2008-03-14 09:00:00 CET
2008-03-14 09:01:49 CET
REGULATED INFORMATION
Aspocomp Group - Financial Statement Release
ASPOCOMP'S FINANCIAL STATEMENTS BULLETIN 2007
Aspocomp Group Oyj Stock Exchange release March 14, 2008 at 10:00
AM
In this financial statement bulletin Group business has been
presented in line with IFRS standards, divided in continued
operations and discontinued operations. The continued operations mean
the structure after the restructuring of the Aspocomp group including
Aspocomp Oulu, Aspocomp Thailand and the headquarter operations,
whose duty is amongst other things to develop the 20 percent
shareholding in joint venture formed with Meadville. The continued
business forms one business segment.
- Net sales: EUR 42.4 million (EUR 48.6 million in 2006). Net sales
declined by 13 percent mainly due to lower net sales in Aspocomp
Thailand.
- Operating profit: EUR -15.8 million (-6.7). The decline was mostly
attributable to compensation of EUR 10.1 million to the former
employees of Aspocomp S.A.S.
- Earnings per share from continuing operations: EUR -0.54 (- 0.43)
- Earnings per share from discontinued operations: EUR -0.95 (-0.73).
- Cash flow from operations: EUR 26.1 million (1.9)
- Investments: EUR 0.5 million (3.7)
CHANGES IN THE GROUP'S STRATEGY AND STRUCTURE
In June 2007, Aspocomp decided to shut down production at the Group's
unprofitable Salo plant by mid-July. The goal of the redundancies and
the closure of the Salo plant were to achieve annual savings in
excess of EUR 10 million. Non-recurring items due to write-offs and
redundancies amounted to about EUR 20 million, of which the write-off
of the plant building accounted for approximately EUR 11 million.
On November 8, 2007, Aspocomp signed an agreement to transfer its
shareholdings in its subsidiaries in China and India as well as
certain equipment from its Salo plant to a new holding company,
Aspocomp Asia Limited. 80 percent of the shares of the holding
company were sold to Meadville Holdings Limited, the Hong Kong listed
parent company of the Meadville Group. Aspocomp remains a minority
owner with 20 percent ownership.
Aspocomp transferred assets valued at about EUR 77 million in total
to the joint venture. Meadville paid about EUR 61 million for its 80
percent holding in the joint venture. Aspocomp used about EUR 40
million of this consideration to repay its loan to Standard Chartered
Bank in full and about EUR 8 million to repay the working capital
facilities of its Chinese subsidiary. The balance of the
consideration was used to partially repay Aspocomp's interest-bearing
debt in Finland and to improve its liquidity.
The parties had agreed that they may either list the joint venture in
2012 at the earliest, or alternatively the parties may exercise
mutual put and call option rights concerning Aspocomp's 20 percent
shareholding in 2013 at the earliest. In addition, the parties have
agreed on the pricing principles to be used to value the put and call
option rights for Aspocomp's 20 percent holding. The pricing will be
based on the highest of the following figures: either 5.5 times
EBITDA less net debt, or the net asset value of the joint venture, or
the agreed minimum price, EUR 15.38 million plus 2.5 percent annual
interest until the option rights are exercised. The agreed minimum
price is the initial value of Aspocomp's 20 percent holding in the
joint venture.
As part of the agreement, Meadville acquired a 10 percent stake in
Aspocomp Oulu Oy, Aspocomp's subsidiary in Oulu, Finland. The
transaction price was about EUR 1.8 million. Aspocomp's holding in
its Thai subsidiary remained unchanged. In addition, equipment valued
at about EUR 1.6 million from the Salo plant was sold to Meadville
under a separate agreement. Aspocomp owns 90 % of Aspocomp Oulu Oy
and 88 % of Aspocomp Thailand Ltd.
As the majority shareholder in the joint venture, Meadville Holdings
Limited will have primary responsibility for running its business
operations. The aim is to develop and rationalize the business
operations of the joint venture and its subsidiaries. In connection
with the reorganization, Aspocomp transferred its patent rights,
unregistered technologies and trademarks to Meadville and the joint
venture.
The Extraordinary Shareholders' Meeting of Aspocomp Group Oyj
approved on November 26, 2007 the agreement concerning the business
arrangement with Meadville Holdings Limited and the agreement came
into force 30.11.2007.
Aspocomp Group Plc, Aspocomp Oy, Aspocomp Oulu Oy and Aspocomp
Holdings PTE. LTD entered into an agreement on debt restructuring
with their Finnish bank creditors 23rd November 2007. The agreement
became effective on 14th December 2007.
According to the agreement on debt restructuring the installments of
Aspocomp's loans will be postponed so that the installments will take
place starting from the year 2007 and ending on the year of the
execution of the sale- and purchase options related to the
transactions, and will be concentrated for the last year of the
period. Once the agreement has become effective an annual interest of
2,5 per cent will incur on the loans and will be added to the capital
and paid on the year of the execution of the sale- and purchase
options earliest in 2013.
After the transaction and the repayment of the loans 31st December
2007 as specified above, the major liabilities of the Aspocomp Group
amounted to about EUR 48,7 million out of which the interest bearing
Finnish liabilities were about EUR 32,9 million. The aggregate
amount of debts of the Group exceeds the book value of its fixed
assets.
THE BUSINESS OF THE GROUP
The Aspocomp Group company Aspocomp Oulu Oy supplies PCBs for the
needs of the telecom, automotive and industrial electronics
industries and provides PCBs for prototyping, ramp up and small
series. Its service portfolio includes express deliveries, fulfilling
urgent PCB needs (also in high-volume deliveries), developing and
commercializing new technologies, carrying out material reports as
well as close cooperation with high-volume manufacturers. Aspocomp
Oulu Oy's primary PCB technologies are HDI (High Density
Interconnection), multilayer (up to 28 layers), Heat Sink (mainly for
the automotive industry) and Teflon- or ceramic-based PCBs.
Aspocomp Thailand manufactures double-sided and multilayer PCBs for
applications in industrial and telecom electronics and the automotive
industry. The bulk of production comprises four- and six-layer PCBs.
