The acquisition of the minority holding in the Suzhou, China plant
was finalized in April. This allows us to benefit from the plant's
profitability and cash flow and enables us to serve our global
customers more efficiently. Following the overstocking of PCBs in the
sales channels during the first quarter, the plant's HDI PCB capacity
has since been in full use starting the second quarter. In addition,
the lower technology premises will be vacated by the end of this year
and equipped for higher technology HDI PCB production. It is
scheduled to go on stream during 2008. We have appointed key
personnel, began building up research and development and started up
new viafill HDI technology production at the plant. The acquisition
was financed by Standard Chartered Bank (Hong Kong) Limited, one of
the most esteemed banks in Asia. This signals their strong trust in
Aspocomp's business and strategy.
During the quarter, the layout of the plant in India was finalized,
planning, process definitions and bidding contests for the building
and machinery were concluded, the final authority approvals were
obtained and the plant's foundations were laid. Aspocomp is currently
negotiating for long-term loans to partly finance the project.
Aspocomp launched a rights offering in March. The offering,
subscribed in full in April, generated approximately EUR 22 million
that the Group intends to use to finance the contemplated investments
in India and to strengthen its capital, including the covering of its
working capital requirements.
The technology development of Imbera Electronics Oy, the R&D joint
venture of Aspocomp Group Oyj and Elcoteq SE, reached the
industrialization and commercialization stage during the report
quarter. After the quarter, the companies signed and closed a
transaction to broaden Imbera's ownership base, extend its exposure
to customers and secure its financing. Aspocomp owns approximately 15
percent of the company and has signed a 10-year worldwide
manufacturing license agreement for Imbera's current technology.
In 2007, the production value of technologically complex HDI PCBs is
forecast to amount to almost USD 6 billion (over EUR 4 billion)
globally. Market researchers expect the value of global HDI PCB
production to grow by nearly 6 percent annually between 2007 and
2011. Annual growth of almost 7 percent is forecast for Asia, with
growth in China exceeding this figure somewhat. It is expected that
by 2010, about 90 percent of the world's HDI PCB revenue will be
generated in Asia.
In order to fully benefit from future market growth, the Group was
overhauled considerably during the review quarter. The trend will
continue. We are constantly working to develop the Group's market
position and perfect our services for our global leading customers."
PRINTED CIRCUIT BOARD MARKET
As the worldwide handheld sales channels were full of products,
estimates for the actual manufacturing and sales volumes for the
quarter vary by different sources. The component manufacturing volume
seemed to contract somewhat on the previous quarter. Consequently,
PCB suppliers witnessed weaker than expected sales, and the capacity
utilization rates declined. Material costs did not develop favorably.
According to market estimates, global HDI PCB production in the
January-March period declined by almost 3 percent compared to the
previous quarter. In Asia it contracted by about 2 percent according
to industry evaluations. In China, however, it continued increasing
slightly.
Aspocomp's customers in the handheld devices segment reported strong
performance despite seasonal variation and overbuilt global
inventory. In the telecom infrastructure market, the Group's
customers experienced flat or slightly falling sales. The automotive
electronics market appeared stable during the review period, seeing
small but steady growth.
CONSOLIDATED NET SALES AND OPERATING PROFIT, JANUARY-MARCH
(Reference figures are for 1-3/2006)
Net sales and operating profit, EUR million
1-3/2007 change, 1-3/2006
%
Net 27.5 25.6 37.0
sales
Operating profit -6.6 -3.5
The Aspocomp Group's net sales for the period were EUR 27.5 million
(37.0, comparable 31.7). Comparable net sales, taking into account
the lower technology plant sold in China, declined by 13.1 percent.
This resulted mainly from weak sales and a lower capacity utilization
rate at the Salo plant. In addition, sales in China were weaker.
Although the net sales posted by the Oulu plant were higher than in
the corresponding period last year, the total comparable net sales of
the Salo and Oulu plants in Finland declined by 12 percent due to the
Salo plant's poor performance. Net sales of the Finnish plants
remained on a par with the previous quarter.
Comparable net sales of the Asian plants, eliminating the effect of
the plant sold in China, declined by 14.4 percent. This was mainly
due to weaker sales in the Chinese market. In addition, underutilized
capacity cut into the net sales of the Thai plant slightly.
