SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 31 MARCH 2012

Scanfil Oyj 

02.05.2012 08:30
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SCANFIL PLC              INTERIM REPORT        2 MAY 2012  9.30 A.M.

SCANFIL GROUP'S INTERIM REPORT 1 JANUARY - 31 MARCH 2012

January - March
- Turnover totalled to EUR 42.6 million
- Operating profit EUR 1.4 million, 3.4% of turnover
- Operating profit excluding non-recurring items EUR 1.0 million,
  representing 2.3% of turnover
- Profit for the review period was EUR 1.2 million
- Earnings per share were EUR 0.02

The result for January-March includes the following non-recurring items:
Scanfil EMS Oy's share of the damages paid by Ojala-Yhtymä Oy, EUR 1.2 million,
Scanfil plc's listing expenses, EUR 0.4 million, and the provision for expenses
due to the restructuring of the Hangzhou subsidiary, EUR 0.4 million. 

Harri Takanen, CEO of Scanfil plc:
'The new Scanfil plc was established in the demerger of Sievi Capital plc on 1
January 2012. In the demerger, Scanfil EMS Oy, a company with 35 years of
experience in contract manufacturing, transferred to Scanfil plc. Since this is
the first interim report of the new company, Scanfil plc does not have
comparison figures for previous financial periods. The company has published
the figures for the Scanfil EMS Oy Group for 2011 as comparison data. 

Sales were low during the first quarter due to the weak demand for
telecommunications products. The demand for professional electronics products,
on the other hand, was strong. In spite of the challenging market conditions,
the company has been able to keep its profitability positive. The high
motivation and commitment of the personnel have been of paramount importance in
being able to adjust to the changing market situation. Flexibility is essential
in the contract manufacturing business. 

The existing capacity of the company's contract manufacturing business makes it
possible to increase production and turnover without making major investments. 
The company's result can be improved this way. We believe that growth can be
achieved by boosting our sales efforts with regard to both our existing
customer base and new customer acquisitions.' 

DEVELOPMENT OF OPERATIONS

The demand in the contract manufacturing market was twofold during the first
quarter, with the demand for telecommunications products being very poor and
the demand for professional electronics products being very positive. The
favourable demand for professional electronics products was not, however,
sufficient to compensate for the decrease in the demand for telecommunications
products. The company has adjusted its operations and been able to react
swiftly to the weakening demand in the contract manufacturing market. In spite
of the low turnover, the company's operating profit excluding non-recurring
items has remained positive as a result of successful and correctly timed
adjustment measures. Professional electronics customers accounted for 76% of
total sales for the first quarter, telecommunications customers for 24%. 

Scanfil will develop and boost its business operations by adopting a new
enterprise resource planning system. The system will be deployed through a
development project that will be carried out in all units over approximately
two years. The new software will be used for developing an integrated system
that covers all of the Group's business processes, which will contribute to
strengthening Scanfil's competitiveness in the international contract
manufacturing market. 

In Finland, Scanfil EMS Oy had statutory employer-employee negotiations at the
Sievi plant. Based on the results of the negotiations, a total of 64 workers
and salaried employees will be made redundant. The Hangzhou subsidiary in China
has also streamlined its operations during the period. Scanfil EMS Oy Group had
1,746 employees on 31 March 2012. 

THE COURT OF ARBITTRATIONS JUGEMENT CONCERNING THE MERGER OF SCANFIL EMS OY AND
OJALA-YHTYMÄ OY 

With the judgment issued on February 29, 2012, the court of arbitration ordered
Ojala-Yhtymä Oy and its shareholders ('Ojala') to pay a total of EUR 2 million
and interest to Scanfil plc's subsidiary Scanfil EMS Oy and Sievi Capital plc
and to pay the companies' legal expenses in the matter in full. Furthermore,
Ojala was obligated to pay the court of arbitration's expenses and fees in
full. The compensation less legal expenses was divided equally between Scanfil
EMS Oy and Sievi Capital plc. In its award, the court of arbitration confirmed
all of Scanfil EMS Oy's and Sievi Capital plc's claims and the opinion that
Ojala was not entitled not to execute the agreed merger. The judgement of the
court of arbitration is final. The court of arbitration dismissed Ojala's
counterclaim against Scanfil EMS Oy and Sievi Capital Oyj in its entirety.
Scanfil plc published a stock exchange release concerning the matter on 1 March
2012. 

