Aspocomp Group Oyj — Interim / Quarterly Report 2012

Oct 18, 2012

ASPOCOMP'S INTERIM REPORT JANUARY 1 – SEPTEMBER 30, 2012

Key figures 7-9/2012 in brief

Key figures 7-9/2012 in brief
Aspocomp Group	7-9/2012	7-9/2011	Change
Net sales	5.4 M €	6.3 M €	-0.9 M €
EBITDA	0.3 M €	1.6 M €	-1.3 M €
Operating profit	-0.1 M €	1.3 M €	-1.3 M €
% of net sales	-1.7 %	19.9 %	-21.6 ppts
Earnings per share	-0.01 €	0.20 €*	-0.21 €

Key figures 1-9/2012 in brief

Aspocomp Group	1-9/2012	1-9/2011	Change
Net sales	18.5	17.8	0.7
	M€	M€	M€
EBITDA	2.2	3.9	-1.6
	M€	M€	M€
Operating profit	1.1	2.9	-1.8
	M€	M€	M€
% of net sales	6.1	16.3	-10.2
	%	%	ppts
Earnings per share	0.18	1.05	-0.87
	€	€*	€
Operational cash flow	1.4	2.4	-0.9
	M€	M€	M€

*Due to the implementation of a reverse split, the previous period is made comparable by multiplying by ten.

CEO's review

"The challenging market situation in the third quarter weakened demand within all of Aspocomp's customer segments. Due to weak demand, third-quarter net sales amounted to only EUR 5.4 million. January-September net sales amounted to EUR 18.5 million, a yearon-year increase of 4 percent.

The third-quarter operating result went slightly into the red. However, the operating result for the review period was clearly positive, amounting to over one million euros and about 6 percent of net sales. Cash flow from operations also stayed clearly in the black, amounting to nearly one and a half million euros.

The near-term market outlook remains murky but no further decline in demand is anticipated. We expect that full-year net sales will be slightly higher than in 2011 and the operating result is anticipated to be at a satisfactory level with respect to the industry sector, but to fall significantly short of 2011."

Restructuring 2012

At the end of September, Aspocomp carried out the final stage of its restructuring process, which was started in 2011. Aspocomp's Finnish operations were legally transferred under the parent company Aspocomp Group Plc. The restructuring was organized as a business deal where the parent company Aspocomp Group Plc. purchased its subsidiary Aspocomp Oulu Oy's entire business. All of Aspocomp Oulu Oy's employees transferred to the parent

company under their previous terms of employment. In addition, the parent company purchased Aspocomp Oulu Oy's Swedish and German subsidiaries. The arrangement does not cause any changes in the organization and does not affect the Group's reported figures.

Net sales and earnings

July-September 2012

Third-quarter net sales amounted to EUR 5.4 million, a year-on-year decrease of 14 percent. The five largest customers accounted for 65 percent of net sales (84% 7-9/2011). In geographical terms, about 87 percent of net sales were generated in Europe (95%) and 13 percent in Asia (5%).

Fig. 1 Quarterly net sales in 2012 and 2011 (M€)

The operating result was EUR -0.1 million (EUR 1.3 million in 7-9/2011). Demand particularly for quick-turn deliveries — was weak within all customer segments, which together with increased indirect costs due to the Teuva plant acquisition ruined profitability.

Net financial expenses for the review period amounted to EUR 0.0 million (EUR 0.0 million). The result was EUR -0.1 million (EUR 1.2 million) and earnings per share were EUR -0.01 (EUR 0.20).

Fig. 1 Quarterly operating result in 2012 and 2011 (M€, %)

January-September 2012

Net sales amounted to EUR 18.5 million, a year-on-year increase of about 4 percent. The five largest customers accounted for 68 percent of net sales (82% 1-9/2011). In geographical terms, 93 percent of net sales were generated in Europe (93%) and 7 percent in Asia (7%). Net sales grew due to the acquisition of the Teuva plant, which also reduced the share of total net sales accounted for by the five largest customers.

