Slide 1: Heart of your technology
Heart of your technology Investor presentation, Mar. 10, 2022
Slide 2: Contents
Contents BASIC INFORMATION Aspocomp in brief | Company history | Company fundamentals MARKETS & STRATEGY What is a PCB? | Markets | Strategy BUSINESS & SUSTAINABILITY Customer segments | Megatrends | Sustainability KEY TAKEAWAYS Aspocomp as an investment | Next events & IR contact APPENDICES Latest
Slide 3: I: Basic information
I: Basic information OT” SOG ie scenes
Slide 4: Aspocomp in brief
Aspocomp in brief • Aspocomp is a manufacturer and supplier of printed circuit boards (PCBs) used in a vast number of MEUR 33.2 Net sales applications. • Aspocomp’s customers are global, leading technology companies in their fields. MEUR 2.2 • Aspocomp runs its own factory in Oulu, Finland, focusing
Slide 5: Company history
Company history Aspocomp withdraws from manufacturing Aspocomp Aspocomp launched its new strategy, including the target of PCBs for mobile consolidates serving customers phones; the Salo production and Aspo Oy Aspocomp Group Oyj is during the whole plant is closed down development at the acquires fo
Slide 6: Company fundamentals: Mission, vision, values
Company fundamentals: Mission, vision, values Mission Vision Values We use our deep PCB Aspocomp is one of the We provide the world’s knowledge to build market leaders in Europe best PCB service. advanced technology and the obvious trusted Being streamlined makes products with our PCB partner for le
Slide 7: II: Markets & strategy
II: Markets & strategy
Slide 8: What is a printed circuit board (PCB)?
What is a printed circuit board (PCB)? • A Printed Circuit Board is a complex combination of materials that provides a stable mechanical and thermal platform for the electrical interconnection of components. • PCBs are used in all electrical devices from simple coffee makers to extremely complex mac
Slide 9: Asia dominates in volume production
Asia dominates in volume production Total market size: USD ~80 billion Europe: Regional advanced/R&D Americas: production, Asia: focus on Regional PCB usage <10bn volumes, market; PCB production PCB usage PCB usage ~2bn <60bn >10bn PCB production PCB production ~75bn ~3bn Estimated PCB market growth
Slide 10: PCB market: a diverse industry with a variety of players
PCB market: a diverse industry with a variety of players Own manufacturing Own manufacturing and trading Trading only Large volumes Medium volumes Low volume, high mix Mass products Niche products Business model is to purchase and sell PCBs Long lead times Short lead times, more flexibility Alternat
Slide 11: Dimensions of Aspocomp’s competitive edge
Dimensions of Aspocomp’s competitive edge Versatile and flexible manufacturing capabilities Aspocomp is the fastest provider of PCBs globally Customer value Customer service throughout the product life cycles World-class technical and operational customer support Trusted partner with solid reputatio
Slide 12: Aspocomp’s strategy - key components
Aspocomp’s strategy - key components • Customer Oriented Service Company • Seeking high growth in selected customer segments • Expanding to new markets • Improving operational exellence • Investigating inorganic business opportunities
Slide 13: Strategy execution: key actions
Strategy execution: key actions Strategic focus area Key actions Customer Oriented Service • World-class service throughout the product life cycle Company • A comprehensive manufacturing partner network in Europe and Asia Seeking high growth in selected • Active new customer acquisition, focus on la
Slide 14: Strategy execution: Progress in financial targets
Strategy execution: Progress in financial targets Target: Net sales growth on average 10% per year Target: EBIT margin >7% (by 2022) Net sales, M€ and growth% EBIT, % +29% 35 12% +7% 11% +22% 30 10% 10% -18% +6% 25 8% 7% 20 6% 15 4% 4% 10 2% 5 -1% 0% 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 20
Slide 15: III: Business & Sustainability
III: Business & Sustainability
Slide 16: Customer segments in 2021
Customer segments in 2021 Automotive Industrial Security, Semiconductor Telecommuni- Electronics Defense and Industry cations Aerospace 27% 18% 22% 19% 14% of net sales of net sales of net sales of net sales of net sales
Slide 17: Megatrends drive demand growth in all customer segments
