Aspocomp’s Financial Statement Release 2022: Full-year net sales grew by 18% and operating result doubled, growth in net sales halted in Q4

Aspocomp Group Plc, Financial Statement Release, March 16, 2023, at 9:00 a.m. EET


FOURTH QUARTER 2022 HIGHLIGHTS

• Net sales EUR 10.1 (10.8) million, decrease of 6%
• Operating result EUR 0.7 (1.2) million, 7.3% (11.5%) of net sales
• Earnings per share EUR -0.02 (0.17)
• Operative cash flow EUR 0.2 (1.8) million
• Equity ratio 69.4% (60.8%)
• Orders received EUR 4.8 (11.5) million, decrease of 58%

JANUARY-DECEMBER 2022 HIGHLIGHTS

• Net sales EUR 39.1 (33.2) million, increase of 18%
• Operating result EUR 4.5 (2.2) million, 11.5% (6.8%) of net sales
• Earnings per share EUR 0.52 (0.31)
• Operative cash flow EUR 3.6 (2.3) million
• Equity ratio 69.4% (60.8%)
• Orders received EUR 27.4 (31.3) million, decrease of 13%
• Order book at the end of the review period EUR 14.3 (16.5) million, decrease of 13%

OUTLOOK FOR 2023

Inflation and interest rates, the risk of recession and the uncertainties posed by Russia’s war of aggression will affect the operating environment of the company and its customers in the financial year 2023. The cycle of the Semiconductor Industry segment is expected to return to growth in the second half of the year.

Aspocomp estimates that its net sales for 2023 will increase from 2022 and its operating result for 2023 will be at the same level as in 2022. In 2022, net sales amounted to EUR 39.1 million and the operating result to EUR 4.5 million.


CEO’S REVIEW

“2022 was the best financial year in the history of Aspocomp in its current form. Full year net sales grew by 18 percent to EUR 39.1 million. However, in the last quarter of the year, net sales decreased by 6 percent compared to the previous year after a few individual customer orders were pushed back to the current fiscal year.

The flattening of the demand for information and communication technology equipment, which was strongly accelerated by the COVID-19 pandemic, is slowing down the cycle of the semiconductor industry. The temporary slowdown in the cycle is typical for the industry. Now it also involves an increase in inventory levels in different parts of the supply chain, mainly due to availability problems. The development of Aspocomp’s net sales in the last quarter reflected the decline in the semiconductor industry’s strong demand at the end of 2022. The industry’s long-term growth prospects are still strong. We expect inventory levels to normalize, investment to pick up and the cycle to turn upward again in the second half of 2023.

Despite the slowdown of the cycle in the last quarter, Aspocomp’s Semiconductor Industry customer segment’s full-year net sales grew by 158 percent. As expected, the Automotive customer segment’s sales decreased in the last quarter compared to the corresponding period of the previous year, when customers increased their inventory levels. Aspocomp gained dozens of new customers during the year, especially in the Security, Defense and Aerospace customer segment. Order cycles are typically long in this segment, so we expect net sales growth to materialize with a delay.

Our order book amounted to EUR 14.3 million. The order book decreased by EUR 2.2 million from the comparison period because the orders are scheduled for a shorter period than before due to the normalization of the production supplies market and the general improvement in availability.

Aspocomp’s operating result for the entire fiscal year 2022 was excellent, amounting to EUR 4.5 million. The operating result was 11.5 percent of net sales, while the fourth-quarter operating result amounted to EUR 0.7 million, 7.3 percent of net sales. In the fourth quarter, the result was reduced by the weakening of the US dollar against the euro, the high price of electricity and higher personnel costs related to the company’s growth. Exchange rates weakened the fourth-quarter operating result by EUR 0.3 million. Increased inflation is reflected in Aspocomp’s costs. We strive to transfer the cost increase due to changes in the business environment to our product prices.  

Aspocomp’s Board of Directors proposes to the Annual General Meeting 2023 that a dividend of EUR 0.21 per share be paid for the financial year 2022 (EUR 0.15 per share for the financial year 2021).