The Group's comparable net sales per plant were as follows:
- the Finnish plants, 49% percent (48%)
- the Asian plants, 51% percent (52%)
The Group's comparable net sales by market area were as follows:
- Europe, 66 percent (53%)
- Asia, 22 percent (31%)
- the Americas, 13 percent (16%)
The Group's comparable net sales per product area were as follows:
- handheld devices and telecom networks, 94 percent (68%)
- automotive, industrial and consumer electronics, 6 percent (32%)
During the review period, the share of Aspocomp's overall PCB
production accounted for by HDI PCBs totaled 57 percent.
Aspocomp's five largest customers during the year were Continental
Automotive Systems, Elcoteq, Nokia, Philips and Wabco. The five
largest customers accounted for 73 percent of net sales (55%).
Operating profit was EUR -6.6 million (-3.5), or -23.8 percent (9.6%)
of net sales.
The heavy losses of the Salo plant in particular cut into the Group's
profitability during the review quarter. Profitability of the plant
declined on the reference period, nonetheless improving clearly on
the previous quarter. Losses of the Thai plant mounted on the
reference quarter due to a weaker capacity utilization rate; however,
the result improved compared to the previous quarter. Although the
profit of the Chinese plant declined due to a lower margin product
mix and weaker local demand, its profitability remained good. Profit
at the Oulu plant fell slightly on the reference year but remained
clearly in the black.
The Group's net financial expenses were EUR -1.1 million (-0.3). The
profit for the period was EUR -7.8 million (-3.8) and earnings per
share from continuing operations were EUR -0.42 (-0.23).
FINANCING, INVESTMENTS AND EQUITY RATIO
The Aspocomp Group's consolidated cash flow from operations during
the review period was negative, totaling EUR -3.4 million. The
Group's consolidated net liquid assets at the end of the period
amounted to EUR 14.9 million (17.2). Aspocomp Group Oyj's liquid
funds before the rights issue, including unused limits, were EUR 1.7
million (9.9).
Interest-bearing net debt rose to EUR 53.5 million (30.2). The figure
contains EUR 22.9 million (19.1) in financial lease liabilities.
Gearing was 147.9 percent (29.5%), rising due to poor performance and
the higher debt level, and non-interest-bearing liabilities amounted
to EUR 71.9 million (39.1). The figure includes a EUR 44.3 million
liability to Chin-Poon, related to the minority share purchase in the
Chinese subsidiary.
Cash flow from operations amounted to EUR -3.4 million (1.7) and
investments to EUR 47.6 million (5.7). Per-share cash flow after
investments was EUR -2.33 (-0.20).
Investments were primarily for the minority share purchase in the
Chinese subsidiary. Capital expenditures were EUR 46.5 million (2.9)
in Asia and EUR 1.1 million (2.8) in Europe. Net financial expenses
were 4.0 percent of net sales (0.7%).
The Group's equity ratio at the end of March stood at 20.4 percent
(54.3%). The increase in equity resulting from the rights issue was
booked in April.
RESEARCH AND DEVELOPMENT
The Group's research and development expenditure amounted to EUR 0.7
million (1.1), or 2.6 percent (3.1%) of net sales.
During the review period, the main focus of technology development
was on HDI semi-flex PCBs. The development project for one flex layer
HDI semi-flex PCBs was ready for production, and product tests for
customers were finalized. The industrialization phase of two flex
layer HDI semi-flex PCBs started with one material build-up. Research
was continued to find a greater number of cost-effective and reliable
materials for both semi-flex applications.
During the review period, a market study for Any Layer Microvia type
PCBs was launched, including the customers' build-up and design
requirements.
Research related to optoelectronics continued throughout the review
period and evaluations to identify flexible optical material options
were initiated.
Research continued on the application of the HDI rigid-flex concept
to dynamic flexible handheld solutions using hinges. Technical
evaluation proceeded with determining suitable materials for this
type of application.
SHARES AND SHARE CAPITAL
The total number of Aspocomp's shares at March 31, 2007, was
20,082,052 and the share capital stood at EUR 20,082,052. Of the
total shares outstanding, the company held 200,000 treasury shares,
representing 1.0 percent of the aggregate votes conferred by all the
shares. The number of shares adjusted for the treasury shares was
19,882,052.