FINANCIAL DEVELOPMENT

The Group's turnover for January - March was EUR 42.6 million. Distribution of
turnover based on the location of customers was as follows: Finland 47%, rest
of Europe 19%, Asia 33%, USA 1%. 
The Chinese subsidiaries' sales accounted for 36 % of the Group's sales during
the review period including deliveries to the Group's other plants. 

Operating profit for the Group during the review period was EUR 1.4 million,
representing 3.4% of turnover. The Group's operating profit includes the
following non-recurring items: Scanfil EMS Oy's share of the damages paid by
Ojala-Yhtymä Oy, EUR 1.2 million, Scanfil plc's listing expenses, EUR 0.4
million, and the provision for expenses due to the restructuring of the
Hangzhou subsidiary, EUR 0.4 million, consisting mainly of expenses related to
the termination of personnel. Operating profit excluding non-recurring items
was EUR 1.0 million, representing 2.3% of turnover. Earnings for the review
period amounted to EUR 1.2 million. Earnings per share were EUR 0.02 and return
on investment was 6.7%. 

FINANCING AND CAPITAL EXPENDITURE

The Group enjoys a strong financial position.
The consolidated balance sheet totalled EUR 133.1 million. Liabilities amounted
to EUR 63.8 million, EUR 27.2 million of which were non-interest-bearing and
EUR 36.6 million interest-bearing. The equity ratio was 52.0% and gearing
-1.1%. The equity per share was EUR 1.2. 

Liquid cash assets totalled EUR 37.4 million.

Cash flows from operating activities in the review period of January - March
came to EUR 3.2 million. The change in working capital during the period
amounted to EUR 0.1 million. Cash flow from investment activities was EUR -0.5
and cash flow from financing activities was EUR 0.0 million. 

Gross investments in fixed assets totalled EUR 0.5 million, which is 1.2% of
turnover. Depreciations were EUR 1.1 million. 

SCANFIL EMS OY'S COMPARISON FIGURES FOR 2011

The new company Scanfil plc was formed in the partial demerger of Sievi Capital
plc executed on 1 January 2012, in which the contract manufacturing business
(Scanfil EMS Oy group) was demerged into a new publicly listed company. Scanfil
plc's business operations consist of contract manufacturing operations, and
since Scanfil plc has no comparison figures for 2011, the company published
Scanfil EMS Oy Group's figures for 2011 as comparison data on 2 May 2012.
Scanfil EMS Oy Group's indicators for the first quarter and whole year of 2011
are presented below: 



                                           1 - 3  1 - 12
                                            2011    2011
                                                        
Turnover, MEUR                              58.8   210.8
Operating profit, MEUR                       3.6     9.1
Operating profit, %                          6.1     4.3
Net income, MEUR                             2.6     6.3
                                                        
Return on equity, %                         17.6     9.7
Return on investment, %                     13.9     9.5
Interest-bearing liabilities, EUR million   40.0    36.5
Gearing, %                                  36.2     1.9
Equity ratio, %                             43.2    53.6
                                                        
Personnel, average                         2 293   2 024



DECISIONS BY THE EXTRAORDIMNARY GENERAL MEETING AND BOARD OF DIRECTORS'
AUTHORISATION 

Scanfil plc's Extraordinary General Meeting was held at company's main office
in Sievi on 19 April 2012. 

The Meeting decided that the Board of Directors shall consist of four members.

Jorma J. Takanen, Tuomo Lähdesmäki and Jarkko Takanen were re-elected as
Members of the Board of Directors and Päivi Marttila as a new Board Member. The
meeting decided that the remuneration of Members of the Board of Directors is
EUR 1,300/month. 

In its meeting, held after the General Meeting, the Board of Directors elected
Jorma J. Takanen as the Chairman of the Board of Directors. 

The Meeting decided according to the Board of Directors' proposal to authorize
the Board of Directors to decide on the acquisition of the Company's own shares
with distributable assets. 

The Meeting decided according to the Board of Directors' proposal to authorize
the Board of Directors to decide on the disposal of the Company's own shares. 

The Board of Directors' proposals to the Extraordinary General Meeting are
available on the company website at www.scanfil.com. 

