Setec growing strong in 2001

Preliminary information on financial statement Setec growing strong in 2001 According to preliminary information on financial statement, Setec Group's net sales increased to EUR 69.8 million (EUR 51.8 million, +35%) during financial year 2001. The Group's operating profit increased to EUR 7.9 million (EUR 2.5 million, +220%), which was 11% of net sales. Major part of net sales, some 70%, results from card products, and 30% from security printing products. The net sales growth results partly from card deliveries and partly from euro banknote deliveries, which were exceptionally large in 2001. During 2001 Setec strengthened its position in its key market areas in the Nordic countries, Mediterranean countries, South East Asia and China. EUR 27.9 million of net sales came from international markets, representing a growth of 12% compared to the previous year. Some 40% of the Setec Group's net sales came from international markets (48%). All business units are growing The Government & Corporate business unit's products are electronic and visual identification documents for public authorities and corporations, and security printing products. The business unit's net sales increased by 31% to EUR 41.8 million (EUR 31.8 million), and operating profit to EUR 8.7 million (EUR 3.5 million). In June 2001 the Security Printing business unit's organisation was integrated into the Government & Corporate business unit. The Telecom & Media business unit delivers SIM cards for telecom operators. The business unit's net sales grew by 35% to EUR 15.7 million (EUR 11.7 million). The business unit recorded an operating loss of EUR -1.5 million (EUR -0.3 million) due to the challenging market situation in telecom sector, and the decrease in value of chip stock. The Banking & Retail business unit's main products are payment card solutions for banks. The business unit's net sales increased by 48% to EUR 12.3 million (EUR 8.3 million), and operating profit to EUR 0.7 million (EUR -0.7 million). For the first time, chip cards accounted for a greater share of the unit's net sales than did magnetic stripe cards. Strong financial position Total assets for the Group were EUR 35.1 million (EUR 33.6 million). The Group's financial position remains strong. Interest-bearing liabilities totalled EUR 0.2 million (EUR 2.9 million). The equity ratio was 65% (50%) and net gearing was -27% (2%). The Group had liquid assets and investments totalling EUR 6.3 million (EUR 2.6 million) at the end of the year. The Group booked all R&D costs as annual expenses. The Group's capital expenditure totalled EUR 3.2 million (EUR 5.2 million), representing 5% of net sales (10%). Earnings per share were EUR 155 (EUR 45). The Group's return on investment was 43% (14%). Further information: Setec Oy Mr Jyrki Lignell, President and CEO Tel. +358 9 89411 www.setec.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net