A total of 8,519,145 Aspocomp Group Oyj shares were traded on the
Helsinki Stock Exchange during the period from January 1 to March 31,
2007. The aggregate value of the shares exchanged was EUR 11,933,420.
The shares traded at a low of EUR 0.87 (March 29, 2007) and a high of
EUR 2.20 (January 29, 2007). The average share price was EUR 1.43.
The closing price at March 30, 2007, was EUR 0.89. At the end of the
period, nominee-registered shares accounted for 10.7 percent of the
total shares and 2.3 percent were directly held by non-Finnish
owners.
The Extraordinary General Meeting of January 19, 2007, authorized the
Board of Directors to decide on issuing 50,000,000 new shares and
conveying the 200,000 Aspocomp shares held by the company. The
authorization can be executed either against payment or for free to
the company's shareholders in proportion to their holding, or by
means of a directed issue, waiving the pre-emptive subscription right
of shareholders. The authorization includes the right to receive new
shares in the company or own shares held by the company against
payment. In addition, the authorization includes the right to decide
on a free issue to the company itself. The number of such shares can
amount to a maximum of one-tenth of all the company's shares. The
authorization is valid for two years from the date of the decision of
the General Meeting.
WARRANTS TO STANDARD CHARTERED BANK
As part of the financing arrangement for the minority share
acquisition in China, and on the basis of the authorization from the
Extraordinary General Meeting, the Board of Directors of Aspocomp
resolved on March 21, 2007 to issue 4,000,000 warrants to Standard
Chartered Bank (Hong Kong) Limited in deviation from shareholders'
pre-emptive subscription rights. Each warrant entitles its holder to
subscribe for one share in the company. As a result, the total number
of the company's shares can increase by a maximum of 4,000,000
shares. The warrants may be exercised from October 3, 2008 (or
earlier if a person or entity will acquire over 30 percent of the
company's shares) until March 31, 2010.
Aspocomp also made a commitment to Standard Chartered Bank not to
issue, without its consent, more than 40,000,000 shares on the basis
of the authorization from the Extraordinary General Meeting of
January 19, 2007. In addition, Aspocomp undertook to reserve
10,000,000 shares of the authorization for a possible share issue on
commercially acceptable terms. The issue would take place in the
event Standard Chartered Bank requests it within 120 days prior to
the repayment of the loan granted for the minority acquisition in
China, scheduled for September 2008. The schedule for the possible
issue may change if the term of the loan is extended.
On March 30, 2007, Standard Chartered Bank notified Aspocomp that if
it uses its right to subscribe for the shares in full, its holding
will exceed the threshold of 15 percent of the shares and votes of
Aspocomp Group Oyj. The proportion of shares and votes of the new
number of shares would amount to 16.6 percent and the proportion of
shares and votes of the currently registered number of shares would
amount to 19.9 percent. The share issue of Aspocomp Group Oyj was not
yet taken into account in the calculation of the threshold.
RIGHTS OFFERING
On March 16, 2007, the Board of Aspocomp Group Oyj decided on a
rights issue whereby the shareholders of Aspocomp were entitled to
subscribe for three new shares for every two old shares. A total of
29,823,078 new shares were offered for subscription at a subscription
price of EUR 0.84 per share. The offer shares represented
approximately 150 percent of the total shares and voting rights of
the company prior to the offering and 60 percent after the offering.
The share issue was based on the authorization granted by the
Extraordinary General Meeting of January 19, 2007.
In the secondary subscription any investor could subscribe for any
offer shares that had been left unsubscribed for on the basis of the
subscription rights. The company received an underwriting commitment
for the full amount of the offering from a group of investors
comprising 2M Ventures Oy, Ajanta Oy, Avenir Rahastoyhtiö Oy, E.
Öhman J:or Fondkommission AB, Oy Hammaren & Co Ab, Varma Mutual
Pension Insurance Company Ltd, Oy Finvestock Ab, Ramsay & Tuutti Oy
Ab and Sampo Life Insurance Company.
The subscription period commenced on March 26, 2007. It expired on
April 12, 2007 with respect to the subscription rights, and on April
13, 2007 with respect to the secondary subscription. A total of
27,221,343 shares were subscribed for in the primary subscription and
a total of 2,601,735 shares in the secondary subscription.
