Annual Report • Mar 28, 2023
Annual Report
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| CEO'S REVIEW3 | |
|---|---|
| REPORT OF THE BOARD OF DIRECTORS4 | |
| KEY INDICATORS 2022–201811 | |
| FORMULAS AND DEFINITIONS | 12 |
| FINANCIAL STATEMENTS13 | |
| CONSOLIDATED FINANCIAL STATEMENTS, IFRS | 13 |
| Consolidated Income Statement | 13 |
| Consolidated Balance Sheet14 | |
| Consolidated Statements of Changes in Equity | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Financial Statements 17 | |
| PARENT COMPANY FINANCIAL STATEMENTS, FAS49 | |
| Parent Company Income Statement49 | |
| Parent Company Balance Sheet (FAS) 50 | |
| Parent Company Cash Flow Statement (FAS) 51 | |
| Notes to the Financial Statements of the Parent Company, FAS52 | |
| BOARD OF DIRECTORS DIVIDEND PROPOSAL AND SIGNATURES63 | |
| THE AUDITOR'S NOTE63 | |
| AUDITOR'S REPORT64 | |
| GOVERNANCE70 | |
| THE BOARD OF DIRECTORS70 | |
| THE MANAGEMENT TEAM71 | |
| INFORMATION FOR SHAREHOLDERS AND CONTACT INFORMATION 72 |
This report is an English translation of Aspocomp's Annual Report 2022 in PDF format.
The PDF-format report is not compliant with the ESEF regulation. ESEF (European Single Electronic Format) refers to an xHTML format annual financial report in which IFRS consolidated financial statements are labelled with XBRL tags.
Aspocomp's official ESEF-compliant Annual Report 2022 in Finnish has been published in accordance with the ESEF reporting requirements as an xHTML file and is available at www.aspocomp.com.
The audit firm PricewaterhouseCoopers Oy has provided an independent auditor's reasonable assurance report only on Aspocomp's ESEF Financial Statements in Finnish in accordance with ISAE 3000 (Revised).
2022 was the best financial year in the history of Aspocomp in its current form. Full year net sales grew by 18 percent to EUR 39.1 million. However, in the last quarter of the year, net sales decreased by 6 percent compared to the previous year after a few individual customer orders were pushed back to the current fiscal year.
The flattening of the demand for information and communication technology equipment, which was strongly accelerated by the COVID-19 pandemic, is slowing down the cycle of the semiconductor industry. The temporary slowdown in the cycle is typical for the industry. Now it also involves an increase in inventory levels in different parts of the supply chain, mainly due to availability problems. The development of Aspocomp's net sales in the last quarter reflected the decline in the semiconductor industry's strong demand at the end of 2022. The industry's long-term growth prospects are still strong. We expect inventory levels to normalize, investment to pick up and the cycle to turn upward again in the second half of 2023.
Despite the slowdown of the cycle in the last quarter, Aspocomp's Semiconductor Industry customer segment's fullyear net sales grew by 158 percent. As expected, the Automotive customer segment's sales decreased in the last quarter compared to the corresponding period of the previous year, when customers increased their inventory levels. Aspocomp gained dozens of new customers during the year, especially in the Security, Defense and Aerospace customer segment. Order cycles are typically long in this segment, so we expect net sales growth to materialize with a delay.
Our order book amounted to EUR 14.3 million. The order book decreased by EUR 2.2 million from the comparison period because the orders are scheduled for a shorter period than before due to the normalization of the production supplies market and the general improvement in availability.
Aspocomp's operating result for the entire fiscal year 2022 was excellent, amounting to EUR 4.5 million. The operating result was 11.5 percent of net sales, while the fourth-quarter operating result amounted to EUR 0.7 million, 7.3 percent of net sales. In the fourth quarter, the result was reduced by the weakening of the US dollar against the euro, the high price of electricity and higher personnel costs related to the company's growth. Exchange rates weakened the fourth-quarter operating result by EUR 0.3 million. Increased inflation is reflected in Aspocomp's costs. We strive to transfer the cost increase due to changes in the business environment to our product prices.
Aspocomp's Board of Directors proposes to the Annual General Meeting 2023 that a dividend of EUR 0.21 per share be paid for the financial year 2022 (EUR 0.15 per share for the financial year 2021).
Inflation and interest rates, the risk of recession and the uncertainties posed by the Russian war of aggression affect the operating environment of the company and its customers in the financial year 2023. The cycle of the Semiconductor Industry segment is expected to return to growth in the second half of the year. We estimate that Aspocomp's net sales for 2023 will increase from 2022 and its operating result for 2023 will be at the same level as in 2022. In 2022, net sales amounted to EUR 39.1 million and the operating result to EUR 4.5 million.
