2021

ANNUAL REPORT

Financial Statements and Report of the Board of Directors

CEO'S REVIEW 3
REPORT OF THE BOARD OF DIRECTORS 2021 4
Key indicators 2021-201712
Formulas and definitions 13
FINANCIAL STATEMENTS 2021 14
Consolidated financial statements, IFRS 14
Consolidated Income Statement14
Consolidated Balance Sheet15
Consolidated Statements of Changes in Equity16
Consolidated Cash Flow Statement 17
Notes to the Consolidated Financial Statements 18
Parent Company Financial Statements 51
Parent Company Income Statement 51
Parent Company Balance Sheet52
Parent Company Cash Flow Statement 53
Notes to the Financial Statements of the Parent Company, FAS 54
Board of Directors' dividend proposal and signatures 66
The Auditor's note66
Auditor's Report67
Our Audit Approach 68
Overview68
GOVERNANCE 73
The Board of Directors, December 31, 202173
The Management Team, December 31, 202174
Information for shareholders 75
Contact Information 76

CEO'S REVIEW

Net sales growth accelerated in the last quarter of the year. Fourth-quarter net sales rose to EUR 10.8 million, a year-to-year increase of 81 percent. Net sales for the full year rose to EUR 33.2 million, higher than before the pandemic. Compared to the previous year, we achieved a fine growth of 29 percent. The order book nearly quadrupled and reached EUR 16.5 million at the end of the year. These orders will be delivered in 2022. The growth in the order book was particularly supported by increased demand in the Semiconductor customer segment.

Net sales in the Automotive customer segment tripled in the fourth quarter. Net sales increased by EUR 2.7 million from the weak comparison period to EUR 3.6 million. Inventory levels in the automotive supply chains declined during the pandemic in line with current demand. As demand recovered in the second half of the year, inventory levels were adjusted upwards, and preparations were made for an increase in production levels. For the full year, the Automotive segment grew by 67 percent to EUR 8.9 million.

The Semiconductor Industry customer segment increased by 77 percent to EUR 2.1 million in the fourth quarter. Extensive investments in the semiconductor industry to increase semiconductor chip manufacturing capacity will significantly increase segment demand in the coming years. Full-year net sales in the segment increased by 21 percent to EUR 6.2 million.

The Security, Defense and Aerospace customer segment's net sales rose in the fourth quarter to EUR 2.0 million, up 58 percent from the comparison period. The segment's growth was the result of the acquisition of new aviation customers and, to an increasing extent, customers' demand to transfer their acquisitions to European suppliers. The segment's full-year net sales increased by 18 percent to EUR 6.1 million.

The Industrial Electronics segment's net sales increased in the fourth quarter by 41 percent to EUR 1.9 million. The recovery in industrial investment and the growing level of digitalization in the industry increased segment demand. For the full year, the net sales of the Industrial Electronics segment increased by 63 percent to EUR 7.1 million.

The Telecommunication customer segment fell short of the previous year's level and net sales were EUR 1.0 million, down by 18 percent in the fourth quarter. The global shortage of components slowed down product development cycles and the needs for printed circuit boards in product development fell short of the previous year's level. Full-year net sales were EUR 4.5 million, down by 16 percent from the previous year.

The operating result rose to EUR 1.2 million in the fourth quarter, representing 11.5% of net sales. The full-year operating result rose to EUR 2.2 million, or about 7% of net sales. Operating profit increased mainly due to higher utilization rates and the emphasis of the product mix on the most technologically demanding PCBs. The share of quick-turn deliveries remained below the pre-COVID-19 level.

The strong and extended order book improves visibility and demand is expected to remain positive, although there are still market problems with the availability of production materials and semiconductor components.

I would like to thank all our loyal customers, shareholders and other stakeholders for the excellent past year. I would also like to say a big thanks to our hard-working and flexible staff.

Mikko Montonen, President and CEO

REPORT OF THE BOARD OF DIRECTORS 2021

2021 IN BRIEF

	1-12/2020	1-12/2020	Change *
Net sales	33.2 M €	25.6 M €	29 %
EBITDA	4.1 M €	1.5 M €	168 %
Operating result	2.2 M €	-0.1 M €	1808 %
% of net sales	6.8 %	-0.5 %	7 ppts
Earnings per share	0.31 €	-0.01 €	2314 %
Operative cash flow	2.3 M €	3.7 M €	-39 %
Equity ratio	60.8 %	63.6 %	-3 ppts
Order book at the end of period	16.5 M €	4.4 M €	277 %
Dividend/share **	0.15 €	0.00 €	0.15 €

* The total may deviate from the sum totals due to rounding up and down.

** The Board of Directors will propose to the Annual General meeting.

NET SALES AND EARNINGS 2021

Net sales amounted to EUR 33.2 (25.6) million, a year-on-year increase of 29 percent.

During the financial year, the Automotive segment increased by 67 percent to EUR 8.9 million. Inventory levels in the automotive supply chains declined during the pandemic in line with current demand. As demand recovered, inventory levels were adjusted upwards, and preparations were made for an increase in production levels.

In 2021, net sales in the Semiconductor Industry segment increased by 21 percent to EUR 6.2 million. Extensive investments in the Semiconductor industry to increase semiconductor chip manufacturing capacity increased segment demand. Net sales growth strengthened towards the end of the year.

The Security, Defense and Aerospace customer segment's full-year net sales increased by 18 percent to EUR 6.1 million. The segment's growth was the result of the acquisition of new aviation customers and, to an increasing extent, customers' demand to transfer their acquisitions to European suppliers.

The Industrial Electronics segment's full-year net sales increased by 63 percent to EUR 7.1 million. The recovery in industrial investment and the growing level of digitalization in the industry strengthened the segment's demand.

In the Telecommunication customer segment, the global shortage of components slowed down product development cycles and the needs for printed circuit boards in product development fell short of the previous year's level. Full-year net sales were EUR 4.5 million, down by 16 percent from the previous year.

The five largest customers accounted for 48 (41) percent of net sales. In geographical terms, 84 (85) percent of net sales were generated in Europe and 16 (15) percent on other continents.

The full-year operating result amounted to EUR 2.2 (-0.1) million. The operating result was 6.8 (-0.5) percent of net sales. Operating profit increased mainly due to higher utilization rates and the emphasis of the product mix on the most technologically demanding PCBs.

Net financial expenses amounted to EUR 0.0 (0.3) million, including a deferred exchange gain of EUR 0.2 million. Earnings per share were EUR 0.31 (-0.01).

Impact of the COVID-19 pandemic

The recovery in the general market situation continued and had a positive effect on the company's demand in the fourth quarter. Demand has grown, and the company's order book level has risen significantly. The COVID-19 pandemic and the effects of related restrictions on supply chains in the electronics industry have been partially mitigated.

The company's production at the Oulu plant has continued normally and delivery capacity has been reasonable. The company has continued to invest in new capacity and increased its product development investments in new products and more challenging technologies.

The pandemic has not affected the company's liquidity. The cash situation has remained good and the credit facilities have not been used. The company has not identified any need to recognize write-downs of goodwill.

INVESTMENTS AND R&D

In 2021, investments amounted to EUR 1.3 (2.0) million. The company has continued its investments to increase capacity in line with its strategy, but the installation of equipment has been slowed down in part due to delays in material and component deliveries caused by the COVID-19 pandemic. The investments were mainly focused on upgrading the capacity of the Oulu plant, improving automation, and increasing production efficiency.

In 2017, Aspocomp launched an investment program amounting to a total of EUR 10 million to further strengthen its position as a strategic partner to leading companies in the semiconductor, automotive, defense and aerospace, and telecommunications (5G) industries. The second phase of investments was launched in the spring of 2020, when the company was granted a total of EUR 1.35 million in development support by the ELY Center, corresponding to about 25 percent of its total cost. The second phase of the investment program aims in particular to increase the capacity of the Oulu plant, improve automation and increase production efficiency. In this current program, which will run until the end of 2022, all of the new equipment will be installed in the existing Oulu plant building and no additional plant space will be built.

CASH FLOW AND FINANCING

Cash flow from operations amounted to EUR 2.3 (3.7) million in 2021. The most significant reason for the decrease in cash flow was the change in net working capital. The rapid growth of the business tied up working capital, especially in trade receivables and production materials.

Cash assets amounted to EUR 2.6 (2.8) million at the end of the period. Interest-bearing liabilities amounted to EUR 4.3 (5.7) million. Interest-bearing liabilities are subject to covenant terms. The covenant terms were breached in June 2021, but waiver consents have been obtained from financiers. Gearing was 9 (17) percent. Non-interest-bearing liabilities amounted to EUR 8.0 (4.1) million.

At the end of the period, the Group's equity ratio amounted to 60.8 (63.6) percent.

The company has a EUR 1.0 (1.0) million credit facility, which was not in use at the end of the review period. In addition, the company has a recourse factoring agreement, of which EUR 0.0 (0.0) million was in use.

DEFERRED TAX ASSETS

At the end of the 2021 financial year, the company had EUR 5.0 in deferred tax assets in its balance sheet. The deferred tax assets are primarily due to decelerated tax depreciation.

PERSONNEL

During the review period, the company had an average of 139 (140) employees. The personnel count on December 31, 2021, was 145 (138). Of them, 92 (87) were blue-collar and 53 (51) white-collar employees.

The Group's personnel expenses amounted to EUR 8.9 (7.8) million. In addition, the Group booked personnel service costs of EUR 0.4 (0.2) million in 2021.

ENVIRONMENT

Environmental responsibility is an integral part of Aspocomp's operations, management and decision making, seeking to minimize the company's environmental impact. We seek to continuously develop our operations to prevent and reduce the emissions and wastes caused by our operations. We are committed to minimizing the use of materials that have a harmful impact on the environment throughout the whole life cycle of products.

Aspocomp manages its environmental compliance with an environmental system that has been certified in line with the latest version of ISO 14001. The company's environmental system aims to continuously reduce its environmental impact and conserve natural resources. By using the best available and economically viable technologies, we strive to cut emissions and to economically use natural resources and energy. Aspocomp complies with the environmental legislation and regulations that are in force as well as seeks to proactively boost the efficiency of its operations while taking environmental issues into consideration in all of its functions. Approximately 80% of the company's employees work in ISO 14001 certified workplaces.

In order to achieve the objectives of our environmental system, we constantly train our employees and work in cooperation with our customers, the authorities and other stakeholders. The electronics supply chain has a great impact on the environmental friendliness of the end products. Therefore, we seek to work closely with other electronics companies and subcontractors in projects concerning the environment and its protection. The goal is to collect reliable data on the composition of the production materials, and to identify the most environmentally friendly raw materials and production processes.

Aspocomp can provide its customers with detailed material reports that itemize the chemical elements and compounds used in each PCB. Customers can consult these reports to determine the recyclability of the final product at the end of its life cycle. If necessary, Aspocomp helps its customers organize PCB recycling by utilizing its partners.

Aspocomp identifies and assesses the environmental perspectives of its operations at least every other year. These reviews are performed by a working group assembled by the officer responsible for environmental issues. The latest evaluation of environmental perspectives that was carried out focused particularly on reducing the consumption of raw materials and the amount of waste generated from production by improving the yields of volume codes. On the basis of the evaluation, the following goals were set for the environmental program in 2022-2024:

• Reducing waste and raw material consumption

The Oulu plant accounts for most of the company's energy and water consumption and waste. Every year, the company provides the national environmental protection information system with data on its use of energy and chemicals, production volumes, water consumption, wastes generated during operations, and the wastewater load discharged into bodies of water.

In 2021, 69 percent of the electricity we used came from fossil-free sources. Waste in proportion to production volume in 2021 at the Oulu plant was 1.5 percent less than in the previous year. However, compared to 2020, the amount of waste at the Oulu plant in 2021 was 16 percent lower in proportion to gross production volume. In 2021, the recovery rate of waste was 65 percent, and waste is reused for the recovery of materials and the production of energy. We are constantly striving to promote the recycling of waste. The PCB manufacturing process requires a large amount of water. After the manufacturing process, all water is treated at the plant's own wastewater treatment facility before being diverted to municipal wastewater treatment.

The company's headquarters in Espoo, Finland are located on the premises of an environmentally responsible property. The property has been implemented on a sustainable basis and has been awarded the LEED Platinum environmental certificate. LEED is a Green Property Certification System that aims to reduce the environmental load during construction and operation of buildings and the Platinum level is the highest level of certification.

THE ANNUAL GENERAL MEETING 2021

Due to the COVID-19 pandemic, the Annual General Meeting 2021 was held on April 13, 2021, in accordance with the temporary legislative act approved by the Finnish Parliament and in a manner that the shareholders, auditor, and members of the Board of Directors were not present. Shareholders had the possibility to follow the meeting via an online video stream and to vote in advance or to exercise their voting rights by proxy presentation as well as were allowed to ask questions in advance.

The Annual General Meeting adopted the annual accounts and the consolidated annual accounts for the financial period 2020 and granted the members of the Board of Directors and the CEO discharge from liability.

The Board of Directors

The Annual General Meeting 2021 decided to set the number of Board members at four and re-elected Ms. Päivi Marttila and Ms. Kaarina Muurinen and elected Mr. Jukka Huuskonen and Mr. Anssi Korhonen as new members to the Board, for a term of office ending at the closing of the following Annual General Meeting.

The Annual General Meeting decided that the Chairman of the Board of Directors will be paid EUR 30,000, the Vice Chairman of the Board of Directors be paid EUR 20,000 and the other members will be paid EUR 15,000 each in remuneration for their term of office. The Annual General Meeting further decided that EUR 1,000 will be paid as remuneration per meeting to the Chairman and that the other members be paid EUR 500 per meeting of the Board and its committees. The members of the Board of Directors will further be reimbursed for reasonable travel costs.

Authorizations given to the Board

The Annual General Meeting 2021 decided to authorize the Board of Directors to decide, at its discretion, on the distribution of up to EUR 0.07 per share from retained earnings and / or return on invested equity in one or more trances. The authorization is valid until the beginning of the next Annual General Meeting. The Annual General Meeting further decided that the company will publish any Board decision on the distribution of funds separately and at the same time confirms the relevant reconciliation and payment dates.

The Annual General Meeting 2021 decided to authorize the Board of Directors, in one or more installments, to decide on the issuance of shares and the issuance of options and other special rights entitling to shares referred to in Chapter 10 Section 1 of the Companies Act as follows: The number of shares to be issued based on the authorization may in total amount to a maximum of 684,144 shares. The Board of Directors decides on all the terms and conditions of the issuances of shares and of options and other special rights entitling to shares. The authorization concerns both the issuance of new shares as well as own shares possibly held by the company. The issuance of shares and of options and other special rights entitling to shares referred to in Chapter 10 Section 1 of the Companies Act may be carried out in deviation from the shareholders' pre-emptive rights (directed issue).

The authorization cancels the authorization given by the General Meeting on June 9, 2020, to decide on the issuance of shares as well as the issuance of special rights entitling to shares. The authorization is valid until June 30, 2022.

Dividend

No dividend was paid in 2021.

Auditor

The Annual General Meeting re-elected in accordance with the proposal of the Board of Directors PricewaterhouseCoopers Oy, Authorized Public Accountants as the company's auditor for the 2021 financial year. The Meeting resolved that the auditor's fees shall be paid according to the auditor's invoice.

The Board of Directors' organization meeting

In its organization meeting on April 13, 2021, the Board of Directors of Aspocomp Group Plc. re-elected Ms. Päivi Marttila as Chairman of the Board and Ms. Kaarina Muurinen as Vice Chairman of the Board. The Board decided not to establish an Audit Committee. The Board itself performs the duties of the Audit Committee.