Inflation and interest rates, the risk of recession and the uncertainties posed by the Russian war of aggression affect the operating environment of the company and its customers in the financial year 2023. The cycle of the Semiconductor Industry segment is expected to return to growth in the second half of the year. We estimate that Aspocomp’s net sales for 2023 will increase from 2022 and its operating result for 2023 will be at the same level as in 2022. In 2022, net sales amounted to EUR 39.1 million and the operating result to EUR 4.5 million.”


NET SALES AND EARNINGS

October-December 2022
Fourth-quarter net sales amounted to EUR 10.1 (10.8) million. Net sales decreased by 6 percent compared to the previous year after some customer orders were transferred to the current fiscal year.

The Semiconductor Industry customer segment’s net sales doubled to EUR 4.5 (2.1) million during the fourth quarter.

The Industrial Electronics customer segment’s net sales decreased by 45% to EUR 1.1 (1.9) million during the fourth quarter due to the slowing effect of inflation and the threat of recession on customer investments.

The Security, Defense and Aerospace customer segment’s net sales decreased by 22% to EUR 1.6 (2.0) million. In the customer segment, activity increased significantly, but the order cycles are long, and the results are visible with a delay.

The Automotive customer segment’s net sales decreased by 50% to EUR 1.8 (3.6) million. As expected, the Automotive customer segment’s sales decreased in the last quarter compared to the corresponding period of the previous year, when customers increased their inventory levels.

The Telecommunication customer segment’s demand increased by 10% to EUR 1.1 (1.0) million. The net sales of the customer segment remained moderate due to the phases of the customers’ product development projects.

The five largest customers accounted for 58% (54%) of net sales. In geographical terms, 69% (84%) of net sales were generated in Europe and 31% (16%) on other continents.

The operating result for the fourth quarter amounted to EUR 0.7 (1.2) million. In the last quarter, the result decreased due to the weakening of the US dollar against the euro, the high price of electricity and higher personnel costs related to the company’s growth. Exchange rates weakened the operating profit of the last quarter by EUR 0.3 million. Fourth-quarter operating result was 7.3% (11.5%) of net sales.

Net financial expenses amounted to EUR 0.0 (0.0) million. The result of the review period amounted to EUR -0.2 (1.1) million. The result of the review period was affected by the use of losses confirmed in taxation. The related reduction of the deferred tax asset has no cash flow effect. Earnings per share were EUR -0.02 (0.17).


January-December 2022
January-December 2022 net sales amounted to EUR 39.1 (33.2) million, a year-on-year increase of 18 percent.

The Semiconductor Industry customer segment’s net sales grew to EUR 15.9 (6.2) million. Strong demand in the entire semiconductor industry came to an end in the second half of 2022.

The Industrial Electronics customer segment’s net sales decreased by 26% to EUR 5.5 (7.5) million due to the slowing effect of inflation and the threat of recession on customer investments.

The Security, Defense and Aerospace customer segment’s net sales increased by 1% to EUR 6.1 (6.1) million. The changing geopolitical environment and the increase in defense procurements increased the demand for local manufacturing in Europe.

The Automotive customer segment’s demand declined by 24%, with net sales remaining at EUR 6.8 (8.9) million. Growth in the Automotive segment was limited by a shortage of components and extended delivery times.

The Telecommunication customer segment’s net sales amounted to EUR 4.7 (4.5) million, a year-on-year increase of 5%. Product development needs remained at the previous year’s level.

The five largest customers accounted for 53 (48) percent of net sales. In geographical terms, 89 (84) percent of net sales were generated in Europe and 11 (16) percent on other continents.

January-December 2022 operating result amounted to EUR 4.5 (2.2) million. The operating result was 11.5 (6.8) percent of net sales. The improvement in operating result was mainly due to the growth in net sales and the increase in the share of technologically more demanding and profitable PCBs in the product mix.

Net financial expenses amounted to EUR 0.0 (0.0) million. Earnings per share were EUR 0.52 (0.31).

The order book at the end of the review period was EUR 14.3 (16.5) million. The order book decreased by EUR 2.2 million from the comparison period, as the orders are scheduled for a shorter period than before due to the normalization of the production supplies market and the general improvement in availability.

