Source: Aspocomp Group Oyj
ET
Aspocomp’s 2017 financial information restated in accordance with new accounting principles
Aspocomp Group Plc, Company Announcement, April 19, 2018 at 9:00 a.m.
Aspocomp Group Plc adjusts its 2018 opening statement of financial position due to the adoption of the following new and amended IFRS standards: Amendments to IFRS 9 Financial Instruments and the new IFRS 15 Revenue from Contracts with Customers.
IFRS 9 Financial Instruments
IFRS 9 Financial Instruments introduced new requirements for the classification and measurement of financial assets. In summary, it includes revised guidance on the classification, recognition and measurement of financial assets, new general hedge accounting requirements and a new expected credit loss model for calculating impairment on financial assets. Furthermore, IFRS 9 requires disclosures.
Aspocomp does not have significant amounts of financial instruments except customer receivables and interest rate derivates. Aspocomp does not apply hedge accounting as defined by IFRS.
Aspocomp applies the simplified approach to recognize lifetime expected credit losses for its trade receivables and amounts due from customers under long-term projects as required or permitted by IFRS 9. In general, the application of the expected credit loss model of IFRS 9 resulted in earlier recognition of credit losses for the respective items regarding overdue receivables for which the Group has not previously recognized generic credit loss provisions. Following this, the Group has made an adjustment of EUR -0.05 million in retained earnings and trade receivables as at January 1, 2018.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 Revenue from Contracts with Customers establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers (effective for financial periods beginning on or after January 1, 2018 in the EU). IFRS 15 superseded IAS 18 Revenue, IAS 11 Construction Contracts and the related interpretations. The core principle of IFRS 15 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers with an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under IFRS 15, an entity recognizes revenue when (or as) a performance obligation is satisfied, i.e., when control of the good or service underlying the particular performance obligation is transferred to the customer. These principles are applied using the following five steps:
1. Identify the contract(s) with a customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations in the contract
5. Recognize revenue
The Group does not engage in project sales or recognize revenue on the basis of percentage of completion. The bulk of the Group’s sales comprise ordinary orders and deliveries of products, and such revenue is recognized in accordance with the criteria of the delivery terms as currently in force. On the other hand, the Group has agreed on consignment warehousing with certain customers, which may mean that the recognition of revenue from such performance obligations may result in the earlier timing of earnings, with revenue being recognized when the product arrives in the warehouse.
Furthermore, IFRS 15 requires extensive disclosures.
Aspocomp has adopted IFRS 15 Revenue from Contracts with Customers as of January 1, 2018.
Aspocomp Group Plc’s financial reporting and transition. The effect is based on the anticipated revenue recognition.
The adoption of the standard had an impact of EUR 0.1 million on shareholders’ equity in the Group’s opening balance sheet of January 1, 2018, and EUR 1.0 million on net sales for January-December, 2017. In addition, in the statement of financial position, trade receivables of EUR 1.0 million and inventories of EUR -0.8 million were adjusted following the IFRS 15 adoption.
Aspocomp Group Plc’s restated financial information
Comparisons between IFRS 15 restated financial information and previously reported financial reports for 2017 are presented in the following Key figures tables.
