Slide 1: Investor presentation
Investor presentation
Slide 2: Contents
Contents • Aspocomp in brief • Markets and growth drivers • Competitive edge • Financials • Strategy • Outlook Appendix 2
Slide 3: Aspocomp - At the heart of your technology
Aspocomp - At the heart of your technology Technological Full life-cycle Competitive Net sales advantage in from manufacturing growth demanding R&D to printed circuit partner 22% volume network (2018) boards production High-tech Own high-tech PCB Shortening Listed on the Time-to- production Nasdaq H
Slide 4: Aspocomp in brief
Aspocomp in brief Net sales and profitability EUR million % 30 • Aspocomp develops and sells PCBs 12 and manufacturing services, 25 helping customers to create 7 optimal designs and shortening 20 time-to-market for customers’ products. 15 2 • Aspocomp offers cost-efficient 10 access to all PCB techn
Slide 5: Aspocomp - Serving customers worldwide
Aspocomp - Serving customers worldwide Production site Head office in in Oulu, Finland Espoo, Finland Global supply chain Main markets Northern with partner network and Central Europe in Europe and China. Customer support in Europe. Presence in Germany, UK, Switzerland and Sweden Market size for PCB
Slide 6: Increasing use of PCBs in electronic appliances drive the industry
Markets and growth drivers Increasing use of PCBs in electronic appliances drive the industry. A printed circuit board (PCB) is the principal interconnection method in electronic devices. PCBs are used for electrical interconnection and as a component assembly platform in most electronic application
Slide 7: Digitalization continues to drive global growth for PCBs
Digitalization continues to drive global growth for PCBs Connected • Industry growth driven by devices, IoT digitalization especially in vehicle automation, Tele- Industrial instruments, communications internet infra, 5G telecommunications infra, security, defence & aviation and advanced DIGITALIZAT
Slide 8: Market for PCBs growing along with smart devices, telecom infra and automation
Market for PCBs growing along with smart devices, telecom infra and automation The PCB market is expected Main market drivers for growth to grow by 4.3% (CAGR) from 2019 to 2024.* • Advancement of internet Market size is expected to of things reach $89.7 billion by • Increased adoption of However, s
Slide 9: Aspocomp's competitive edge
Aspocomp’s competitive edge Why customers love us? 10
Slide 10: Accelerate time-to-market of our customers' products
Accelerate TIME-TO-MARKET of our customers’ products Bringing added value to customers by providing PCB technology services from the R&D phase to volume production.
Slide 11: Focus on customers' concerns
Focus on customers’ concerns Customers have We have 1) Superb technology and Complex technical PCB manufacturing knowledge requirements from design to production Need for a reliable 2) Strong world-class PCB partner who partner network and own can support them in all production technologies and volu
Slide 12: Key Customer Segments for Aspocomp
Key Customer Segments for Aspocomp SEMICONDUCTOR R&D AND AUTOMOTIVE IC TESTING SECURITY & DEFENCE TELECOMMUNICATION INDUSTRIAL INFRASTRUCTURE ELECTRONICS 10.3.2020
Slide 13: Aspocomp's key strengths
Aspocomp’s key strengths Most challenging designs within the shortest lead-times of the industry. World-class know-how, Complete product palette dedicated personnel, and from most demanding to capabilities for industrial scale basic PCBs according to Wide Own prototyping. customers needs. technology
Slide 14: Committed to adding value by serving our customers with superior PCB expertise
Committed to adding value by serving our customers with superior PCB expertise Aspocomp today Our strategy Our targets High-technology Expand services to expertise for cover PCB needs over demanding PCBs the product’s entire life cycle Growth Serving customers by both special and Shorten time-to-mar
