CEO’s review

Strong performance continued in the third quarter of the year. Net sales grew by 16 percent to EUR 10.4 million. Net sales for January-September amounted to EUR 29.0 million, a year-on-year increase of 29 percent.

The Semiconductor Industry continued to be the engine of growth in third-quarter net sales, as large investments in chip capacity in different parts of the world boosted the demand for printed circuit boards. In the Telecommunication segment, the usual lull in customers’ product development work during the holiday season reduced net sales. Net sales in Security, Defense and Aerospace grew moderately, but measured by the number of requests for offers and product evaluations, the segment’s quarter was quite active.

Our order book grew to EUR 19.6 million. It is now scheduled for a slightly shorter period than before, which is due to the general improvement in the availability of production materials. Since the raw material market is now healthier and delivery times have return to normal, customers can place their orders in a shorter period of time.

The COVID-19 pandemic and the current geopolitical situation have increased the risks related to our customers’ global supply chains. Customers in all our segments are increasingly looking for manufacturers for their more technologically demanding circuit boards from places other than Asia. Our strategic investments to increase the technological capabilities and manufacturing capacity of our factory in Oulu are now bearing fruit. Thanks to our high level of competence and reliability, Aspocomp’s position in the changing market situation is excellent.

The third-quarter operating result increased by 30 percent to EUR 1.4 million, amounting to 13 percent of net sales. The operating result was improved by the good development of net sales and, in line with our strategy, the increased share of more technologically demanding PCBs in the product mix. January-September operating result amounted to EUR 3.8 million. The operating result was 13 percent of net sales.

Increased inflation is reflected in Aspocomp’s costs, such as raw material purchases and energy. Even though we have always hedged our electricity pricing, the current situation is challenging in terms of our cost structure. We will continue to try to transfer the cost increases due to changes in the business environment to product prices.

We reiterate the guidance for 2022 that was updated in July, and we estimate that net sales for 2022 will increase and operating result for 2022 will improve clearly from 2021.

Espoo, November 10, 2022

Mikko Montonen, President and CEO