The offer shares were fully subscribed for. New equity raised by the
offering was approximately EUR 25 million prior to the deduction of
fees and expenses. The company intends to use the net proceeds to
finance the planned investments in India and to strengthen its
capital structure, including covering its working capital
requirements.
The total number of Aspocomp's shares increased to 49,905,130 shares.
The shares subscribed for entitle their holders to full dividends and
all other rights in the company. Trading with the shares subscribed
for both in the primary and secondary subscription together with
Aspocomp's existing shares commenced on the Helsinki Stock Exchange
on April 20, 2004.
Evli Bank Plc, Corporate Finance acted as the Manager of the share
issue.
PERSONNEL
During the review period, the Aspocomp Group had an average of 2,655
employees (3,305). The personnel count on March 31, 2007 was 2,548
(3,287). Of them, 1,705 (2,374) were non-salaried and 843 (913)
salaried employees. 2,524 (2,374) personnel worked in PCB production
and 24 (25) in Group administration.
Personnel by region, average
1-3/2007 change, % 1-3/2006
Europe 611 -11.7 692
Asia 2,044 -21.8 2,613
Total 2,655 -19.7 3,305
The personnel reduction in Asia was mainly attributable to the sale
of the older technology plant in China. The Group continued to
implement the HR development process, adopted last year, to achieve
consistency in operating methods and documentation in different
countries.
The management in Thailand was restructured and new management was
sought for the Chinese plant due to the recent focus on HDI PCB
production. In addition, the Group-wide recruiting process was honed.
BOARD OF DIRECTORS
The Extraordinary General Meeting of January 19, 2007 changed the
number of Board members to seven and elected Johan Hammarén, Tapio
Hintikka and Kari Vuorialho as new members of the Board, with effect
from January 19, until the Annual Shareholders' Meeting of May 10,
2007. Gustav Nyberg and Roberto Lencioni resigned from the Board with
effect from January 19, 2007.
EXPANSION IN ASIA
On February 15, 2007, Aspocomp announced that the total investment in
the minority acquisition and product capacity expansion related to
the Chinese subsidiary as well as in the India plant project is
currently estimated to amount to about EUR 170 million between 2006
and 2008.
According to the estimates released on March 15, 2007, the investment
in India will amount to about EUR 100 million, of which about EUR 80
million is earmarked for building and machinery and EUR 20 million
for working capital, interest and start-up costs. Trial production at
the plant is anticipated to start in early 2008 and full production
in the first half of 2008.
On March 16, 2007, Aspocomp entered into an agreement to acquire the
49 percent minority interest in ACP Electronics Ltd, the Aspocomp's
Suzhou, China based joint venture, from the Group's Taiwanese partner
Chin-Poon Holdings. The net purchase price was EUR 37.8 million. The
gross transaction price of EUR 44.6 million was reduced by
Chin-Poon's equipment purchase from ACP Electronics, valued at EUR
6.8 million. Since the equipment was not suitable for HDI technology
production, Aspocomp was unable to use it. As the Group aims to
increase HDI printed circuit board production capacity in China, the
plant facility that will be vacated by Chin-Poon latest by the year
end is scheduled to be upgraded into a HDI PCB plant during 2008.
On March 21, 2007, Aspocomp agreed on a EUR 40 million credit
facility with Standard Chartered Bank (Hong Kong) Limited to purchase
the 49 percent minority share in ACP Electronics Ltd. The loan was
drawn down in full in connection with the minority share purchase,
finalized on April 4, and it has an 18-month term with an option for
the lender to extend it by another 18 months. The maximum effective
annual interest of the loan, calculated at the reference interest
rate of April 4, is 12.9 percent including interest, related
structuring fee and a possible additional fee of up to EUR 2 million
described below. As part of the arrangement, Aspocomp granted
Standard Chartered Bank 4 million warrants that entitle the bank to
subscribe for 4 million shares in Aspocomp. Depending on the Aspocomp
share price, the company may have an obligation at the end of the
loan period to pay Standard Chartered Bank a fee of up to EUR 2
million maximum.
