Incap Oyj · OMXHEX:ICP1V
Incap Oyj — Investor Day (November 2022)
27 slides from Incap Oyj's investor day presentation, Nov 17, 2022
Slide 1: Incap Rocks Today and Tomorrow - Capital Markets Day
INCAP ROCKS TODAY AND TOMORROW CAPITAL MARKETS DAY 17 November 2022 INCAPCORP.COM INCAPCORP.COM
Slide 2: Presenters: Antti Pynnönen and Otto Pukk
ANTTI PYNNÖNEN CFO OTTO PUKK PRESIDENT AND CEO INCAPCORP.COM
Slide 3: Otto Pukk, President and CEO
OTTO PUKK PRESIDENT AND CEO INCAPCORP.COM
Slide 4: This is Incap
THIS IS INCAP
Slide 5: Incap - A Trusted Partner in EMS
INCAP - A TRUSTED PARTNER IN EMS AGILE ● Global EMS company supporting customers ranging from large multinationals and mid-sized companies to small start-ups in their complete manufacturing value chain ● State-of-the-art technology backed up by an entrepreneurial culture and highly qualified personn
Slide 6: Slide 6
Slide 7: Operations
OPERATIONS PCB assembly Box build Prototyping and Customised Test manufacturing assembly engineering solutions development INCAPCORP.COM
Slide 8: Global Operations
GLOBAL OPERATIONS Headquarters: Factory: Factory: Newcastle-under-Lyme, UK Helsinki Kuressaare • 4,400m2 FINLAND ESTONIA • Defence, security and aerospace Sourcing office: Factory: Kuressaare, Estonia Hong Kong • 7,300m2 CHINA • Electronics, box-build products Factory: Newcastle- under-Lyme Factory:
Slide 9: Third Factory in India
THIRD FACTORY IN INDIA ● Construction work in progress ● Expected to be completed by early December 2022 with roof, side wall and power connection ● Side wall in progress ● This unit will be ready for occupation by Q1 2023 ● Total land area: ~8 acres ● Total built-up area (Phase 1): 100,000 sq.ft. I
Slide 10: Our Success Formula
OUR SUCCESS FORMULA Decentralized business model: ● customer focus ● employees taking responsibility ● cost-efficiency INCAPCORP.COM
Slide 11: Corporate Responsibility
CORPORATE RESPONSIBILITY ● Joined UN’s Global Compact initiative ● Signed UN’s Sustainable Development Goals ● Corporate Responsibility Programme since 2020 ● Corporate Responsibility report published annually ● Social responsibility: well-being of employees, fair and ethical behaviour towards all s
Slide 12: A Great Team
A GREAT TEAM ● Great results achieved with a highly professional and entrepreneurial team ● Incap’s top-quality and efficiency are based on seamless teamwork throughout the hole production and delivery chain ● Dedicated team spirit also visible in our low employee turnover rate ● We aim to keep the
Slide 13: Antti Pynnönen, CFO
ANTTI PYNNÖNEN CFO INCAPCORP.COM
Slide 14: Growth from the Beginning of 2022 Continued
GROWTH FROM THE BEGINNING OF 2022 CONTINUED 1-3Q22: revenue increased 56.4% to EUR 185.1 million +56.4% REVENUE Operating profit (EBIT) increased to EUR 26.3 million, corresponding to 14.2% of revenue +49.7% EBIT INCAPCORP.COM
Slide 15: Revenue, EBIT and EBIT Margin per Quarter 1Q19-3Q22
REVENUE, EBIT AND EBIT MARGIN PER QUARTER 1Q19-3Q22 EUR 80 EUR 12 18,0 % million million 70 16,0 % 10 14,0 % 60 8 12,0 % 50 10,0 % 40 6 8,0 % 30 4 6,0 % 20 4,0 % 2 10 2,0 % 0 0 0,0 % 19 19 19 19 20 20 20 20 21 21 21 21 22 22 22 2Q 9 3Q 9 4Q 9 1Q 9 2Q 0 3Q 0 4Q 0 1Q 0 2Q 1 3Q 1 4Q 1 1Q 1 2Q 2 3Q 2 22
Slide 16: Consolidated Balance Sheet 30 June 2022
CONSOLIDATED BALANCE SHEET 30 JUNE 2022 INCAPCORP.COM
Slide 17: Consolidated Cash Flow Statement Jan-Jun 2022
CONSOLIDATED CASH FLOW STATEMENT JAN-JUN 2022 INCAPCORP.COM
Slide 18: Inventory 1H19-3Q22
INVENTORY 1H19–3Q22 EUR 100 ● Inventory value growth mainly million 90 driven by rapid increase in 80 business volumes 70 ● Challenges with component 60 availability and increased 50 material prices have had only 40 a limited impact 30 ● Incap buys materials based on 20 a firm customer purchase 10 o
Slide 19: Outlook for 2022
OUTLOOK FOR 2022 Incap estimates that its revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2022 will be significantly higher than in 2021. Revenue is estimated to be EUR 262–270 million, and operating profit (EBIT) is estimated to be EUR 38–42 million. The estimates are give
Slide 20: Incap's Share 2007-2022
INCAP’S SHARE 2007-2022 INCAPCORP.COM
Slide 21: Otto Pukk, President and CEO
OTTO PUKK PRESIDENT AND CEO INCAPCORP.COM
Slide 22: Growth Strategy: Focus on Three Strategic Cornerstones
GROWTH STRATEGY FOCUS ON THREE STRATEGIC CORNERSTONES OPERATIONAL GROWTH PROFITABILITY EXCELLENCE Driven by ● Maintaining unique and ● Investments in high ● Growing use of electronics efficient business model quality technology and in ● Strong cost awareness and know-how of personnel ● Outsourcing t
Slide 23: Revenue by Number of Customers
REVENUE BY NUMBER OF CUSTOMERS MEUR INCAPCORP.COM
Slide 24: Working with Customers
Working with customers ● Outsourcing trend continues ● Not only products, but also services and functions ● Incap is increasingly integrated in customers’ business processes, e.g. prototyping and product creation ● Close relationship with customers ● Long-term partnerships ● High customer satisfacti
Slide 25: The Way Forward
THE WAY FORWARD ● We have shown strong organic growth ● Need to grow also inorganically to balance out the risk ● Concentrating in companies with a strong cultural fit and good profitability ● Targeting geographical expansion in markets with a well-functioning operating environment (e.g., Germany an
Slide 26: Why Invest in Incap
WHY INVEST IN INCAP ● Growing industry ● Strong financial track record ● Flexible operational model ● Presence in Europe and Asia ● Broad customer offering ● Strong entrepreneurial and customer driven culture ● Committed to corporate and social responsibility ● Skilled and empowered personnel INCAPC
Slide 27: Thank You
THANK YOU