The operating result was EUR 1.1 million (EUR 2.9 million in 1-9/2011), representing 6 percent of net sales. Profitability was weakened by increased indirect costs due to the Teuva plant acquisition.

Net financial expenses for the review period amounted to EUR 0.0 million (EUR -3.2 million). The profit for the period was EUR 1.1 million (EUR 5.4 million) and earnings per share were EUR 0.18 (EUR 1.05). The profit for the reference period includes one-time financial income of about EUR 3.7 million.

Investments and R&D

Investments during the review period amounted to EUR 1.0 million (EUR 0.7 million 1- 9/2011).

The bulk of the investments were earmarked for capability improvement and replacement investments at the Oulu plant. Equipment that is no longer utilized in Oulu has been installed in the Teuva plant, thereby improving its capability and increasing its capacity. About one third of the investments were directed at the Teuva plant, including its integration into Aspocomp's IT systems.

R&D costs comprise general production development costs. These costs do not fulfill the IAS 38 definition of either development or research and are therefore booked into plant overheads.

Financing

Thanks to the corporate and debt restructuring carried out in 2011 and strong cash flow, the Group's financial position is now good. Cash assets amounted to EUR 2.7 million at the end of the period (EUR 2.2 million 9/2011).

Cash flow from operations during the period was EUR 1.4 million (EUR 2.4 million 1- 9/2011). The acquisition of the Teuva plant weakened cash flow from operations, but only in the first quarter of the 2012 financial year.

The nominal value of interest-bearing liabilities was EUR 0.6 million (EUR 1.6 million 9/2011). Gearing was -18.4 percent (-6.7%). Non-interest-bearing liabilities amounted to EUR 4.8 million (EUR 5.3 million). At the end of the period, the Group's equity ratio rose to 68.2 percent (56.1%).

In June, Aspocomp signed a new financing agreement that restored its financing costs and especially the related covenants to the level of a normally rated and financially healthy company.

Personnel

During the review period, the company had an average of 150 employees (103 in 9/2011). The personnel count on September 30, 2012 was 147 (105). Of them, 108 (73) were nonsalaried and 42 (32) salaried employees. The number of personnel grew due to the acquisition of the Teuva plant.

Decisions of the General Meeting

The Annual General Meeting of Aspocomp Group Plc. held on April 26, 2012 decided to set the number of Board members at three (3) and re-elected Johan Hammarén, Tuomo Lähdesmäki, and Kari Vuorialho to the Board. The Meeting decided not to pay dividends for the 2011 financial year. The Meeting re-elected PricewaterhouseCoopers Oy as the company's auditor for the 2012 financial year.

The Annual General Meeting decided that the chairman of the Board of Directors will be paid EUR 30 000 and the other members will be paid EUR 15 000 each in remuneration for their term of office. 60% of such remuneration will be paid in cash and the other 40% will be paid in shares of the company. The shares were acquired for the members of the Board of Directors within two weeks following the release of the result of the second quarter of the year 2012. The number of the remuneration shares was determined based on the market quotation of the shares at the time of purchase. The Annual General Meeting further decided that EUR 1 000 will be paid as remuneration per meeting to the chairman and EUR 500 per meeting will be paid to the other members of the Board. The members of the Board of Directors will further be reimbursed for reasonable travel and lodging costs. Travel and lodging costs will however not be compensated to those members of the Board of Directors who reside in the greater Helsinki area when the meetings are held in the greater Helsinki area. The auditor's fees will be paid according to the auditor's invoice approved by the Board of Directors.

The Board of Directors and authorizations given to the Board

In its organization meeting on April 26, 2012, the Board of Directors of Aspocomp Group Plc. re-elected Tuomo Lähdesmäki as chairman of the Board. As the Board only comprises three (3) members, Board committees were not established.

