Cencorp Corporation adopted financial reporting under the IFRS (International Financial Reporting Standards) as of the beginning of 2005. Transition to the IFRS does not entail material changes to the Group’s result, balance sheet or shareholders' equity.

This report presents the impact resulting from the adoption of the IFRS on the published financial statements for 2004, which previously have been made in accordance with the Finnish Accounting Standards (FAS).

Transition to the IFRS has an impact on Cencorp's reporting in the following areas:


Segment reporting
Cencorp’s business is divided into a primary business segment and a secondary geographical segment.

Cencorp only has one business segment referred to in IAS 14 (Segment Reporting): production automation. Cencorp’s production units specialize in different product groups and distribute them on a global scale. The Group’s R&D resources have been concentrated mainly in Europe.

Company management monitors profitability primarily at the Group level. The profitabilities of the different product categories and plants differ somewhat, but within product categories there are no differences in profitability.

The Group’s risks are independent of product category and geographical area.

The secondary, geographical segment is divided into three sales areas:

- Europe
- Asia
- the Americas

All product categories are sold in all sales areas. Key customers operate on a global scale and expect service on a local basis.

The income of the segment is based on the customer’s geographical location. The assets and investments of the segment, on the other hand, are based on the location of the assets.


Lease contracts
Cencorp did not have any financial leases in 2004.

Properties located in Lohja at the addresses Maksjoentie 11 and Pailantie 12 have been recorded as financial leases in accordance with IAS 17 and capitalised into Cencorp’s balance sheet already in the FAS financial statements.


Financial instruments
Financial instruments are recorded in accordance with IAS 39 (Financial Instruments) with an impact on income, unless effective hedge accounting has been used.

The impact of the subordinated loan recognised under IAS 39 on shareholders’ equity is EUR -3 million. The loan is presented as part of non-current liabilities.


Pension liabilities
The number of personnel employed by the Group totalled 282 on 1 January 2004, and therefore the amount of disability pension liability based on the Finnish Employees’ Pension Act (TEL) calculated under IAS 19 (Employee Benefits) would not be material. Thus, no actuarial calculations have been made and no TEL disability pension provision has been made in the opening IFRS balance sheet.


Non-current assets
A depreciation on fixed assets, buildings and land has been booked in the opening IFRS balance sheet. The net impact on the opening balance sheet amounts to EUR 303 thousand. The result for 2004 calculated in accordance with the IFRS is increased by EUR 24 thousand due to a smaller depreciation basis.

Goodwill related to PMJ test solutions Oy’s functions has been treated in accordance with IFRS 3 (Business Combinations). The impact on non-current assets, result and hence on shareholders’ equity is EUR 318 thousand. 

For additional information, please contact:

Olli-Pekka Juhantila
Chief Financial Officer
Tel. +358 19 6610 228

Cencorp supplies the electronics industry with production automation solutions that give added value.

Distribution:
Helsinki Stock Exchange
Main media
www.cencorp.com

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