In its organization meeting held after the Annual General Meeting 2021, the Board of Directors performed an evaluation of Board members' independence. According to the evaluation, all Board members are independent of the company and independent of the company's major shareholders.

THE MANAGEMENT TEAM

Mr. Mikko Montonen, M.Sc. (Eng.) is the President and Chief Executive Officer of Aspocomp Group Plc. On January 7, 2021, Mr. Antti Ojala, a member of the Group's Management Team, Vice President, Business Development and Deputy CEO, was appointed Chief Operating Officer. Mr. Jari Isoaho, COO and a member of the Management Team, left his position in the company on January 7, 2021.

As of January 7, 2021, the Management Team includes Mr. Mikko Montonen, President and CEO, Mr. Antti Ojala, COO and Deputy CEO, Mr. Ari Beilinson, VP, Sales and Marketing, Mr. Jouni Kinnunen, CFO and Mr. Mitri Mattila, CTO.

CORPORATE GOVERNANCE STATEMENT

The Corporate Governance Statement for 2021 is issued separately from the report of the Board of Directors, and it is available on the company's Internet site at www.aspocomp.com/governance.

SHARES AND OWNERSHIP STRUCTURE

Number of shares

Aspocomp Group Plc. shares have been listed on the main list of the Helsinki Stock Exchange since October 1, 1999. The company's trading code on the Nasdaq Helsinki Small Cap segment is ACG1V. The total number of Aspocomp's shares at December 31, 2021 was 6,841,440 and the share capital stood at EUR 1,000,000. The company did not hold any treasury shares. Each share is of the same share series and entitles its holder to one vote at a General Meeting and to have an identical dividend right.

Share turnover and price

A total of 1,624,098 Aspocomp Group Plc. shares were traded on Nasdaq Helsinki during the period from January 1 to December 31, 2021. The aggregate value of the shares exchanged was EUR 7,646,054. The shares traded at a low of EUR 3.83 and a high of EUR 6.20. The average share price was EUR 4.71. The closing price at December 31, 2021 was EUR 6.00, which translates into market capitalization of EUR 41.0 million. The company had 3,764 shareholders at the end of the review period. Nominee-registered shares accounted for 2.2 percent of the total shares.

Share price development and share turnover per month 2020-2021

Ownership structure

	Number of	% of	Number of	% of
Shares	shareholder	shareholders	shares	shares
1 – 100	1,741	46.2 %	76,572	1.1 %
101 – 500	1,221	32.4 %	323,557	4.7 %
501 – 1,000	367	9.8 %	295,664	4.3 %
1,001 – 5,000	334	8.9 %	767,888	11.2 %
5,001 – 10,000	50	1.3 %	362,789	5.3 %
10,001 – 50,000	36	1.0 %	707,197	10.3 %
50,001 – 100,000	5	0.1 %	361,123	5.3 %
100,001 – 500,000	8	0.2 %	1,802,349	26.4 %
500,001 –	2	0.1 %	2,144,004	31.4 %
Shares in trust and awaiting clearance			297	0
Total	3,764	100%	6,841,440	100 %
of which nominee registered	9		149,802	2.2 %

Size of holding, December 31, 2021

Shareholders by sector, December 31, 2021

	Number of	% of	Number of	% of
	shareholder	shareholders	shares	shares
Household	3,602	95.7 %	3,543,146	51.8 %
Companies	128	3.4 %	2,446,445	35.8 %
Financial and insurance institution	10	0.3 %	707,563	10.3 %
Non-domestic	17	0.4 %	142,029	2.1 %
Non-profit organizations	7	0.2 %	1,960	0.0 %
Public sector organizations	0	-	0	-
Shares in trust and awaiting clearance	0		297	0
Total	3,764	100%	6,841,440	100%

Shareholders

Shareholders, December 31, 2021		Shares Ownership, %
1 Joensuun Kauppa ja Kone Oy	1,143,000	16.71
2 Etola Group Oy	1,001,004	14.63
3 Montonen Mikko	390,000	5.70
4 Mandatum Henkivakuutusosakeyhtiö	333,258	4.87
5 Etola Erkki	300,000	4.39
6 Nordea Henkivakuutus Suomi Oy	275,000	4.02
7 Lahdenperä Matti	137,100	2.00
8 Lähdesmäki Tuomo	135,000	1.97
9 Citibank Europe Plc (Nomineereg.)	117,275	1.71
10 Koskinen Jouni	114,716	1.68
11 Lauren Karri-Pekka	87,972	1.29
12 Vuorialho Kari	75,505	1.10
13 Aj Eab Value Hedge Sr	73,815	1.08
14 Lahdenperä Marja Helena	63,831	0.93
15 Haaron Perunatila Oy	60,000	0.88
16 Lemmetti Juhani	45,457	0.66
17 Frontier Liquidity Oy	35,664	0.52
18 Eyemaker's Finland Oy	35,000	0.51
19 Yli-Krekola Antti	32,190	0.47
20 Salminen Roni	28,200	0.41
20 major shareholders total	4,483,987	65.54
Other shareholders	2,357,453	34.46
Total shares	6,841,440	100

Information on shareholders is based on Aspocomp Group Plc.'s shareholder list, which is maintained by Euroclear Finland Ltd.

MAJOR SHAREHOLDER ANNOUNCEMENTS IN 2021

No announcements in 2021.

OUTLOOK FOR 2022

Demand is expected to improve in all customer segments. However, a 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 amounted to EUR 33.2 million and the operating result to EUR 2.2 million.

ASSESSMENT OF SHORT-TERM BUSINESS RISKS

A major share of Aspocomp's net sales is generated by quick-turn deliveries and R&D series, and thus the company's order book is short. The company's aim is to systematically expand its services to cover the PCB needs of customers over the entire life cycle and thereby balance out variations in demand and the order book.

Impact of the COVID-19 pandemic on the electronics supply chain

The COVID-19 pandemic may affect the availability of parts and components required by electronic assemblers, which would weaken demand.

Risks affecting the operating environment

The geopolitical situation has become more unstable during the first part of the year. Russia's military action against Ukraine and the resulting sanctions are not currently expected to have a significant direct impact on the company. Aspocomp has no business operations and no direct customers or suppliers in Russia, Belarus or Ukraine. However, the changed operating environment may affect our sourcing and logistics chains. The prolongation of the crisis may create uncertainties that cannot yet be fully assessed at the time of publication of this financial statement bulletin.

Dependence on key customers

Aspocomp's customer base is concentrated; approximately half of sales are generated by five key customers. This exposes the company to significant fluctuations in demand.

Market trends

Although Aspocomp is a marginal player in the global electronics market, changes in global PCB demand also have an impact on the company's business. Competition for quick-turn deliveries and short production series will accelerate as the market for PCBs weakens and continues to have a negative impact on both total demand and market prices.

Aspocomp's main market area comprises Northern and Central Europe. In case Aspocomp's clients would transfer their R&D and manufacturing out of Europe, demand for Aspocomp's offerings might weaken significantly.

BOARD OF DIRECTORS' DIVIDEND PROPOSAL

According to the financial statements dated December 31, 2021 the parent company's distributable earnings amounted to EUR 7,286,660.81, of which the retained earnings were EUR 4,271,650.99.

The Board of Directors will propose to the Annual General Meeting to be held on April 26, 2022, that a dividend of EUR 0.15 per share be paid. The dividend would be paid to shareholders registered in the Register of Shareholders maintained by Euroclear Finland Ltd on the record date of the dividend distribution, April 28, 2022. The Board of Directors proposes that the dividend will be paid on May 5, 2022.

There have been no significant changes in the company's financial position since the close of the financial period. According to the Board of Directors, the proposed dividend distribution does not endanger the company's financial standing.

KEY INDICATORS 2021-2017

	2021	2020	2019	2018	2017
Net sales, M€	33.2	25.6	31.2	29.1	23.9
Operating result before depreciation (EBITDA), M€	4.1	1.5	4.7	4.0	1.9
Operating profit/loss (EBIT), M€	2.2	-0.1	3.4	2.9	0.8
Share of net sales, %	6.8	-0.5	10.9	9.9	3.5
Pre-tax profit from operations, M€	2.2	-0.4	3.3	2.8	0.8
Share of net sales, %	6.6	-1.7	10.4	9.5	3.3
Net profit/loss for the period, M€	2.1	-0.1	3.9	3.2	1.3
Share of net sales, %	6.4	-0.4	12.6	11.1	5.3
Net cash flow from operating activities, M€	2.3	3.7	4.3	2.0	0.8
Return on equity (ROE), %	11.6	-0.6	23.9	24.0	11.2
Return on investment (ROI), %	9.3	0.8	18.4	19.8	10.3
Equity ratio, %	60.8	63.6	61.3	57.6	69.1
Gearing, %	8.7	16.6	19.0	19.3	9.3
Investments, M€	1.3	2.0	3.5	3.4	1.0
Share of net sales, %	3.9	7.7	11.4	11.5	4.0
Order book at the end of period	16.5	4.4	4.4	2.8	2.5
Personnel, year end	145	138	132	117	113
Personnel, average	139	140	124	116	111
Earnings/share (EPS), €	0.31	-0.01	0.59	0.49	0.19
Dividend/share, €	0,15*	0.00	0,15	0.12	0,07
Price/earnings ratio (P/E)	19.49	-392.00	8.92	7.55	12.47

*Proposal of the Board of Directors

FORMULAS AND DEFINITIONS

Earnings/share (EPS), € =		Profit attributable to equity shareholders
		Adjusted weighted average number of shares outstanding
Dividend/share, €	=	Dividend for the period
Price/earnings (P/E)	=	Share price at the end of period
		Earnigns/share

Treasury shares are eliminated when calculating share based ratios.

The Alternative Performance Measures (APM) used by the Group

Aspocomp presents in its financial reporting alternative perfomance measures, which describe businesses' financial performance and its development as well as investments and return on equity. In addition to accounting measures which are defined or specified in IFRS, alternative performance measures complement and explain presented information. Aspocomp presents in its financial reporting the following alternative performance measures:

EBITDA	=	Earnings before interests, taxes, depreciations and amortizations EBITDA indicates the result of operations before depreciations, financial items and income taxes. It is an important key figure, as it shows the profit margin on net sales after operating expenses are deducted.
Operating result	=	Earnings before income taxes and financial income and expenses presented in the IFRS consolidated income statement.
		The operating result indicates the financial profitability of operations and their development.
Profit/loss before taxes	=	The result before income taxes presented in the IFRS consolidated statements.
		Equity
Equity ratio, %	=	Total assets - advances received
Gearing, %	=	Net interest bearing liabilities
		Total equity
		Gearing indicates the ratio of capital invested in the company by shareholders and interest-bearing debt to financiers. A high gearing ratio is a risk factor that may limit a company's growth opportunities and financial latitude.
Gross investments	=	Acquisitions of long-term intangible and tangible assets (gross amount).
Order book	=	Undelivered customer orders at the end of the financial period.
Cash flow from operating activities	=	Profit for the period + non-cash transactions +- other adjustments +- change in working capital + interest income - interest expenses - taxes

FINANCIAL STATEMENTS 2021

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED INCOME STATEMENT

	1000 € Note	1.1.-31.12.2021	1.1.-31.12.2020
Net sales	1	33,154	25,635
Change in inventory of finished goods and work in
progress		1,309	-211
Other operating income	2	51	83
Materials and services	3	-17,363	-11,760
Personnel expenses	4, 5	-8,890	-7,856
Depreciation and impairment		-1,809	-1,643
Other operating expenses	6	-4,208	-4,380
Operating profit		2,243	-131
Financial income	7	1	0
Financial expenses	7	-39	-295
Profit before tax		2,204	-426
Income tax	8	-98	327
Profit for the period		2,106	-98
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension
plans		-169	6
Income tax relating these items		28	-1
Items that may be reclassified subsequently to profit
or loss:
Currency translation differences		10	0
Other comprehensive income for the period, net of tax		-131	5
Total comprehensive income		1,976	-93
Earnings per share (EPS)	9
Basic EPS		0.31	-0.01
Diluted EPS		0.31	-0.01

CONSOLIDATED BALANCE SHEET

Assets	1000 €	Note	Dec. 31, 2021	Dec. 31, 2020
Non-current assets
Intangible assets		10	3,232	3,247
Property, plant and equipment		11	5,504	5,916
Right-of-use assets		12	697	1,029
Financial assets at fair value through profit or loss			95	95
Deferred tax assets		8	4,972	5,043
Total non-current assets			14,500	15,330
Current assets
Inventories		14	4,967	2,932
Short-term receivables		15	9,410	5,891
Cash and bank deposits		16	2,631	2,801
Total current assets			17,008	11,623
Total assets			31,508	26,953

Equity and liabilities	1000 €	Note	Dec. 31, 2021	Dec. 31, 2020
Equity		27
Share capital			1,000	1,000
Reserve for invested unrestricted equity			4,736	4,705
Remeasurements of defined benefit pension plans			-148	-7
Retained earnings			13,566	11,450
Total equity			19,155	17,148
Liabilities
Non-current liabilities
Long-term financing loans		13, 17, 18	2,419	3,411
Lease liabilities		12, 13, 17, 18	507	835
Employee benefits and remeasurements of defined
pension plans		5	467	340
Other non-current liabilities		13, 17	0	0
Deferred tax liabilities		8	38	19
Current liabilities
Short-term financing loans		17	992	992
Lease liabilities		17	376	415
Trade and other payables		13,17	7,554	3,794
Total equity and liabilities			31,508	26,953

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

1 000 €
	Share capital	Reserve for invested unrestricted equity	defined pension plans Remeasurements of	Translation differences	Retained earnings	Total equity
Balance at Jan. 1, 2021	1,000	4,705	-7	2	11,448	17,148
Comprehensive income
Comprehensive income for the period					2,106	2,106
Other comprehensive income for the period, net of tax
Remeasusurements of defined benefits
plans			-141			-141
Translation differences				10		1 0
Total comprehensive income for the period	0	0	-141	1 0	2,106	1,976
Business transactions with owners
Dividends paid						0
Share-based payment		32				3 2
Business transactions with owners,
total	0	3 2	0	0	0	3 2
Balance at Dec. 31, 2021	1,000	4,736	-148	1 2	13,554	19,155

Balance at Jan. 1, 2020	1,000	4,534	-12	2	12,572	18,096
Comprehensive income
Comprehensive income for the period					-98	-98
Other comprehensive income for the period, net of tax
Remeasusurements of defined benefits
plans			5			5
Translation differences				0		0
Total comprehensive income for the period	0	0	5	0	-98	-93
Business transactions with owners
Dividends paid					-1,026	-1,026

Share-based payment Business transactions with owners,		171				171
total	0	171	0	0	-1,026	-855
Balance at Dec. 31, 2020	1,000	4,705	-7	2	11,448	17,148

CONSOLIDATED CASH FLOW STATEMENT

	1000 € Note	Dec. 31, 2021	Dec. 31, 2020
Cash flow from operating activities
Profit for the period		2,106	-98
Adjustments
Non-cash transactions	21	1,792	2,130
Other adjustments	21	59	-355
Change in working capital	21	-1,557	2,303
Interest income		1	0
Interest expenses		-130	-292
Taxes		-12	-14
Net cash flow from operating activities		2,258	3,674
Cash flow from investing activities
Investments in property, plant and equipment		-1,300	-1,906
Investments		0	-80
Proceeds from sale of property, plant and equipment		39	28
Net cash flow from investing activities		-1,260	-1,959
Net cash flow before financing		998	1,716
Cash flow from financing activities
Loans drawn down		0	3,000
Loans repaid		-992	-2,852
Decrease in lease liabilities (2018: Financial lease payments)		-358	-380
Stock options exercised		0	139
Dividends paid		0	-1,026
Net cash flow from financing activities		-1,350	-1,119
Change in cash and cash equivalents		-342	596
Cash and cash equivalents at the beginning of period	16	2,801	2,382
Effects of exchange rate changes on cash and cash equivalents		172	-177
Cash and cash equivalents at the end of period	16	2,631	2,801

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ACCOUNTING PRINCIPLES OF THE CONSOLIDATED FINANCIAL STATEMENTS

Basis of preparation

The financial statements for 2021 have been prepared in accordance with International Financial Reporting Standards (IFRS) and in conformity with the international accounting standards (IAS/IFRS) in force at December 31, 2021 as well as SIC and IFRS interpretations. In the Finnish Accounting Act and the regulations based on it, International Financial Reporting Standards refer to the standards and the interpretations that are issued regarding them that have been approved for application within the EU in accordance with the procedure prescribed in Regulation (EC) 1606/2002. The notes to the consolidated financial statements are also in accordance with Finnish accounting and company legislation.