The highest number of layers is 12. In addition, the plant
manufactures semi-flex PCBs, which feature both a rigid and flexible
section. Semi-flex PCBs are made for use in the automotive industry
and industrial electronics. These PCBs provide a cost-effective
alternative when the shape of the final assembly requires the
stacking of the assembled PCB or PCBs. Components can be assembled on
a semi-flex PCB on a planar surface and in a single phase. After
assembly, the flexible section makes it possible to bend the
semi-flex PCB into its final shape. Thanks to this solution, no PCB
connectors are required.
Industrial electronics comprise the most diverse application area in
terms of both the product range and volume. Aspocomp Thailand focuses
on small and medium volumes and on products that have certain special
characteristics. Products can thus be priced slightly higher than the
very low average prices per square foot offered in China.
ISTO HANTILA, PRESIDENT AND CEO:"Year 2007 was the most remarkable restructuring year in Aspocomp's
history. Salo plant was closed down in July and in the end of
November the subsidiaries in China and India as well as equipment
from closed Salo plant were transferred into a new holding company.
Aspocomp remained as a minority owner with 20 % stake in the holding
company. The majority owner is Meadville Holdings Limited which
enables the continuity of the strategic investments in Asia as has
been planned earlier.
Aspocomp and the Finnish creditors agreed 14th December 2007 on debt
restructuring according to which the repayment of the loans will be
postponed so that the main installments will take place on the year
of the execution of the sale- and purchase options related to the
transaction with Meadville, namely on year 2013. It was further
agreed an annual interest of 2,5 per cent which will be added to the
capital.
The cost structure of the Group has been strongly adapted to meet the
new structure. All the actions related to this adoption have been
mainly completed.
The business of Oulu plant is on healthy basis and the flexible
prototype express deliveries have a constant market potential.
Thailand plant's deep loss has been turned around and the plant's
capacity utilization is on the planned level to customers in
automotive-, industrial electronics- and telecom sectors.
The Group has also completed a broad risks mapping during the
previous months for the purpose of clarifying the future outlook. The
risks are described at the end of this stock exchange release.
The Group is now at the end of the project related to the
restructuring of the business and debs completed at the end of last
year. The aim of the project is to secure the operations for the
coming years."
THE OCTOBER-DECEMBER PERIOD IN BRIEF
Net sales and operating profit, EUR million
2007 change, % 2006
Net sales 9.9 -17 11.9
Operating profit -3.7 -3.7
Net Sales of Aspocomp Oulu declined slightly and Net Sales of
Aspocomp Thailand declined substantially.
The Group's net sales by market area were as follows:
- Europe, 75 percent (69%)
- Asia, 7 percent (18%)
- the Americas, 18 percent (13%)
The Group's net sales per product area were as follows:
- telecom 65 percent (76%)
- automotive, industrial and consumer electronics, 35 percent (24%)
Operating profit before depreciation amounted to EUR - 2.7 million (-
3.1).
The Group's net financial expenses were EUR 1.6 million (-1.0) and
the profit (including discontinued operations) for the period was EUR
-7.8 million (-13.3). Net financial items for the fourth quarter
include the positive impact of debt re-structuring.
CONSOLIDATED NET SALES AND OPERATING PROFIT, JANUARY-DECEMBER
Net sales and operating profit, EUR million
2007 change, % 2006
Net sales 42.4 -13 48.6
Operating profit -15.8 -6.7
The Group's net sales per plant were as follows:
- Aspocomp Oulu, 53 percent (50%)
- Aspocomp Thailand, 47 percent (50%)
The Group's net sales by market area were as follows:
- Europe, 79 percent (68%)
- Asia, 12 percent (15%)
- the Americas, 9 percent (17%)
The Group's net sales per product area were as follows:
- telecom, 51 percent (43%)
- automotive, industrial and consumer electronics, 49 percent (57%)
During the review period, the share of Aspocomp's HDI PCB production
of overall PCB production accounted for 20 percent (11 %).
Aspocomp Oulu's five largest customers accounted for 69 percent of
its net sales during the review period; they were Elcoteq, Incap,
Nokia Siemens Networks, Scanfil and Wabco. The five largest customers
of Aspocomp Thailand accounted for about 87 percent of its sales;
they were Continental Automotive Systems, Honeywell, Leopold Kostal,
Nokia Siemens Networks and Wabco.
Operating profit before depreciation amounted to EUR -12.2 million
(-3.6).
The Group's net financial expenses were EUR -5.2 million (-2.0). Net
financial items include the positive impact of debt re-structuring.
The profit (including discontinued operations) for the period was EUR
-64.9 million (-27.2).
Earnings per share from continuing operations were EUR -0.54 (-0.43).
FINANCING, INVESTMENTS AND EQUITY RATIO
Aspocomp Group's consolidated cash flow from the operations during
the financial year was EUR -26.1 million (1.9). The Group's
consolidated net liquid assets at the end of the period amounted to
EUR 8.4 million (22.7).
Interest-bearing net debt was EUR 47.3 million (73.6). The figure
contains EUR 1.4 million (23.7) in financial lease liabilities.
Gearing increased to 724.2 percent (74.5) mainly due to operational
losses. Non-interest bearing liabilities amounted to EUR 16.2 million
(42.9).
Cash flow from operations amounted to EUR -26.1 million (1.9) and
investments to EUR 0.5 million (3.7).
The Group's equity ratio at the end of the year stood at 7.8 percent
(37 %). Total equity of the parent company is less than half of its
share capital.
The major part of the net proceeds obtained from the rights offering
issued in March was used to fund the company's working capital
requirements.
RESEARCH AND DEVELOPMENT
In connection with the transfer of business operations, Aspocomp
transferred its technologies and R&D to Meadville and the joint
venture.
Aspocomp Oulu Oy engages in R&D primarily through cooperation with
its customers and suppliers. Each year, its main customers report
their views on their future technology choices. Research is targeted
on the basis of these reports. Correct timing of investments is vital
for maintaining efficiency and technological viability. Research and
product development costs are recognized in plant overhead.
