Aspocomp’s Financial Statements January 1 – December 31, 2018

Aspocomp Group Plc
Financial Statement Release

Aspocomp’s Financial Statements January 1 – December 31, 2018

Aspocomp Group Plc, Financial Statements, February 28, 2019 at 9:00 a.m.

Aspocomp’s Financial Statements January 1 – December 31, 2018

Key figures 10-12/2018 in brief

– Net sales: EUR 8.5 million (EUR 6.3 million)
– EBITDA: EUR 1.5 million (0.7)
– Operating result: EUR 1.2 million (0.4)
– Earnings per share: EUR 0.25 (0.13)

Key figures 2018 in brief

– Net sales: EUR 29.1 million (EUR 23.9 million)
– EBITDA: EUR 4.0 million (1.9)
– Operating result: EUR 2.9 million (0.8)
– Earnings per share: EUR 0.49 (0.19)
– Operational cash flow: EUR 2.0 million (0.8)
– Order book at the end of period: EUR 2.8 million (2.5)
– The Board of Directors will propose that a dividend of EUR 0.12 (0.07) per share be paid.

In 2019, net sales are expected to grow approximately 10 percent compared with 2018 and the operating result to be better than in 2018. In 2018, net sales amounted to EUR 29.1 million and the operating result to EUR 2.9 million.

CEO’S REVIEW

“Excellent development continued in the fourth quarter. Full-year net sales grew 22 percent, rising to their highest level since 2006. Our growth was clearly faster than the PCB market as a whole, which is expected to grow by approximately 5.5 percent (Custer Consulting, February 2019). The customer segments selected in the strategy all posted strong growth, with the exception of the security and defense segment. In the telecommunications network segment, demand was strengthened by the development of the next generation of 5G technology and the launch of the first commercial networks and equipment. The segment has over 10 significant customers and total growth was 42 percent. Development was slightly more moderate in both the automotive industry and industrial electronics segments, about 17 and 15 percent, respectively. The semiconductor testing segment grew by as much as 54 percent and its net sales amounted to EUR 2 million. In the security and defense segment, sales decreased by almost a fifth due to strong performance in the reference year and delays in the startup of certain projects.

In 2018, net sales rose to EUR 29.1 million. Performance was clearly strongest in the fourth quarter, with sales reaching EUR 8.5 million, representing growth of 36 percent. In the fourth quarter, sales were boosted particularly by strong demand in the telecommunications network segment.

Full-year operating result amounted to EUR 2.9 million and rose to 10 percent of net sales. Profitability developed well and exceeded the target level set in the strategy. The target level was at least 7 percent by 2022. The extremely strong earnings trend is the result of the focus on technologically more demanding printed circuit boards (PCBs) in our sales and manufacturing as well as higher net sales. In addition, we have been able to provide end-to-end service for our customers’ high-volume orders by utilizing our strong partner network.

The operating result for the fourth quarter tripled compared to last year’s reference period and amounted to EUR 1.2 million. Operating margin was exceptionally high, 14 percent of net sales. In the fourth quarter, the Oulu plant managed to increase its delivery reliability to a record level and at the same time reduced production losses by raising yields. New investments in capability are starting to deliver results.

The ongoing EUR 10 million investment program focuses in the first stage on enhancing the capabilities of the Oulu plant, while the main focus in the second stage is to increase its capacity. Most of the first stage equipment has been ordered and installation will be completed in 2019. With the start-up of new equipment depreciation, total depreciation will increase faster than net sales, and relative profitability is estimated to decline slightly in the early stages. At the same time, we estimate that net sales of our volume production service will grow faster than our own production, which also puts pressure on relative profitability.”

NET SALES AND EARNINGS

October-December 2018
Fourth-quarter net sales amounted to EUR 8.5 (6.3) million, a year-on-year increase of 36 percent. The fourth quarter was clearly strongest, and sales were boosted particularly by strong demand in the telecommunications network segment.