THE GROUP'S KEY FIGURES
	10-12/22	10-12/21	Change		1-12/22	1-12/21	Change
Net sales, M€	10.1	10.8	-6	%	39.1	33.2	18	%
EBITDA, M€	1.2	1.7	-26	%	6.4	4.1	58	%
Operating result, M€	0.7	1.2	-40	%	4.5	2.2	101	%
% of net sales	7%	12%	-4	ppts	12%	7%	5	ppts
Pre-tax profit/loss, M€	0.7	1.2	-44	%	4.4	2.2	100	%
% of net sales	7%	11%	-5	ppts	11%	7%	5	ppts
Profit/loss for the period, M€	-0.2	1.1	-114	%	3.5	2.1	68	%
% of net sales	-2%	11%	-12	ppts	9%	6%	3	ppts
Earnings per share, €	-0.02	0.17	-112	%	0.52	0.31	68	%
Investments, M€	0.7	0.4	60	%	2.5	1.3	94	%
% of net sales	7%	4%	3	ppts	6%	4%	3	ppts
Cash, end of the period	1.4	2.6	-122	%	1.4	2.6	-122	%
Equity / share, €	3.19	2.80	39	%	3.19	2.80	39	%
Equity ratio, %	69%	61%	9	ppts	69%	61%	9	ppts
Gearing, %	8%	9%	-1	ppts	8%	9%	-1	ppts
Personnel, end of the period	156	145	11	persons	156	145	11	persons
* The total may deviate from the sum totals due to rounding up and down.

INVESTMENTS

Investments during the review period amounted to EUR 2.5 (1.3) million. The company has continued its investments to increase capacity in line with its strategy, but the installation of equipment has been slowed down in part due to delays in material and component deliveries caused by the COVID-19 pandemic. The investments were focused on upgrading the capacity of the Oulu plant, improving automation, and increasing production efficiency.

In 2017, Aspocomp launched an investment program amounting to a total of EUR 10 million to further strengthen its position as a strategic partner to leading companies in the semiconductor, automotive, defense and aerospace, and telecommunications (5G) industries. The second phase of investments was launched in the spring of 2020, when the company was granted a total of EUR 1.35 million in development support by the ELY Center, corresponding to about 25 percent of its total cost. The ongoing second phase of the investment program aims in particular to increase the capacity of the Oulu plant, improve automation and increase production efficiency. In this current program, which will run until the end of the third quarter of 2023, all of the new equipment will be installed in the existing Oulu plant building and no additional plant space will be built.


CASH FLOW AND FINANCING

January-December 2022 cash flow from operations amounted to EUR 3.6 (2.3) million. Cash flow increased due to improved operating profit.

Cash assets amounted to EUR 1.4 (2.6) million at the end of the period. Dividend payment was EUR 1.0 (0.0) million. Interest-bearing liabilities amounted to EUR 3.1 (4.3) million. Gearing was 8% (9%). Non-interest-bearing liabilities amounted to EUR 6.5 (8.0) million.

At the end of the period, the Group’s equity ratio amounted to 69.4% (60.8%).

The company has a EUR 2.0 (1.0) million credit facility, which was not in use at the end of the review period. In addition, the company has a recourse factoring agreement, of which EUR 0.0 (0.0) million was in use.


DEFERRED TAX ASSETS

At the end of 2022, the company had EUR 4.2 (5.0) million in deferred tax assets in its balance sheet. The deferred tax assets are primarily due to decelerated tax depreciation and losses confirmed in taxation.


PERSONNEL

During the review period, the company had an average of 145 (139) employees. The personnel count on December 31, 2022, was 156 (145). Of them, 100 (92) were blue-collar and 56 (53) white-collar employees.


ANNUAL GENERAL MEETING, THE BOARD OF DIRECTORS AND AUTHORIZATIONS GIVEN TO THE BOARD

The decisions of the Annual General Meeting held on April 26, 2022, the authorizations given to the Board of Directors by the AGM and the decisions relating to the organization of the Board of Directors have been published in separate stock exchange releases on April 26, 2022.

Aspocomp’s Annual General Meeting 2023 is scheduled for Thursday, April 20, 2023, at 10:00 a.m. (Finnish time). The meeting will be convened by the company’s Board of Directors later.