Aspocomp Thailand's product development in 2007 focused on optimizing
the reliability and manufacturability of high Tg laminates that are
used in PCBs soldered with lead-free tin in higher-than-usual
temperatures. In addition, the plant continued to develop the
semi-flex PCB production process to increase the number of layers.
All development costs have been recognized in production and
technology overhead.
SHARES AND SHARE CAPITAL
The total number of Aspocomp's shares at December 31, 2007, was
49,905,130 and the share capital stood at EUR 20,082,052. Of the
total shares outstanding, the company held 200,000 treasury shares,
representing 0.4 percent of the aggregate votes conferred by all the
shares. The number of shares adjusted for the treasury shares was
49,705,130.
A total of 88.428.810 Aspocomp Group Oyj shares were traded on OMX
Helsinki Stock Exchange during the period from January 1 to December
31, 2007. The aggregate value of the shares exchanged was EUR
38.947.567. The shares traded at a low of EUR 0,10 (December 21,
2007) and a high of EUR 2.20 (January 29, 2007). The average share
price was EUR 0.44. The closing price at December 31, 2007, was EUR
0.11 and the market value of the company was about EUR 5,5 million.
At the end of the period, nominee-registered shares accounted for 6.8
percent of the total shares and 0.4 percent were directly held by
non-Finnish owners.
Following the rights issue in April 2007, 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
they represent 4.80 percent of Aspocomp's shares and votes.
On May 25, 2007, the stake of Varma Mutual Pension Insurance Company
in Aspocomp Group Oyj's shares and votes decreased below the 5
percent threshold to 3.79 percent. The amount of shares and votes
held by Varma was 1,890,607.
On June 20, 2007, the stake of Sampo Life Insurance Company Limited
in the company's shares and votes decreased below the 10 percent
threshold to 9.24 percent, or 4,611,372 shares and votes. On August
22, 2007, it decreased below the 5 percent threshold to 3.89 percent,
or 1,939,000 shares and votes.
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 is valid for two years from the date of the decision of
the meeting. Based on the authorization, a total of 29,823,078 new
shares were subscribed for in a rights issue that ended in April
2007, increasing the total amount of company shares to 49,905,130.
Trading with the new shares commenced on OMX Helsinki Stock Exchange
on April 20, 2007.
Aspocomp Group Oyj's Annual General Meeting of May 10, 2007
authorized the Board to issue a maximum of 40,000,000 new shares and
conveyed and/or received on the basis of special rights. A maximum of
200,000 Aspocomp shares held by the company. The new shares can be
issued and the company's own shares conveyed either against payment
(rights issue) or for free (bonus issue) 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, if there is a weighty financial reason for the company
to do so. The authorization also includes the right to grant special
rights, as specified in Article 1 of Chapter 10 of the Companies Act,
to receive new shares in the company or Aspocomp shares held by the
company against payment such that either the share subscription price
will be paid in cash or the subscriber's receivables will be offset
against the subscription price. In addition, the authorization
includes the right to decide on a bonus issue to the company itself
such that the number of shares issued to the company can amount to no
more than one-tenth (1/10) of all the company's shares. The Board of
Directors has the right to decide on other particulars of the share
issues and the granting of special rights. The authorizations are
valid for two years from the date of the decision of the Annual
General Meeting. They do not cancel previous unexercised share issue
authorizations.
Kaupthing Bank Oyj, which has been a market maker in Aspocomp shares,
discontinued market making in Aspocomp shares until further notice on
May 11, 2007. Kaupthing Bank has provided bids and offers for
Aspocomp shares such that the maximum difference between a bid and
offer price is 2 percent of the bid. Bids or offers include at least
1,000 shares. Since Aspocomp shares trade below 0.50 euros and the
minimum tick size is 1 cent, it is not possible to provide bids and
offers at less than 2 percent of the share price.
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. New equity
raised by the offering was approximately EUR 25 million prior to the
deduction of fees and expenses. The total number of Aspocomp's shares
increased to 49,905,130 shares and trading with all shares commenced
on OMX Helsinki Stock Exchange on April 20, 2007.
Evli Bank Plc, Corporate Finance acted as the Manager of the share
issue.
STOCK OPTIONS AND CONVERTIBLE DEPENTURE LOAN
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 would have entitled its
holder to subscribe for one share in the company. As a result, the
total number of the company's shares could have increased by a
maximum of 4,000,000 shares. The warrants could have been exercised
from October 3, 2008 (or earlier if a person or entity would have
acquired over 30 percent of the company's shares) until March 31,
2010. Following the share offering described above, the Board of
Directors noted on April 18, 2007, that the share subscription price
on the basis of the warrants granted to Standard Chartered Bank (Hong
Kong) Limited would be approximately EUR 1.13 per share. Standard
Chartered Bank (Hong Kong) Limited relinquished its right to
subscribe for shares when the principal of the loan was repaid in
connection with the reorganization in November 2007.
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 have taken place in
the event Standard Chartered Bank had requested it within 120 days
prior to the repayment of the loan granted for the minority
acquisition in China, scheduled for September 2008. Standard
Chartered Bank (Hong Kong) Limited relinquished this right when
Aspocomp repaid the principal of the loan, EUR 40 million, in
connection with the reorganization in November 2007.
Following the share offering described above, 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 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.
As part of the incentive scheme for Aspocomp's management, the Board
of Directors decided on May 10, 2007 to distribute stock options -
which were issued by the Annual General Meeting held on April 10,
2006 - to the Group's key personnel.
The Board of Directors distributed a total of 310,000 stock options
2006B and 25,000 stock options 2006A to key personnel of the Group.