The five largest customers accounted for 55 (49)percent of net sales. In geographical terms, 98 (95) percent of net sales were generated in Europe, 1 (2) percent in Asia and 1 (3) percent in North America.

The operating result for the fourth quarter tripled compared to last year’s reference period and amounted to EUR 1.2 (0.4) million. Fourth-quarter operating result was 14.5 percent of net sales. The Oulu plant managed to increase its delivery reliability to a record level in the fourth quarter and at the same time reduced production losses.

Net financial expenses amounted to EUR 0.0 (0.0) million. Earnings per share were EUR 0.25 (0.13).

The order book at the end of the review period was EUR 2.8 (2.5) million, representing a year-on-year increase of about EUR 0.2 million.

Financial year 2018
Net sales amounted to EUR 29.1 (23.9) million, a year-on-year increase of 21.8 percent. All the customer segments selected in the strategy posted strong growth, except for the security and defense segment. In the telecommunications network segment, demand was strengthened by the development of the next generation of 5G technology and the launch of the first commercial networks and equipment. The semiconductor testing segment also saw significant growth and its net sales amounted to EUR 2 million. The automotive industry and industrial electronics segments grew also, but more modestly than the ones above. Of the customer segments selected in the strategy, sales decreased only in the security and defense segment, mainly due to strong performance in the reference year and changes in the schedules of customer projects.

The five largest customers accounted for 54 (51) percent of net sales. In geographical terms, 97 (95) percent of net sales were generated in Europe, 1 (2) percent in Asia and 2 (3) percent in North America.

Operating result amounted to EUR 2.9 (0.8) million, rising to 10 percent of net sales. The extremely strong earnings trend is the result of the focus on technologically more demanding printed circuit boards (PCBs) in sales and own manufacturing as well as higher net sales.

Net financial expenses amounted to EUR 0.1 (0,1) million. Earnings per share were EUR 0.49 (0.19).

THE GROUP’S KEY FIGURES

OUTLOOK FOR THE FUTURE

In 2019, net sales are expected to grow approximately 10 percent compared with 2018 and the operating result to be better than in 2018. In 2018, net sales amounted to EUR 29.1 million and the operating result to EUR 2.9 million.

The cornerstones of Aspocomp’s growth include, for instance, next-generation 5G telecommunications and government networks, the e-revolution in the automotive industry, the development of testing requirements for semiconductor components as well as the spread of artificial intelligence and mechanical applications in the industry.

A major share of Aspocomp’s net sales is generated by quick-turn deliveries and R&D series, and thus the company’s order book is short. The company’s aim is to systematically expand its services to cover the PCB needs of customers over the entire life cycle and thereby balance out variations in demand and the order book.

BOARD OF DIRECTORS’ DIVIDEND PROPOSAL AND ANNUAL GENERAL MEETING

According to the financial statements dated on December 31, 2018 the parent company’s distributable earnings amounted to EUR 8,188,581.68, of which the retained earnings were EUR 5,405,353.58.

The Board of Directors will propose to the Annual General Meeting to be held on April 3, 2019, that a dividend of EUR 0.12 per share be paid. The dividend would be paid to shareholders registered in the Register of Shareholders maintained by Euroclear Finland Ltd on the record date of the dividend distribution, April 5, 2019. The Board of Directors proposes that the dividend will be paid on April 12, 2019.

There have been no significant changes in the company’s financial position since the close of the financial period. According to the Board of Directors, the proposed dividend distribution does not endanger the company’s financial standing.

PUBLICATION OF FINANCIAL RELEASES

This stock exchange release is a summary of the Aspocomp Group’s Financial Statements January 1- December 31, 2018 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company’s website at www.aspocomp.com.

ASPOCOMP GROUP PLC
Board of Directors

For further information, please contact Mikko Montonen, President and CEO,
tel. +358 40 5011 262, mikko.montonen(at)aspocomp.com.

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

Attachment

• Aspocomps Financial Statements 2018