CEO’s review

Demand strengthened significantly during the second quarter of the year and the order book rose from just over EUR 4 million to almost EUR 11 million. The second-quarter net sales increased slightly from the previous year and amounted to EUR 7.2 million. In the second quarter, growth was strongest in the Industrial Electronics and the Automotive segments, while demand in the Telecommunications segment remained weak. Net sales growth was slowed by extended delivery times for production raw materials, such as circuit board laminates. The situation is expected to improve clearly during the second half of the year, when the record-strong order book can be manufactured and delivered to customers.

The second-quarter operating result rose into the black and was 6.4 percent of net sales. The operating result increased due to higher utilization and better product mix. Operating result is expected to improve further as production and delivery volumes increase in the second half of the year.

The company has continued its investments to increase capacity in line with its strategy, but the completion of equipment installations have been slowed down in part due to delays in material and component deliveries caused by the COVID-19 pandemic.

Espoo, August 12, 2021

Mikko Montonen, President and CEO