The beginning of the share subscription period for stock options
2006B is subject to attainment of the targets set for the Group's
cash flow. The Board of Directors decided on the financial targets
for stock options 2006A in the spring of 2006. The share subscription
period with stock options 2006A is from May 1, 2008 to May 31, 2010
and with stock options 2006B from May 1, 2009 to May 31, 2011. As set
out in the terms and conditions of the stock options, the Aspocomp
key employees who left the company's employ returned their stock
options 2006A and 2006B upon the ending of their employment or
service relationship. Aspocomp's subsidiary Aspocomp Technology Oy
holds 200,000 stock options 2006A and 195,000 stock options 2006B.
The share subscription price with stock options 2006B is EUR 0.84
(average share turnover-weighted price on the Helsinki Stock Exchange
in April 2007). The subscription price with stock options 2006A
changed due to the share issue carried out in March-April 2007 such
that with stock options 2006A the subscription price of shares is EUR
2.47 and a total of 1.387 shares in the company can be subscribed for
with one stock option. When shares are subscribed for, the total
number of shares will be rounded down to a full number. The total
subscription price will be calculated using the rounded number of
shares. After this change, a maximum of 429,970 shares in the company
can be subscribed for with stock options 2006A, instead of 310,000
shares, and the company's share capital can raise by a maximum of EUR
429,970, instead of EUR 310,000. Annual dividends possibly paid are
deducted from the subscription price.
Under the 2006 stock option scheme, the Board of Directors is
authorized to distribute 310,000 stock options 2006C to key employees
of the company. The share subscription price with the stock options
will be the average share turnover-weighted price on the Helsinki
Stock Exchange in April 2008.
PERSONNEL
During the review period, the Aspocomp Group had an average of 1,445
employees (2,021). The personnel count on December 31, 2007 was 1,120
(1,931). Of them, 821 (1,479) were non-salaried and 299 (452)
salaried employees. Of salaried employees 12 (23) were in Group
administration.
Personnel by region, average
2007 change, % 2006
Europe 457 -35.0 704
Thailand 988 -24.0 1,317
Total 1,445 -28.0 2,021
On May 4, 2007, Aspocomp issued a notice on statutory labor
co-determination negotiations in Finland. The negotiations concerned
about 350 employees at Aspocomp Group Oyj and Aspocomp Oy, excluding
personnel at the Oulu production unit. The negotiations were
concluded on June 15, 2007. As a result, a total of 237 personnel,
consisted of 183 non-salaried and 54 salaried employees, were made
redundant. Production at the Group's Salo plant was closed down on
July 14, 2007, and employment of its 215 personnel was terminated
during 2007.
On October 23, 2007 Aspocomp announced that statutory labor
co-determination negotiations would commence on November 30 at
Aspocomp Group Oyj and Aspocomp Oy with a view to increasing
cost-effectiveness. The planned measures concerned all the functions
of the companies. The invitation to the negotiations stated that the
implementation of the planned measures would lead to organizational
rearrangements as well as redundancies of no more than 15 employees
at Aspocomp Group Oyj and 15 employees at Aspocomp Oy. The
negotiations did not affect Aspocomp Oulu Oy. The negotiations
settled on 10 redundancies. The joint venture of Meadville and
Aspocomp has offered employment to 11 personnel covered by the
negotiations. They will continue in Aspocomp's employ for the time
being. In addition, the Group's internal personnel transfers and
resignations during the negotiation process reduced the need for
personnel cuts by 7 persons. After the implementation of the notices
and the transfer of the agreed number of personnel into the joint
venture's employ, Aspocomp Group Oyj has a total of 12 permanent
employees. Of these, 5 persons were on family leave when the release
was published. The number of Aspocomp Group Oyj's employees is
estimated to be 4 at the end of the year 2008.
At the beginning of 2007, the members of Aspocomp's Executive
Committee were Maija-Liisa Friman, President and CEO, Rami Raulas,
Senior Vice President, Sales and Marketing, Jari Ontronen, Senior
Vice President, Operations, Europe, Harry Gilchrist, Senior Vice
President, Operations, Asia, Tapio Engström, Chief Financial Officer,
and Maire Laitinen, General Counsel.
Pertti Vuorinen started as Chief Financial Officer on November 1,
2007 and Isto Hantila as President and CEO on November 9, 2007; they
comprised the company's Executive Committee at the end of 2007.
BOARD OF DIRECTORS, PRESIDENT AND CEO AND AUDITORS
The members of the Board Mr. Gustav Nyberg and Mr. Roberto Lencioni
gave their notice with effect from January 19. Based on the
preparations of the Nomination Committee, the Board proposed that the
Extraordinary Shareholders' Meeting would elect Mr. Tapio Hintikka,
Mr. Kari Vuorialho and Mr. Johan Hammarén as new members of the Board
until the next Annual Shareholders' Meeting.
The Annual General Meeting of May 10, 2007 decided that the number of
Board members is seven and re-elected Aimo Eloholma, Johan Hammarén,
Tapio Hintikka, Tuomo Lähdesmäki, Yoshiki Sasaki, Anssi Soila and
Kari Vuorialho as members of the Board. The meeting re-elected
PricewaterhouseCoopers Oy as the company's auditor for the 2007
financial year.
In addition, the meeting decided that the remunerations of the
members of the Board will remain the same as in 2006. An annual
remuneration of EUR 35,000 will be paid to the Chairman of the Board,
EUR 25,000 to the Vice Chairman and EUR 15,000 to the members. The
annual remuneration will be paid such that 60 percent is paid in cash
and the remaining 40 percent is, according to the authorization of
the Annual General Meeting, used to buy shares in the company for
conveyance to Board members after the release of the Group's second
quarter results. EUR 1,500 per meeting will be paid to the Chairman
and EUR 1,000 per meeting to the other members. EUR 1,500 per meeting
will be paid to the members of the Board of Directors residing
abroad. EUR 500 will be paid for each committee meeting. The members
of the Board residing outside of the Greater Helsinki Area are
reimbursed for reasonable travel and lodging costs. The auditor will
be paid according to invoice.