The figures in the financial statements are presented in thousands of euros.

Any other IFRS or IFRIC interpretation already issued but not yet effective is not expected to have a material impact on the Group.

Accounting principles

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are deconsolidated when control ceases.

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of the acquiree's identifiable net assets.

Acquisition-related costs are expensed as incurred.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or losses arising from such remeasurement are recognized in profit or loss.

Any contingent consideration to be transferred by the Group is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognized through profit or loss. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity.

Inter-company transactions, receivables, liabilities and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies.

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The difference between the fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognized in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss.

Segment reporting

Operating segments are reported in a manner consistent with internal reporting to the chief operative decision-maker. Aspocomp Group Plc.'s Board of Directors is the chief operative decision-maker responsible for the allocation of resources to the operating segments and the assessment of their results. The Aspocomp Group's business operations comprise a single operating segment. The Board of Directors monitors unadjusted net sales, operating result and profit/loss for the period in accordance with IFRS.

Recognition policies

IFRS 15 Revenue from Contracts with Customers establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of IFRS 15 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers with an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under IFRS 15, an entity recognizes revenue when (or as) a performance obligation is satisfied, i.e., when control of the good or service underlying the particular performance obligation is transferred to the customer. These principles are applied using the following five steps:

1. Identify the contract(s) with a customer
1. Identify the performance obligations in the contract
1. Determine the transaction price
1. Allocate the transaction price to the performance obligations in the contract
1. Recognize revenue

The Group manufactures and provides high-tech PCB trading services for the electronics industry. Aspocomp's net sales are based mainly on product sales. Revenues from these sales are recognized in accordance with the terms of delivery at the point in time the products and the control of the products are transferred to the customer. Consignment stock arrangements have been made with certain customers, in which revenues are recognized when the product arrives at the warehouse. In freight and handling services related to product delivery, the Group acts as principal and recognizes the service at the same time as the products are delivered to the customer.

The payment period for the products sold is typically 14 to 60 days, so the sale is not considered to include a financing component.

Divided income

Dividend income is recognized when the right to receive payment is established.

Conversion of items denominated in currencies other than the euro

Foreign currency transactions

The consolidated financial statements are presented in euros, the functional and presentation currency of the parent company. Foreign currency transactions are converted to euros using the exchange rates on the date of the transaction in question. Receivables and liabilities denominated in a foreign currency are converted to euros using the rates on the closing date. The resulting exchange differences are recorded in the income statement such that exchange differences on business transactions are included in operating profit and exchange differences due to financial assets and liabilities are presented in financial items.

Conversion of the financial statements of foreign subsidiaries

The income statements of foreign subsidiaries have been converted to euros at the average rate for the financial period and the balance sheets at the rate on the closing date. Translation differences due to the use of the average rate and the rate on the closing date are recognized in the Group's shareholders' equity.

Translation differences arising from eliminations of the acquisition cost of foreign subsidiaries and the translation of equity items accumulated after acquisition are recognized in shareholders' equity. When a subsidiary is sold in full or in part, the accumulated translation differences are recognized in the income statement as capital gains or losses.

Share-based payments

The Group has two share-based commitment and incentive plans for management and key employees, a share reward plan and option scheme.

In the share reward plan, payments are made partly in the form of shares in the company and partly in cash. The benefits granted under this plan are measured at fair value at the time when they are granted and are recognized in the income statement as employee benefit expenses in even instalments over the earnings and commitment period. The shares are subject to a 36-month lockup period.

Share options are measured at fair value at the grant date and expensed on a straight-line basis over the commitment period. The counter-item is recognized in retained earnings. The expenditure determined at the option grant date is based on the Group's estimate of the number of options expected to vest at the end of the commitment period. The Group updates the estimate of the final number of options at each balance sheet date. Any movements in estimates are recorded in the income statement. The fair value of options has been calculated using the Black-Scholes option pricing model.

When option rights are exercised, the payments received from the subscription of shares, adjusted for possible transaction costs, are recognized in the shareholders' equity. Assets from share subscriptions based on the option arrangements decided upon after the new Companies Act became effective are recognized in the invested non-restricted equity fund in accordance with the conditions of the arrangements, with adjustments for possible transaction costs.

More information on share-based payments is provided in Note 24.

Employee benefits

Pension liabilities

In the consolidated financial statements, pension schemes in different countries are classified as defined contribution or defined benefit schemes. In defined contribution schemes, the Group makes fixed payments to a separate unit. The Group does not have a legal or constructive obligation to make additional payments if the recipient cannot pay the pension benefits in question. All such schemes that do not fulfill these conditions are considered to be defined benefit schemes. Payments for defined contribution schemes have been recorded in the income statement for the period to which the payment pertains.

The Group has pension schemes that have been classified as defined contribution or defined benefit schemes. In defined contribution schemes, payments have been recorded in the income statement for the period to which the payment pertains.

In a defined benefit scheme, the commitment to be recognized as a liability is the net amount of the present value of the pension liabilities on the closing date and the fair value of assets adjusted by the non-depreciated part of the obligation based on unrecognized retroactive work performance. The pension liability is calculated by independent actuarial mathematicians based on the amount of the predicted pension liability by applying the projected unit credit method; the liability is discounted to the present value of future cash flows at an interest rate corresponding to the interest on high-quality bonds issued by the company. Pension costs are recognized as expenses in the income statement over the service years of personnel. Actuarial gains and losses are recognized in the statement of comprehensive income.

Long service rewards

Long service reward schemes at the Group's different units have been classified as defined benefit schemes as set out in IAS 19 and the related commitments have been recorded as liabilities in the balance sheet. When calculating liabilities deriving from the long service reward schemes, the following parameters have been used: turnover of personnel, average increase in salaries and the average annual pay of personnel. The liabilities have been discounted to their present value. Changes in the estimated values of the commitments are recognized in the income statement.

Operating profit/loss

The IAS 1 standard Presentation of Financial Statements does not include a definition of operating profit/loss. The Group has defined it as follows: operating profit/loss is the net sum remaining after other operating income is added to net sales, less purchasing costs (adjusted for the change in inventories of finished goods and work in progress and the expenses incurred from production for own use) and less expenses, depreciation and impairment losses caused by employee benefits and less other operating expenses. All other items are presented below operating profit/loss. Exchange rate differences are included in operating profit/loss if they arise from business-related items; otherwise they are recognized in financial items.

Income taxes

Taxes on the Group companies' financial results for the period, adjustments of taxes from previous periods and the change in deferred taxes are recorded as the Group's taxes. The deferred tax asset or liability is calculated on all temporary differences between carrying amounts and taxable values, applying the tax rates confirmed on the closing date. Deferred tax assets are recognized from confirmed losses by applying the average result for the past four financial years, to the future financial years in which losses confirmed in taxation can be used. Deferred tax assets arising from acquisition costs that have not been deducted in taxation are recognized in full in undeducted acquisition costs at the end of the reported financial year.

Deferred tax is not recognized on the undistributed profits of subsidiaries when it is probable that the temporary difference will not be dissolved in the foreseeable future.

Intangible assets

Goodwill

Goodwill represents the share of the acquisition cost exceeding the Group's share at the moment of acquisition of the fair value of the itemizable net assets of an acquired subsidiary. Goodwill from the acquisition of subsidiaries is included in intangible assets. For impairment testing, it is allocated to cash-generating units. Goodwill is tested for impairment annually and is recognized in the balance sheet at acquisition cost less impairment losses. An impairment loss on goodwill is not reversed. The carrying amount of goodwill related to a sold company has an effect on the capital gains or losses.

Research and development expenditure

The company does not engage in actual product development. Research and development expenditure represent general development of the production process that cannot be directly allocated to any customer order, but which does not fulfill the capitalization criteria of IAS 38. The company no longer engages in PCB technology-related research and development that would be directly connected to customer projects and which would therefore be capable of independently generating income. The company cannot separate the research phase from the development phase, and it does not engage in actual product development, and thus treats all production process-related expenditure as expenditure on the research phase (IAS 38.53).

Software

Purchased software is recorded in the balance sheet at the original cost less accumulated amortization and impairment, if any.

Intangible rights

Intangible assets with limited useful lives are recorded in the balance sheet at the original cost less accumulated amortization and impairment, if any.

The estimated useful lives of intangible assets are:

Intangible rights 3 years
Other intangible assets 5 10 years.

Property, plant and equipment and right-of-use assets

Property, plant and equipment are measured at original cost less accumulated depreciation and impairment. Property, plant and equipment are depreciated on a straight-line basis in accordance with the estimated useful life.

If the asset consists of several parts with different useful lives, each part is treated as a separate asset. In this case the costs arising from renewal of the part are capitalized and the remainder is expensed. Other costs are treated as property, plant and equipment only when the economic benefits relating to these assets are probable and when the acquisition cost can be defined reliably. Other repair and maintenance costs are recognized in the income statement as they arise.

The estimated useful lives of property, plant and equipment are:

Buildings and structures 15 30 years
Machinery and equipment 3 8 years
Other tangible assets 5 10 years
Land and water leased 20 22 years.

The residual value of the assets and their useful lives are reviewed at least at each balance sheet date and, if necessary, adjusted to reflect changes in their expected economic benefits.

Gains and losses resulting from derecognition of property, plant and equipment are entered under other operating income or expenses.

Impairment of tangible and intangible assets

The Group assesses asset items annually for indications of impairment. If there are such indications, the recoverable amount of said asset item is estimated and then compared with the carrying amount of the asset item in question. In addition, the recoverable amounts of goodwill are assessed annually. Impairment is examined at the level of cash-generating units – that is, at the lowest unit level that is primarily independent of other units and whose cash flows can be separated out from other cash flows.

The recoverable amount is the higher of the fair value of the asset less disposal costs or the value in use. The value in use is the estimated future net cash flow of the asset or cash-generating unit discounted to its present value. The discount interest rate used is determined before taxes and describes the market outlook for the time value of money and the special risks associated with the asset item to be tested.

An impairment loss is recognized if the carrying amount of the asset item is higher than its recoverable amount. An impairment loss on an item other than goodwill is reversed if the situation changes and the recoverable amount of the asset has changed since the date of impairment loss recognition. An impairment loss on goodwill is not reversed.

Presentation of asset grants

Government grants are deducted in determining the carrying amount of an asset. The grant is recognized in profit or loss in the form of a decrease in depreciation during the useful life of the asset.

Inventories

Inventories are measured at the lower of the acquisition cost or probable net realizable value. The acquisition cost is determined using the FIFO method. The value of finished and work-in-progress inventories includes variable costs and a share of the fixed costs of purchasing and manufacturing.

Financial assets and financial liabilities

Financial assets

The Group's financial assets are classified in the following categories: "Financial assets at fair value through other comprehensive income" and "Financial assets at fair value through profit or loss". Initial recognition is performed on the basis of the usage of the financial assets at the time of acquisition.

All purchases and sales of financial assets are booked on the transaction date. Financial assets are derecognized from the balance sheet when the Group has lost its contractual rights to their cash flows, or when the Group has substantially transferred the risks and rewards out of the Group.

Loans and Other Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and which are not held for trading. Recognition is based on amortized cost. They are presented under Loans and Other Receivables in the balance sheet as noncurrent assets if they fall due after a period exceeding 12 months. Otherwise they are presented as current assets under "Short-term Receivables".

Financial assets at fair value through profit or loss are those non-derivative financial assets that are designated as available for sale or are not classified in any other group. They are included in noncurrent assets, unless the intention is to keep them less than 12 months from the closing date; if that is the case, they are recognized as current assets. Changes in fair value are transferred to the income statement when the investment is sold or when its value has declined such that an impairment loss must be recorded. Financial assets at fair value through profit or loss during the disclosed periods only include investments in unquoted shares whose acquisition cost is substantially equal to their fair value (based on, for instance, recent transactions). The markets for said shares are inactive and the Group does not intend to divest itself of these shares in the near future.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and bank deposits. Cash and cash equivalents have a maximum maturity of three months from the date of acquisition.

Financial liabilities

Group's financial liabilities are classified in the groups "Accounts payable," "Other short-term payables," "Loans," "Factoring dept," "Lease liabilities" and "Derivative financial instruments". Transaction costs are included in financial liabilities' initial carrying amount. Later all financial

liabilities are recognized at amortized cost. The difference between the money received (less transaction costs) and the amount to be repaid is entered in the income statement using the effective interest method over the loan period. Financial liabilities are included in non-current and current liabilities.

All financial liabilities are booked in the balance sheet when the company becomes a contractual party in said financial liabilities. Financial liabilities are derecognized when the obligation specified in the contract has been discharged or cancelled or has expired.

When the terms of financial liabilities are renegotiated and the terms change substantially, the renegotiated liabilities are accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The terms are considered to be substantially different if the present value of the discounted cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10 percent different from the present value of the remaining discounted cash flows of the original financial liability. The difference between the carrying amount of the new financial liability and the original financial liability is recognized through profit or loss in financial income or expenses. If the change in the terms of the liability is not substantial, and said change is not accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability, then the carrying amount of the liability is adjusted with the resulting costs and fees, which are recognized as expenses over the remaining maturity of the liability whose terms have been revised.

Impairment of financial assets

The Group assesses at each balance sheet date whether there is any objective evidence that a financial asset or group of financial assets is impaired. A substantial or long impairment of share investments, in which their value declines below their acquisition cost, indicates the impairment of an equity instrument classified as a financial asset at fair value through profit or loss If there is evidence of impairment, the loss accumulated in the fair value reserve is transferred into the income statement.

The Group recognizes an impairment loss on accounts receivable if there is objective evidence that the receivables cannot be collected in full. The major financial difficulties of the debtor, the probability of bankruptcy, delinquent payments or significant delays in payments constitute evidence of the impairment of accounts receivable. The amount of the impairment loss recognized in the income statement is measured as the difference between the carrying amount of the receivables and the present value of estimated future cash flows discounted at the effective interest rate. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss shall be reversed. The amount of the reversal shall be recognized in profit or loss.

Derivative financial instruments and interest rate risk hedging

The Group has not implemented hedge accounting. All derivative financial instruments are recognized initially at fair value and they are recognized in profit or loss. Forward foreign exchange contracts are valued at fair value using the market prices of forward contracts on the closing date. Derivatives are included in the balance sheet in other assets and liabilities. Realized and unrealized gains and losses arising from changes in fair value are recognized in the income statement under financial income and expenses in the period in which they arise. The fair value of interest rate swaps is determined using a method based on the present value of future cash flows. Fair value is the amount that the Group would receive or pay to terminate the derivative contract.

Shareholders' equity

Outstanding shares are presented as share capital. Costs related to issuing or acquiring own equity instruments are disclosed as items reducing shareholders' equity. The acquisition costs of equity instruments that have been bought back have been deducted from shareholders' equity.