SHARES

The total number of Aspocomp’s shares at December 31, 2022 was 6,841,440 and the share capital stood at EUR 1,000,000. The company did not hold any treasury shares. Each share is of the same share series and entitles its holder to one vote at a General Meeting and to have an identical dividend right.

A total of 1,249,161 Aspocomp Group Plc. shares were traded on Nasdaq Helsinki during the period from January 1 to December 30, 2022. The aggregate value of the shares exchanged was EUR 8,104,344. The shares traded at a low of EUR 4.80 and a high of EUR 7.74. The average share price was EUR 6.47. The closing price at December 30, 2022 was EUR 7.34, which translates into market capitalization of EUR 50.2 million.

The company had 4,177 shareholders at the end of the review period. Nominee-registered shares accounted for 0.8% of the total shares.


SHARE-BASED LONG-TERM INCENTIVE SCHEME

The Board of Directors of Aspocomp Group Plc decided on the establishment of a share-based long-term incentive scheme for the company’s top management and selected key employees on July 20, 2022. The objectives of the Performance Share Plan are to align the interests of Aspocomp’s management with those of the company’s shareholders and, thereby promote shareholder value creation in the long term as well as to commit the management to achieving Aspocomp’s strategic targets.

The Performance Share Plan consists of annually commencing individual performance share plans. The commencement of each new plan is subject to a separate decision of Aspocomp’s Board of Directors. Each plan comprises a performance period followed by the payment of the potential share rewards in listed shares of Aspocomp. The payment of the rewards is conditional on the achievement of the performance targets set by the Board of Directors for the respective plan.

The performance period of the first plan, PSP 2022-2024, covers the period from the beginning of July 2022 until the end of the year 2024. Eligible for participation in PSP 2022-2024 are approximately 20 individuals, including the members of Aspocomp’s Management Team.

The share rewards potentially payable thereunder will be paid during the first half of the year 2025. The performance measures based on which the potential share rewards under PSP 2022-2024 will be paid are cumulative EBIT and the total shareholder return of Aspocomp’s share (absolute TSR).

If all the performance targets set for the first plan, PSP 2022–2024, are fully achieved, the aggregate maximum number of shares to be paid as a reward based on this plan is approximately 92,000 shares (referring to gross earnings before the withholding of the applicable payroll tax).


SHAREHOLDERS’ NOMINATION BOARD

Aspocomp’s Annual General Meeting held on April 26, 2022, decided on the appointment of the Shareholders’ Nomination Board. Based on the company’s list of shareholders dated September 1, 2022, the three largest shareholders were defined, who appointed the following members to the Nomination Board:

-Päivi Marttila, appointed by Etola Group and Erkki Etola
-Kyösti Kakkonen, appointed by Joensuun Kauppa ja Kone Oy
-Mikko Montonen, representing himself.

The Nomination Board submits proposals regarding the company’s Board members and their fees to the 2023 Annual General Meeting. The proposals are announced in the AGM notice.


ASSESSMENT OF SHORT-TERM BUSINESS RISKS

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.

Impact of the COVID-19 pandemic on the electronics supply chain
The COVID-19 pandemic may affect the availability of parts and components required by electronic assemblers, primarily from China, which would weaken demand.

Risks affecting the operating environment
Russia’s war against Ukraine and the sanctions imposed on Russia in response are not expected to have a significant direct impact on the company. Aspocomp has no business operations and no direct customers or suppliers in Russia, Belarus or Ukraine. However, the changed operating environment may affect our sourcing and logistics chains.

The geopolitical situation and the COVID-19 pandemic have increased the risks related to customers’ global supply chains. Weak economic development, inflation and rising interest rates cause uncertainty in the operating environment and may affect customer demand. Cyber risks and disruptions in information systems can affect production. Disturbances in the labor market can also affect production and delivery capacity.

Dependence on key customers
Aspocomp’s customer base is concentrated; approximately half of sales are generated by five key customers. This exposes the company to significant fluctuations in demand.

Market trends
Although Aspocomp is a marginal player in the global electronics market, changes in global PCB demand also have an impact on the company’s business. Competition for quick-turn deliveries and short production series will accelerate as the market for PCBs weakens and continues to have a negative impact on both total demand and market prices.