At its organization meeting held on May 10, 2007, the Board of
Directors of Aspocomp Group Oyj re-elected Tuomo Lähdesmäki as
Chairman of the Board and Yoshiki Sasaki as Vice Chairman. The Board
of Directors appointed Aimo Eloholma, Tapio Hintikka, Tuomo
Lähdesmäki and Kari Vuorialho as members to the Compensation and
Nomination Committees. Johan Hammarén, Yoshiki Sasaki and Anssi Soila
were elected as members of the Audit Committee.
On August 20, 2007 Tapio Hintikka gave a notice of resignation from
the Board. The resignation took effect immediately.
On November 9, 2007, Maija-Liisa Friman resigned from her position as
the company's CEO. Isto Hantila (49), M.Sc. (Eng.), was appointed as
the new CEO of Aspocomp Group Oyj with effect from November 9, 2007.
Mr. Hantila is currently Chairman of the Board of Efore Plc and
Selmic Oy. He has previously worked as the CEO of Perlos Corporation
from 2004 to 2006, in various management roles at the Swiss company
Ascom Group from 1991 to 2003, his latest role being a member of the
Executive Management Team, and before this in several management
roles at Fiskars Power System from 1983 to 1991. Under the agreements
made with Meadville Holdings Limited, most of Aspocomp's business
transferred to the joint venture owned by Aspocomp and Meadville, and
thus Mr. Hantila's primary task is to plan and complete the related
structural changes in the Aspocomp Group.
GROUP RESTRUCTURINGS
On February 15, 2007, Aspocomp announced that the estimated total
investment needed for the acquisition of the minority interest in the
Chinese subsidiary and the expansion of its production capacity as
well as for carrying out the plant project in India amounted to about
EUR 170 million. According to the estimate released on March 15,
2007, the total investment in the Indian plant would amount to about
EUR 100 million, with about EUR 80 million earmarked for building and
machinery and approximately EUR 20 million for working capital,
interest and start-up costs.
On March 16, 2007, Aspocomp entered into an agreement to acquire the
49 percent minority interest in ACP Electronics Ltd, 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 aimed to
increase HDI printed circuit board production capacity in China, the
plant facility - to be vacated by Chin-Poon by the year end at the
latest - was 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 joint
venture of Aspocomp and the Taiwanese company Chin-Poon in Suzhou,
China. The loan was drawn down in full in connection with the
minority share purchase, finalized on April 4, 2007. The loan would
have had 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 would have entitled the bank to subscribe for 4 million
shares in Aspocomp. Depending on the Aspocomp share price, the
company may have had an obligation at the end of the loan period to
pay Standard Chartered Bank an additional fee of up to EUR 2 million.
The principal of the loan was repaid in connection with the
reorganization in November, and Standard Chartered Bank (Hong Kong)
relinquished the other loan-related arrangements.
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 that was 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 a 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 Group Oyj and Elcoteq SE in 2002 to
develop Integrated Module Board assembly technology.
The Board of Directors of Aspocomp Group Oyj decided on May 10, 2007
to merge the subsidiary Aspocomp Oy with its parent company. The
merger plan was entered into the Finnish Trade Register on June 5,
2007 and the planned registration date for the implementation of the
merger was September 30, 2007. On September 19, 2007, Sampo Bank plc
announced that it opposed the planned merger. Sampo Bank plc withdrew
its objection in December and the merger was concluded on December
31, 2007.
On August 9, 2007, as required under the new Companies Act, the Board
of Directors of Aspocomp Group Oyj confirmed the write-offs that
resulted from the closing down of the Salo plant in the bookkeeping
of Aspocomp Group Oyj's subsidiary Aspocomp Oy. As a result, the
equity of Aspocomp Oy was estimated at EUR -18.1 million. A notice
regarding the loss of equity was entered into the Finnish Trade
Register.
On November 8, 2007, Aspocomp signed an agreement whereby it sold its
shareholdings in its subsidiaries in China and India as well as
certain equipment from its Salo plant to a new holding company. 80
percent of the shares of the holding company were sold to Meadville
Holdings Limited. Aspocomp remained a minority owner with 20 percent
ownership (see Changes in the Group's strategy and structure).
Aspocomp Group Oyj informed Financial Supervision and OMX Nordic
Exchange Helsinki Oy on October 29, 2007 of its decision to postpone
the release of certain information falling in the scope of its
ongoing disclosure requirements. This information concerned the
summons against Aspocomp Group Oyj's subsidiary, ACP Electronics, in
China. The plaintiff had applied for the attachment of the company's
assets and made a claim for the repayment of USD 5 million with
interest. The company's bank account and some other property were
consequently frozen. The reason for the postponement of the release
of said information was that it could have jeopardized the
finalization of partnership negotiations intended to improve the
company's long-term financial position. The injunction against ACP
Electronics in China was withdrawn per the Settlement Agreement
signed on November 8, 2007. Aspocomp announced this information on
November 9, 2007.
On November 23, 2007, Aspocomp Group Oyj, Aspocomp Oy, Aspocomp Oulu
Oy and Aspocomp Holdings PTE signed an agreement on debt
restructuring with their Finnish bank creditors. The agreement came
into force on December 14, 2007 (see Changes in the Group's strategy
and structure).
LEGAL PROCEEDINGS
With its decisions of June 19, 2007, the French Supreme Court upheld
the former decisions of the Rouen appellate court, announced in March
2005, in the legal case initiated by Aspocomp S.A.S's former
employees against Aspocomp Group Oyj. The case relates to the closing
of the heavily unprofitable Aspocomp S.A.S. in 2002 and the
dismissals that ensued.
According to the decisions of the Rouen appellate court, Aspocomp
Group Oyj was ordered to pay EUR 10.1 million, plus annual interest
of about 7 per cent, to 388 former employees of Aspocomp S.A.S. To
date, the interest amounts to approximately EUR 2.3 million.
A French bank, Credit Industriel et Commercial, had earlier given a
performance bond guarantee to the former employees for payment
according to the decision of the Supreme Court. Nordea Bank Finland
Plc had given the French bank an on-demand bank guarantee for the
same sum, which sum Aspocomp had undertaken to indemnify.