Provisions

Provisions are recognized when the Group incurs, due to a previous event, a legal or constructive obligation whose settlement will probably require payment whose amount can be estimated reliably. Provisions are recognized at the present value of these obligations.

A provision for restructuring is recognized when the Group has prepared a detailed restructuring plan and restructuring has either commenced or the plan has been announced in an appropriate manner. No provisions are recognized for the costs of the Group's continuing operations.

A provision is recognized for a loss-making contract when the expenditure required to meet the obligations exceeds the benefits received from the contract. Environmental provisions are recorded when the Group has a present obligation under environmental legislation or the Group's environmental responsibility principles related to the decommissioning of a production plant, environmental rehabilitation and restoration, or relocating equipment.

Accounting principles requiring judgments by management and key sources of estimation uncertainty

When preparing financial statements, estimates and assumptions about the future must be made, and actual results may differ from these estimates and assumptions. If the actual results differ from the estimates and assumptions, this may affect the carrying amounts of assets and liabilities as well as the income and expenses for the financial period. Management must also exercise judgment in the application of accounting principles. The management has considered that the continuity of operations does not involve significant uncertainty. Additional information on risks and business continuity is presented in Note 26.

Accounting estimates and assumptions

The estimates made when preparing the financial statements are based on management's best assessment on the balance sheet date. The estimates are based on historical experiences and assumptions at the balance sheet date regarding matters such as the most probable future development of the Group's financial operating environment with respect to net sales and cost level. The Group regularly monitors the realization of the estimates and assumptions as well as changes in their underlying factors. Any changes in estimates and assumptions are recognized both in the financial period during which said estimates and assumptions are adjusted and in all subsequent financial periods.

Goodwill impairment testing

It has been estimated that any changes in assumptions and estimates will have the greatest impact on goodwill impairment testing.

The Group tests goodwill, incomplete intangible assets, intangible assets with an unlimited useful life and tangible assets for impairment on an annual basis. In addition, the Group evaluates all balance sheet items for indications of impairment as set out in the accounting principles above. If such indications exist, said assets are tested for impairment. The recoverable amounts from cash-generating units have been defined on the basis of value in use calculations. Estimates must be used when performing these calculations (see Note 26).

The estimates required in impairment testing are related to the key assumptions used in the calculations, which are the average growth rate of net sales and the sales margin during the period covered by the cash flow forecasts used in impairment test calculations, and the discount rate used in the calculations. Net sales forecasts involve the most significant estimates.

The impairment test calculations and related assumptions are presented in Note 25.

Recognition of deferred tax assets

The deferred tax asset results mainly from slowed tax depreciation. The company decelerated its tax depreciation during the 2013-2020 tax years and will decelerate in the 2021 tax year.

Deferred tax assets are presented in Note 8.

Judgment exercised by management in the selection and application of accounting principles

In addition to estimates and assumptions concerning the future, management must also exercise judgment in the application of accounting principles. In particular, management must exercise judgment in the selection and application of accounting principles in cases where the current IFRS standards provide for alternative methods of recognition, measurement and presentation.

The major areas involving the use of estimates and assumptions are the valuation of inventories and provisions.

Inventories

The company assesses its inventories regularly to check whether the inventory amounts are larger than the actual figures, the inventory items include non-marketable assets, or the market value of inventory items has fallen below their acquisition cost and recognizes an allowance for such decreases. To this end, management must make estimates of future demand for products. Any changes in these estimates may lead to adjustments of the carrying amount of inventories in future financial periods.

More information on inventories is presented in Note 14.

Provisions

Provisions are recorded when the Group has a legal or constructive obligation on the basis of a prior event and the materialization of the payment obligation is probable. A provision for restructuring is recognized when the Group has prepared a detailed restructuring plan and the plan has been announced. The provision reflects management's best estimate of the present value of future expenditure.

Application of IFRS 16 Leases from January 1, 2019

The effective standard replaces IAS 17 and related interpretations in IFRS. Above all, IFRS 16 provides guidance to the lessee and sets out the principles for recognizing leases as both an asset and a lease payment obligation. Lease costs must be presented in the income statement for the lessee as depreciation and financing costs instead of rental costs.

Until December 31, 2018, lease agreements for machinery, according to which the Group, as the lessee, had a substantial part of the risks and benefits inherent in ownership, were classified as finance leases. Fixed assets acquired under finance leases were recognized in the balance sheet at the lower of the fair value of the leased asset and the present value of the minimum lease payments. An asset acquired under a finance lease was depreciated over the useful life of the asset or a shorter lease term. Lease payments are apportioned between the finance charge and the reduction of the liability over the lease term so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

In connection with the adoption of IFRS 16, lease liabilities were recognized for contracts classified as "operating leases" in accordance with IAS 17. The Group applied a simplified approach to the adoption of the standard and therefore did not adjust the data for the comparison year in its reporting. The lease liability is determined at the present value of the remaining lease payments using the interest rate of the additional credit at the date of application. The weighted average interest rate on the lessee's additional loan, which was applied to lease liabilities on January 1, 2019, was 2.9 per cent. The Group does not have the right to use assets as defined in the investment property and the Group does not have any finance leases in which it is the lessor.

When IFRS 16 is applied for the first time, the following practical remedies have been used: Low-value or short-term leases with a lease term of 12 months or less are treated as short-term leases. Applying a single discount rate to a portfolio of leases with approximately similar characteristics.

For leases previously classified as finance leases, the carrying amount of the asset and liability under the lease immediately before the transfer was recognized as the carrying amount of the fixed asset and the lease liability at the date of application. The valuation principles in accordance with IFRS 16 have been applied only after that date.

Right-of-use assets recognized by the Group as of January 1, 2019 primarily consist of machinery, leased cars, and land lease. As a significant share of the Group's right-of-use assets consisted of machinery leases, which were treated as finance lease arrangements even prior to the adoption of IFRS 16, the standard is not considered to have a material impact on the Group's key figures. In the balance sheet, the lease liability is presented as long-term and short-term interest-bearing liabilities (see Note 11 Fixed asset).

Application of new or revised IFRS and IAS standards

The other IFRSs or IFRIC interpretations that have been published but have not yet come into effect are not expected to have a material impact on the Group.

1 . NET SALES INFORMATION

The Group manufactures and provides high-tech PCB trading services for the electronics industry. Aspocomp's net sales are based solely on product sales. All revenues are recognized in accordance with the terms of delivery at a point in time the products and the control of the products is transferred to the customer. For freight and handling services related to the delivery of the products, the Group acts as principal and recognizes the service at the same time as the products are delivered to the customer.

The payment period for the products sold is typically 14 to 60 days, so the sale is not considered to include a financial contribution.

	2021		2020
Net sales
Telecommunication	4,516	14%	5,369	21%
Automotive	8,947	27%	5,358	21%
Industrial Electronics	6,051	18%	4,389	17%
Security & Defence & Aerospace	7,136	22%	5,130	20%
Semiconductor industry	6,170	19%	5,108	20%
Others	334	1%	280	1%
Total	33,154	100%	25,635	100%

Geographical areas

Net sales by geographical area
Finland	5,729	17%	7,065	28%
Europe	21,965	66%	14,835	58%
Other areas	5,460	16%	3,735	15%
Total	33,154	100%	25,635	100%

2. OTHER OPERATING INCOME

	1000 €	2021	2020
Gains on sale of fixed assets		39	28
Other operating income		11	56
Total		5 1	8 3
3. MATERIALS AND SERVICES	1000 €	2021	2020
Purchase of materials and supplies		17,482	11,173
Change in inventories		-726	177
Materials and services, total		16,756	11,350

Outsourced services 607 410 Total 17,363 11,760

4 . PERSONNEL EXPENSES

	2021	2020
Wages and salaries	7,310	6,623
Share-based rewards	79	75
Other long-term employee benefits	-24	-3
Pension costs - defined contribution plans	1,172	889
Other personnel expenses	353	272
Total	8,890	7,856
Personnel, average	139	140
Personnel at Dec. 31, 2019
Blue-collar	92	87
White-collar	53	51
	145	138

	2021	2020
Obligation at the beginning of the year	89	92
Increases during the financial year	10	11
Realized during the financial year	-33	-14
Obligation at the end of the year	6 6	8 9

Aspocomp has a long-term employee benefit plan covering all of its employees in Finland. The plan has been terminated in 2014 and now only applies to those who have been Aspocomp's employ before January 1, 2014. The plan will expire on December 31, 2028, at the latest. The plan is by nature a so-called long service reward, where an extra payment is made to employees after they have been in Aspocomp's employ for a certain period.

5 . (continues)

PENSION OBLIGATIONS

The Group has pension plans that are classified as either defined contribution plans or defined benefit plans. The contributions made to defined contribution plans are recognized as an expense in the income statement in the period in which they occur. Pensions handled through an insurance company and covered by the Statutory Employee Pensions system (TyEL) are treated as defined contribution plans. The defined benefit plans are used in Finland. I n accordance with IAS ¹⁹ the company retains the

responsibility for future index and salary increases for company employees who are covered by the pension plan. The pension fund was closed down in 1999. The arrangement applied to the active employees who were covered by the Aspo Group Pension Fund on December 31, 1999.

Amounts of liabilities for defined benefit plans recognized in the balance sheet:

1000 €	2021	2020
Defined benefit obligation	1,546	1,527
Fair value of plan assets	1,145	1,277
Net liability, Dec. 31, 2020	401	250

Defined benefit pension liabilities in the income statement and comprehensive income statement:

Current service cost	2	3
Interest cost	1	2
Defined benefit expenses recognized in the income
statement	4	6
Changes in actuarial gains and losses	0	0
Defined benefit expenses recognized in the income
statement and comprehensive income statement	4	6

Change in net liability for defined benefit
Net liability for defined benefit, Jan. 1	250	262
Contributions paid to the fund	6	-13
Expenses recognized in the income statement	4	6
Remeasurement gain (-)/loss included in the
consolidated income statement	141	-5
Net liability for defined benefit, Dec. 31	401	250

Acturial assumptions	2021	2020
Discount rate	0.95%	0.55%
Future salary increase	N/A	N/A
Future pension increase	2.30%	1.50%

5 . (continues)

Sensitivity of defined benefit obligation to changes in the weighted principal assumptions:

	Change in	Impact of	Impact of
Assumption	assumption	increase	decrease
Discount rate	0.50%	-7.1 %	8.0 %
Future salary increase	0.50%	N/A	N/A
Future pension increase	0.25%	3.4 %	-3.2 %
Mortality change	5.00%	-1.7 %	1.8 %
	Change in	Impact of	Impact of
Assumption fair value of plan assets	assumption	increase	decrease
Discount rate	0.50%	-6.0 %	6.7 %
Future salary increase	0.50%	N/A	N/A
Future pension increase	0.25%	0.0 %	0.0 %
Mortality change	5.00%	-1.4 %	1.5 %
OTHER OPERATING EXPENSES

1000 €	2021	2020
Rental expenses	86	83
Maintenance and repair costs	869	868
Energy costs	460	558
Water consumption and wastewater treatment	271	-36
Other variable expenses of production	293	245
Voluntary social costs	205	209
Real estate costs	457	380
Insurance charges	148	139
Travel costs	52	39
IT costs	315	294
External services	381	397
Audit fees	85	62
Administration costs	390	404
Other costs	195	738
Total	4,208	4,380

2021	1000 € 2020
61	54
12	0
10	3
1	4
8 5	6 2

7 . FINANCIAL INCOME AND EXPENSES

	2021	2020
Income
Interest income on loans and other receivables	1	0
Total financial income	1	0
Expenses
Interest expenses on bank loans and overdrafts	39	288
Changes in the value of derivative instruments recognized
at fair value through profit or loss	0	6
Total financial expenses	3 9	295
Total financial income and expenses	3 9	294

8 . INCOME TAXES

1000 €	2021	2020
Current income tax
Current income tax for the year	-28	-49
Current income tax for previous years	20	0
Deferred income tax	-91	377
Total current income tax	-98	327
A reconciliation of the income tax expense computed at statutory
rates and income tax expense recorded in the income statement.
Profit before tax	2204	-477
Taxes at Finnish statutory tax rate 20.0%	-440	95
Different tax rates of foreign subsidiaries	1	1
Non-deductible expenses	0	0
Deferred tax assets on other temporary differences	341	231
Total income tax expense	-98	327
The taxable income of the Group companies for 2021 was EUR	-10 360 thousand. I	f the result

for 2021 is confirmed in taxation, the total amount of confirmed losses would be EUR 2 072 thousand. After the taxes for 2020 have been confirmed, the remaining losses amount to EUR 0.

Foreign subsidiaries do not have significant distributable funds.

Deferred income taxes	2021	2020
Deferred income tax liabilities
- Deferred income tax liabilities due after 12 months	0	0
- Deferred income tax liabilities due within the next 12 months	38	19
	3 8	1 9
Deferred income tax assets
- Deferred income tax assets due after 12 months	5,043	4,673
- Deferred income tax assets due within the next 12 months	-71	370
	4,972	5,043
Deferred income tax (net)	4,934	5,025

Recognized in comprehensive income

EUR 2,712 thousand under the current 20.0% corporate tax rate.

Recognized directly in equity Unrecognized portion of the change

for the year

1000 €

Deferred tax assets and liabilities during the financial year are shown below without offsetting them against each other.

Deferred tax assets and liabilities during the financial year are shown below without offsetting them against each
other.
Deferred income tax liability			Others		Total
Jan. 1, 2020			25		2 5
Recognized in net profit for the year			-6		-6
Recognized in comprehensive income
for the year
Recognized directly in equity
Dec. 31, 2020			1 9		1 9
Recognized in net profit for the year			19		1 9
Recognized in comprehensive income
for the year
Recognized directly in equity
Dec. 31, 2021			3 8		3 8
	From
	decelerated tax		Employee
Deferred income tax assets	depreciation	Tax losses	benefits	Others	Total
Jan. 1, 2019	4,295	185	71	122	4,673
Recognized in net profit for the year	586	-185	-3	-27	370
Recognized in comprehensive income
for the year
Recognized directly in equity
Unrecognized portion of the change
Dec. 31, 2019	4,881	0	6 8	9 4	5,043
Recognized in net profit for the year	-2,169	2,072	26	0	-71

Dec. 31, 2020 2,712 2,072 9 4 9 4 4,972

The deferred tax asset results mainly from the slowed tax depreciation and goodwill amortization in taxation in the financial year 2021. A deferred tax asset of EUR 2,072 thousand has been recognized on the company's tax result. The company decelerated its tax depreciation during the 2014-2020 tax years. I n the ²⁰²¹ tax year, the

company will decelerate depreciation to a total of about EUR 13.6 million, resulting in deferred tax assets of about

9 . EARNINGS PER SHARE

1000 €	2021	2020
(a) Basic earnings per share
Basic earnings per share are calculated by dividing the profit attributable to equity holders of
the company by the weighted average number of shares during the year.
Profit attributable to equity holders of the company	2,106	-98
Weighted average number of shares (1,000)	6,841	6,806

(b) Diluted earnings per share

Diluted earnings per share are calculated by adjusting the weighted average number of shares outstanding such that all dilutive potential shares are considered to be traded shares. There were no diluting effects in 2021 and 2020.