The minutes of the Extraordinary General Meeting will be available on the
company's website, www.scanfil.com, as of 3 May 2012. 

SHARE TRADING AND SHARE PERFORMANCE

The highest trading price during the review period was EUR 1.10 and the lowest
EUR 0.65, the closing price for the period standing at EUR 0.78. A total of
892,412 shares were traded during the period, corresponding to 1.5% of the
total number of shares. The market value of the shares on 31 March 2012 was EUR
45.0 million. 

PERSONNEL

Scanfil Group's personnel averaged 1,744 employees during the review period. At
the end of the period, the Group employed 1,746 people, of whom 297 worked in
the company's Finnish units and 1,449 in the company's units outside Finland.
In all, 83% of the Group's personnel were employed by subsidiaries outside
Finland on 31 March 2012. 

FUTURE PROSPECTS

Due to the continued uncertain situation in the global and European economy,
the predictability of the contract manufacturing market is very poor, and it is
not possible to provide a reliable outlook for the year. Based on the current
outlook, the demand for telecommunications products is expected to fall clearly
short of the previous year. The demand for professional electronics customers
is expected to be on a par with 2011. 

Full-year turnover and operating profit will decrease compared to 2011 (Scanfil
EMS Oy's turnover for 2011 was EUR 210.8 million and operating profit EUR 9.1
million). Full-year operating profit is, however, expected to be clearly
positive. 

OPERATIONAL RISKS AND UNCERTAINTIES

The slowing down of the world economy and decreased international demand for
investment commodities especially in Europe may have a negative effect on
demand in the contract manufacturing market and slow down the development of
Scanfil's sales and profitability. 

In other respects, the risks facing Scanfil's business have remained
essentially the same. The company's risks and risk management are described in
greater detail on the company's website under Corporate Governance. 

ACCOUNTING PRINCIPLES

The interim report has been prepared in accordance with the IAS 34 Interim
Financial Reporting standard, applying the following accounting policies with
the financial statements for 2010. 

Individual figures and grand totals of tables have been rounded to the nearest
million euros, so they will not always add up. The figures are unaudited. 





CONSOLIDATED INCOME STATEMENT                                            
EUR million                                                              
                                                                    1 - 3
                                                                     2012
                                                                         
Turnover                                                             42.6
Other operating income                                                1.2
Changes in inventories of finished goods                                 
and work in progress                                                  0.0
Expenses                                                            -41.4
Depreciation                                                         -1.1
Operating profit                                                      1.4
Financial income and expenses                                         0.1
Share in the associated company's profit                             -0.1
Profit before taxes                                                   1.4
Income taxes                                                         -0.2
Net profit for the period                                             1.2
                                                                         
Attributable to:                                                         
Equity holders of the parent                                          1.2
                                                                         
Earnings per share for profit attributable to                            
shareholders of the parent:                                              
basic earnings per share ( EUR)                                      0.02
                                                                         
The company does not have items that might dilute the earnings per share.
                                                                         
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                           
EUR million                                                              
                                                                    1 - 3
                                                                     2012
                                                                         
Net profit for the period                                             1.2
Other comprehensive income:                                              
Translation differences                                              -1.5
Derivative financial instrument                                       0.3
Other comprehensive income, net of tax                               -1.3
Total Comprehensive Income                                           -0.1
                                                                         
Attributable to:                                                         
Equity holders of the parent                                         -0.1





CONSOLIDATED STATEMENT OF FINANCIAL POSITION               
EUR million                                                
                                                           
Assets                                            31.3.2012
                                                           
Non-current assets                                         
Property, plant and equipment                          26.4
Goodwill                                                2.2
Other intangible assets                                 3.7
Shares in associated companies                          1.0
Available-for-sale investments                          0.0
Receivables                                             0.3
Deferred tax assets                                     0.5
Total non-current assets                               34.1
                                                           
Current assets                                             
Inventories                                            29.2
Trade and other receivables                            31.8
Advance payments                                        0.1
Current tax                                             0.5
Available-for-sale investments, cash equivalents       26.3
Cash and cash equivalents                              11.0
Total current assets                                   98.9
                                                           