| KEY FIGURES | ||||||
| Impact | Impact | |||||
| IFRS 9 | IFRS 15 | |||||
| 1.1.-31.3. | 1.1.-31.3. | |||||
| 2017 | 2017 | |||||
| Restated | Reported | |||||
| Q1/2017 | Q1/2017 | |||||
| Net sales, M€ | 5.9 | 0.0 | 0.2 | 5.7 | ||
| Operating result before depreciation (EBITDA), M€ | 0.5 | 0.0 | 0.1 | 0.5 | ||
| Operating result (EBIT), M€ | 0.2 | 0.0 | 0.1 | 0.2 | ||
| of net sales, % | 4% | 0% | 1% | 3% | ||
| Profit/loss before taxes, M€ | 0.2 | 0.0 | 0.1 | 0.2 | ||
| of net sales, % | 4% | 0% | 1% | 3% | ||
| Net profit/loss for the period, M€ | 0.2 | 0.0 | 0.1 | 0.2 | ||
| of net sales, % | 4% | 0% | 1% | 3% | ||
| Equity ratio, % | 70% | 0% | 0% | 70% | ||
| Gearing, % | 6% | 0% | 0% | 6% | ||
| Gross investments in fixed assets, M€ | 0.1 | 0.0 | 0.0 | 0.1 | ||
| of net sales, % | 2% | 0% | -1% | 3% | ||
| Personnel, end of the quarter | 106 | 0 | 0 | 106 | ||
| Earnings/share (EPS), € | 0.04 | 0.00 | 0.01 | 0.03 | ||
| Equity/share, € | 1.67 | 0.00 | 0.00 | 1.67 | ||
| KEY FIGURES | ||||||||||
| Impact | Impact | Impact | Impact | |||||||
| IFRS 9 | IFRS 15 | IFRS 9 | IFRS 15 | |||||||
| 1.1.-30.6. | 1.1.-30.6. | 1.4.-30.6. | 1.4.-30.6. | |||||||
| 2017 | 2017 | 2017 | 2017 | |||||||
| Restated | Reported | Restated | Reported | |||||||
| Q1-Q2/ | Q1-Q2/ | Q2/ | Q2/ | |||||||
| 2017 | 2017 | 2017 | 2017 | |||||||
| Net sales, M€ | 11.6 | 0.0 | 0.3 | 11.3 | 5.7 | 0.0 | 0.1 | 5.6 | ||
| Operating result before depreciation (EBITDA), M€ | 0.9 | 0.0 | 0.1 | 0.8 | 0.4 | 0.0 | 0.0 | 0.3 | ||
| Operating result (EBIT), M€ | 0.3 | 0.0 | 0.1 | 0.3 | 0.1 | 0.0 | 0.0 | 0.1 | ||
| of net sales, % | 3% | 0% | 1% | 2% | 2% | 0% | 1% | 1% | ||
| Profit/loss before taxes, M€ | 0.3 | 0.0 | 0.1 | 0.2 | 0.1 | 0.0 | 0.0 | 0.0 | ||
| of net sales, % | 3% | 0% | 1% | 2% | 1% | 0% | 1% | 1% | ||
| Net profit/loss for the period, M€ | 0.3 | 0.0 | 0.1 | 0.2 | 0.1 | 0.0 | 0.0 | 0.0 | ||
| of net sales, % | 3% | 0% | 1% | 2% | 1% | 0% | 1% | 1% | ||
| Equity ratio, % | 70% | 0% | 0% | 70% | 70% | 0% | 0% | 70% | ||
| Gearing, % | 4% | 0% | 0% | 4% | 4% | 0% | 0% | 4% | ||
| Gross investments in fixed assets, M€ | 0.3 | 0.0 | 0.0 | 0.3 | 0.2 | 0.0 | 0.0 | 0.2 | ||
| of net sales, % | 3% | 0% | 0% | 3% | 3% | 0% | 0% | 3% | ||
| Personnel, end of the quarter | 113 | 0 | 0 | 113 | 113 | 0 | 0 | 113 | ||
| Earnings/share (EPS), € | 0.04 | 0.00 | 0.00 | 0.04 | 0.01 | 0.00 | 0.00 | 0.01 | ||
| Equity/share, € | 1.68 | 0.00 | 0.01 | 1.67 | 1.68 | 0.00 | 0.01 | 1.67 | ||
| KEY FIGURES | ||||||||||
| Impact | Impact | Impact | Impact | |||||||
| IFRS 9 | IFRS 15 | IFRS 9 | IFRS 15 | |||||||
| 1.1.-30.9. | 1.1.-30.9. | 1.7.-30.9. | 1.7.-30.9. | |||||||
| 2017 | 2017 | 2017 | 2017 | |||||||
| Restated | Reported | Restated | Reported | |||||||
| Q1-Q3/ | Q1-Q3/ | Q3/ | Q3/2017 | |||||||
| 2017 | 2017 | 2017 | 2017 | |||||||
| Net sales, M€ | 17.6 | 0.0 | 0.8 | 16.8 | 6.0 | 0.0 | 0.5 | 5.5 | ||
| Operating result before depreciation (EBITDA), M€ | 1.2 | 0.0 | 0.1 | 1.2 | 0.4 | 0.0 | 0.0 | 0.4 | ||