10. INTANGIBLE ASSETS

	Intangible	Group
1000 €	rights	goodwill	Total
Acquisition cost at Jan. 1, 2021	591	3,000	3,591
Increase	131	0	131
Decrease	-12	0	-12
Transfers between lines	0	0	0
Acquisition cost at Dec. 31, 2021	710	3,000	3,710
Total accumulated depreciation and impairment Jan. 1, 2021	344	0	344
Accumulated depreciation of decreases and transfers	-12	0	-12
Depreciation for the year	146	0	146
Total accumulated depreciation and impairment Dec. 31, 2021	478	0	478
Book value Dec. 31, 2021	232	3,000	3,232
Acquisition cost at Jan. 1, 2020	604	3,000	3,604
Increase	95	0	9 5
Decrease	-107	0	-107
Transfers between lines	0	0	0
Acquisition cost at Dec. 31, 2020	591	3,000	3,591
Total accumulated depreciation and impairment Jan. 1, 2020	344	0	344
Accumulated depreciation of decreases and transfers	-107	0	-107
Depreciation for the year	107	0	107
Total accumulated depreciation and impairment Dec. 31, 2020	344	0	344
Book value Dec. 31, 2020	247	3,000	3,247

The principles of the impairment testing of goodwill are presented in Note 25.

11. PROPERTY, PLANT AND EQUIPMENT AND RIGHT-OF-USE ASSETS

		Buildings	Machinery
		and	and
	1000 € Land and water areas	structures	equipment	Advances	Total
Acquisition cost at Jan. 1, 2021	168	1,420	19,856	643	22,086
Increase	0	199	20	727	946
Decrease	0	0	-232	0	-232
Transfers between lines	0	0	643	-643	0
Acquisition cost at Dec. 31, 2021	168	1,619	20,287	727	22,801
Total accumulated depreciation and impairment Jan. 1, 2021	15	245	14,881	0	15,142
Accumulated depreciation of decreases and transfers	0	0	-205	0	-205
Depreciation for the year	8	97	1,559	0	1,663
Total accumulated depreciation and impairment Dec. 31, 2021	2 3	342	16,235	0	16,600
Book value Dec. 31, 2021	145	1,277	4,052	727	6,201

Acquisition cost at Jan. 1, 2020	168	1,409	18,120	1,461	21,158
Increase	0	10	887	643	1,540
Decrease	0	0	-612	0	-612
Transfers between lines	0	0	1,461	-1,461	0
Acquisition cost at Dec. 31, 2020	168	1,420	19,856	643	22,086
Total accumulated depreciation and impairment Jan. 1, 2020	8	150	14,061	0	14,218
Accumulated depreciation of decreases and transfers	0	0	-612	0	-612
Depreciation for the year	8	96	1,432	0	1,535
Total accumulated depreciation and impairment Dec. 31, 2020	1 5	245	14,881	0	15,142
Book value Dec. 31, 2020	153	1,174	4,975	643	6,945

12.2.RIGHT-OF-USE ASSETS

Property, plant and equipment include property, plant and equipment where the Group is the lessee under IFRS 16.

	Land and water	Machinery and
1000 €	areas	equipment	Total
Acquisition cost at Jan. 1, 2021	168	2,297	2,465
Increase	0	83	8 3
Decrease	0	-105	-105
Acquisition cost at Dec. 31, 2021	168	2,275	2,443
Total accumulated depreciation and impairment Jan. 1, 2021	15	1,421	1,436
Accumulated depreciation of decreases and transfers	0	-2	-2
Depreciation for the year	8	305	313
Total accumulated depreciation and impairment Dec. 31, 2021	2 3	1,724	1,746
Book value Dec. 31, 2021	145	552	697

Acquisition cost at Jan. 1, 2020	168	2,217	2,385
Increase	0	80	8 0
Decrease	0	0	0
Acquisition cost at Dec. 31, 2020	168	2,297	2,465
Total accumulated depreciation and impairment Jan. 1, 2020	8	1,045	1,052
Accumulated depreciation of decreases and transfers	0	0	0
Depreciation for the year	8	376	384
Total accumulated depreciation and impairment Dec. 31, 2020	1 5	1,421	1,436
Book value Dec. 31, 2020	153	876	1,029

From 2019 leased assets are presented as a separate line item in the balance sheet.

LEASES

Finance leases have been reclassified to property, plant and equipment in 2019.

	2021	2020
Lease liabilities 31.12.
Short term	376	415
Long term	507	835
Total	883	1,250

13. FINANCIAL ASSETS AND LIABILITIES

1000 €	2021	2020
Financial assets
Financial assets at amortized cost
Accounts receivable	8,870	5,548
Other cash and cash equivalents at amortized
cost
Cash and cash equivalents	2,631	2,801
Shares	95	95
Total	11,595	8,444
1000 €	2021	2020
Financial liabilities
Liabilities at amortized cost
Trade and other payables	7,554	3,793
Loans	3,411	4,403
Factoring debt	1	1
Lease liabilities	883	1,250
Total	11,848	9,447

14.INVENTORIES

1000 €	2021	2020
Materials and supplies	2,633	1,908
Work in progress	1,565	488
Finished goods	768	537
Total	4,967	2,932
Write down of inventories	63	72

15. SHORT-TERM RECEIVABLES

1000 €				2021				2020
Short-term receivables
Trade receivable				8,870				5,548
Accrued receivables				358				302
Other receivables				183				40
Total				9,410				5,891
Age distribution of accounts receivable
Trade receivable that not are impaired
	Gross	Average loss %	Impairment IFRS 9	Net	Gross	Average loss %	Impairment IFRS 9	Net
Receivables carried forward	5919	0.4	-21	5,898	4165	0.4	-17	4,149
Expired
in less than 30 days	2261	1.1	-24	2,237	975	1.1	-11	965
in 30-60 days	370	2.1	-8	362	70	2.2	-2	69
in 61-90 days	34	3.2	-1	33	10	3.3	0	10
over 90 days	287	3.8	-11	276	327	4.0	-13	314
Total	8870		-64	8,805	5548		-42	5,506

15. (jatkuu) (continues)

	2021	2020
The breakdown by currencies of short-term receivables
EUR	3,153	3,464
USD	5,717	2,084
Total	8,870	5,548

Other receivables and accrued receivables consist mainly of normal trade receivables but no amounts which are individually significant.

Balance sheet values correspond best to the maximum monetary value of the credit risk, excluding the fair value of collateral in cases where the other parties to the agreement are unable to fulfill their obligations with respect to the financial instruments. Receivables do not involve significant credit risk concentrations.

The fair values of short-term receivables are equivalent to their book values, as the effect of discounting them is not material, considering their maturities.

The Group has a recourse factoring arrangement in use. Under this arrangement, the Group has transferred part of the relevant receivables to the factor in exchange for cash. However, the company has retained the late payment and credit risk. The Group therefore continues to recognize the transferred assets in their entirety in its balance sheet. The amount repayable under the factoring agreement is presented as a secured borrowing.

The Group estimates expected credit losses on accounts receivable and recognizes a credit loss provision based on historical credit losses as well as current circumstances and macroeconomic analysis of the future. The Group has estimated the potential impact of the coronavirus pandemic on expected credit losses. As a result, the credit loss provision has been adjusted in line with the higher risk. The credit loss provision is recognized based on the age distribution of accounts receivable according to the business area and geographic location. A credit loss provision of EUR 64 thousand has been recognized.

16. CASH AND EQUIVALENTS

1000 €	2021	2020
Cash and bank accounts	2,631	2,801
Total	2,631	2,801

On the balance sheet date, cash and cash equivalents totaled EUR 2,184 thousand in Finland and EUR 447 thousand in other countries. Cash and cash equivalents were primarily held in bank accounts.

1 7 FINANCING LOANS

1000 € 2021			2020
	Book value Fair value		Book value	Fair value
Long-term financing loans
Bank borrowings	2,419	2,435	3,411	3,486
Lease liabilities	507	506	835	833
Total	2,925		4,245

The fair values of long-term loans are based on discounted cash flows. The discount rate is the interest that the Group would receive for an equivalent loan from an external party on the closing date. The total interest rate comprises risk-free interest and a companyspecific risk premium. I n financial leasing, fair values are estimated by discounting future cash flows with an

Financial leasing

interest rate corresponding to the interest on equivalent leasing agreements on the closing date.

Discount rates used in determining fair values
Bank borrowings	1.5 %	1.5 %
Financial leasing	2.5 %	2.5 %

Short-term financing loans
Bank borrowings	992	992
Lease liabilities	376	415
Factoring-debt	1	1

The fair values of short-term financing loans are equivalent to their book values, as discounting has no material effect in view of the maturities of the debts.

Bank loans

Aspocomp had a EUR 1 million credit facility costing 1.95 percent per annum. The interest on credit drawn down is 1.0 percent above the one-week Euribor rate. At the end of the financial year EUR 0 thousand credit was in use.

17. (continues)

The breakdown of the maturity of payables			1000 €
	Balance
	sheet		12			Over 5
Dec. 31, 2021		value Cash flow		months 1-2 years	2-5 years	years
Bank borrowings
Principal	3,411	3,411	992	2,103	316	0
Paid interest expenses		153	55	96	1	0
Lease liabilities
Principal	883	883	343	441	99	0
Paid interest expenses		29	12	16	1	0
Factoring debt	1	1	1	0	0	0
Trade and other payables	7,554	7,554	7,554	0	0	0
Total	11,848	12,030	8,957	2,656	417	0

	Balance
	sheet		12			Over 5
Dec. 31, 2020		value Cash flow		months 1-2 years	2-5 years	years
Bank borrowings
Principal	4,402	4,402	992	2,263	1,147	0
Paid interest expenses		175	75	86	13	0
Lease liabilities
Principal	1,250	1,250	317	590	243	100
Paid interest expenses		41	24	15	2	0
Factoring debt	1	1	1	0	0	0
Trade and other payables	3,794	3,794	3,794	0	0	0
Total	9,447	9,663	5,203	2,955	1,405	100
Trade and other payables				2021		2020
The breakdown by currencies of accounts payable
EUR				1,641		1,173
GBP				13		9
CHF				3		0
CNY				198		14
SEK				2		1
USD				3,553		1,020
Total				5,411		2,217
Accrued payables				2,143		1,577
Total trade and other payables				7,554		3,794
Accrued liabilities
Personnel expenses				1,577		1,111
Accrued interest on loans				4		5
VAT liabilities				12		48
Total				1,593		1,165

18. STATEMENT OF CHANGES IN INTEREST - BEARING LIABILITIES

			Short-term	Total interest
		Long-term interest	interest-bearing	bearing
	1000 €	bearing liabilities	liabilities	liabilities
Liabilities December 31, 2020		4,245	1,408	5,653
Loan withdrawals (cash flow)		0	0	0
Lease debt withdrawals (other change)		49	6	5 4
Loan payments (cash flow)		-992	0	-992
Lease debt payment (cash flow)		-376	-45	-421
Factoring loan payment (cash flow)		0	-1	-1
Liabilities December 31, 2021		2,926	1,368	4,294

		Short-term	Total interest
	Long-term interest	interest-bearing	bearing
1000 €	bearing liabilities	liabilities	liabilities
Liabilities December 31, 2019	4,326	1,486	5,812
Loan withdrawals (cash flow)	2,842	158	3,000
Financial lease debt withdrawals (other change)	62	18	8 0
Loan payments (cash flow)	-2,851	0	-2,851
Financial lease debt payment (other change)	-134	-253	-387
Factoring loan payment (cash flow)	0	-1	-1
Liabilities December 31, 2020	4,245	1,408	5,653

19. NET FOREIGN EXCHANGE GAINS/LOSSES

1000 €	2021	2020
The exchange differences charged/credited to the income statement
Other operating costs	-125	152
Financial expenses	-90	151
Total	-215	304

2 0 CONTINGENCIES AND COMMITMENTS

1000 €	2021	2020
Other rental payables
Minimum rents of other rent agreements that cannot be terminated
Within one year	56	49
After one year but not more than five years	0	0
More than five years	0	0
Total	5 6	4 9

Contingent liabilities at Dec. 31, 2020
Guarantees
Business mortage	6,000	6,000
Collateral note	1,200	1,200
Guaranteed contingent liability towards the Finnish Customs	35	35
Total	7,235	7,235

21. ADJUSTMENTS TO CASH FLOW FROM OPERATING ACTIVITIES

1000 €	2021	2020
Non-cash transactions
Depreciation	1,809	1,643
Others	-17	487
Non-cash transactions, total	1,792	2,130
Other adjustments
Sales profit	-39	-28
Taxes	98	-327
Other adjustments, total	5 9	-355
Change in net working capital
Change in receivables	-3,520	3,046
Change in inventories	-2,035	389
Change in trade and other payables	3,997	-1,132
Total	-1,557	2,303

22. DERIVATIVE FINANCIAL INSTRUMENTS

Nominal values

1000 €	2021	2020
Interest rate swap contracts, nominal value	0	2,000
Interest rate swap contracts, fair value (non-current assets)	0	0
Interest rate swap contracts, fair value (current assets)	0	0

23. RELATED-PARTY DISCLOSURES

1000 €	2021	2020
Aspocomp Group's related parties include subsidiaries, members of the Board of Directors, the
CEO and members of the Management Team, and close family members of key executives and
companies in which they or their family members have control.
Salaries and benefits of the Management Team
CEO Mikko Montonen as of May 15, 2014
Salaries and fringe benefits	241	296
Options	0	335
Pension costs, defined contribution plans	41	44
Other Management Team
Salaries and fringe benefits	457	587
Share-based payment	0	30
Pension costs, defined contribution plans	77	85
Fees of members of the Board
Ms. Päivi Marttila, Chairman of the Board	39	37
Mr. Matti Lahdenperä (member until June 9, 2020)	0	7
Ms. Julianna Borsos (member until April 13, 2021)	6	20
Mr. Juha Putkiranta (member until April 13, 2021)	6	19
Ms. Kaarina Muurinen, Vice Chairman (as of March 26, 2015)	25	25
Mr. Jukka Huuskonen (member as of April 13, 2021)	14	0
Mr. Anssi Korhonen (member as of April 13, 2021)	14	0
Total remunerations of the members of the Board	103	107
Management's total employment benefits	816	1,377

The CEO's age of retirement and grounds for his/her pension are in accordance with current legislation. I f the contract of service of the CEO is terminated either by the CEO or by the company, the notice period is ⁶ months. I f the company terminates the contract an additional ⁶ months' severance pay shall be paid. The CEO does not have any voluntary additional pension arrangements.

The CEO and Board members have not been granted any loans, nor have any guarantees or commitments been given on their behalf.

Aspocomp shareholdings (number of shares)	Dec. 31, 2021	Dec. 31, 2020
Members of the Board	34,963	1,164,963
CEO	390,000	390,000
Other management	15,711	21,444
Total shareholdings	440,674	1,576,407
Votes conferred by the shares	6.4 %	23.0 %

24. SHARE-BASED PAYMENTS

On February 25, 2016, the Board of Directors of Aspocomp Group Plc. decided to introduce sharebased incentive and commitment plans for the company's key personnel.

1. Share reward plan for key personnel

The share reward plan offers the members of the Management Team and other key employees the possibility to receive shares in the company on the basis of the achievement of targets that will be set by the Board of Directors for four earnings periods, which are the four 12-month financial years during the period 1/2016 through 12/2019.

The target group for the plan consists of approximately 15 persons. The Board of Directors may decide on including new key employees and their annual maximum rewards. The maximum reward is expressed as ^a number of shares. I n addition, the reward consists of ^a cash payment, the amount of which is determined on the basis of the value of the share reward at the time of payment. The cash payment aims at covering taxes and similar charges arising from the reward. Achievement of targets set for the earnings periods determines the portion of the maximum reward to be paid to a person.

Recipients of shares on the basis of the share reward plan must hold them for at least 36 months after the shares are entered on their book-entry accounts. I f ^a plan participant's employment or service relationship with a group company ends during this commitment period, he or she is as a general rule required to return the shares to the company without compensation.

Impact of share incentive plan on the result for the	2021	2020
Impact of the scheme on the profit for the period	79	75

25. IMPAIRMENT TESTING

2020

Goodwill from the acquisition of a subsidiary is allocated to a cash-generating unit as follows:

PCB manufacturing plant 3,000 3,000

The PCB manufacturing operations of the cash-generating unit Aspocomp Oulu. The plant primarily manufactures HDI (High Density Interconnection), multilayer and special material PCBs.