The counter obligation of Aspocomp to Nordea was converted into a
bank loan. The annual interest rate of the loan is based on the
monthly Euribor interest rate and was 6.2 percent at the time of
granting the loan. The decision of the French Supreme Court will thus
not essentially weaken Aspocomp's immediate liquidity. Under the debt
restructuring agreement, the interest on the loan is 2.5% and it
shall be added to the principal. Depending on the liquidity of the
Aspocomp Group, loan repayments may be made, but for the most part
repayment of the loan will be scheduled for 2013 when the sale and
purchase options are to be executed, as set out in the debt
restructuring agreement made with the banks.
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, concerning the
minimum and maximum share capital, Article 4, concerning the number
of shares, and Article 16, concerning 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. The Annual General meeting of May 10, 2007,
decided not to pay dividends for 2006.
BOARD OF DIRECTORS' DIVIDEND PROPOSAL
The Board of Directors will propose to the 2008 Annual General
Meeting that no dividend be paid to shareholders for 2007 (EUR 0.00
in 2006).
EVENTS AFTER THE FINANCIAL PERIOD
The head office was moved in January from the centre of Helsinki to
Sinikalliontie in Espoo.
21 former employees of Aspocomp Group Oyj's French subsidiary
Aspocomp S.A.S., who were not involved in the previous litigation in
France, have raised claims against Aspocomp Group Oyj in a French
court. The total amount of the claims is about EUR 750,000. The
claims will be heard in winter and spring 2008.
The Örninkatu 15 plant property and its buildings in Salo, leased by
Aspocomp under an operating lease, have been sold. The transaction
price decreases Aspocomp's interest-bearing debts to Finnish bank
creditors by about EUR 6 million. The write-off made in summer 2007
was deducted by three million euros. The total amount of the
remaining interest-bearing debts to creditors in Finland after the
sale is about EUR 27 million.
OUTLOOK FOR THE FUTURE
Aspocomp's main priority in 2008 is the restructuring of the Group
and the finalizing of the transaction with Meadville Holdings
Limited. The transaction strengthened the liquidity of the Aspocomp
Group, but further actions are needed to secure liquidity.
The turnover of Aspocomp group in 2008 is estimated to be
approximately 40 million euros and the EBITDA positive, due to leaner
cost structure and more efficient operations.
ASSESSMENT OF BUSINESS RISKS
The main principle in the Aspocomp Group's risk management has been
to determine the scope of risks as accurately as possible and keep
track of their development in relation to predefined risk limits. The
Board of Directors is responsible for the Group's risk management
policy and oversees its implementation. The President and CEO is
responsible for the proper arrangement of risk management. The major
strategic, operational, financial and damage, casualty and loss risks
which may, if realized, compromise achieving the set objectives are
described below.
Strategic and operational risks related to business operations
The company seeks to prevent or limit the probability of the
occurrence of all the risks described by means of its own
strategic choices. These choices are based on the best information
and knowledge available at the time of decision-making. Key elements
in the management of operational risks are understanding the
international business environment and adapting the company's own
operations to the prevailing conditions. In addition, the production
plants minimize risks through training, honing of technological
expertise and the development of information systems.
Dependence on customer markets
In 2007, Aspocomp's subsidiaries in Oulu and Thailand manufactured
products for a number of global strategic customers - and for many
more local customers. During the year, Aspocomp Oulu Oy's five
largest customers - Elcoteq, Incap, Nokia Siemens Networks, Scanfil
and Wabco - accounted for approximately 69% of the total net sales of
the company. Aspocomp Thailand Ltd's five largest customers -
Continental Automotive Systems, Honeywell, Leopold Kostal, Nokia
Siemens Networks and Wabco, - accounted for about 87% of the
company's sales.
Competition
The competitiveness and risk profile of the Aspocomp Group changed
significantly as a result of the transactions carried out in November
2007.
High-volume products for the electronics industry are manufactured
mainly in Asia. Electronics products will continue to be designed in
Europe, and demand will increasingly be skewed towards the
manufacture of R&D PCBs and small-series PCBs. At the same time, the
level of difficulty involved in PCB production is increasing, as the
contribution of HDI technology raises and the number of layers
increase.
According to market surveys, the demand for more complex HDI PCBs,
following development in component technology, will increase
substantially faster than the global markets in the near future. The
competitiveness of Aspocomp Oulu Oy in the current customer segments
is good, and its position as a fast supplier of complex PCBs in
Europe is estimated to remain solid. In future, the company will face
growing competition from Asian prototype suppliers. In addition to
upcoming competition from Asia, structural changes in the
telecommunications sector constitute risk factors for the company's
future. These may lead to a decline in research and development in
Europe, in which case the company's competitiveness would weaken and
the R&D PCB markets would shrink in the neighboring countries.
Aspocomp Thailand's main application area, auto electronics, has
enjoyed steady growth throughout 2007. This will continue because
electronics are increasing both in private and commercial vehicles.
Nevertheless, competition in the sector is intensifying because, like
telecom electronics, the industry is moving increasingly to low-cost
countries. Competition in the telecom sector will continue to remain
tough in China and the South-East Asian countries. Competition in
industrial electronics will remain intense, as increasing numbers of
Chinese manufacturers accept extremely small orders, both in terms of
quantity and value. On the other hand, there was already a trend in
2007 for risk-balancing PCB users to seek an alternative to China,
typically in a South-East Asian country such as Thailand.
Operations in emerging markets
Due to the transactions, the Thai plant is the only subsidiary
operating in the emerging markets. Emerging markets are subject to
greater political, economic, and social uncertainties than operations
in countries with more developed structures and systems.
Consequently, the risk of losses resulting from changes in the legal,
economic, social or political situation, and upheaval may be
substantial.
Lack of long-term customer order commitments
As is customary in the PCB industry, customers do not generally
commit to long-term binding orders. Because of this, the plants' load
varies substantially over the short term, effecting significant
fluctuation in both net sales and operating profit.
Financial risks in Aspocomp's business operations
The PCB industry is capital intensive and its technology evolves at a
rapid pace. Sufficient financing must be ensured in order to maintain
capacity in terms of both quantity and quality. Investments must be
managed either by means of cash flow from operations or local loans.