Aspocomp’s main market area comprises Northern and Central Europe. In case Aspocomp’s clients would transfer their R&D and manufacturing out of Europe, demand for Aspocomp’s offerings might weaken significantly.


BOARD OF DIRECTORS’ DIVIDEND PROPOSAL AND ANNUAL GENERAL MEETING

According to the financial statements dated December 31, 2022 the parent company’s distributable earnings amounted to EUR 9,542,884.91, of which the retained earnings were EUR 6,517,665.13.

The Board of Directors will propose to the Annual General Meeting to be held on April 20, 2023, that a dividend of EUR 0.21 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 24, 2023. The Board of Directors proposes that the dividend will be paid on May 2, 2023.

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.


EVENTS AFTER THE FINANCIAL PERIOD

On February 15, 2022, the Board of Directors of Aspocomp Group Plc approved commencement of a new performance period within the share-based long-term incentive scheme for the company’s top management and selected key employees, the Performance Share Plan (also “PSP”): Aspocomp Group originally announced the establishment of the long-term incentive scheme with a stock exchange release issued on July 20, 2022.

The next plan within the PSP structure, PSP 2023-2025, commences as of the beginning of 2023 and the share rewards potentially earned thereunder will be paid during H1 2026. The payment of the rewards is conditional on the achievement of the performance targets set by the Board of Directors for the plan. The performance measures based on which the potential share rewards under PSP 2023-2025 will be paid are cumulative EBIT and the total shareholder return of Aspocomp’s share (absolute TSR). Eligible for participation in PSP 2023-2025 are approximately 20 individuals, including the members of Aspocomp’s Management Team.

If all the performance targets set for PSP 2023–2025 are fully achieved, the aggregate maximum number of shares payable as a reward based on this plan is approximately 91,000 shares (referring to gross earnings before the withholding of the applicable payroll tax). The maximum value of the rewards payable to the participants based on PSP 2023-2025 is limited by a cap which is linked to Aspocomp’s share price development.


PUBLICATION OF THE FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS

Aspocomp’s Annual Report 2022 will be published on Tuesday, March 28, 2023. The Annual Report will include the report of the Board of Directors, the consolidated and the parent company’s financial statements and the Auditors’ Report for the financial year January 1-December 31, 2022. At the same time, the company will release its Corporate Governance Statement 2022. The Annual Report and the Corporate Governance Statement will be available on the company’s website at www.aspocomp.com as of March 28, 2023. Aspocomp’s Remuneration Report for Governing Bodies 2022 will be published on March 16, 2023. The Remuneration Report will be available on the company’s website at www.aspocomp.com as of March 16, 2023.


ANNUAL GENERAL MEETING 2023

Aspocomp’s Annual General Meeting 2023 is scheduled for Thursday, April 20 at 10:00 a.m. EEST. The meeting will be convened by the company’s Board of Directors later on.



PUBLICATION OF FINANCIAL RELEASES FOR 2023

Aspocomp Group Plc.'s financial information publication schedule for 2023 is:


Interim report January-March 2023: Thursday, April 20, 2023 at around 8:00 a.m. (Finnish time)

Half-year report 2023: Thursday, July 20, 2023 at around 9:00 a.m. (Finnish time)

Interim report January-September 2023: Thursday, November 9, 2023 at around 9:00 a.m. (Finnish time)

Aspocomp's silent period commences 30 days prior to the publication of its financial information.



Espoo, March 16, 2023


ASPOCOMP GROUP PLC
Board of Directors



Some statements in this stock exchange release are forecasts and actual results may differ materially from those stated. Statements in this stock exchange release relating to matters that are not historical facts are forecasts. All forecasts involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performances or achievements of the Aspocomp Group to be materially different from any future results, performances or achievements expressed or implied by such forecasts. Such factors include general economic and business conditions, fluctuations in currency exchange rates, increases and changes in PCB industry capacity and competition, and the ability of the company to implement its investment program.


ACCOUNTING POLICIES AND CHANGES IN ACCOUNTING POLICES

The reported operations include the Group’s parent company, Aspocomp Group Plc. All figures presented for the review period are audited. This interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting), following the same accounting principles as in the annual financial statements for 2021; however, the company complies with the standards and amendments that came into effect as from January 1, 2022.

