– Incap Group’s official net turnover in January-September was EUR 52.8 million and operating loss EUR 3.0 million.
– Incap-JMC’s pro forma net turnover in January-September was EUR 47.1 million and operating loss EUR 5.5 million. 
– Pro forma net turnover for the third quarter was EUR 13.2 million and operating loss EUR 3.1 million. The total result includes one-time cost entries worth altogether EUR 1.9 million.
The official consolidated figures for January-September include the January-February figures of Incap Furniture Ltd, which was sold on 1 March 2002, and the consolidated May-September figures of JMC Tools Oy, which was purchased in April 2002. The current business developments during the reporting period have been described as pro forma data. The official and pro forma group developments are illustrated in more detail in the tables.
Group’s financial development
Incap Group’s official net turnover in January-September was EUR 52.8 million, or lower by 25 % than during the corresponding period a year previously (EUR 70.2 million in January-September 2001). The Group’s operating loss was EUR 3.0 million (operating profit EUR 8.9 million), loss before extraordinary items EUR 3.7 million (result profitable by EUR 8.4 million) and loss for the reporting period EUR 9.8 million (result profitable by EUR 6.0 million). The removal of the assets and liabilities of the Incap Furniture subgroup caused an accounting loss in EUR 6.1 in the consolidated profit and loss account.
The official group’s earnings per share were EUR -0.57 (EUR 1.7) and equity per share EUR 1.60 (EUR 7.15). The group’s equity ratio was 42.2 % (39.2 %) and balance sheet total EUR 46.2 million (EUR 64.1 million).
Incap-JMC’s financial development pro forma
Incap-JMC’s pro forma net turnover in January-September 2002 was EUR 47.1 million and operating loss EUR 5.5 million. Net turnover for the third quarter was lower by 22 % than during the preceding quarter, being EUR 13.2 million (EUR 17.0 million). Operating loss for the third quarter was EUR 3.1 million, having been EUR 1.2 million during the previous quarter.
The increase of operating loss from the previous quarter was due to the one-time cost entries worth a total of EUR 1.9 million made in the figures for the third quarter. Of these cost entries, EUR 1.0 million were due to non-marketable materials and components of certain products of the telecommunication sector, which had been recorded in the inventories. The remaining EUR 0.9 million cost entries were due to personnel arrangements and adjustment measures necessitated by the declining markets.
The comparable net turnover of the electronics sector (electronic and mechanic manufacturing services excluding high-frequency components) in January-September was EUR 43.4 million (EUR 44.2 million in January-September 2001) and the operating loss EUR 0.7 million (operating profit EUR 0.5 million). The operating loss includes one-time costs entered in July-September worth EUR 0.7 million.
Incap-JMC’s pro forma result per share in January-September was EUR -0.96 and equity per share EUR 1.60. The balance sheet total at the end of the reporting period was EUR 46.2 million and the pro forma equity ratio 42.2 %.
Incap-JMC’s business development
Incap-JMC’s business operations consist of electronic and mechanic manufacturing services and the manufacturing of high-frequency components. Demand for the equipment in the automation and process industries as well as for safety electronics and health care instruments continued unchanged. The difficult market situation in the telecommunication sector was reflected in the company’s business and notably limited the utilization rate of the manufacturing capacity of high-frequency products.
Measures to improve profitability and to ensure competitive capacity were increased and adjustment of operations to the demand was continued. Resources were allocated to sales in order to improve customer relationship management.
Financing and investments
The group’s financing status remained stable. The group’s quick ratio was 0.7 (0.8) and current ratio 1.9 (1.7). Net gearing ratio was 82.7 % and equity ratio 42.2 % (39.2 %).
The official group’s total investments in January-September amounted to EUR 0.3 million (EUR 12.9 million), being about 0.6 % (18 %) of net turnover. Incap-JMC made investments worth EUR 0.4 million, which accounted for 0.8 % of pro forma net turnover.
Personnel and organization
At the end of the reporting period, Incap Group was employing 613 persons (640 persons at the end of June 2002), of whom 102 were laid off.
The group’s business operations were restructured in two business sectors in October. The business sectors of electronics and mechanics were combined and Timo Sonninen, who used to be responsible for the electronics business sector, was nominated Vice President, Electronics and Mechanics Operations. The electronics and mechanics business sector has production units in Helsinki, Vaasa, Vuokatti and Kuressaare, Estonia, as well as the Ultraprint Oy unit in Kempele. The other business sector consists of RF business with Jari Niskanen acting as Vice President, RF Operations. The RF sector concentrates on the manufacturing and development of high-frequency products, and it consists of the Kempele and Ruukki production units of JMC Tools Oy.
The new structure will enhance the offering of complete box-build products and support the efforts to increase competencies in high-frequency technologies.
JMC Tools Oy’s new board
JMC Tools Oy’s extraordinary shareholders meeting held on 5 November 2002 appointed Kalevi Laurila, Jorma Terentjeff and Juhani Vesterinen as members of the board. The board appointed Jorma Terentjeff as their chair.
Shares and shareholders
The market price of Incap Corporation’s shares in January-September varied between EUR 5.63 and 2.01. The company had a total of 12,180,880 shares, of which 6.7 % changed hands during the reporting period. At the end of the reporting period, the company had 588 shareholders. The company’s market value on 30 September 2002 was EUR 24.5 million.
The limitation on the sale of the shares subscribed at the time of the special issue, which was recorded in the merger agreement between Incap Corporation and JMC Tools Oy, will be cancelled upon the publication of this interim report 1-9/2002. Altogether 70 % of the 8,670,770 shares subscribed following this special issue were subject to this limitation.    
The board of directors has valid authorization to increase the share capital by a maximum of EUR 1,180,679.24.
The markets are expected to remain unchanged during the last few months of the year, and Incap-JMC’s pro forma net turnover in 2002 is expected to remain lower by about 10 % compared to the level of the year 2001, as predicted previously. The pro forma net turnover of the fourth quarter is expected to exceed the corresponding net turnover of the period July-September. The operating loss is likely to be smaller during the last quarter than earlier this year, thanks to the adjustment of costs and the increasing efficiency of operations.
According to the company’s current estimate, the demand for the equipment in the automation and process industries as well as for safety electronics and health care instruments will continue stable. In the telecommunication sector, however, the market situation is likely to remain difficult during the first half of 2003.
Incap Group’s annual accounts for the year 2002 will be published at 1 pm on 18 February 2003.
Board of directors
Seppo Ropponen
President and CEO
The full report including tables can be downloaded from the enclosed link.

For further information, please contact:
Seppo Ropponen, President and CEO, tel. +358 44 270 3021
Rauni Nokela, Vice President, Finance and Administration, tel. +358 400 383 409