Investor presentation
Contents • Aspocomp in brief • Markets and growth drivers • Competitive edge • Financials • Strategy • Outlook Appendix 2
Aspocomp - At the heart of your technology Full life-cycle Technological Net sales Competitive from advantage in manufacturing growth R&D to demanding 22% partner volume printed circuit network (2018) boards production High-tech Own high-tech PCB Shortening Listed on the production Nasdaq Helsinki Time-to- technology site since 1999 market design, testing in Finland and logistics PCB = Printed circuit board 3
Aspocomp in brief Net sales and profitability EUR million % Aspocomp develops and sells PCBs • 30 12 and manufacturing services, 25 helping customers to create optimal designs and shortening 7 20 time-to-market for customers ’ products. 15 2 • Aspocomp offers cost-efficient 10 access to all PCB technologies -3 together with its own production 5 site in Oulu and strong partner network. 0 -8 2015 2016 2017 2018 Jan.-Sep. 2019 Net sales Operating profit Operating profit, % 4
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 $90 billion by 2024 (Sep. 2019, Lucitel & Industry Arc) 5
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 applications. Aspocomp’s PCBs are used in many applications, such as telecommunication networks and devices, automotive electronics, security and medical systems, chipset development and industrial automation. 6
Digitalization continues to drive global growth for PCBs Connected devices, IoT • Industry growth driven by digitalization especially in vehicle automation, Tele- Industrial communications instruments, internet infra, 5G telecommunications infra, security, defence & aviation and advanced DIGITALIZATION semiconductor technologies. Automation in Artificial vehicles intelligence Shortening time-to-market • increasingly critical Market growth Robotics 4.3% for PCB’s 2019-2024 (CAGR)* * Source: Lucintel 9/2019 7
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 • of things Market size is expected to However, some signs of Increased adoption of reach $89.7 billion by • growth slowing down 2024.* smart devices are visible. • Wearable electronics In Europe average growth Also geopolitical • Telecommunications infra rate 2.6% (CAGR) 2016- concerns, trade tariffs and 5G 2024* and Brexit may have an • Increased automation in impact. Asia Pacific is expected to industrial applications remain the largest market Advancement in • and witness the largest growth * automotive electronics *Source: Lucintel Sep. 2019 8
Aspocomp’s competitive edge Why customers love us? 10
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.
Focus on customers’ concerns Customers have We have 1) Superb technology and manufacturing knowledge Complex technical PCB from design to production requirements 2) Strong world-class Need for a reliable partner network and own PCB partner who production can support them in all technologies and volumes 3) Fast deliveries, flexibility in operations Critical time requirements 4) Certified quality standards 12
Key Customer Segments for Aspocomp SEMICONDUCTOR AUTOMOTIVE R&D AND IC TESTING SECURITY & DEFENCE TELECOMMUNICATION INFRASTRUCTURE INDUSTRIAL ELECTRONICS 10.3.2020
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 Wide Own prototyping. basic PCBs according to technology production in customers needs. Flexible production facilities and portfolio Oulu, Finland stocking system enable to quickly adapt to changes Strong Competitive and reliable partners and Engineering Comprehensive engineering partner network. local support and support for R&D in Oulu. organization customer Long presence in Asia. Single contact point for in Europe and service customer service. Local presence in EU Asia countries Logistic advantage for customers in Europe. ISO standardized production. 14
Committed to adding value by serving our customers with superior PCB expertise Aspocomp today Our strategy Our targets High-technology Expand services to cover PCB needs over expertise for the product’s entire demanding PCBs Growth life cycle Serving customers by both special and Shorten time-to-market volume PCBs with fast deliveries Number one Own production partner for facility in Finland our and strong partner Optimize efficiency customers network 15
Financials Strong growth and profitability
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 EBIT EBITDA EUR million EUR million EUR million 4 30 3,5 3,5 25 2,5 3 20 2,5 1,5 2 15 0,5 1,5 10 2015 2016 2017 2018 1-9/2019 -0,5 1 5 0,5 -1,5 0 0 2015 2016 2017 2018 1-9/2019 2015 2016 2017 2018 1-9/2019 -2,5 17
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 Equity per share 60 4 €2.50 50 Earnings per share 3 40 €0.40 30 2 20 1 10 0 0 2015 2016 2017 2018 1-9/2019 2015 2016 2017 2018 1-9/2019 18
Investments of EUR 10 million in total in Oulu site progressing as planned On-going investments in Oulu to • INVESTMENTS respond to the increased demand, 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 product mix. 3 Most part of the first stage • 2,5 investment will be completed by end 2 of 2019. 1,5 • The investment is partially funded 1 by EU 2014-2020 program. 0,5 0 In 2018, investments included the • 2015 2016 2017 2018 1-9/2019 acquisition of the production facility in Oulu. 19
Key drivers for performance Volumes increased in both ✓ R&D and volume Net sales and profitability of Aspocomp production EUR million Improved efficiency ✓ % 30 12 Improved product mix ✓ 25 7 20 15 2 10 -3 Long lead times of ➢ 5 materials ➢ Geopolitical concerns 0 -8 2015 2016 2017 2018 Jan.-Sep. 2019 ➢ European market slowing Net sales Operating profit Operating profit, % 20
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 4 2 2 1 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
Key indicators • Net sales grew by EUR million 1-9/2019 2018 2017 12% Net sales 23.0 29.1 23.9 Profitability • EBITDA 3.7 4.0 1.9 improved Operating profit (EBIT) 2.7 2.9 0.8 significantly, operating profit % of net sales 11.9% 9.9% 3.5% margin 11.9% Net profit for the period 2.7 3.2 1.3 Operative cash flow • Earnings per share, EUR 0.40 0.49 0.19 of EUR 4.9 million, Operative cash flow 4.9 2.0 0.8 more than doubled y-o-y Equity ratio, % 63% 57.6% 69.1% Order book at the end of 4.9 2.8 2.5 Order book at a the period • record level at Personnel 122 117 111 EUR 4.9 million 22
Telecommunication infrastructure continues as the largest customer sector Sales by customer sectors, % Sales by geographical area, % Other 0 2 Semiconductor R&D 7 5 Others and IC testing Security & Defence 9 13 Asia 2017 Industrial Electronics 18 19 2018 Europe (exl. Finland) Telecommunication 39 33 Infrastructure Finland Automotive 27 28 0 50 100 0 20 40 60 80 23
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 ➢ Aim to increase the number of 1-3 months in the PCB customers and customer segments. industry Strengthen long-term customer relations. Changes in market trends ➢ Own production site helps to adapt to market changes. ➢ Stock availability, pre-orders, Availability of materials and merchant stock are used to anticipate changes in material availability. 24
Recommend
More recommend