Megatrends drive demand growth in all customer segments Industrial Security, Defense Semiconductor Tele- Automotive Electronics and Aerospace Industry communications Safe driving and Geopolitical and sustainable Digitalization Digitalization 5G Regional Trends mobility Infotainment, IOT, M2M, AI, Tr
Slide 18: Automotive
Automotive Aspocomp serves Tier-1 and Tier-2 companies manufacturing solutions for commercial vehicles and passenger cars Drivers for segment growth • Move into renewable energy sources • And better fuel economy • Increase of digitalization inside the vehicles – Radars, cameras, safety systems, info
Slide 19: Industrial Electronics
Industrial Electronics Aspocomp serves a wide range of businesses that manufacture devices and products for industrial applications • The drivers for the segment are – Increased intelligence in all products – IoT and other connectivity solutions – Smart manufacturing and AI – Streaming and broadcast
Slide 20: Security, Defense & Aerospace
Security, Defense & Aerospace Aspocomp serves multiple large companies in this segment. New space companies comprise the newest customer group inside the Security, Defense and Aerospace segment. • Growth drivers are – Increased civil security demands – Protectionism, trade disputes and regional need
Slide 21: Semiconductor Industry
Semiconductor Industry • Aspocomp serves global high tech semiconductor device companies and semiconductor equipment manufacturers. • Largest customers operate in the semiconductor test equipment market • Growth drivers are – Increased digitalization and miniaturization (SoC) – Big data, data transf
Slide 22: Telecommunications
Telecommunications • Aspocomp serves global leading companies in the telecommunications systems and infrastructure market in the R&D and early market introduction phase • Largest customers are 5G suppliers • Growth drivers are – 5G, IoT, real-time data systems – Global data transfer needs – Importan
Slide 23: Sustainability at Aspocomp
Sustainability at Aspocomp EMISSIONS WATER USED IN RAW MATERIALS & PRODUCT MANUFACTURING WASTE LIFECYCLE IMPACT Review & action 100% of Focus on material Environmental plan wastewater optimization and data to customers treated at our waste recovery and authorities Action plan 69% of energy own treat
Slide 24: IV: Summary and key takeaways
IV: Summary and key takeaways
Slide 25: Why invest in Aspocomp?
Why invest in Aspocomp? Dividend and earnings/share • Operating in growing global digitalization market with high technology 0,60 • Proven track record in strategy execution 0,50 and financial performance 0,40 • Visibility for order book strongly improved • Clear competitive advantages such as 0,30
Slide 26: Next events & IR contact
Next events & IR contact Mar 17 Good Marketing, Investor meeting Mar 22 Annual Report 2021 Apr 26 Annual General Meeting May 9 Pörssisäätiö, Pienet Helmet May 11 Tampereen sijoitusmessut IR contact: Mikko Montonen, CEO mikko.montonen@aspocomp.com +358 20 775 6860 July 20 Half-Year Financial Report 2
Slide 27: THANK YOU!
THANK YOU!
Slide 28: Appendices
Appendices • Latest quarterly presentation • Dividend policy • TOP10 shareholders • Board of Directors • Management Team
Slide 29: Heart of your technology
Heart of your technology Q4 2021 Financial result presentation March 10, 2022 Mikko Montonen, CEO
Slide 30: Our agenda today
Our agenda today • Q4 highlights • Full-year 2021 highlights • Q4 and 2021 financial performance: – Order book – Net sales – Operating result – Dividend • Customer segment reviews • Outlook • Key takeaways • Q&A
Slide 31: Q4: Record-high demand, net sales grew by 81%
Q4: Record-high demand, net sales grew by 81% and operating result improved clearly • Net sales grew by 81% to MEUR 10.8 • Operating result improved clearly to MEUR 1.2, 11.5% of net sales • Order book continued to grow and amounted to MEUR 16.5 • Q4 was successful and the outlook for the coming qua
Slide 32: Financial year 2021: Clear turnaround after H1
Financial year 2021: Clear turnaround after H1 • COVID19 slowdown impacted H1 net sales and result. • H2 was significantly stronger, resulting in 11.5% operating margin and MEUR 19.7 net sales • Net sales grew by 29% to MEUR 33.2 • Operating result improved clearly to MEUR 2.2, 6.8% of net sales. 20
Slide 33: Order book grew to a record level