AMENDMENTS TO THE ARTICLES OF ASSOCIATION
The Extraordinary General Meeting of January 19, 2007, decided to
amend the Articles of Association such that Article 3, which concerns
the minimum and maximum share capital, Article 4, which concerns the
number of shares, and Article 16, which concerns the redemption
obligation, were deleted. In addition, the numbering of Articles 5,
9, 13 and 15 of the Articles of Association was changed. The Articles
were amended as specified in the invitation to the company's
Extraordinary General Meeting, published as a stock exchange release
on December 22, 2006.
DIVIDEND POLICY
The Board of Directors of Aspocomp Group Oyj defined a new long-term
dividend policy for the company on March 15, 2007. According to the
policy, Aspocomp aims to pay dividends amounting to no less than 30
percent of the profit for each financial year once the company's
profitability has been restored and it has reached its gearing and
equity ratio goals. It is likely that the Board will not propose
dividend payments in the near future.
EVENTS AFTER THE FINANCIAL PERIOD
On April 17, 2007, Aspocomp announced that the technology development
of Imbera Electronics Oy, the R&D joint venture of Aspocomp Group Oyj
and Elcoteq SE, has reached the industrialization and
commercialization stage. The companies signed and closed a
transaction to broaden Imbera's ownership base, extend its exposure
to the market and secure its financing. Imbera's new financiers and
major owners are funds managed by Index Ventures, Northzone Ventures
and Conor Venture Partners. The funds made investments in Imbera
Electronics Inc, a new US-based parent company of Imbera Electronics
Oy incorporated for this investment.
Aspocomp and Elcoteq remain Imbera's minority shareholders through a
share exchange with Imbera Electronics Inc. After the arrangement,
Aspocomp and Elcoteq each own approximately 15 percent of Imbera's
share capital. Imbera's operative management remained unaffected and
gained minority holding in the company.
Aspocomp signed a 10-year worldwide manufacturing license agreement
for the current Imbera technology. The ownership arrangement will
have no impact on Aspocomp's financial result. Imbera Electronics Oy
was set up jointly by Aspocomp and Elcoteq in 2002 to develop the
Integrated Module Board assembly technology.
Following the share offering, the Board of Directors resolved on
April 18, 2007 to amend the subscription prices of the convertible
debenture loan I/2006 and the stock options issued by Aspocomp. The
subscription price of the convertible debenture loan I/2006 was
reduced by EUR 0.43 to EUR 2.1407 per share. In order to reduce the
subscription price, the Board resolved to entitle the holders of the
loan to subscribe for a total of 804,810 new shares of the company.
As a result of the amendment, each book-entry issued for the loan
entitles the holder to convert the book-entry into 467 shares of the
company instead of the current 389 shares of the company. Due to the
rights offering, the Board will later amend the terms and conditions
of the stock options 2006A as well.
Following the share offering, the Board of Directors also noted on
April 18, 2007, that the share subscription price on the basis of the
warrants granted to Standard Chartered Bank (Hong Kong) Limited will
be approximately EUR 1.13 per share.
Following the rights offering, Aspocomp was notified on April 19,
2007 that the stake of Erkki Etola and companies managed by him in
Aspocomp Group Oyj's shares and votes had decreased below the 5
percent threshold. The total amount of the shares is 2,398,000 and
their portion of Aspocomp's shares and votes amounts to 4.80 percent.
Standard Chartered Bank (Hong Kong) Limited notified Aspocomp on
April 20, 2007, that, following the completion of the share offering,
if it uses its right to subscribe for the 4,000,000 shares in full,
its proportion of shares and votes of the new number of Aspocomp
shares would amount to 7.42 percent and the proportion of shares and
votes of the currently registered 49,905,130 shares would amount to
8.02 percent.
OUTLOOK FOR THE FUTURE
Aspocomp's main priority in 2007 is to focus the company's resources
on developing its market position and competitiveness, serving the
main global customers, increasing cost-effectiveness as well as
securing the liquidity and financing of the Aspocomp Group.
Aspocomp's goal is to outpace growth in the overall market for its
products, primarily by investing aggressively in Asia. Subsequent to
the minority share purchase in the Chinese subsidiary, the plant
facility that will be vacated by the joint venture partner is
initially planned to be upgraded into a HDI PCB plant during 2008.