The Extraordinary General Meeting held on December 20, 2011 resolved to authorize the Board of Directors to decide on issuing new shares and conveying the Aspocomp shares held by the company in one or several tranches.

The share issue and the conveyance of own shares can be carried out against payment or without consideration to all shareholders in proportion to their shareholdings or by deviation from the shareholders' pre-emptive subscription right through a directed share issue, provided that the company has a weighty financial reason for the deviation, such as use of the shares as payment in possible acquisitions, other arrangements pertaining to the business, financing of investments or use of the shares as a part of the company's incentive schemes. A directed share issue may be carried out without consideration only provided that the company, taking into account the interests of all its shareholders, has a particularly weighty financial reason for doing so.

The authorization also includes the right to issue option rights and other special rights, in the meaning of Chapter 10, Section 1 of the Companies Act, which against consideration entitle to the company's new shares or the company's own shares held by the company either by payment of the subscription price in cash or by offsetting the subscription price with receivables payable to the subscriber.

A maximum of 4,272,564 new shares or own shares held by the company can be issued/conveyed in the share issue and/or on the basis of the option rights and/or the special rights. In addition, the authorization includes the right to decide on a share issue without consideration to the company itself such that the amount of own shares issued does not exceed one tenth (1/10) of all shares of the company. Pursuant to Chapter 15, Section 11, Subsection 1 of the Companies Act, all own shares held by the company and its subsidiaries are to be included in this amount.

The Board of Directors has the right to decide upon other matters relating to the share issues. The authorization is valid until April 23, 2013 and cancels prior authorizations.

In the acquisition of the Teuva plant, the Board of Directors used part of the abovementioned issue rights. A part of these issue rights were used in a directed share issue for reward payments under the share ownership plan for the company's management. The remaining authorization amounts to 4,070,548 shares.

Shares

The total number of Aspocomp's shares at September 30, 2012 was 6,406,505 and the share capital stood at EUR 1,000,000. The company did not hold any treasury shares.

A total of 3,290,158 Aspocomp Group Plc. shares were traded on NASDAQ OMX Helsinki during the period from January 1 to September 30, 2012. The aggregate value of the shares exchanged was EUR 7.8 million. The shares traded at a low of EUR 1.86 and a high of EUR 2.90. The average share price was EUR 2.40. The closing price at September 28, 2012 was EUR 2.20, which translates into market capitalization of EUR 14.1 million.

Nominee-registered shares accounted for 5.0 percent of the total shares.

Aspocomp's business operations

Aspocomp sells and manufactures PCBs and offers related design and logistics services. The company's own manufacturing units in Oulu and Teuva comprise the core of its business operations. Both units focus on prototype and quick-turn deliveries and the commercialization of new PCB technologies in cooperation with customers' product design departments. In addition, Aspocomp provides high-volume PCB trading services, including added-value services.

Aspocomp's customers are companies that design and manufacture telecom systems and equipment, industrial and automotive electronics, and healthcare systems.

The Oulu plant manufactures HDI (High Density Interconnection), multilayer and special material PCBs. It is capable of very fast deliveries, even in the case of structurally complex PCBs. Aspocomp's HDI product development and commercialization are centralized in Oulu. In addition, the Oulu plant develops technologies for heat management on PCBs.

The Teuva plant manufactures two-layer, multilayer and special material PCBs. It also specializes in the production of short series and quick-turn deliveries. The Teuva plant develops and commercializes new material and structural solutions based on standard (not HDI) multilayer technology. It also develops heat management applications.

Electronics supply chains are occasionally hit by disturbances that result in urgent needs. For instance, PCB deliveries might be hindered by overdemand, accidents, natural catastrophes or holiday seasons. Furthermore, problems with deliveries of any of the components assembled on PCBs could lead to layout changes in PCBs. Fulfilling urgent needs due to such changes is difficult and cost-ineffective for high-volume PCB suppliers that manufacture long series. In such situations, Aspocomp's plants can step in to plug these urgent high-volume needs.