Impairment testing is carried out using the value-in-use method, in which the recoverable amount of the unit generating goodwill is determined and then compared with the book value of said unit. The cash flows after the forecast period are based on the average cash flow for the forecast years.

According to the impairment test, the recoverable amount exceeded the book amount by EUR 26.9 million, and thus goodwill was not impaired in 2021 (EUR 31.3 million in 2020) despite the COVID-19 pandemic.

Key variables and assumptions used in impairment testing	2021	2020
Annual growth in net sales is based on the budget approved by
management for the years 2022-2025. The growth rate after the	8.8 %	15.5 %
end of the forecast period is assumed to be one (1) percent.
The sales margin is based on the average budgeted margin for	42%	43%
the forecast period.
The discount rate is set using the weighted average cost of
capital (WACC), which describes the total cost of equity and
liabilities, accounting for the specific risks of asset items. The	7.4 %	6.9 %
discount rate is determined before taxes.

Investments during the period under review are based on the strategic investment plan approved by management. The level of investments somewhat exceeds the ordinary level of investments in the industry.

Sensitivity analysis of impairment testing

The following changes in the values of each of the key variables	Zero limit of	Compared
(if all the other variables remain unchanged) would mean that the	the	with the
book value of the unit would be the same as its recoverable	sensitivity	assumed
amount.	analysis	figure
Annual growth in net sales	-7.5%	- 16.3 ppts
Average sales margin	19.2%	- 22.6 ppts
Discount rate	17.6%	+ 10.3 ppts

Assumptions concerning the discount rate	2021	2020
Risk-free market yield	0.1 %	-0.4 %
Gearing target (average based on an industry analysis)	9.5 %	9.5 %
Equity market risk premium (EMRP)	6.0 %	6.0 %
Additional risk premium for small companies with no liquid assets	2.0 %	2.0 %
Loan margin	2.0 %	2.0 %

26. FINANCIAL RISK MANAGEMENT

1000 €

Aspocomp is exposed to numerous financial risks in its ordinary operations. These risks are described in greater detail below. The President and CEO and the financial department identify, assess and if necessary hedge against financial risks and report to the Board of Directors on the financial position and adequacy of financing.

Liquidity risk

The company's liquidity is based on cash assets, the cash flow generated by business operations, and external financing.

At the end of the financial year 2021, the nominal value of interest-bearing liabilities was EUR 4.3 million. Gearing was 8.7 percent (16.6%) and equity ratio was 60.8 percent (63.6%).

The company has a credit facility of EUR 1.0 million, of which EUR 0.0 milloin was in use at the end of the financial year 2021.

Maturities of financial liabilities are presented in Note 17.

The company seeks to continuously evaluate and monitor the amount of financing to ensure that it has enough liquid funds to finance operations and repay maturing loans. To assess liquidity, the company has prepared a month-specific cash flow forecast for 2022. The forecast is updated on a monthly basis. On the basis of the cash flow forecast prepared during the drafting of the financial statements, the company estimates that it has enough working capital to meet its needs during the next 12 months, provided that the company's sales and production cost structure develop as predicted and the availability of financing does not weaken unexpectedly. The company has a EUR 1.0 million credit facility, of which EUR 0.0 million was in use as at December 31, 2021, and a recourse factoring agreement, of which EUR 0.0 million was in use at the end of the review period. These forms of finance used to safeguard liquidity include covenant term. The covenant terms were broken during the financial year 2021, but in 2021 the financiers gave a waiver for the financial year 2021.

Capital management

As equity, the company manages the shareholders' equity shown in the consolidated balance sheet. The objective is to ensure the continuity of the company's operations and the appreciation of shareholder value. The capital structure of the Group is monitored and forecast regularly in order to ensure liquidity. Capital management does not involve significant risks, as the shareholders' equity of the company is strong.

26. (continues)

1000 €

Interest rate risk

The Group has hedged against rises in the interest rates of the loan drawn down in 2021 with an interest rate collar. As a rise in interest rates can have a substantial effect on the interest costs of a loan, the interest rate collar safeguards the loan by agreeing on a minimum and maximum level for the reference rate. The interest payable on the loan is based on a reference rate with a minimum and maximum level over the validity of the interest rate collar as well as a loan margin. No separate fees are paid for the interest rate collar.

Foreign currency risk

The Group's production activities are carried out in Finland. In addition, the Group has subsidiaries in Germany and China. The Group's main currency is the euro and 62 percent of the Group's receivables are denominated in euros (at the end of year: 62%). The breakdown by currencies of the receivables is presented in Note 15. All the Group's long-term liabilities are denominated in euro. At the end of the year, 50 percent of the short-term debts were denominated in euros.

Calculation of exchange rate risk sensitivity
	Change in exchange rate

+ 10 %	-10%	Gross	1000 €
197	-240	2163	USD/EUR
0	0	-2	SEK/EUR
0	0	-3	CHF/EUR
-1	1	-13	GBP/EUR
196	-239	2145

Credit risk

The Group trades only with recognized, creditworthy third parties. According to the credit policy agreed by the Board, all new customers are subject to credit verification procedures. The creditworthiness of existing customers is reviewed on a regular basis. Overdue receivables are reported to top management and the sales teams on a monthly basis and all the necessary actions are taken in order to collect the overdue receivables. On the reporting date, the maximum amount of financial assets exposed to credit risk was equal to their book value.

The five largest customers accounted for 48 percent of net sales (41% in 2020). During the financial year were recorded credit losses of EUR 0.0 million .

The age distribution of accounts receivable is presented in Note 15.

27. NOTES TO THE CONSOLIDATED CHANGES IN EQUITY

1000 €

	Number of shares
Jan. 1, 2020	6,704,505
Stock options	136,935
Dec. 31, 2020	6,841,440
Jan. 1, 2021	6,841,440
Stock options	0
Dec. 31, 2021	6,841,440

Share capital

Aspocomp Group Plc. has one share series. The maximum number of shares is 6,841,440 (6,841,440 shares in 2020). All issued shares are fully paid.

Treasury shares

The treasury share fund includes the treasury shares owned by the parent company, measured at acquisition cost. At the end of the fiscal years 2020 and 2021, the company did not hold any treasury shares.

Reserve for invested unrestricted equity

The reserve for invested unrestricted equity includes other equity investments and share subscription fees insofar as a decision has not been made to enter them into share capital. On the basis of the stock option programs launched after the new Companies Act (July 21, 2006/624) came into force (September 1, 2006), fees received from share subscriptions are recognized in full in the reserve for invested unrestricted equity.

Payment of dividends

28. EVENTS AFTER THE FINANCIAL PERIOD

No significant reportable events after the financial period.

PARENT COMPANY FINANCIAL STATEMENTS

PARENT COMPANY INCOME STATEMENT

Note	1.1.-31.12.2021	1.1.-31.12.2020
1.1	32,511,904.58	25,362,960.69
	1,323,218.11	-216,387.52
1.2	50,723.06	82,877.16
1.3	-16,838,323.80	-11,669,090.41
1.4	-8,513,740.01	-7,460,470.93
1.5	-3,100,536.30	-2,936,088.01
1.6	-4,740,972.79	-4,682,241.88
	692,272.85	-1,518,440.90
1.7	-44,928.47	-294,669.49
	647,344.38	-1,813,110.39
1.8	4,923.09	-35,342.96
	652,267.47	-1,848,453.35

PARENT COMPANY BALANCE SHEET

Assets	Note	12/31/2021	12/31/2020
Non-current assets
Intangible assets	2.1	1,211,905.69	2,535,813.32
Property, plant and equipment	2.2	5,502,867.19	5,910,389.85
Right-of-use assets	2.3	676,977.68	996,199.60
Investments	2.4	207,166.94	207,166.94
Total non-current assets		7,598,917.50	9,649,569.71
Current assets
Inventories	2.5	5,160,875.63	3,111,751.52
Short-term receivables	2.6	8,635,437.59	5,430,774.04
Cash and cash equivalents		2,183,722.26	2,491,381.63
Total current assets		15,980,035.48	11,033,907.19
Total assets		23,578,952.98	20,683,476.90

Liabilities and shareholders' equity
Shareholders' equity	2.7
Share capital		1,000,000.00	1,000,000.00
Reserve for invested unrestricted equity		3,015,009.82	2,983,426.76
Retained earnings		3,619,383.52	5,467,836.87
Net profit/loss for the period		652,267.47	-1,848,453.35
Total shareholders' equity		8,286,660.81	7,602,810.28
Liabilities
Long-term liabilities	2.8	2,917,837.72	4,224,570.37
Short-term liabilities	2.9	12,374,454.45	8,856,096.25
Total liabilities		15,292,292.17	13,080,666.62
Total liabilities and shareholders' equity		23,578,952.98	20,683,476.90

PARENT COMPANY CASH FLOW STATEMENT

€	1.1.-31.12.2021	1.1.-31.12.2020
Cash flow from operatiONS
Operating profit/loss	652,267.47	-1,848,453.35
Adjustments
Non-cash transactions	3,050,371.66	3,437,766.10
Change in working capital	-1,459,022.62	2,318,023.77
Paid interest expenses	-136,260.30	-291,171.48
Received interest income	309.28	0.00
Net cash flow from operatiONS	2,107,665.49	3,616,165.04
Cash flow from investing activities
Purchase of tangible and intangible assets	-1,299,801.50	-1,906,432.30
Investments in holdings	0.00	-80,036.44
Proceeds from sale of tangible and intangible assets	39,400.00	27,800.00
Net cash flow from investing activities	-1,260,401.50	-1,958,668.74
Net cash flow before financing	847,263.99	1,657,496.30
Cash flow from financing activities
Loans drawn down	0.00	3,000,000.00
Loans repaid	-991,780.43	-2,851,987.18
Decrease in lease liabilities	-335,539.57	-369,699.40
Stock options exercised	0.00	139,100.00
Payments of dividends	0.00	-1,026,171.45
Net cash flow from financing activities	-1,327,320.00	-1,108,758.03
Change in cash and cash equivalents	-480,056.01	548,738.27
Effects of exchange rate changes on cash and cash equivalents	172,396.64	-174,229.98
Cash and cash equivalents at the beginning of period	2,491,381.63	2,116,873.34
Cash and cash equivalents at the end of period	2,183,722.26	2,491,381.63

NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY, FAS

Accounting principles of the parent company

The financial statements of the company have been prepared in accordance with the procedures laid out in the Finnish Accounting Act and other Finnish Accounting Standards (FAS). The figures from the previous year have been adjusted for comparability. The financial statements are presented in euros.

Tangible and intangible assets

Intangible assets

Goodwill

Goodwill represents the share of the acquisition cost exceeding the company's share at the moment of acquisition of the fair value of the itemizable net assets of an acquired subsidiary. Goodwill from the acquisition of subsidiaries is included in intangible assets. For impairment testing, it is allocated to cash-generating units. Goodwill is tested for impairment annually and is recognized in the balance sheet at acquisition cost less impairment losses. An impairment loss on goodwill is not reversed. The carrying amount of goodwill related to a sold company has an effect on the capital gains or losses.

Research and development expenditure

The company does not engage in actual product development. Research and development expenditure represents general development of the production process that cannot be directly allocated to any customer order, but which does not fulfill the capitalization criteria of IAS 38. The company no longer engages in PCB technology-related research and development that would be directly connected to customer projects and which would therefore be capable of independently generating income. The company cannot separate the research phase from the development phase, and it does not engage in actual product development, and thus treats all production process-related expenditure as expenditure on the research phase (IAS 38.53).

Software

Purchased software is recorded in the balance sheet at the original cost less accumulated amortization and impairment, if any.

Intangible rights

Intangible assets with limited useful lives are recorded in the balance sheet at the original cost less accumulated amortization and impairment, if any.

The estimated useful lives of intangible assets are:

Intangible rights 3 years
Other intangible assets 5 10 years.

Property, plant and equipment and right-of-use assets

The estimated useful lives of property, plant and equipment are:

Buildings and structures 15 – 30 years
Machinery and equipment 3 8 years
Other tangible assets 5 10 years
Land and water leased 20-22 years

The residual value of the assets and their useful lives are reviewed at least at each balance sheet date and, if necessary, adjusted to reflect changes in their expected economic benefits.

Gains and losses resulting from derecognition of property, plant and equipment are entered under other operating income or expenses.

Impairment of tangible and intangible assets

The company assesses asset items annually for indications of impairment. If there are such indications, the recoverable amount of said asset item is estimated and then compared with the carrying amount of the asset item in question. In addition, the recoverable amounts of goodwill are assessed annually. Impairment is examined at the level of cash-generating units – that is, at the lowest unit level that is primarily independent of other units and whose cash flows can be separated out from other cash flows.

Presentation of asset grants

Government grants are deducted in determining the carrying amount of an asset. The grant is recognized in profit or loss in the form of a decrease in depreciation during the useful life of the asset.

Financial assets and financial liabilities

Financial assets

All purchases and sales of financial assets are booked on the transaction date. Financial assets are derecognized from the balance sheet when the company has lost its contractual rights to their cash flows, or when the Group has substantially transferred the risks and rewards out of the company.

Financial assets at fair value through profit or loss are those non-derivative financial assets that are designated as available for sale or are not classified in any other group. They are included in noncurrent assets, unless the intention is to keep them less than 12 months from the closing date; if that is the case, they are recognized as current assets. Changes in fair value are transferred to the income statement when the investment is sold or when its value has declined such that an impairment loss must be recorded. Financial assets at fair value through profit or loss during the disclosed periods only include investments in unquoted shares whose acquisition cost is substantially equal to their fair value (based on, for instance, recent transactions). The markets for said shares are inactive and the company does not intend to divest itself of these shares in the near future.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and bank deposits. Cash and cash equivalents have a maximum maturity of three months from the date of acquisition.

Financial liabilities

Financial liabilities are recognized initially at their fair value. Transaction costs are included in financial liabilities' initial carrying amount. Later all financial liabilities are recognized at amortized cost. The difference between the money received (less transaction costs) and the amount to be repaid is entered in the income statement using the effective interest method over the loan period. Financial liabilities are included in non-current and current liabilities.

Impairment of financial assets

The Group applies a simplified procedure for the recognition of expected credit losses in accordance with IFRS 9, whereby all trade receivables and contractual assets are recognized over the life of the loan. For the purposes of determining expected credit losses, trade receivables and contractual assets are grouped based on common credit risk characteristics and late payment.

Net sales

Discounts, VAT and exchange rate differences of accounts receivable have been accounted for under adjustments to net sales.

Research and development expenditure

Research and development expenditure is fully expensed during the financial year in which it was incurred.

Extraordinary income and expenses

Extraordinary income and expenses include exceptional and significant events that are not related to the company's line operations.

Provisions

Provisions are recorded when the company has a legal or constructive obligation on the basis of a prior event and the materialization of the payment obligation is probable. A provision for restructuring is recognized when the company has prepared a detailed restructuring plan and the plan has been announced. The provision reflects management's best estimate of the present value of future expenditure.

Pension arrangements

In the financial statements, pension schemes in different countries are classified as defined contribution or defined benefit schemes. In defined contribution schemes, the company makes fixed payments to a separate unit. The company does not have a legal or constructive obligation to make additional payments if the recipient cannot pay the pension benefits in question. All such schemes that do not fulfill these conditions are considered to be defined benefit schemes. Payments for defined contribution schemes have been recorded in the income statement for the period to which the payment pertains.

The company has pension schemes that have been classified as defined contribution or defined benefit schemes. In defined contribution schemes, payments have been recorded in the income statement for the period to which the payment pertains.