If Aspocomp's operative subsidiaries are unable to acquire the
necessary financing for their investments, their business operations
may decline substantially.
Significant indebtedness
The company's indebtedness rose significantly in 2007. The Group's
interest-bearing debt at December 31, 2007 amounted to a total of
approximately EUR 49 million, which included a convertible bond loan
of EUR 10.3 million. The agreement on debt restructuring entered into
with Finnish bank creditors does not include holders of the
convertible bond issued in 2006. Aspocomp Group Oyj had in 2005 given
a parent company guarantee of TBH 212 million to the Bangkok Bank as
collateral for the loans it had granted to Aspocomp Thailand Ltd. The
debt restructuring agreed with the Finnish banks restricts management
of the Group's centralized financing exclusively to Finland, which
means that the Thai plant will have to arrange its financing
independently. Furthermore, the agreement on debt restructuring
limits the Group's investment opportunities in Finland. The debt
restructuring agreement facilitates the management of
interest-bearing debt in such a way that regular repayments are not
required, and interest at an annual rate of 2.5% is added to the
principle. If Aspocomp Group Oyj does not obtain agreements on debt
restructuring with the holders of the convertible bond and the
Bangkok Bank, the operational stability of Aspocomp will weaken
significantly.
Liquidity and financial risks
Because of the agreement on debt restructuring, management of the
liquidity risk of the operations in Finland is based on the cash
assets of the parent company and the cash flow generated by the Oulu
plant. The possibilities of the Thai plant to manage its liquidity
risk are rather limited, which occasionally has a highly significant
impact on the company's operations. If Aspocomp does not obtain
financing from Aspocomp Oulu Oy, or its associated company Meadville
Aspocomp Holdings in the form of dividends or other income, or other
ways of financing, to cover its expenses by 2013, the company may
ultimately become insolvent.
Currency exchange rate risks
The Group carries out production in Finland and Thailand. The Group
also has subsidiaries in Europe, Hong Kong and Singapore. The main
currencies of the Group are the euro, the baht and the US dollar. The
translation risk relating to variations in the subsidiaries'
shareholders' equity is based on the exchange rate fluctuations of
the Asian currencies.
Interest rate risks
In Finland, the interest rate risk of interest-bearing debt agreed
through a debt restructuring agreement is under control until 2013 -
the annual interest rate standing at 2.5%. With respect to the
company in Thailand, changes in interest rates will affect the market
pricing of both short-term and long-term financing and thus also have
a bearing on the Group's financial expenses.
Credit and counterparty risks
The company limits its credit risk by monitoring the creditworthiness
of customers. Liquid assets are invested in banks that are highly
creditworthy.
Litigations
With its decisions of June 19, 2007, the French Supreme Court upheld
the former decisions of the Rouen appellate court, announced in March
2005, in the legal case initiated by Aspocomp S.A.S's former
employees against Aspocomp Group Oyj, and ordered it to pay a total
of approximately EUR 11 million, including annual interest of about 7
per cent, to 388 former employees of Aspocomp S.A.S. In addition to
these employees, 21 former employees of Aspocomp S.A.S. have brought
a suit against Aspocomp Group Oyj, and there is a risk that the
remaining approximately 100 employees may also institute proceedings.
In France, the statute of limitations for filing a suit is 30 years.
Damage, casualty and loss risks
Most of the Group's capital is tied to its production plants. Various
accidents occurring at the plants such as fires, major machinery
breakdowns or other similar incidents therefore cause damage to
assets or loss of profits. The Group seeks to protect itself against
the occurrence of the aforementioned risks by means of evaluations
pertaining to risk management. Insurance coverage is reviewed
annually as part of overall risk management. The aim through
insurance policies is to cover the risks that it is prudent to insure
for business or other reasons. Other specified risks are rapid
technological change, the sufficiency of manufacturing capacity,
management of growth, ability to meet customers' product
standards and specifications, capacity utilization rates, dependence
on senior management, litigation, price fluctuations of raw materials
and dependence on key suppliers, product liability, environmental
risks and intellectual property. To the best of the company's
knowledge, the risks that might affect business operations in the
future have been described above. The list of risks is not
all-inclusive, but rather presented by way of example. The
descriptions of risks do not account for the probability of the
occurrence of the risks or their scale.
ACCOUNTING POLICIES
The Aspocomp Group financial bulletin has been prepared in accordance
with IAS 34, Interim Financial Reporting. The accounting principles
that were applied in the preparation of the financial statements of
December 31, 2006 have been applied in the preparation of this
interim report. As of January 1, 2007, the Group has adopted the
following new standards: IFRS 7, Financial Instruments: Disclosures
and IAS 1 (amendment), Presentation of Financial Statements.
All figures are unaudited.