R&D
R&D costs comprise general production development costs. These costs do not fulfill the IAS 38 definition of either development or research and are therefore booked into plant overheads.

PROFIT & LOSS STATEMENT	October-December 2022
1,000 €	10-12/2022		10-12/2021		Change
Net sales	10,112	100%	10,757	100%	-6%
Other operating income	1	0%	20	0%	-93%
Materials and services	-4,556	-45%	-5,374	-50%	-15%
Personnel expenses	-2,649	-26%	-2,593	-24%	2%
Other operating costs	-1,675	-17%	-1,136	-11%	47%
Depreciation and amortization	-490	-5%	-432	-4%	13%
Operating result	743	7%	1,241	12%	-40%
Financial income and expenses	-55	-1%	-6	0%
Profit/loss before tax	688	7%	1,235	11%	-44%
Change in deferred tax assets*	-839		-91
Income taxes	-14	0%	-4	0%
Profit/loss for the period	-165	-2%	1,141	11%	-114%
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension
plans	118	1%	-169	-2%
Income tax relating these items	-20	0%	28	0%
Items that may be reclassified subsequently to profit or loss:
Currency translation differences	-12	0%	6	0%
Total other comprehensive income	87	1%	-134	-1%
Total comprehensive income	-79	-1%	1,007	9%	-108%
Earnings per share (EPS)
Basic EPS	-0.02	€	0.17	€	-112%
Diluted EPS	-0.02	€	0.17	€	-112%
* The change in deferred tax assets is mainly due to the use of losses confirmed in taxation.

PROFIT & LOSS STATEMENT	January-December 2022
1,000 €	1-12/2022		1-12/2021		Change
Net sales	39,114	100%	33,154	100%	18%
Other operating income	5	0%	51	0%	-91%
Materials and services	-17,849	-46%	-16,055	-48%	11%
Personnel expenses	-9,641	-25%	-8,890	-27%	8%
Other operating costs	-5,223	-13%	-4,208	-13%	24%
Depreciation and amortization	-1,903	-5%	-1,809	-5%	5%
Operating result	4,502	12%	2,243	7%	101%
Financial income and expenses	-98	0%	-39	0%	155%
Profit/loss before tax	4,404	11%	2,204	7%	100%
Change in deferred tax assets*	-839		-91
Income taxes	-20	0%	-7	0%
Profit/loss for the period	3,545	9%	2,106	6%	68%
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension
plans	118	0%	-169	-1%
Income tax relating these items	-20	0%	28	0%
Items that may be reclassified subsequently to profit or loss:
Currency translation differences	-6	0%	10	0%	-
Total other comprehensive income	92	0%	-131	0%	-
Total comprehensive income	3,637	9%	1,976	6%	84%
Earnings per share (EPS)
Basic EPS	0.52	€	0.31	€	68%
Diluted EPS	0.52	€	0.31	€	68%
* The change in deferred tax assets is mainly due to the use of losses confirmed in taxation.

CONSOLIDATED BALANCE SHEET
1,000 €	12/2022	12/2021	Change
Assets
Non-current assets
Intangible assets	3,309	3,232	2%
Tangible assets	5,967	5,504	8%
Right-of-use assets	642	697	-8%
Financial assets at fair value through profit or loss	95	95	0%
Deferred income tax assets	4,152	4,972	-16%
Total non-current assets	14,164	14,500	-2%
Current assets
Inventories	6,136	4,967	24%
Short-term receivables	9,723	9,410	3%
Cash and bank deposits	1,410	2,631	-46%
Total current assets	17,269	17,008	2%
Total assets	31,433	31,508	0%
Equity and liabilities
Share capital	1,000	1,000	0%
Reserve for invested non-restricted equity	4,774	4,736	1%
Remeasurements of defined benefit pension plans	-49	-148	-67%
Retained earnings	16,078	13,566	19%
Total equity	21,803	19,155	14%
Long-term financing loans	1,839	2,925	-37%
Other non-current liabilities	358	467	-23%
Deferred income tax liabilities	57	38	50%
Short-term financing loans	1,234	1,369	-10%
Trade and other payables	6,142	7,554	-19%
Total liabilities	9,630	12,353	-22%
Total equity and liabilities	31,433	31,508	0%