In addition to its in-house manufacture, Aspocomp also offers PCB trading services to its customers. These services include the selection of the most suitable high-volume manufacturer, provision of the technical specifications of the product, quality assurance and logistics services. These trading services round out Aspocomp's own manufacturing, enabling customers to cost-effectively buy their PCBs from a single provider over the entire life cycle of a product. Aspocomp's own production operations keep it up to date on developments in PCB technology — customers can thus rest assured that the company will provide them with the best knowledge and service.

Outlook for the future

As Aspocomp's business focuses on prototypes and quick-turn deliveries, it is difficult to forecast full-year net sales. Due to the weak demand within all customer segments, Aspocomp lowered its net sales and operating result forecast for 2012 (Company Announcement on October 11, 2012). According to this forecast, net sales will be slightly higher than in 2011 and the operating result is anticipated to be at a satisfactory level with respect to the industry sector, but to fall significantly short of 2011.

In its previous outlook (Company Announcement on August 20, 2012), Aspocomp estimated that net sales will be somewhat higher than in 2011. The guidance for the operating result remained unchanged and was anticipated to be at a good level with respect to the industry sector, but to fall significantly short of 2011.

Assessment of short-term business risks

Litigations

In 2007, the French Supreme Court ordered the company to pay approximately EUR 11 million to 388 former employees of Aspocomp S.A.S. The company made the payment in 2007.

In January 2009, the Labor Court of Evreux, France ruled that the company has to pay approximately EUR 530 thousand in compensation, with interest, to a further 13 former employees. Aspocomp appealed, but the Court of Appeal of Rouen confirmed the decision in May 2010. The payment has not been made, but Aspocomp made a related provision in its 2007 financial statements.

In October 2010, six former employees reasserted their suspended claims in a French Court. In addition, one new claim was made. These hearings were held in May 2011. The company was informed of the ruling in November 2011. Aspocomp was obligated to pay about EUR 130 thousand to these seven (6+1) former employees of Aspocomp S.A.S. Aspocomp has appealed the ruling.

In September 2012, the Court of Appeal of Rouen changed the decision rendered by the Labor Court of Evreux and ruled that Aspocomp must pay approximately EUR 190 thousand, with legal interest, to seven former employees of Aspocomp S.A.S., its former French subsidiary.

Aspocomp will oppose possible enforcement of the aforementioned compensations. The compensations have no profit impact during the current financial period because Aspocomp made an adequate provision in its 2007 financial statements. However, if compensations are enforced, their cash flow impact will be about EUR 0.8 million.

There is a risk that the remaining approximately 90 employees may also institute proceedings. Under legislation that came into effect in June 2008, the statute of limitations for filing a suit is five years after the law came into effect.

Market trends

Although Aspocomp is a marginal player in the global electronics market, major changes in global PCB demand also have an impact on the company's business. A prolonged downturn increases competition in quick-turn deliveries and short production series. Correspondingly, overdemand for PCBs increases the need for quick-turn deliveries and decreases competition in short series, as high-volume manufacturers seek to optimize their capacity utilization ratios. If the downturn that began in 2011 lengthens, this might significantly hinder demand for Aspocomp's offerings.

Aspocomp's main market area comprises Northern and Central Europe. If the debt crisis that is shaking Europe hampers the delivery capabilities of Aspocomp's clients or leads them to transfer their R&D out of Europe, demand for Aspocomp's offerings might weaken substantially.

Liquidity and financial risks

Aspocomp's liquidity is based on the Group's cash assets, the cash flow generated by business operations, and external financing. Due to its financial difficulties in recent years, the company might face problems in securing external financing in the scope and under the terms and conditions that its financial position would allow. Furthermore, the company is liable to pay damages, which might also have a negative impact on its liquidity (see "Litigations" above).