INCOME STATEMENT,
OCTOBER-DECEMBER 10-12/07 10-12/06
MEUR % MEUR %
NET SALES 9,9 100,0 11,9 100,0
Other operating income 0,4 4,5 0,4 3,1
Materials and services -4,8 -48,8 -6,0 -50,6
Personnel expenses -4,4 -44,4 -3,0 -24,9
Other operating expenses -3,8 -38,6 -6,4 -53,7
Depreciation and amortization -1,0 -9,7 -0,6 -4,6
OPERATING PROFIT -3,7 -37,0 -3,7 -30,7
Financial income and expenses 1,6 16,1 -1,0 -8,3
PROFIT ON CONTINUING
OPERATIONS BEFORE TAX -2,1 -20,9 -4,6 -39,0
Taxes -3,0 -25,2
PROFIT ON CONTINUING
OPERATIONS -2,1 -20,9 -7,6 -64,2
Profit on discontinuing
operations -5,7 -57,5 -5,6 -47,4
PROFIT FOR THE PERIOD -7,8 -78,4 -13,3 -111,6
Profit attributable to
minority interests 0,0 -0,4 1,4 12,2
equity shareholders -7,7 -78,0 -14,7 -123,8
INCOME STATEMENT,
JANUARY-DECEMBER 1-12/07 1-12/06
MEUR % MEUR %
NET SALES 42,4 100,0 48,6 100,0
Other operating income 1,6 3,7 0,9 1,9
Materials and services -18,5 -43,6 -25,7 -52,9
Personnel expenses -13,3 -31,4 -12,7 -26,2
Other operating expenses -24,3 -57,4 -14,6 -30,1
Depreciation and amortization -3,7 -8,6 -3,1 -6,5
OPERATING PROFIT -15,8 -37,3 -6,7 -13,7
Financial income and expenses -5,2 -12,3 -2,0 -4,2
PROFIT ON CONTINUING
OPERATIONS BEFORE TAX -21 -49,6 -8,7 -18,0
Taxes -2,2 -5,2 -3,0 -6,1
PROFIT ON CONTINUING
OPERATIONS -23,2 -54,8 -11,7 -24,1
Profit on discontinuing
operations -41,7 -98,1 -15,5 -31,9
PROFIT FOR THE PERIOD -64,9 -152,9 -27,2 -56,0
Profit attributable to
minority interests 0,4 0,9 4,1 8,5
equity shareholders -65,3 -153,8 -31,3 -64,5
Earnings per share, adjusted
from continuing operations -0,54 -0,43
CONSOLIDATED BALANCE SHEET
12/07 12/06 Change
ASSETS MEUR MEUR %
NON-CURRENT ASSETS
Intangible assets 3,3 4,5 -25,6
Tangible assets 20,5 95,0 -78,4
Investments in
associated companies 16,7 0,2 7 138,5
Investment property 2,7 3,4 -20,4
Available for sale
investments 0,3 0,3 0,0
Deferred income tax assets 1,1 -100,0
Other long-term receivables 5,3 -100,0
TOTAL NON-CURRENT ASSETS 43,4 109,7 -60,4
CURRENT ASSETS
Inventories 6,6 20,9 -468,2
Short-term receivables 10,5 31,5 -66,8
Available for sale
investments
Restricted cash
Cash and bank deposits 8,4 22,7 -63,1
Assets held for sale
TOTAL CURRENT ASSETS 25,5 75,1 -66,0
TOTAL ASSETS 68,9 184,8 -62,7
SHAREHOLDERS' EQUITY
AND LIABILITIES
Share capital 20,1 20,1 0,0
Share premium fund 27,9 27,9 0,0
Treasury shares -0,8 -0,8 0,0
Special reserve fund 46,0 46,0 0,0
Revaluation and other funds
Funds for investments for
non-restricted equity 23,9 1,9 1 158,7
Retained earnings -112,5 -50,5 254,3
Equity attributable
to shareholders 4,6 44,6 -89,6
Minority interest 0,7 23,7 -96,9
TOTAL EQUITY 5,4 68,3 -92,1
Long-term borrowings 20,4 29,7 -31,4
Provisions 1,2 1,1 13,7
Short-term borrowings 26,9 43,9 -38,6
Trade and other payables 14,9 41,8 -64,2
Liabilities held for sale
TOTAL LIABILITIES 63,5 116,4 -45,5
TOTAL SHAREHOLDERS'
EQUITY AND LIABILITIES 68,9 184,8 -62,7
CONSOLIDATED CHANGES IN EQUITY,
JANUARY-SEPTEMBER
Funds
for
in-
vest-
Re- ments Trans-
Spe- valu- of lation
Share cial ation non- Trea- dif- Ret- Mino-
Share pre- re- and rest- sury fer- ained rity Total capi- mium serve other ricted sha- en- earn- inte- equi-
tal fund fund funds equity res ces ings rests ty
Balance
at
31.12.06 20,1 27,9 46,0 0,0 1,9 -0,8 -4,8 -45,7 23,7 68,3
Share
issue 22,0 22,0
Trans-
lation
differ-
ences 3,9 3,9
Net
profit -65,3 -65,3
Other
items -0,6 -0,6
Purchase
of mino-
rity
interest -23,0 -23,0
Balance
at
31.12.07 20,1 27,9 46,0 0,0 23,9 -0,8 -0,9 -111,6 0,7 5,4
CONSOLIDATED CASH FLOW STATEMENT, 1-12/07 1-12/06
JANUARY-DECEMBER MEUR MEUR
Cash flow from operations -26,1 1,9
Cash flow from investments 6,4 -20,1
Cash flow before financial items -19,7 -18,3
Change in long-term and short-term financing -16,6 34,4
Share issue 22,0
Return of subsidiary equity to minority -8,7
Cash flow from financing 5,4 25,7
Change in cash and cash equivalents -14,3 7,4
Cash and cash equivalents
at the end of period 8,4 22,7
KEY FINANCIAL INDICATORS 12/07 12/06
Return on investment (ROI), % -13,4 -4,6
Return on equity (ROE), % -63,1 -13,3
Equity per share, EUR 0,11 1,65
Equity ratio, % 7,8 37,0
Gearing, % 724,2 74,5
Gross investments, MEUR 0,5 3,7
Average number of personnel 1 445 2 021
CONTINGENT LIABILITIES 12/07 12/06
MEUR MEUR
Mortgages given for
security for liabilities 10,6 11,8
Operating lease liabilities 0,1 0,1
Other liabilities 0,4 12,0
Total 11,1 23,9
Mortgages have decreased because of changes in exchange rates. In
other liabilities the counter guarantee of eleven million has been
changed into a loan. The guaranteed liabilities of Finnish Customs
have increased by one hundred thousand euros.
All figures are unaudited.
Espoo, March 14, 2008
ASPOCOMP GROUP OYJ
Board of Directors
Isto Hantila
President and CEO
For further information, please contact CEO Isto Hantila, tel. +358 9
591 8342 or CFO Pertti Vuorinen, tel. +358 9 591 8344.
A briefing for analysts and the media will be held on Friday, March
14, at 2:00 pm at restaurant Bank in Unioninkatu 20, Helsinki.
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 program and to continue to expand its business outside
the European market.
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