Items denominated in foreign currencies

Taxes

Taxes on the company's financial results for the period, adjustments of taxes from previous periods and the change in deferred taxes are recorded as the Group's taxes. The deferred tax asset or liability is calculated on all temporary differences between carrying amounts and taxable values, applying the tax rates confirmed on the closing date. Deferred tax assets are recognized from confirmed losses by applying the average result for the past four financial years, to the future financial years in which losses confirmed in taxation can be used. Deferred tax assets arising from acquisition costs that have not been deducted in taxation are recognized in full in undeducted acquisition costs at the end of the reported financial year.

Deferred tax is not recognized on the undistributed profits of subsidiaries when it is probable that the temporary difference will not be dissolved in the foreseeable future.

1.1 NET SALES BY GEOGRAPHICAL AREA

	2021	2020
Europe	27,599,946.82	21,624,249.70
Rest of the world	4,911,957.76	3,738,710.99
Total	32,511,904.58	25,362,960.69

1.2 OTHER OPERATING INCOME

	2021	2020
Gains on sale of tangible assets	39,400.00	27,800.00
Other income	11,323.06	55,077.16
Total	50,723.06	82,877.16

1.3 MATERIALS AND SERVICES

€	2021	2020
Purchase during accounting period	16,956,770.99	11,082,066.89
Change in inventories	-725,906.00	177,330.00
Subcontracting (external services)	607,458.81	409,693.52
Total	16,838,323.80	11,669,090.41

1.4 NOTES ON PERSONNEL AND MEMBERS OF ADMINISTRATIVE BODIES

	2021	2020
Personnel costs
Salaries and wages	7,040,522.02	6,327,276.20
Fees	0.00	0.00
Pension costs	1,162,406.61	895,702.03
Other personnel costs	310,811.38	237,492.70
Total	8,513,740.01	7,460,470.93
Management salaries and benefits
CEO and Board Members	343,879.40	738,101.60
Personnel at the end of year
Non-office workers	92	87
Salaried employees	49	45
Total	141	132
Personnel on average during the year
Non-office workers	87	87
Salaried employees	48	47
Total	135	134

1.5 DEPRECIATIONS AND WRITE-DOWNS

	2021	2020
Depreciation of intangible rights	1,454,592.25	1,416,664.46
Depreciation of machinery and equipment	1,645,944.05	1,519,423.55
Total	3,100,536.30	2,936,088.01

1.6 OTHER OPERATING EXPENSES

€	2021	2020
Rental expenses	72,938.24	70,424.66
Real estate costs	274,089.40	223,428.88
Energy costs	860,717.75	912,054.56
IT costs	313,676.98	292,755.83
External services	864,199.18	902,508.14
Other expenses	2,355,351.24	2,281,069.81
Total	4,740,972.79	4,682,241.88
Auditor's fees
1. Auditing	61,136.00	54,338.45
2. Tax consultation	12,396.53	0.00
3. Certificates and statements	10,400.00	2,858.00
4. Other services	750.00	4,400.00
Total	84,682.53	61,596.45

1.7 FINANCIAL INCOME AND EXPENSES

	2021	2020
Interest and other financial income
From group companies	0.00	0.00
From others	309.28	0.00
Total	309.28	0.00
Interest and other financial expenses
To group companies	0.00	0.00
To others	45,237.75	294,669.49
Total	45,237.75	294,669.49
Total financial income and expenses	-44,928.47	-294,669.49

1.8 INCOME TAX

	2021	2020
Branch taxes prevous year	-20,392.09	0.00
Branch taxes	15,469.00	35,342.96
Yhteensä	-4,923.09	35,342.96

2.1 INTANGIBLE ASSETS

€

			Other long-lived
2021	Intangible rights	Goodwill	assets	Total
Acquisition cost Jan. 1, 2021	590,831.41	13,051,744.81	525,041.87	14,167,618.09
Increase	130,684.62	0.00	0.00	130,684.62
Decrease	-11,580.09	0.00	0.00	-11,580.09
Acquisition cost Dec. 31, 2021	709,935.94	13,051,744.81	525,041.87	14,286,722.62
Accumulated depreciation Jan. 1,
2021	343,623.65	10,767,689.46	520,491.66	11,631,804.77
Accumulated depreciation of
decreases and transfers	-11,580.09	0.00	0.00	-11,580.09
Depreciation for the year	145,571.63	1,305,174.48	3,846.14	1,454,592.25
Accumulated depreciation Dec.
31, 2021	477,615.19	12,072,863.94	524,337.80	13,074,816.93
Book value Dec. 31, 2021	232,320.75	978,880.87	704.07	1,211,905.69

			Other long-lived
2020	Intangible rights	Goodwill	assets	Total
Acquisition cost Jan. 1, 2020	603,547.29	13,051,744.81	525,041.87	14,180,333.97
Increase	94,695.60	0.00	0.00	94,695.60
Decrease	-107,411.48	0.00	0.00	-107,411.48
Acquisition cost Dec. 31, 2020	590,831.41	13,051,744.81	525,041.87	14,167,618.09
Accumulated depreciation Jan. 1,
2020	343,537.17	9,462,514.98	516,499.64	10,322,551.79
Accumulated depreciation of
decreases and transfers	-107,411.48	0.00	0.00	-107,411.48
Depreciation for the year	107,497.96	1,305,174.48	3,992.02	1,416,664.46
Accumulated depreciation Dec.
31, 2020	343,623.65	10,767,689.46	520,491.66	11,631,804.77
Book value Dec. 31, 2020	247,207.76	2,284,055.35	4,550.21	2,535,813.32

2.2 TANGIBLE ASSETS AND RIGHT-OF-USE ASSETS

€

				Advance
				payments &
	Buildings and		Machinery and	constructions in
2021	structures	Land areas	equipment	progress	Total
Acquisition cost Jan. 1, 2021	1,419,601.53	168,065.23	11,615,888.56	642,981.94	13,846,537.26
Increase	199,141.13	0.00	20,343.18	726,623.73	946,108.04
Decrease	0.00	0.00	-231,894.47	0.00	-231,894.47
Transfers between items	0.00	0.00	642,981.94	-642,981.94	0.00
Acquisition cost Dec. 31, 2021	1,618,742.66		168,065.23 12,047,319.21	726,623.73	14,560,750.83
Accumulated depreciation Jan. 1, 2021	245,406.33	15,278.64	6,679,262.84	0.00	6,939,947.81
Accumulated depreciation of
decreases and transfers	0.00	0.00	-204,985.90	0.00	-204,985.90
Depreciation for the year	96,559.44	7,639.32	1,541,745.29	0.00	1,645,944.05
Accumulated depreciation Dec. 31, 2021	341,965.77	22,917.96	8,016,022.23	0.00	8,380,905.96
Book value Dec. 31, 2021	1,276,776.89	145,147.27	4,031,296.98	726,623.73	6,179,844.87

2020
Acquisition cost Jan. 1, 2020	1,409,147.54	168,065.23	9,918,783.14	1,460,671.02	12,956,666.93
Increase	10,453.99	0.00	848,152.74	642,981.94	1,501,588.67
Decrease	0.00	0.00	-611,718.34	0.00	-611,718.34
Transfers between items	0.00	0.00	1,460,671.02	-1,460,671.02	0.00
Acquisition cost Dec. 31, 2020	1,419,601.53		168,065.23 11,615,888.56	642,981.94	13,846,537.26
Accumulated depreciation Jan. 1, 2020	149,599.33	7,639.32	5,875,003.95	0.00	6,032,242.60
Accumulated depreciation of
decreases and transfers	0.00	0.00	-611,718.34	0.00	-611,718.34
Depreciation for the year	95,807.00	7,639.32	1,415,977.23	0.00	1,519,423.55
Accumulated depreciation Dec. 31, 2020	245,406.33	15,278.64	6,679,262.84	0.00	6,939,947.81
Book value Dec. 31, 2020	1,174,195.20	152,786.59	4,936,625.72	642,981.94	6,906,589.45

2.3 RIGHT-OF-USE ASSETS

€

Property, plant and equipment include leased as follows:

2021		Land areas Machinery and equipment	Total
Acquisition cost Jan. 1, 2021	168,065.23	2,241,058.52	2,409,123.75
Increase	0.00	83,282.57	83,282.57
Decrease	0.00	-104,522.52	-104,522.52
Acquisition cost Dec. 31, 2021	168,065.23	2,219,818.57	2,387,883.80
Accumulated depreciation Jan. 1, 2021	15,278.64	1,397,645.51	1,412,924.15
Accumulated depreciation of
decreases and transfers	0.00	-2,279.31	-2,279.31
Depreciation for the year	7,639.32	292,621.96	300,261.28
Accumulated depreciation Dec. 31, 2021	22,917.96	1,687,988.16	1,710,906.12
Book value Dec. 31, 2021	145,147.27	531,830.41	676,977.68

2020
Acquisition cost Jan. 1, 2020	168,065.23	2,200,190.41	2,368,255.64
Increase	0.00	40,868.11	40,868.11
Decrease	0.00	0.00	0.00
Acquisition cost Dec. 31, 2020	168,065.23	2,241,058.52	2,409,123.75
Accumulated depreciation Jan. 1, 2020	7,639.32	1,032,706.91	1,040,346.23
Accumulated depreciation of
decreases and transfers	0.00	0.00	0.00
Depreciation for the year	7,639.32	364,938.60	372,577.92
Accumulated depreciation Dec. 31, 2020	15,278.64	1,397,645.51	1,412,924.15
Book value Dec. 31, 2020	152,786.59	843,413.01	996,199.60

2.4 INVESTMENTS

	€
			Shares Group		Receivables	Total
2021			companies	Others	Group companies
Book value Jan. 1, 2021			112,234.00	94,932.94	0.00	207,166.94
Increases			0.00	0.00	0.00	0.00
Decreases			0.00	0.00	0.00	0.00
Book value Dec. 31, 2021			112,234.00	94,932.94	0.00	207,166.94
2020
Book value Jan. 1, 2020			112,234.00	14,896.50	0.00	127,130.50
Increases			0.00	80,036.44	0.00	80,036.44
Decreases			0.00	0.00	0.00	0.00
Book value Dec. 31, 2020			112,234.00	94,932.94	0.00	207,166.94
		Group	Parent	Parent	Shares/participations owned by
Group companies	Domicile	interest	company	company's	the parent company
		(%)	(%)	(no.)	nominal value	book value
Aspocomp Trading Oy	Finland	100.00	100.00	320	0.00	0.00
Aspocomp GmbH	Germany	100.00	100.00	2		62,234.00
AC Shenzhen Electronics Co., Ltd. China		100.00	100.00			50,000.00
Total						112,234.00
Other shares and participations
Other shares						94,932.94
Total						94,932.94

2.5 INVENTORIES

€	2021	2020
Materials and supplies	2,633,460.00	1,907,554.00
Work in progress	1,397,135.00	427,894.00
Finished goods	1,130,280.63	776,303.52
Total	5,160,875.63	3,111,751.52

2.6 SHORT-TERM RECEIVABLES

€	2020	2020
Accounts receivable	8,168,129.25	5,153,206.04
Other receivables	182,618.92	40,000.00
Other accrued income	284,689.42	237,568.00
Short-term receivables, total	8,635,437.59	5,430,774.04

2.7 SHAREHOLDERS' EQUITY

	2021	2020

Shareholders' equity Jan. 1	1,000,000.00	1,000,000.00
Shareholders' equity Dec. 31	1,000,000.00	1,000,000.00
Reserve for invested unrestricted equity Jan. 1	2,983,426.76	2,812,704.10
Increase	31,583.06	170,722.66
Reserve for invested unrestricted equity Dec. 31	3,015,009.82	2,983,426.76
Retained earnings Jan. 1	3,619,383.52	6,494,052.87
Dividends paid	0.00	-1,026,216.00
Retained earnings Dec. 31	3,619,383.52	5,467,836.87
Net profit/loss for the period	652,267.47	-1,848,453.35
Total balance	8,286,660.81	7,602,810.28
Distributable funds in unrestricted equity	7,286,660.81	6,602,810.28

2.8 NON-CURRENT LIABILITIES

	2021	2020
Loans from financial institutions
Loans from financial institutions	2,418,947.35	3,410,526.31
Financial leasing debts	354,078.15	663,167.06
Lease liability	144,812.22	150,877.00
Non-current liabilities, total	2,917,837.72	4,224,570.37

2.9 CURRENT LIABILITIES

	2021	2020
Loans from financial institutions
Bank loans	991,578.95	991,578.95
Financial leasing debts	357,377.88	396,895.33
Derivative financial instruments	0.00	0.00
Lease liability	6,064.86	5,893.93
Factoring debt	690.96	892.43
Total	1,355,712.65	1,395,260.64
Accounts payable, other payables and accrued expenses
Accounts payable	5,212,964.01	2,203,624.67
Other payables	148,383.73	194,719.08
Accrued expenses	1,829,047.53	1,231,961.28
Total	7,190,395.27	3,630,305.03
Material items in accrued expenses:
Periodization of personnel expenses	1,554,480.41	961,276.34
Interest periodization of loans	4,073.42	5,107.22
Vat liabilitiesat theyear end	0.00	0.00
Other items	270,493.70	265,577.72
Total	1,829,047.53	1,231,961.28
Liabilities to Group companies
Liabilities to Group companies	3,828,346.53	3,830,530.58
Current liabilities, total	12,374,454.45	8,856,096.25

3.1 CONTINGENCIES AND COMMITMENTS

1000 €	2021	2020
Other rental payables
Minimum rents of other rent agreements that cannot be terminated
Within one year	53,631.68	46,915.03
After one year but not more than five years	2,016.00	2,016.00
More than five years	0.00	0.00
Total	55,647.68	48,931.03
Contingent liabilities at Dec. 31, 2020
Guarantees
Business mortage	6,000,000.00	6,000,000.00
Collateral note	1,200,000.00	1,200,000.00
Guaranteed contingent liability towards the Finnish Customs	35,000.00	35,000.00
Total	7,235,000.00	7,235,000.00

BOARD OF DIRECTORS' DIVIDEND PROPOSAL AND SIGNATURES

According to the financial statements dated December 31, 2021, the parent company's distributable earnings amounted to EUR 7,286,660.81, of which the retained earnings were EUR 4,271,650.99.

Helsinki, March 9, 2022

Päivi Marttila Kaarina Muurinen

Chairman of the Board Vice Chairman of the Board

Jukka Huuskonen Anssi Korhonen Member Member

Mikko Montonen President and CEO

THE AUDITOR'S NOTE

The audit carried out has been submitted Auditor's Report today.

Helsinki, March 9, 2022

PricewaterhouseCoopers Oy

Authorized Public Accountants

Mikko Nieminen Authorized Public Accountant

AUDITOR'S REPORT

(Translation of the Finnish Original)

To the Annual General Meeting of Aspocomp Group Oyj

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION

In our opinion

the consolidated financial statements give a true and fair view of the group's financial position and financial performance and cash flows in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU
the financial statements give a true and fair view of the parent company's financial performance and financial position in accordance with the laws and regulations governing the preparation of the financial statements in Finland and comply with statutory requirements.

Our opinion is consistent with the additional report to the Audit Committee of the Board of Directors.

What we have audited

We have audited the financial statements of Aspocomp Group Oyj (business identity code 1547801-5) for the year ended 31 December 2021. The financial statements comprise:

the consolidated balance sheet, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes, including a summary of significant accounting policies
the parent company's balance sheet, income statement, statement of cash flows and notes.

BASIS FOR OPINION

We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

To the best of our knowledge and belief, the non-audit services that we have provided to the parent company and to the group companies are in accordance with the applicable law and regulations in Finland and we have not provided non-audit services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-audit services that we have provided are disclosed in note 6 to the Financial Statements.