If Aspocomp Group Plc. does not obtain financing from its operations, external providers of finance, or other sources of financing, the company may ultimately become insolvent. This could have a materially negative impact on the company's business operations, financial position and result of operations.

Accounting policies

The reported operations include Aspocomp Oulu Oy and the Group's parent company, Aspocomp Group Plc. These operations comprise a single business segment.

All figures are unaudited. The interim report 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, 2011 have been applied in the preparation of this report. However, as of January 1, 2012 the company has applied the following new or modified standards:

• IFRS 7 (amendment), Financial Instruments: Disclosures Derecognition
• IAS 12 (amendment), Income taxes Deferred tax

The application of the aforementioned standards has no material impact on the reported figures.

Profit and Loss Statement

July-September

1 000 €		7-9/12		7-9/11
Net sales	5 400	100 %	6 304	100 %	-14 %
Other operating income	9	0 %	6	0 %	47 %
Materials and services	-2 209	-41 %	-2 150	-34 %	3 %
Personnel expenses	-1 595	-30 %	-1 548	-25 %	3 %
Other operating costs	-1 321	-24 %	-1 053	-17 %	25 %
Depreciation and amortization	-374	-7 %	-308	-5 %	22 %
Operating profit	-89	-2 %	1 251	20 %	107 %
Financial income and expenses	-3	0 %	-8	0 %	-63 %
Profit before tax	-92	-2 %	1 243	20 %	107 %
Income taxes	1	0 %	2	0 %	-43 %
Profit for the period	-91	-2 %	1 246	20 %	107 %
Other comprehensive income for the
period, net of tax
Redemption of convertible bond	0	0 %	0	0 %
Translation differences	3	0 %	0	0 %	-3500 %
Total comprehensive income	-88	-2 %	1 246	20 %	107 %
Profit for the period attributable to
Non-controlling interests	0	0 %	0	0 %	0 %
Equity shareholders	-91	-2 %	1 246	20 %	107 %
Total comprehensive income
attributable to
Non-controlling interests	0	0 %	0	0 %	0 %
Equity shareholders	-88	-2 %	1 246	20 %	107 %
Earnings per share (EPS)
Basic EPS	-0.01	€	0.20	€	-105 %
Diluted EPS	-0.01	€	0.20	€	-105 %

January-September

1 000 €	1-9/12		1-9/11		Change	1-12/2011
Net sales	18 459	100 %	17 783	100 %	4 %	23 613	100 %
Other operating income	50	0 %	24	0 %	109 %	25	0 %
Materials and services	-6 571	-36 %	-5 721	-32 %	15 %	-7 327	-31 %
Personnel expenses	-5 470	-30 %	-4 828	-27 %	13 %	-6 298	-27 %
Other operating costs	-4 250	-23 %	-3 403	-19 %	25 %	-4 643	-20 %
Depreciation and amortization	-1 086	-6 %	-959	-5 %	13 %	-1 270	-5 %
Operating profit	1 132	6 %	2 897	16 %	-61 %	4 102	17 %
Financial income and expenses	-2	0 %	3 171	18 %	100 %	3 144	13 %
Profit before tax	1 130	6 %	6 068	34 %	-81 %	7 246	31 %
Income taxes	1	0 %	-3	0 %	-127 %	-3	0 %
Profit for the period	1 131	6 %	6 065	34 %	-81 %	7 243	31 %
Other comprehensive income for the
period, net of tax
Redemption of convertible bond	0	0 %	-680	-4 %		-680	-3 %
Translation differences	5	0 %	-2	0 %	-295 %	1	0 %
Total comprehensive income	1 136	6 %	5 383	30 %	-79 %	6 563	28 %
Profit for the period attributable to
Non-controlling interests	0	0 %	0	0 %	0 %	0	0 %
Equity shareholders	1 131	6 %	6 065	34 %	-81 %	7 243	31 %
Total comprehensive income
attributable to
Non-controlling interests	0	0 %	0	0 %	0 %	0	0 %
Equity shareholders	1 136	6 %	5 383	30 %	-79 %	6 563	28 %
Earnings per share (EPS)
Basic EPS	0.18 €		1.05 €		-83 %	1.23 €
Diluted EPS	0.18 €		1.05 €		-83 %	1.23 €