| Operating result (EBIT), M€ | 0.4 | 0.0 | 0.1 | 0.4 | 0.1 | 0.0 | 0.0 | 0.2 | ||
| of net sales, % | 2% | 0% | 0% | 2% | 2% | 0% | -1% | 3% | ||
| Profit/loss before taxes, M€ | 0.4 | 0.0 | 0.1 | 0.4 | 0.1 | 0.0 | 0.0 | 0.1 | ||
| of net sales, % | 2% | 0% | 0% | 2% | 1% | 0% | -1% | 3% | ||
| Net profit/loss for the period, M€ | 0.4 | 0.0 | 0.1 | 0.4 | 0.1 | 0.0 | 0.0 | 0.1 | ||
| of net sales, % | 2% | 0% | 0% | 2% | 1% | 0% | -1% | 3% | ||
| Equity ratio, % | 71% | 0% | 0% | 71% | 71% | 0% | 0% | 71% | ||
| Gearing, % | 5% | 0% | 0% | 5% | 5% | 0% | 0% | 5% | ||
| Gross investments in fixed assets, M€ | 0.7 | 0.0 | 0.0 | 0.7 | 0.3 | 0.0 | 0.0 | 0.3 | ||
| of net sales, % | 4% | 0% | 0% | 4% | 5% | 0% | 0% | 6% | ||
| Personnel, end of the quarter | 114 | 0 | 0 | 114 | 114 | 0 | 0 | 114 | ||
| Earnings/share (EPS), € | 0.06 | 0.00 | 0.00 | 0.06 | 0.01 | 0.00 | -0.01 | 0.02 | ||
| Equity/share, € | 1.69 | 0.00 | 0.00 | 1.68 | 1.69 | 0.00 | 0.01 | 1.68 | ||
| KEY FIGURES | ||||||||||
| Impact | Impact | Impact | Impact | |||||||
| IFRS 9 | IFRS 15 | IFRS 9 | IFRS 15 | |||||||
| 1.1.-31.12 | 1.1.-31.12 | 1.10.-31.12. | 1.10.-31.12. | |||||||
| 2017 | 2017 | 2017 | 2017 | |||||||
| Restated | Reported | Restated | Reported | |||||||
| Q1-Q4/ | Q1-Q4/ | Q4/ | Q4/ | |||||||
| 2017 | 2017 | 2017 | 2017 | |||||||
| Net sales, M€ | 23.9 | 0.0 | 1.0 | 23.0 | 6.3 | 0.0 | 0.1 | 6.2 | ||
| Operating result before depreciation (EBITDA), M€ | 1.9 | 0.0 | 0.1 | 1.8 | 0.7 | 0.0 | 0.1 | 0.6 | ||
| Operating result (EBIT), M€ | 0.8 | 0.0 | 0.1 | 0.8 | 0.4 | 0.0 | 0.1 | 0.3 | ||
| of net sales, % | 4% | 0% | 0% | 3% | 6% | 0% | 1% | 6% | ||
| Profit/loss before taxes, M€ | 0.8 | 0.0 | 0.1 | 0.7 | 0.4 | 0.0 | 0.1 | 0.3 | ||
| of net sales, % | 3% | 0% | 0% | 3% | 6% | 0% | 1% | 5% | ||
| Net profit/loss for the period, M€ | 1.3 | 0.0 | 0.1 | 1.2 | 0.9 | 0.0 | 0.1 | 0.8 | ||
| of net sales, % | 5% | 0% | 0% | 5% | 14% | 0% | 1% | 13% | ||
| Equity ratio, % | 69% | 0% | 0% | 69% | 69% | 0% | 0% | 69% | ||
| Gearing, % | 9% | 0% | 0% | 9% | 9% | 0% | 0% | 9% | ||
| Gross investments in fixed assets, M€ | 1.0 | 0.0 | 0.0 | 1.0 | 0.3 | 0.0 | 0.0 | 0.3 | ||
| of net sales, % | 4% | 0% | 0% | 4% | 5% | 0% | 0% | 5% | ||
| Personnel, end of the quarter | 113 | 0 | 0 | 113 | 113 | 0 | 0 | 113 | ||
| Earnings/share (EPS), € | 0.19 | 0.00 | 0.01 | 0.18 | 0.12 | 0.00 | 0.00 | 0.12 | ||
| Equity/share, € | 1.81 | 0.00 | 0.01 | 1.80 | 1.81 | 0.00 | 0.01 | 1.80 | ||
| The Alternative Performance Measures (APM) used by the Group | ||||||||||
| Aspocomp presents in its financial reporting alternative performance measures, which describe businesses’ financial performance and its development as well as investments and return on equity. In addition to accounting measures which are defined or specified in IFRS, alternative performance measures complement and explain presented information. Aspocomp presents in its financial reporting the following alternative performance measures: | ||||||||||