Order book grew to a record level Order book (M€), deliveries next year 18 16.5 M€ 16 14 12 10 8 6 4 2 0 Dec 31, 19 Dec 31, 20 Dec 31, 21 • Customer orders confirmed earlier than before: – Longer delivery times of raw materials used in PCB production – PCB delivery times have lengthened globally • S
Slide 34: Stronger order book boosted growth
Stronger order book boosted growth Quarterly net sales (M€) Annual net sales (M€) 12 35 +81% 10 30 25 8 20 6 15 4 10 2 5 0 0 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 2017 2018 2019 2020 2021
Slide 35: Clear improvement in operating result
Clear improvement in operating result Operating result, M€ and % Yearly operating result, M€ and % 1,5 15% 4 12% 1,2 10% 10% 3 0,9 8% 0,6 5% 2 6% 0,3 0% 4% 1 0,0 2% Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 -5% 0 -0,3 0% 2017 2018 2019 2020 2021 -0,6 -10% -1 -2% M€ % FY, M€ FY, % • COVID19 slowdown eased in H2
Slide 36: Dividend proposal for AGM 2022
Dividend proposal for AGM 2022 Dividend and earnings/share • Dividend policy target is to distribute at least 1/3 of the profit for the period as dividends 0,60 0,50 • The Board of Directors will propose to the 0,40 Annual General Meeting on April 26, 2022, that the Annual General Meeting decide on
Slide 37: Customer segment reviews and net sales Q4 2021
Customer segment reviews and net sales Q4 2021 Automotive Industrial Security, Semiconductor Telecommuni- Electronics Defense and Industry cations Aerospace 1/3 1/5 1/5 1/5 1/10 of net sales of net sales of net sales of net sales of net sales Other electronics 2%
Slide 38: Significant growth in Q4
Significant growth in Q4 • Automotive supply chain prepares for growth by building material inventory • In Q4, net sales of the Automotive segment grew from MEUR 0.9 to 3.6 Net sales, M€ 4000 3500 3000 2500 2000 1500 1000 500 0 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21
Slide 39: Recovery and increased digitalization
Recovery and increased digitalization • New investments in industry sector and increased level of digitalization drive growth • Q4 net sales growth of the Industrial Electronics segment was 41%, resulting in MEUR 1.9 Net sales, M€ 2 500 2 000 1 500 1 000 500 0 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21
Slide 40: Security, Defense & Aerospace requests local production
Security, Defense & Aerospace requests local production • New customers and local sourcing drive growth • In Q4, net sales of the segment grew by 58% to MEUR 2.0 Net sales, M€ 2 500 2 000 1 500 1 000 500 0 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21
Slide 41: Long-term investment boom in the Semiconductor Industry
Long-term investment boom in the Semiconductor Industry • Strong order book growth • In Q4, net sales of the segment grew by 77% to MEUR 2.1 Net sales, M€ 2 500 2 000 1 500 1 000 500 0 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21
Slide 42: Telecommunications, weak Q4
Telecommunications, weak Q4 • Global component availability impacted product development cycles • In Q4, net sales of the segment reduced by 18% to MEUR 1.0 Net sales, M€ 1 400 1 200 1 000 800 600 400 200 0 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21
Slide 43: Outlook for 2022
Outlook for 2022 • Demand is expected to improve in all customer segments. However, the global shortage of components may limit growth in customer demand. • Aspocomp estimates that its net sales for 2022 will increase and its operating result for 2022 will improve from 2021. • In 2021, net sales amo
Slide 44: Q4: Key takeaways
Q4: Key takeaways • Net sales grew by 81% to MEUR 10.8 • Operating result improved clearly to MEUR 1.2, 11.5% of net sales • Order book continued to grow and amounted to MEUR 16.5 • Q4 was successful and the outlook for the coming quarters remains positive due to the strong order book
Slide 45: ASPOCOMP
ASPOCOMP Heart of your technology
Slide 46: TOP10 shareholders on Dec. 31, 2021
TOP10 shareholders on Dec. 31, 2021 Shareholder Shares % 1 Joensuun Kauppa ja Kone Oy 1,143,000 16.71 2 Etola Group Oy 1,001,004 14.63 3 Montonen Mikko Juhani 390,000 5.70 4 Mandatum Henkivakuutusosakeyhtiö 333,258 4.87 5 Etola Erkki Olavi 300,000 4.39 6 Nordea Henkivakuutus Suomi Oy 275,000 4.02 7
Slide 47: Board of Directors
Board of Directors Päivi Marttila Kaarina Muurinen Jukka Huuskonen Anssi Korhonen Chairman Vice Chairman Member Member
Slide 48: Management Team
Management Team Mikko Montonen Antti Ojala Ari Beilinson Jouni Kinnunen Mitri Mattila President and CEO COO and Deputy CEO VP, Sales and Marketing CFO CTO