To boost capacity even further, Aspocomp launched a project in 2006
to build a HDI PCB plant in India. According to current estimates,
trial production at the plant will start in early 2008 and full
production in the first half of 2008.
Expansion of HDI PCB production capacity in India and China is
forecast to have a visible positive effect on the company's net sales
starting 2008, provided Aspocomp succeeds in obtaining financing for
the investment in India and provided the investment is completed on
schedule. The investments required for the expansion are estimated to
result in a significant increase in the company's indebtedness and
markedly higher financing costs.
The company will monitor the Salo plant's progress and financial
performance closely. If it becomes evident that the financial and
operational goals set for the conversion project will not be reached
during the first half of 2007, the company will consider all options,
including the possible closing of the plant, to rectify the
unsatisfactory situation.
The full-year net sales of the Aspocomp Group from continuing
operations and excluding the sold plant in China are forecast to
increase compared to the previous year. Profitability is anticipated
to improve on 2006; however, it is expected that the full-year result
will be clearly unprofitable and liquidity will remain weak.
ACCOUNTING POLICIES
These interim report figures have been prepared in accordance with
the IFRS (International Financial Reporting Standards) recognition
and valuation principles, however the report does not include all the
information required by IAS 34. The Aspocomp Group adopted IFRS
reporting on January 1, 2005, and the current accounting policies are
consistent with the financial statements for 2005.
INCOME STATEMENT,
JANUARY-MARCH 1-3/07 1-3/06 1-12/06
MEUR % MEUR % MEUR %
NET SALES 27.5 100.0 37.0 100.0 148.9 100.0
Other operating
income 0.7 2.5 0.6 1.5 3.3 2.2
Materials and
services -15.5 -56.3 -18.3 -49.4 -80.0 -53.8
Personnel expenses -7.3 -26.5 -8.9 -24.1 -36.5 -24.5
Other operating
expenses -7.8 -28.2 -9.5 -25.6 -41.0 -27.6
Depreciation and
amortization -4.2 -15.3 -4.4 -11.9 -18.1 -12.1
OPERATING PROFIT -6.6 -23.8 -3.5 -9.6 -23.3 -15.7
Financial income and
expenses -1.1 -4.1 -0.3 -0.7 -1.9 -1.3
PROFIT ON CONTINUING
OPERATIONS BEFORE
TAX -7.7 -28.0 -3.8 -10.3 -25.2 -16.9
Taxes -0.1 -0.2 0.0 0.0 -2.2 -1.5
PROFIT ON CONTINUING
OPERATIONS -7.8 -28.2 -3.8 -10.3 -27.4 -18.4
Profit on
discontinuing
operations 0.0 0.0 0.0 0.0 0.2 0.1
PROFIT FOR THE
PERIOD -7.8 -28.2 -3.8 -10.3 -27.2 -18.3
Profit attributable
to
minority
interests 0.4 1.5 0.8 2.2 4.1 2.8
equity
shareholders -8.2 -29.7 -4.6 -12.5 -31.3 -21.0
CONSOLIDATED BALANCE SHEET
1/07 1/06 Change 12/06
ASSETS MEUR MEUR % MEUR
NON-CURRENT ASSETS
Intangible assets 25.1 5.2 382.7 4.5
Tangible assets 90.3 95.9 -5.8 95.0
Investments in
associated companies 0.1 0.3 -66.7 0.2
Investment property 3.2 2.8 14.3 3.4
Available for sale
investments 0.4 0.3 33.3 0.3
Deferred income tax assets 1.1 5.5 -80.0 1.3
Other long-term receivables 4.2 2.1 100.0 6.5
TOTAL NON-CURRENT ASSETS 124.4 112.1 11.0 114.9
CURRENT ASSETS
Inventories 15.9 20.0 -20.5 20.9