Total assets                                          133.1
                                                           
                                                           
Shareholder's equity and liabilities              31.3.2012
                                                           
Equity                                                     
Share capital                                           2.0
Translation differences                                 7.7
Other reserves                                          5.2
Reserve for invested unrestricted equity fund          10.7
Retained earnings                                      43.7
Total equity                                           69.3
                                                           
Non-current liabilities                                    
Deferred tax liabilities                                0.0
Provisions                                              0.6
Interest bearing liabilities                           27.4
Other liabilities                                       0.1
Total non-current liabilities                          28.2
                                                           
Current liabilities                                        
Trade and other liabilities                            26.1
Current tax                                             0.4
Interest bearing liabilities                            9.1
Total current liabilities                              35.7
                                                           
Total liabilities                                      63.8
                                                           
Total shareholder's equity and liabilities            133.1





CONSOLIDATED CASH FLOW STATEMENT                                 
EUR million                                                      
                                                    1.1-31.3.2012
Cash flow from operating activities                              
Net profit                                                    1.2
Adjustments for the net profit                                1.9
Change in net working capital                                 0.1
Paid interests and other financial expenses                  -0.0
Interest received                                             0.1
Taxes paid                                                   -0.1
Net cash from operating activities                            3.2
                                                                 
Cash flow from investing activities                              
Investments in tangible and intangible assets                -0.5
Sale of tangible and intangible assets                        0.0
Net cash from investing activities                           -0.5
                                                                 
Cash flow from financing activities                              
Net cash from financing activities                               
                                                                 
Net increase/decrease in cash and cash equivalents            2.6
                                                                 
Cash and cash equivalents at beginning of period             35.2
Cash transferred at the demerger                              0.1
Changes in exchange rates                                    -0.6
Cash and cash equivalents at end of period                   37.4



                                                                                
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY                                     
EUR million                                                                     
                                                                                
Equity attributable to equity holders of the parent company                     
                                                                                
                                                   Reserve for                  
                                                    invested                    
                  Share    Translation   Other    unrestricted  Retained  Equity
                 capital   differences  reserves   equity fund  earnings   total
Equity                                                                          
--------------------------------------------------------------------------------
      1.1.2012     2.0         9.2         4.9        10.7        42.6     69.4 
                                                                         -------
                                                                                
                                                                         -------
Total comprehensive           -1.5         0.3                     1.2     -0.1 
 income                                                                         
                                                                         -------
                                                                                
                                                                         -------
                                                                                
                                                                         -------
Equity                                                                          
--------------------------------------------------------------------------------
     31.3.2012     2.0         7.7         5.2        10.7        43.7     69.3 
                                                                                





KEY INDICATORS                                                                  
                                                                           1 - 3
                                                                            2012
                                                                                
Return on equity, %                                                          6.7
Return on investment, %                                                      6.7
Interest-bearing liabilities, EUR million                                   36.6
Gearing, %                                                                  -1.1
Equity ratio, %                                                             52.0
Gross investments in fixed assets, EUR million                               0.5
% of net turnover                                                            1.2
Personnel, average                                                         1 744
                                                                                
Earnings per share, EUR                                                     0.02
Shareholders' equity per share, EUR                                          1.2
                                                                                
Number of shares at                                                             
the end of period, 000's                                                        
- not counting own shares                                                 57 730
- weighted average                                                        57 730
                                                                                
                                                                                
                                                                                
The company has a EUR 36.6 million loan in connection with which the company has
 entered                                                                        
into interest and currency swap agreements to convert the SEK-denominated       
 principal                                                                      
and cash flows of instalments and interest payments into euros. The interest and
currency swap agreement fully hedges the instalments and interest payments      
 against                                                                        
fluctuations in exchange and interest rates.                                    
Owing to the nature of the sector, the company's order book covers only a short 
 period of time and                                                             
does not give an accurate picture of future development.                        