Consolidated Balance Sheet

1 000 €	9/12	9/11	Change	12/11
Assets
Non-current assets
Intangible assets	3 000	3 000	0 %	3 000
Tangible assets	3 733	3 248	15 %	3 502
Available for sale investments	15	16	-6 %	16
Total non-current assets	6 748	6 264	8 %	6 517
Current assets
Inventories	3 006	2 128	41 %	2 264
Short-term receivables	4 518	5 257	-14 %	4 734
Cash and bank deposits	2 704	2 206	23 %	2 874
Total current assets	10 228	9 592	7 %	9 872
Total assets	16 976	15 856	7 %	16 390
Equity and liabilities
Share capital	1 000	20 082	-95 %	1 000
Share premium	0	27 918	-100 %	0
Treasury shares	0	-510	100 %	-510
Special reserve	0	45 989	-100 %	0
Reserve for invested non-restricted equity	3 873	25 544	-85 %	3 528
Retained earnings	6 706	-110 126	106 %	6 080
Equity attributable to shareholders	11 579	8 897	30 %	10 098
Total equity	11 579	8 897	30 %	10 098
Long-term financing loans	184	771	-76 %	674
Provisions	263	215	22 %	188
Short-term financing loans	390	838	-53 %	479
Trade and other payables	4 560	5 134	-11 %	4 951
Total liabilities	5 397	6 959	-22 %	6 292
Total equity and liabilities	16 976	15 856	7 %	16 390

Consolidated Changes in Equity

January-September, 2012
	Equity attributable to the shareholders of the parent co.
1 000 €	Share capital	premium Share	Other reserve	Own shares	Translation differences	Retained earnings	Total		Total equity
Balance at 1-Jan-2012	1 000	0	3 528	-510	6	6 074	10 098	0	10 098
Comprehensive income
Comprehensive income for the
period						1 131	1 131		1 131
Other comprehensive income for
the period, net of tax
Translation differences					5		5		5
Total comprehensive income for
the period	0	0	0	0	5	1 131	1 136	0	1 136
Business transactions with owners
Reissuance of treasury shares			346	510		-510	346		346
Business transactions with
owners, total			346	510		-510	346	0	346
Balance at 30-September-2012	1 000	0	3 873	0	11	6 695	11 579	0	11 579

January-September, 2011

1 000 €	Share capital	premium Share	Other reserve	Own shares	Translation differences	Retained earnings	Total	Non-controlling interests	Total equity
Balance at 1-Jan-2012	1 000	0	3 528	-510	6	6 074	10 098	0	10 098
Comprehensive income
Comprehensive income for the period						1 131	1 131		1 131
Other comprehensive income for
the period, net of tax
Translation differences					5		5		5
Total comprehensive income for
the period	0	0	0	0	5	1 131	1 136	0	1 136
Business transactions with owners
Reissuance of treasury shares			346	510		-510	346		346
Business transactions with
owners, total			346	510		-510	346	0	346
Balance at 30-September-2012	1 000	0	3 873	0	11	6 695	11 579	0	11 579
January-September, 2011
	Equity attributable to the shareholders of the parent co.
	Share capital		Other reserve					Non-controlling	Total equity
				Own shares	Translation differences	Retained
		premium Share				earnings	Total	interests
1 000 €
Balance at 1-Jan-2011
Comprehensive income for the	20 082	27 918	69 874	-758	6	-114 287	2 835	758	3 593
period						6 065	6 065	0	6 065
Other comprehensive income for
the period, net of tax
Translation differences					-2		-2		-2
Redemtion of convertible bond			-1 945			1 265	-680		-680
Total comprehensive income for the period	0	0	-1 945	0	-2	7 329	5 382		5 382
Business transactions with
owners
Directed issue and redemption of
non-controlling interests			3 682			-2 924	758	-758	0
Reissuance of treasury shares				248		-248	0		0
Direct cost of issuing new shares			-78				-78		-78
Business transactions with
owners, total			3 604	248		-3 172	680	-758	-78