Slide 15: Financials
Financials Strong growth and profitability
Slide 16: Growth continued – transformation strategy successfully implemented
Growth continued – transformation strategy successfully implemented • Net sales increased by 12% y-o-y driven by strong demand for products • Both net sales and profitability showed double digit growth • Profitability remained at a good level • Order book significantly strengthened NET SALES EBITDA
Slide 17: Strong financial position, equity ratio at 63.4%
Strong financial position, equity ratio at 63.4% • Operative cash flow significantly increased to EUR 4.9m • Gearing remained at a good level at 19.3% EQUITY RATIO, % CASH FLOW FROM OPERATIONS EUR million 80 5 70 1-9/2019 60 4 Equity per share 50 €2.50 40 3 Earnings per share €0.40 30 2 20 1 10 0 0
Slide 18: Investments in Oulu site progressing as planned
Investments of EUR 10 million in total in Oulu site progressing as planned • On-going investments in Oulu to respond to the increased demand, INVESTMENTS in the first stage, to enhance the EUR million capability and, in the second stage, 4 to increase the capacity – with the 3,5 aim to optimize the
Slide 19: Key drivers for performance
Key drivers for performance ✓ Volumes increased in both Net sales and profitability of Aspocomp R&D and volume production EUR million % ✓ Improved efficiency 30 12 ✓ Improved product mix 25 7 20 15 2 10 -3 5 ➢ Long lead times of materials 0 -8 ➢ Geopolitical concerns 2015 2016 2017 2018 Jan.-Sep. 20
Slide 20: Quarterly performance
Quarterly performance Quarterly net sales and profitability of Aspocomp % EUR million 10 18 9 16 8 14 7 12 6 10 5 8 4 6 3 2 4 1 2 0 0 9-12/2017 1-3/2018 4-6/2018 7-9/2018 9-12/2018 1-3/2019 4-6/2019 7-9/2019 Net sales Operating profit Operating profit, % 21
Slide 21: Key indicators
Key indicators EUR million 1-9/2019 2018 2017 • Net sales grew by 12% Net sales 23.0 29.1 23.9 EBITDA 3.7 4.0 1.9 • Profitability improved Operating profit (EBIT) 2.7 2.9 0.8 significantly, % of net sales 11.9% 9.9% 3.5% operating profit margin 11.9% Net profit for the period 2.7 3.2 1.3 Earnings pe
Slide 22: Telecommunication infrastructure continues as the largest customer sector
Telecommunication infrastructure continues as the largest customer sector Sales by customer sectors, % Sales by geographical area, % Other 02 Semiconductor R&D 7 5 Others and IC testing Security & Defence 9 13 Asia 2017 Industrial Electronics 18 19 2018 Europe (exl. Telecommunication Finland) 39 33
Slide 23: Mitigating business risks
Mitigating business risks Dependence on key ➢ Aim to increase the number of large customers customers. In 2018 the five largest customers accounted for 54% (51% in 2017) of net sales. Short order intake, typically 1-3 months in the PCB ➢ Aim to increase the number of industry customers and customer
Slide 24: Integrating sustainability in our operations
Integrating sustainability in our operations
Slide 25: Profitable, responsible and long-term business growth is our goal
Profitable, responsible and long-term business growth is our goal • Our Code of Conduct defines the basic requirements of our business practices and guides our employees to act responsibly in their daily Social work. responsibility • Our business is in line with the Social Accountability Internation
Slide 26: Growth strategy
Growth strategy To be the number one partner for our customers. 27
Slide 27: Main Topics in current Strategy
Main Topics in current Strategy • Aspocomp – Customer Oriented Service Company • Seeking for high growth in selected customer segments • Expanding to new markets • Improve operational exellence • Target to grow in average of 10% annually and to reach minimum profitability of 7% latest in year 2022 2
Slide 28: Aspocomp – Customer Oriented Service Company