| EBITDA | = | Earnings before interests, taxes, depreciations and amortizations | ||||||||
| EBITDA indicates the result of operations before depreciations, financial items and income taxes. It is an important key figure, as it shows the profit margin on net sales after operating expenses are deducted. | ||||||||||
| Operating result | = | Earnings before income taxes and financial income and expenses presented in the IFRS consolidated income statement. | ||||||||
| The operating result indicates the financial profitability of operations and their development. | ||||||||||
| Profit/loss before taxes | = | The result before income taxes presented in the IFRS consolidated statements. | ||||||||
| Equity ratio, % | = | Equity | x 100 | |||||||
| Total assets – advances received | ||||||||||
| Gearing, % | = | Net interest bearing liabilities | x 100 | |||||||
| Total equity | ||||||||||
| Gearing indicates the ratio of capital invested in the company by shareholders and interest-bearing debt to financiers. A high gearing ratio is a risk factor that may limit a company’s growth opportunities and financial latitude. | ||||||||||
| Gross investments | = | Acquisitions of long-term intangible and tangible assets (gross amount). | ||||||||
| Order book | = | Undelivered customer orders at the end of the financial period. | ||||||||
| Cash flow from operating activities | = | Profit for the period + non-cash transactions +- other adjustments +- change in working capital | ||||||||
More detailed restated financials are presented in a separate PDF-file attached to this release.
The restated financial information and figures of the reported financial reports for 2017 are unaudited.
The first interim report of 2018 to be published on April 27, 2018 will be prepared in accordance with the new accounting principles.
For further information, please contact Mikko Montonen, President and CEO,
tel. +358 20 775 6860, mikko.montonen(at)aspocomp.com.
ASPOCOMP GROUP PLC
Mikko Montonen
President and CEO
Aspocomp – a service company specializing in PCB technologies
A printed circuit board (PCB) is used for electrical interconnection and as a component assembly platform in electronic devices. Aspocomp provides PCB technology design, testing and logistics services over the entire lifecycle of a product. The company’s own production and extensive international partner network guarantee cost-effectiveness and reliable deliveries.
Aspocomp’s customers are companies that design and manufacture telecommunication systems and equipment, automotive and industrial electronics, and systems for testing semiconductor components for security technology. The company has customers around the world and most of its net sales are generated by exports.
Aspocomp is headquartered in Espoo and its plant is in Oulu, one of Finland’s major technology hubs.
www.aspocomp.com
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