Short-term receivables 22.3 39.3 -43.3 30.0
Available for sale
investments 0.0 0.0 0.0
Cash and bank deposits 14.9 17.2 -13.4 22.7
TOTAL CURRENT ASSETS 53.1 76.5 -30.6 73.6
TOTAL ASSETS 177.5 188.6 -5.9 184.8
SHAREHOLDERS' EQUITY
AND LIABILITIES
Share capital 20.1 20.1 0.0 20.1
Share premium fund 27.9 27.9 0.0 27.9
Treasury shares -0.8 -0.8 0.0 -0.8
Special reserve fund 46.0 46.0 0.0 46.0
Revaluation and other funds 0.0 0.1 -100.0 0.0
Retained earnings -57.1 -22.0 159.5 -48.6
Equity attributable
to shareholders 36.1 71.3 -49.4 44.6
Minority interest 0.0 31.0 -100.0 23.7
TOTAL EQUITY 36.1 102.3 -64.7 68.3
Long-term borrowings 25.7 17.5 46.9 29.7
Provisions 1.1 1.4 -21.4 1.1
Short-term borrowings 42.7 29.7 43.8 43.9
Trade and other payables 71.9 37.7 90.7 41.8
TOTAL LIABILITIES 141.4 86.3 63.8 116.5
TOTAL SHAREHOLDERS'
EQUITY AND LIABILITIES 177.5 188.6 -5.9 184.8
CONSOLIDATED CHANGES IN EQUITY,
JANUARY-MARCH
Funds
for
Re- in-
valu- vest- Mi-
Spec- ation ments Tre- Trans- Ret- nor-
Share ial and of asu- lation ained ity Total
Share pre- re- other non- ry dif-
cap- mium serve rest- sha- fer- earn- inter- equi-
ital fund fund funds ricted res ences ings est ty
equity
Balance
at
31.12.2006 20.1 27.9 46.0 0.0 1.9 -0.8 -4.8 -45.7 23.7 68.3
Trans-
lation
differ-
ences 0.1 0.1
Net
profit -8.2 -8.2
Other
items -0.3 -0.3
Purchase
of
minority
interest -23.7 -23.7
Balance
at
31.3.2007 20.1 27.9 46.0 0.0 1.9 -0.8 -4.7 -54.2 0.0 36.2
CONSOLIDATED CHANGES IN EQUITY,
JANUARY-MARCH
Re-
valu- Mi-
Spec- ation Tre- Trans- Ret- nor-
Share ial and asu- lation ained ity
Share pre- re- other ry dif- Total
cap- mium serve sha- fer- earn- inter- equi-
ital fund fund funds res ences ings est ty
Balance
at
31.12.2005 20.1 27.9 46.0 0.1 -0.8 -2.2 -14.8 30.9 107.2
Trans-
lation
differ-
ences -0.8 0.0 -0.7 -1.5
Net
profit -4.6 0.8 -3.8
Other
items 0.4 0.0 0.4
Balance
at
31.3.2006 20.1 27.9 46.0 0.1 -0.8 -3.0 -19.0 31.0 102.3
CONSOLIDATED CASH FLOW STATEMENT, 1-3/07 1-3/06 1-12/06
JANUARY-MARCH MEUR MEUR MEUR
Cash flow from operations -3.4 1.7 1.9
Cash flow from investments -43.0 -5.7 -20.1
Cash flow before financial items -46.4 -4.0 -18.3
Change in long-term and short-term
financing 38.6 5.3 34.4
Dividends paid 0.0 0.0 0.0
Return of subsidiary equity to minority 0.0 0.0 -8.7
Cash flow from financing 38.6 5.3 25.7
Change in cash and cash equivalents -7.8 1.1 7.4
Cash and cash equivalents
at the end of period 14.9 17.2 22.7
KEY FINANCIAL INDICATORS 3/07 3/06
Return on investment (ROI),% -20.6 -9.5
Return on equity (ROE),% -59.0 -14.6
Equity per share, EUR 1.82 3.59
Equity ratio, % 20.4 54.3
Gearing, % 147.9 29.5
Gross investments, MEUR 47.6 5.7
Average number of personnel 2 655 3 305
CONTINGENT LIABILITIES 3/07 12/06
MEUR MEUR
Mortgages given for
security for liabilities 11.2 11.8
Operating lease liabilities 0.1 0.1
Other liabilities 12.0 12.0
Total 23.3 23.9
All figures are unaudited.
Helsinki, May 4, 2007
ASPOCOMP GROUP OYJ
Board of Directors
Maija-Liisa Friman
President and CEO
For further information, please contact CEO Maija-Liisa Friman, tel.
+358 9 7597 0711.
Distribution:
The Nordic Exchange
Major media
www.aspocomp.com
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.