Aspocomp – Customer Oriented Service Company • Supports and offers Customer’s all PCB needs throughout the whole lifecycle of the products • Strong vision and knowhow in PCB technologies – High techology and delivery performance in operations • Wide product and technology offering – Competitive Part
Slide 29: Megatrends driving our Customer Segments
Megatrends driving our Customer Segments – Telecommunication 5G technology Networks ADAS- systems – Automotive – Industrial Electronics IOT, AI, Robotics – Security- and Defence Geopolitical situation – Semiconductor Moore’s law Componets Testing Nov 2019 Confidential
Slide 30: Seeking for high growth in selected customer segments
Seeking for high growth in selected customer segments 27 % 7% 9% 2015 2018 8% 11 % 19 % 18 % 11,7 M€, 67% 39 % 64% Automotive Telecommunication Infrastructure Industrial Electronics Other Automotive Telecommunication Infrastructure Industrial Electronics Security & Defence Semiconductor R&D and IC t
Slide 31: Increasing share of value added products in Oulu
Increasing share of value added products in Oulu , ASP increased 14% in 2017- 2018 • Oulu manufacturing focus Average Selling Price, Oulu facility ASP, €/m2 on technologially advanced products • Standard products moved to partners • 2018-9 investments focused on capability improvements. Next step is
Slide 32: Management Team
Management Team Mikko Antti Ari Jari Jouni Mitri Montonen Ojala Beilinson Isoaho Kinnunen Mattila Chief Business Sales and Chief Chief Chief Executive Develop- Marketing Operating Financial Technology Officer ment Officer Officer Officer 33
Slide 33: Outlook for 2019
Outlook for 2019 • 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. 34 14.3.2017 Capital Markets Day
Slide 34: Why to invest in Aspocomp
Why to invest in Aspocomp Growing market for PCB Profitable growth Becoming the number one partner for our customers Focus on Superior technical more comprehensive expertise customer service 35
Slide 35: Disclaimer
Disclaimer • Although forward-looking statements contained in this presentation are based upon what management of the company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ mat
Slide 36: Thank you
Thank you
Slide 37: Appendix
APPENDIX
Slide 38: Income statement
Income statement EUR million 1-9/2019 2018 Net sales 23.0 29.1 Other operating income 0.1 0.0 Materials and services -10.4 -13.2 Personnel expenses -5.5 -7.7 Other operating costs -3.5 -4.3 Depreciations and amortization -1.0 -1.1 Operating result 2.7 2.9 Financial income and expenses -0.1 -0.1 Prof
Slide 39: Balance sheet
Balance sheet EUR million Sep. 30, 2019 Dec 31, 2018 Assets Non-current assets Intangible assets 3.2 3.3 Tangible assets 6.0 4.9 Available for sale investments 0.0 0.0 Deferred income tax assets 4.0 4.0 Total non-current assets 13.2 12.2 Total current assets 13.2 13.6 Total assets 26.4 25.8 Equity a
Slide 40: Cash flow
Cash flow EUR million 1-9/2019 2018 Profit for the period 2.7 3.2 Adjustments 0.1 0.7 Change in working capital 1.4 -1.8 Received Interest income 0.0 0.0 Paid interest expenses -0.0 -0.1 Paid taxes 0.0 0.0 Cash flow from operating activities 4.9 2.0 Investments -2.2 -3.4 Proceeds from sale of proper
Slide 41: Aspocomp's share price performance
Aspocomp’s share price performance DIVIDEND POLICY The company’s aim is to pay an annual dividend to its shareholders. In its annual proposal on the distribution of dividend, the Board will take into account the company’s financial performance, investment and development needs, and solvency. The tar
Slide 42: Shareholders as of Sep. 30, 2019
Shareholders as of Sep. 30, 2019 Shareholders Shares Owner- Shareholders by sector ship, % 1 Tiiviste-Group Oy 1,001,004 14.93% 2 Joensuun kauppa ja kone Oy 745,000 11.11% 3 Mandatum 328,861 4.91% Henkivakuutusosakeyhtiö 4 Etola Erkki 295,000 4.40% 5 Montonen Mikko 260,000 3.88% 6 K22 Finance Oy 235