OUR AUDIT APPROACH

OVERVIEW

Overall group materiality: € 300 000 (previous year € 230 000), which represents ● 0,9 % of net sales 2021
Audit scope: The audit scope included the Group parent entity ●
Revenue recognition ● Valuation of goodwill ● Valuation of deferred tax assets ●

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.

Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial statements as a whole.

Overall group materiality	€ 300 000 (previous year € 230 000)
How we determined it	0,9 % of net sales 2021
Rationale for the materiality benchmark applied	We chose net sales as the benchmark because, in our view, it reflects the volume and growth objectives Group's business operations. Because the profit performance of the company is not steady, net sales is also a generally accepted benchmark. The percentage applied in the calculation is within the range of generally accepted quantitative materiality thresholds.

How we tailored our group audit scope

We tailored the scope of our audit, taking into account the structure of the group, the accounting processes and controls, and the industry in which the group operates.

Aspocomp Group has one operative company, the Group parent, which has been selected into the audit scope. Group parent audit covers almost 100 % of the consolidated net sales.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

Key audit matter in the audit of the group How our audit addressed the key audit matter

Revenue recognition

For more information on revenue recognition please refer to the Accounting Principles of the Group Financial Statements and Note 1. Net Sales Income

Revenue for sale of goods is recognized when significant risks and benefits related to the ownership have transferred to the buyer and the group no longer has right of possession or actual control over a good. In calculation of revenue, the sales income is adjusted by indirect taxes and granted discounts.

We concentrated to the audit of revenue cut-off, as there is a risk that revenue from sales transactions is recognized to wrong period.

Our audit procedures included for example the following procedures:

We reviewed net sales recording to the correct accounting period by inspecting sales transactions recorded as revenue both before and after the last day of the financial period. For the selected sales transactions, we verified recognition of revenue in the correct financial period by going through delivery notes that the revenue was recorded to the correct financial period.
We reviewed on a sample of sales transactions and validated the selected transactions to both sales invoices and delivery notes.
We performed IT assisted audit procedures on Group net revenue analyzing all sales transactions during the financial period and ascertained logical accounting treatment of all revenue recognition bookings.

Valuation of goodwill

For information on valuation of goodwill refer to Accounting Principles of the Group Financial Statements and Note 25. Impairment Testing

The company is obliged to test valuation of goodwill for depreciation at least once a year. The consolidated group goodwill at year end is € 3 million and relates to the circuit board factory in Oulu.

This area is important for the audit, as impairment testing involves management consideration regarding the key assumptions such as average increase rate of goodwill over the cash flow forecast period, gross margin and the discount rate used in the calculations. We concentrated on cash flow forecasts, as these involve most inherent judgement.

Our audit procedures included for example the following procedures:

We reviewed the estimates of annual increase in net sales and discount rate used in impairment testing, and traced them to budgets approved by the board of directors.
We evaluated and challenged the future cash flow forecasts and discount rate, and reviewed the process of forming those forecasts. We validated the mathematic accuracy of the impairment testing calculations.
We compared the actual results of the year ended with the forecasts used in the impairment testing calculations, and reviewed impairment testing of prior years in view of realization in order to ensure that the management forecasts

Based
on
impairment
testing,
the
recoverable
amount exceeded the book value and thus goodwill
was not impaired in 2021.

were not too optimistic e.g. in terms of
estimated margins and net sales increase rate.
We reviewed the sensitivity analyses made by the
•
management, which have been prepared by
estimating the effects of the increase of net
sales, weakening of the gross margin and changes
in the discount rate both individually and in
aggregate to the results of the impairment
testing.

Valuation of deferred tax assets
For information on valuation of deferred tax assets
refer to Accounting Principles of the Group
Financial Statements and Note 8. Income Taxes
The Group's consolidated balance sheet includes
deferred tax assets of € 5,0 million, which were
mainly recorded from slowed tax depreciations and
from confirmed losses. During the financial year the
deferred tax asset balance have remained
materially at the same level with previous year.
Valuation of deferred tax assets involves inherent
management judgement, since utilisation of the tax
assets is subject to the company being likely to have
taxable income in the future, based on which
valuation of deferred tax assets is a key audit
matter.

Our audit procedures included for example the
following procedures:
•
We challenged the management forecasts of
future taxable income. We verified the conformity
of these forecasts with the estimates used for
impairment testing.
•
We reviewed the grounds for recording deferred
tax assets prepared by the management and
challenged the management on the prerequisites
for recording deferred tax assets.
•
We validated the mathematic accuracy of the
calculations prepared by management.
•
We also evaluated accuracy of previous forecasts
in comparison with actual financial performance
of the Group.

We have no key audit matters to report with respect to our audit of the parent company financial statements.

There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial statements or the parent company financial statements.

RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE MANAGING DIRECTOR FOR THE FINANCIAL STATEMENTS

The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company's and the group's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or to cease operations, or there is no realistic alternative but to do so.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company's or the group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of the Board of Directors' and the Managing Director's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent company's or the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the parent company or the group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events so that the financial statements give a true and fair view.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

OTHER REPORTING REQUIREMENTS

APPOINTMENT

PricewaterhouseCoopers Oy was first appointed as auditors by the annual general meeting of Aspo Oyj (demerged company liquidated) which decided on the demerger 15.4.1999. Our appointment represents a total period of uninterrupted engagement of 23 years starting from the establishment of Aspocomp Group Oyj 1.10.1999 and the Company has been public interest entity for the whole period.

OTHER INFORMATION

The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the report of the Board of Directors and the information included in the Annual Report but does not include the financial statements and our auditor's report thereon. We have obtained the report of the Board of Directors prior to the date of this auditor's report and the Annual Report is expected to be made available to us after that date.

Our opinion on the financial statements does not cover the other information.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.

In our opinion

the information in the report of the Board of Directors is consistent with the information in the financial statements
the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Helsinki, 9 March 2022

PricewaterhouseCoopers Oy Authorised Public Accountants

Mikko Nieminen Authorised Public Accountant (KHT)

GOVERNANCE

THE BOARD OF DIRECTORS, DECEMBER 31, 2021

PÄIVI MARTTILA

Chairman

M.Sc. (Econ.), born 1961, Finnish Citizen Independent member of the Board since 2013 and Chairman of the Board since 2014 Primary work experience Sievi Capital Plc, CEO, 2018-2021, Midagon Oy, CEO, 2012-16, Flextronics Group, VP Sales and Marketing, 2005–11, Plamec Oy, CEO, 2002–05, QPR Software Oyj, Director and Founder, 1991–2001. Key positions of trust Patria Oyj, Member of the Board.

KAARINA MUURINEN

Vice Chairman

M.Sc. (Econ.), born 1958, Finnish Citizen Independent member of the Board and Vice Chairman of the Board since 2015 Primary work experience Vaisala Oyj, CFO, 2011-, Nokia Oyj, Vice President, Supply Chain Finance & Control, 2008-11, Vice President, Shared Accounting Services, 2003-08, Director, Financial Services Platform, 1998-2003, Hewlett-Packard Brussels

Coordination Center, Accounting Manager, Europe Inventory & Revenue, 1994-98.

JUKKA HUUSKONEN

Member of the Board

B.B.A., born 1964, Finnish Citizen

Independent member of the Board since 2021

Primary work experience

Admiwin Oy, Partner, CEO, Chairman, 2012-, Evli Pankki Oyj, Director/Senior Advisor, 2010-2012, Eera Finland Oy, Business Development Partner/Management Consultant, 2009-2010, UPM-Kymmene Oyj, Vice President, Director, 2000-2009, MeritaNordbanken (nykyisin Nordea), Managing Director/First Vice President, Asset Management, 1998- 2000, Arctos Securities Oy, Director of Investment Research/Partner, 1995-1998, Pankkiiriliike Protos, Investment Analyst, 1993-1994, Jaakko Pöyry Oy, Business Analysis Consultant, 1990-1993.

Key positions of trust

Admiwin Oy, Chairman of the Board, Viikinkiravintola Harold Oy, Member of the Board, Aro Systems Ltd, Member of the Board, 2015-2016.

ANSSI KORHONEN

Member of the Board

M.Sc. (Electrical Engineering), born 1965, Finnish Citizen Independet member of the Board since 2021

Primary work experience

PiBond Oy, Director, 2019-, Murata Electronics Oy, Vice President, Technology, 2014-2019, VTI Technologies (Murata Electronics Oy), CTO, 2008-2014, Elcoteq Asia Ltd, President, 2007-2008, Elcoteq SE, Senior Vice President, 2005-2007, Elcoteq, Director, Business Development, 2002-2005, Elcoteq, General Manager, 2001-2002, Elcoteq, Account Manager, Product Line Manager, 1997-2001, Ericsson Mobile Communications, Staff Engineer, 1995-1997, Elcoteq, Development Engineer, 1992-1995, VTT, Research Scientist, 1990-1992.

THE MANAGEMENT TEAM, DECEMBER 31, 2021

MIKKO MONTONEN

President and CEO

M.Sc. (Tech.), b. 1965, Finnish citizen

CEO and Chairman of the Management Team as of April 15, 2014

Primary work experience: Okmetic Oyj, Executive Vice President, Customers and Markets, 2010-2014, Deputy to the President, 2008-2014, Executive Vice President, Sales, 2008-2010 and Senior Vice President, Sales and Marketing, 2004-2007, Okmetic Inc., North America, President, Vice President, Sales and Marketing, 2000-2004, Okmetic Oy, Sales Manager, Process Engineer, 1991-1999.

ANTTI OJALA

Vice President, COO & Deputy CEO

M.Sc. (Eng.), b. 1979, Finnish citizen

VP, Business Development and member of the Management Team as of October 25, 2013 Previous work experience: various positions in Aspocomp Group Plc. since 2003.

ARI BEILINSON

Vice President, Sales and Marketing

M.Sc. (Econ.), born 1963, Finnish citizen

VP, Sales and Marketing as of April 29, 2019

Primary work experience: Ramboll Finland Oy, Sales and Management positions, 2018, Recright.com, CEO, 2011-2017, iConsulting Finland Oy, CEO and consultant, 2009-2011, SRV Group, EVP, 2006-2009, Nokia Plc, Sales and Management positions, 1994-2006, IBM, Sales and Management positions, 1988-1994 .

JOUNI KINNUNEN

Chief Financial Officer

Diploma in Business and Administration, b. 1960, Finnish citizen CFO and member of the Management Team as of September 19, 2011 Primary work experience: various positions in Aspocomp Group Plc.,1984-

MITRI MATTILA

Chief Technology Officer M.Sc. (Eng.), b. 1973, Finnish citizen CTO and member of the Management Team as of February 26, 2018

Primary work experience: various positions in Aspocomp Group Plc.,1997-

INFORMATION FOR SHAREHOLDERS

INVESTOR RELATIONS

The Group's investor relations contact is Mikko Montonen, CEO. Tel. +358 20 775 6860, [email protected]

FINANCIAL INFORMATION

Aspocomp Group Plc.'s financial information publication schedule for 2022 is:

• Interim report for January-March: Thursday, April 26, 2022, at around 8:00 (EEST) • Half-year report for January-June: Wednesday, July 20, 2022, at around 9:00 (EEST) • Interim report for January-September: Thursday, November 10, 2022, at around 9:00 (EET)

ANNUAL GENERAL MEETING, APRIL 26, 2022

The Annual General Meeting of Aspocomp Group Plc. will be held on Tuesday, April 26, 2022 at 10:00 a.m. (EET). The meeting will take place at Keilaranta 1, 1 st floor Auditorium, 02150 Espoo, Finland. Shareholders who have been registered in the company's share register, maintained by Euroclear Finland Ltd., no later than April 12, 2022 are entitled to attend the Meeting.

Shareholders wishing to attend the Meeting are requested to notify the company by April 21, 2022 by 10:00 a.m. (EET). Further information about the agenda of the AGM and right to participate and registration can be found in the Notice of the AGM, which is available on the company's website at www.aspocomp.com/agm as of March 10, 2022.

PAYMENT OF DIVIDENDS

CONTACT INFORMATION

Aspocomp Group Plc

SALES
	Finland	Tutkijantie 11, 90590 Oulu Keilaranta 1, 02150 Espoo	P: +358 20 775 6860 P: +358 20 775 6860
	Germany	Siegfriedstraße 1, 86356 Neusäß Paracelsusstrasse 10, 72762 Reutlingen	P: +49 821 454 4913 P: +49 7121 230 902
	Sweden	Pilåkersvägen 5C, 217 47 Malmö	P: +46 702 120 065
	United Kingdom	8 Second Cross road, TW2 5RF Twickenham	P: +44 776 142 228
PRODUCTION
	Finland	Tutkijantie 11, 90590 Oulu	P: +358 20 775 6860
CHINA OPERATIONS
	Shenzhen	Room 901B, Building B, Nanxian commercial Plaza, 43# of MeiLong Road, LongHua district, Shenzhen People's Republic of China	P: + 86 755 8376 156 F: + 86 755 8376 1766 (Post code: 518131)
HEADQUARTERS
	Finland	Keilaranta 1, 02150 Espoo	P: +358 20 775 6860

www.aspocomp.com

AI assistant

Aspocomp Group Oyj — Annual Report 2021

3301_10-k_2022-03-22_66746279-d469-4131-b7c1-c960717c4e94.pdf

2021

ANNUAL REPORT

Financial Statements and Report of the Board of Directors

CEO'S REVIEW

REPORT OF THE BOARD OF DIRECTORS 2021

2021 IN BRIEF

NET SALES AND EARNINGS 2021

Impact of the COVID-19 pandemic

INVESTMENTS AND R&D

CASH FLOW AND FINANCING

DEFERRED TAX ASSETS

PERSONNEL

ENVIRONMENT

THE ANNUAL GENERAL MEETING 2021

The Board of Directors

Authorizations given to the Board

Dividend

Auditor

The Board of Directors' organization meeting

THE MANAGEMENT TEAM

CORPORATE GOVERNANCE STATEMENT

SHARES AND OWNERSHIP STRUCTURE

Number of shares

Share turnover and price

Share price development and share turnover per month 2020-2021

Ownership structure

Size of holding, December 31, 2021

Shareholders by sector, December 31, 2021

Shareholders

MAJOR SHAREHOLDER ANNOUNCEMENTS IN 2021

OUTLOOK FOR 2022

ASSESSMENT OF SHORT-TERM BUSINESS RISKS

Impact of the COVID-19 pandemic on the electronics supply chain

Risks affecting the operating environment

Dependence on key customers

Market trends

BOARD OF DIRECTORS' DIVIDEND PROPOSAL

KEY INDICATORS 2021-2017

FORMULAS AND DEFINITIONS

The Alternative Performance Measures (APM) used by the Group

FINANCIAL STATEMENTS 2021

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CONSOLIDATED CASH FLOW STATEMENT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

COMPANY INFORMATION

ACCOUNTING PRINCIPLES OF THE CONSOLIDATED FINANCIAL STATEMENTS

Basis of preparation

Accounting principles

Segment reporting

Recognition policies

Divided income

Conversion of items denominated in currencies other than the euro

Foreign currency transactions

Conversion of the financial statements of foreign subsidiaries

Share-based payments

Employee benefits

Long service rewards

Operating profit/loss

Income taxes

Intangible assets

Goodwill

Research and development expenditure

Software

Intangible rights

Property, plant and equipment and right-of-use assets

Impairment of tangible and intangible assets

Presentation of asset grants

Inventories

Financial assets and financial liabilities

Financial assets

Cash and cash equivalents

Financial liabilities

Impairment of financial assets

Derivative financial instruments and interest rate risk hedging

Aspocomp Group Oyj Annual Report 2021