SEGMENT INFORMATION                                                             
EUR million                                                                     
                                                                           1 - 3
                                                                            2012
Turnover                                                                        
Europe                                                                      27.9
Asia                                                                        15.5
Turnover between segments                                                   -0.7
Total                                                                       42.6
                                                                                
Operating profit                                                                
Europe                                                                       1.9
Asia                                                                        -0.4
Total                                                                        1.4
                                                                                
Assets                                                                          
Europe                                                                      67.8
Asia                                                                        62.0
Goodwill                                                                     2.2
Shares in associated companies                                               1.0
Total                                                                      133.1
                                                                                
                                                                                
                                                                                
CHANGES IN TANGIBLE NON-CURRENT ASSETS                                          
EUR million                                                                     
                                                                           1 - 3
                                                                            2012
                                                                                
Book value at the beginning of the period                                   27.0
Additions                                                                    0.5
Deductions                                                                   0.0
Depreciations                                                               -1.0
Exchange rate differences                                                   -0.1
Book value at the end of the period                                         26.4
                                                                                
                                                                                
                                                                                
CONTINGENT LIABILITIES                                                          
EUR million                                                                     
                                                                           1 - 3
                                                                            2012
                                                                                
Given business mortgages                                                    40.0
Pledged guarantees                                                           0.9
Rental liabilities                                                           0.0
                                                                                
Scanfil plc has granted Nordea Bank Finland Plc an absolute guarantee for the   
 payment                                                                        
of Scanfil EMS Oy's loan of originally EUR 40 million and resulting obligations 
 to pay.                                                                        
Nordea Bank Finland Plc has correspondingly discharged Sievi Capital plc        
 guarantee                                                                      
liability in January 2012                                                       
                                                                                
TRANSACTIONS WITH RELATED PARTIES                                               
EUR million                                                                     
                                                                           1 - 3
                                                                            2012
                                                                                
Associated companies                                                            
Sales income                                                                 0.0
Trade receivables                                                            0.1
Interest income                                                              0.0
Loan receivables                                                             0.3
Interest receivables                                                         0.0
                                                                                
Loan of EUR 300,000 has been granted to an associate company Greenpoint Oy.     
                                                                                



KEY INDICATORS QUATERLY      
                             
                             
                        Q1/12
Turnover, MEUR           42.6
Operating profit, MEUR    1.4
Operating profit, %       3.4
Net income, MEUR          1.2





SCANFIL PLC

Harri Takanen
CEO



Additional information:
CEO Harri Takanen
Tel +358 8 4882 111



Distribution         NASDAQ OMX, Helsinki
                           Major Media
                           www.scanfil.com





Scanfil Group is engaged in contract manufacturing for international
telecommunications technology and professional electronics manufacturers.
Scanfil has 35 years of experience in demanding contract manufacturing. Scanfil
is a systems supplier that offers its products and services to international
telecommunications systems manufacturers and professional electronics
customers. Typical products are equipment systems for mobile and public
switched telephone networks, automation systems, frequency converters, lift
control systems, equipment and systems for electricity production and
transmission, analysers, slot machines and different meteorological
instruments. The company has production facilities in China, Estonia, Hungary
and Finland. 

The associated company of Scanfil Group:
Greenpoint Oy (Scanfil EMS Oy's share of ownership 40%) focuses on development
and supply of solutions and equipment, which improve placements, visibility and
sales of customer products in the Point-Of-Sale. The Greenpoint product
portfolio includes a large variety of refrigerated merchandisers, displays and
integrated check-out zone concepts. The company serves both brand owners and
retail chains internationally.  Along with the European markets Greenpoint Oy
has entered North and Latin American markets through partnerships.
www.greenpoint.fi 

Not for release over US newswire services. Forward looking statements: certain
statements in this stock exchange release may constitute 'forward-looking'
statements which involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements of Scanfil
Oyj to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. When used
in this stock exchange release, such statements use such words as 'may,'
'will,' 'expect,' 'anticipate,' 'project,' 'believe,' 'plan' and other similar
terminology. New risk factors may arise from time to time and it is not
possible for management to predict all of those risk factors or the extent to
which any factor or combination of factors may cause actual results,
performance and achievements of Scanfil Oyj to be materially different from
those contained in forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on forward-looking
statements as a prediction of actual results. The forward-looking information
contained in this stock exchange release is current only as of the date of this
stock exchange release. There should not be an expectation that such
information will in all circumstances be updated, supplemented or revised,
except as provided by the law or obligatory regulations, whether as a result of
new information, changing circumstances, future events or otherwise.
News Source: NASDAQ OMX



02.05.2012 Dissemination of a Corporate News, transmitted by DGAP - 
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Language:     English
Company:      Scanfil Oyj
              
               
              Finland
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         FI4000029905
WKN:          
 
End of Announcement                             DGAP News-Service
 
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