CONSOLIDATED CHANGES IN EQUITY
January-December 2022
1,000 €	Share capital	Other reserve	Remeasurements of employee benefits	Translation differences	Retained earnings	Total equity
Balance at Jan. 1, 2022	1,000	4,736	-148	12	13,554	19,155
Comprehensive income
Comprehensive income for the period					3,545	3,545
Other comprehensive income for the period, net of tax
Remeasurements of defined benefit pension plans			99			99
Translation differences				-6		-6
Total comprehensive income for the period	0	0	99	-6	3,545	3,637
Business transactions with owners
Dividends paid					-1,026	-1,026
Share-based payment		37				37
Business transactions with owners, total	0	37	0	0	-1,026	-989
Balance at December 31, 2022	1,000	4,774	-49	6	16,072	21,803
January-December 2021
Balance at Jan. 1, 2021	1,000	4,705	-7	2	11,448	17,148
Comprehensive income
Comprehensive income for the period					2,106	2,106
Other comprehensive income for the period, net of tax
Remeasurements of defined benefit pension plans			-141			-141
Translation differences			0	10		10
Total comprehensive income for the period	0	0	-141	10	2,106	1,976
Business transactions with owners
Dividends paid					0	0
Share-based payment		32			0	32
Business transactions with owners, total	0	32	0	0	0	32
Balance at December 31, 2021	1,000	4,736	-148	12	13,554	19,155

CONSOLIDATED CASH FLOW STATEMENT	January-December
1,000 €	1-12/2022	1-12/2021
Profit for the period	3,545	2,106
Adjustments	2,786	1,850
Change in working capital	-2,571	-1,557
Received interest income	6	1
Paid interest expenses	-129	-130
Paid taxes	-19	-12
Cash flow from operating activities	3,618	2,258
Investments	-2,523	-1,300
Proceeds from sale of property, plant and equipment	0	39
Cash flow from investing activities	-2,523	-1,260
Increase in financing	170	0
Decrease in financing	-992	-992
Decrease in lease liabilities	-587	-358
Dividends paid	-1,026	0
Cash flow from financing activities	-2,435	-1,350
Change in cash and cash equivalents	-1,340	-342
Cash and cash equivalents at the beginning of period	2,631	2,801
Effects of exchange rate changes on cash and cash equivalents	119	172
Cash and cash equivalents at the end of period	1,410	2,631

KEY INDICATORS
		Q4/2022	Q3/2022	Q2/2022	Q1/2022	2021
Net sales, M€		10.1	10.4	9.6	9.0	33.2
Operating result before depreciation (EBITDA), M€		1.2	1.9	2.1	1.3	4.1
Operating result (EBIT), M€		0.7	1.4	1.6	0.8	2.2
of net sales, %		7%	13%	17%	9%	7%
Profit/loss before taxes, M€		0.7	1.3	1.6	0.8	2.2
of net sales, %		7%	13%	17%	9%	7%
Net profit/loss for the period, M€		-0.2	1.3	1.6	0.8	2.1
of net sales, %		-2%	13%	17%	8%	6%
Equity ratio, %		69%	68%	67%	67%	61%
Gearing, %		8%	5%	11%	9%	9%
Gross investments in fixed assets, M€		0.7	0.6	0.3	0.9	1.3
of net sales, %		7%	6%	4%	10%	4%
Personnel, end of the quarter		156	144	148	140	145
Earnings/share (EPS), €		-0.02	0.20	0.23	0.11	0.31
Equity/share, €		3.19	3.20	3.00	2.91	2.80

The Alternative Performance Measures (APM) used by the Group
Aspocomp presents in its financial reporting alternative performance measures, which describe the 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 + received interest income – paid interest expenses – paid taxes

CONTINGENT LIABILITIES
1,000 €	12/2022	12/2021
Business mortgage	6,000	6,000
Collateral note	1,200	1,200
Guaranteed contingent liability towards the Finnish Customs	35	35
Total	7,235	7,235

The figures published in the financial statement release are based on Aspocomp Group Plc’s audited financial statements.


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



Aspocomp – heart of technology

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

• Aspocomp Financial Statement Report 2022

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