Consolidated Cash Flow Statement

	1 000 € 1-9/12	1-9/11	1-12/11
Profit for the period	1 131	6 065	7 243
Adjustments	1 091	-2 212	-1 853
Change in working capital	-815	-1 461	-1 289
Received interest income and dividends	43	35	38
Paid interest expenses	-30	-68	-161
Paid taxes	2	-3	-3
Operational cash flow	1 423	2 355	3 975
Investments	-1 004	-691	-1 186
Proceeds from sale of property, plant and equipment	1	14 539	14 539
Cash flow from investments	-1 003	13 848	13 353
Decrease in financing	-1 090	-19 631	-20 088
Increase in financing	500	1 000	1 000
Direct cost of issuing new shares	0	-78	-78
Cash flow from financing	-590	-18 709	-19 166
Change in cash and cash equivalents	-170	-2 505	-1 837
Cash and cash equivalents at the beginning of period	2 874	4 712	4 712
Currency exchange differences	0	0	0
Cash and cash equivalents at the end of period	2 704	2 206	2 874

Notes to the interim report

Acquired business operations

The table below presents the total consideration paid for acquired companies and business operations as well as the assets acquired and liabilities assumed, measured at fair value on the acquisition date.

On January 2, 2012, Aspocomp Oulu Oy acquired the business operations of Cibo-Print Oy's plant in Teuva, including the company's PCB trading operations. Machinery, equipment and inventories were transferred in the transaction.

On the acquisition date, the values of the assets acquired and liabilities assumed were:

	1 000 €	9/12
Fair values used in acquisitions
Tangible assets		305
Inventories		561
Total assets		866
Interest-bearing liabilites		37
Other payables		278
Total liabilities		315
Net assets		551
Acquisition cost		551
Purchase price payable in cash		197
Purchase price payable in own shares		354
Cash flow		-197

The acquiree had net sales of EUR 3,013 thousand in 2012 and had an earnings impact of EUR -484 thousand. The acquisition involved transaction costs of EUR 42 thousand in 2011.

Key Financial Indicators

	9/12	9/11
Equity per share, €	1.81	1.43
Equity ratio, %	68.2 %	56.1 %
Gearing, %	-18.4 %	-6.7 %
Earnings per share (EPS), basic, €	0.18	1.05
Earnings per share (EPS), diluted, €	0.18	1.05

Formulas and definitions

	Equity attributable to shareholders
Equity/share, € =	Number of shares at the end of period
Equity ratio, % =	Equity	x 100
	Total assets - advances received
Gearing, % =	Net interest bearing liabilities	x 100
	Total equity
Earnings/share (EPS), € =	Profit attributable to equity shareholders
	Adjusted weighted average number of shares outstanding
EBITDA =	Earnings before interests, taxes, depreciations and
	amortizations

Contingent Liabilities

	1 000 €	9/12	9/11	12/11
Mortgages given as security for bank loans
Business mortgage		0	4 000	4 000
Operating lease liabilities		715	670	715
Other liabilities		40	30	30
Total		755	4 700	4 745

All figures are unaudited.

Espoo, October 18, 2012

Board of Directors of Aspocomp Group Plc.

For further information, please contact Sami Holopainen, CEO, tel. +358 20 775 6860, sami.holopainen(at)aspocomp.com.

Aspocomp – Providing Design Flexibility

Aspocomp sells and manufactures high-tech PCBs. The company's products are used in the electronics industry, for instance, in telecommunications networks, automobiles and many types of industrial applications.

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.