Slide 1: Heart of your technology
Heart of your technology Q4/2023 Financial Report presentation March 14, 2024 Mikko Montonen, President and CEO
Slide 2: Contents
Contents • Q4/2023 in brief • Full year 2023 in brief • Q4 and full year 2023 financial result: – Order book – Net sales – Operating result – Dividend proposal • Overview of customer segments • Outlook • Summary
Slide 3: Q4/2023: Net sales affected by sluggish demand and temporary process disruption
Q4/2023: The development of net sales was affected by sluggish demand and a temporary process disruption in the company’s production • Fourth-quarter net sales EUR 5.9 (10.1) million, decrease of 42% • Operating result EUR -1.8 (0.7) million, -30.2% (7.3% ) of net sales • Earnings per share EUR -0.2
Slide 4: 2023: Net sales decreased by 17%, operating profit turned negative
2023: Net sales decreased by 17%, operating profit turned negative • Net sales amounted to EUR 32.3 (39.1) million, decrease of 17% • Operating result EUR -1.7 (4.5) million, -5.4% (11.5%) of net sales • Earning per share, EUR -0.24 (0.52) • Operative cash flow EUR 5.1 (3.6) million • Equity ratio 7
Slide 5: Order book amounted to EUR 10.5 million
Order book amounted to EUR 10.5 million Order book (M€), delivery schedule 18 16 14 EUR 10.5 million 12 10 8 Deliveries next year 6 4 2 0 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 • The order book decreased due to the weakened demand caused by the recession and the customers' higher than usual inven
Slide 6: Full year 2023 net sales EUR 32.3 million, decrease of 17%
Full year 2023 net sales EUR 32.3 million, decrease of 17% Annual net sales (M€) Quarterly net sales (M€) 45 12 40 35 10 -42% 30 8 25 6 20 15 4 10 2 5 0 0 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 2019 2020 2021 2022 2023
Slide 7: Q4 and full year 2023 operating results
Q4 and full year 2023 operating results Operating result, M€ and % Annual operating result, M€ and % 0,9 10% 5 14% 0,6 5% 4 12% 0,3 0% 3 10% 0,0 -5% 2 8% -0,3 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 -10% 1 6% -0,6 -15% 0 4% -0,9 -20% -1 2019 2020 2021 2022 2023 2% -1,2 -1,5 -25% -2 0% -1,8 -30% -3 -2% -2,1 -3
Slide 8: Dividend proposal for AGM 2024
Dividend proposal for AGM 2024 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 18, 2024, that 0,30 no dividend be paid for financia
Slide 9: Customer segment comments and net sales Q4/2023
Customer segment comments and net sales Q4/2023 Automotive Industrial Security, Semiconductor Telecommuni- Electronics Defense & Industry cation Aerospace 31% 13% 23% 27% 6%
Slide 10: Automotive: Net sales at the comparison period level
Automotive: Net sales at the 31% comparison period level • When the component shortage eased in the industry, the company could deliver orders from the order book to end customers. • Q4 net sales amounted to EUR 1.8 million, remainded at the comparison period level. Net sales, M€ 2,1 2,0 2,0 1,9 1,9
Slide 11: Industrial Electronics: The high interest rate limits demand
Industrial Electronics: The high interest rate limits demand 13% • The global economic situation slow down customers’ investment decisions • Q4 net sales remained at EUR 0.7 million. Decrease of 32% compared to Q4/2022 Net sales, M€ 1,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 0,0 Q4/22 Q1/23 Q2/23 Q3/23 Q4/
Slide 12: Security, Defence & Aerospace: Customer activities at a high level
Security, Defence & Aerospace: Customer activities at a high level 23% • The changing geopolitical environment increases the demand for local manufacturing in Europe • The number of orders is increasing • Net sales decreased by 16% to EUR 1.4 million. Net sales, M€ 1,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,
Slide 13: Semiconductor Industry: High inventory levels and delayed market recovery
Semiconductor Industry: High 27% inventory levels and delayed market recovery • Q4 net sales amounted to EUR 1.6 million. • Demand is expected to recover gradually during 2024. • Growth will start when inventory levels have normalized in the supply chain Net sales, M€ 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5
Slide 14: Telecommunication: High interest rates limits investments in mobile networks
Telecommunication: High interest rates limits investments in mobile networks 6% • Q4 net sales amounted to EUR 0.4 million. • Weak market reduces R&D activities • Net sales remained low due to the timing of customers’ product development projects Net sales, M€ 1,2 1,0 0,8 0,6 0,4 0,2 0,0 Q4/22 Q1/23
Slide 15: Outlook for 2024
Outlook for 2024 • Inflation and interest rates, weak economic development, the uncertainties posed by Russia’s war of aggression, and global trade policy tensions will affect the operating environment of Aspocomp and its customers in the 2024 fiscal year. The company estimates that the demand in th
Slide 16: Q4: Summary
Q4: Summary • Fourth-quarter net sales EUR 5.9 (10.1) million, decrease of 42% • Operating result EUR -1.8 (0.7) million, -30.2% (7.3% ) of net sales • Earnings per share EUR -0.22 (-0.02) • Operative cash flow EUR 3.5 (0.2) million • Equity ratio 71.7% (69.4%) • Orders received EUR 2.3 (4.8) millio
Slide 17: Additional material
Additional material ASPOCOMP Heart of your technology
Slide 18: 10 major shareholders, December 31, 2023
10 major shareholders, December 31, 2023 Shareholder Shares Ownership, % 1 Joensuun Kauppa ja Kone Oy 1,186,222 17.34 2 Etola Group Oy 1,001,004 14.63 3 Montonen Mikko 390,000 5.70 4 Mandatum Henkivakuutusosakeyhtiö 352,103 5.15 5 Etola Erkki 300,000 4.39 6 Nordea Henkivakuutus Suomi Oy 275,000 4.02
Slide 19: Board of Directors
Board of Directors Päivi Marttila Kaarina Muurinen Jukka Huuskonen Anssi Korhonen Chairman Vice Chairman Member Member
Slide 20: Management Team
Management Team Mikko Montonen Antti Ojala Pekka Holopainen Jouni Kinnunen Mitri Mattila President and CEO CCO and Deputy CEO Chief Operating Officer CFO CTO