I would like to thank all our loyal customers, shareholders and other stakeholders for the exellent past year.
*The Board of Directors proposal to AGM
January-December 2022 net sales amounted to EUR 39.1 (33.2) million, a year-on-year increase of 18 percent.
The Semiconductor Industry customer segment's net sales grew to EUR 15.9 (6.2) million. Strong demand in the entire semiconductor industry came to an end in the second half of 2022.
The Industrial Electronics customer segment's net sales decreased by 26% to EUR 5.5 (7.5) million due to the slowing effect of inflation and the threat of recession on customer investments.
The Security, Defense and Aerospace customer segment's net sales increased by 1% to EUR 6.1 (6.1) million. The changing geopolitical environment and the increase in defense procurements increased the demand for local manufacturing in Europe.
The Automotive customer segment's demand declined by 24%, with net sales remaining at EUR 6.8 (8.9) million. Growth in the Automotive segment was limited by a shortage of components and extended delivery times.
The Telecommunication customer segment's net sales amounted to EUR 4.7 (4.5) million, a year-on-year increase of 5%. Product development needs remained at the previous year's level.
The five largest customers accounted for 53 (48) percent of net sales. In geographical terms, 89 (84) percent of net sales were generated in Europe and 11 (16) percent on other continents.
January-December 2022 operating result amounted to EUR 4.5 (2.2) million. The operating result was 11.5 (6.8) percent of net sales. The improvement in operating result was mainly due to the growth in net sales and the increase in the share of technologically more demanding and profitable PCBs in the product mix.
Net financial expenses amounted to EUR 0.0 (0.0) million. Earnings per share were EUR 0.52 (0.31).
The order book at the end of the review period was EUR 14.3 (16.5) million. The order book decreased by EUR 2.2 million from the comparison period, as the orders are scheduled for a shorter period than before due to the normalization of the production supplies market and the general improvement in availability.
Investments during the review period amounted to EUR 2.5 (1.3) 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 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 ongoing 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 the third quarter of 2023, all of the new equipment will be installed in the existing Oulu plant building and no additional plant space will be built.
January-December 2022 cash flow from operations amounted to EUR 3.6 (2.3) million. Cash flow increased due to improved operating profit.
Cash assets amounted to EUR 1.4 (2.6) million at the end of the period. Dividend payment was EUR 1.0 (0.0) million. Interest-bearing liabilities amounted to EUR 3.1 (4.3) million. Gearing was 8% (9%). Non-interest-bearing liabilities amounted to EUR 6.5 (8.0) million.
At the end of the period, the Group's equity ratio amounted to 69.4% (60.8%).
The company has a EUR 2.0 (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.
At the end of 2022, the company had EUR 4.2 (5.0) million in deferred tax assets in its balance sheet. The deferred tax assets are primarily due to decelerated tax depreciation and losses confirmed in taxation.
During the review period, the company had an average of 145 (139) employees. The personnel count on December 31, 2022, was 156 (145). Of them, 100 (92) were blue-collar and 56 (53) white-collar employees.
The Group's personnel expenses amounted to EUR 9.6 (8.9) million. In addition, the Group booked personnel service costs of EUR 0.5 (0.4) million in 2022.
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 2022, 100 percent of the electricity we used came from fossil-free sources. Waste in proportion to production volume in 2022 at the Oulu plant was 1 percent less than in the previous year. In 2022, the recovery rate of waste was 62 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 en-
vironmental 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 2022 was held on April 26, 2022, address Keilaranta 1, Espoo, Finland.
The Annual General Meeting adopted the annual accounts and the consolidated annual accounts as well as granted the members of the Board of Directors and the CEO discharge from liability regarding the financial period 2021. The Annual General Meeting approved the Remuneration Report for the governing bodies 2021.
The Annual General Meeting 2022 decided to set the number of Board members at four and re-elected Ms. Päivi Marttila, Ms. Kaarina Muurinen, 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.
The Annual General Meeting 2022 decided to pay a dividend of EUR 0.15 per share, as proposed by the Board of Directors. The dividend were paid to shareholders registered in the company's register of shareholders maintained by Euroclear Finland Ltd on the record date of the dividend distribution, April 28, 2022. The dividend were paid on May 5, 2022.
The Annual General Meeting 2022 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 Annual General Meeting on April 13, 2021, 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, 2023.
The Annual General Meeting 2022 re-elected in accordance with the proposal of the Board of Directors PricewaterhouseCoopers Oy, Authorized Public Accountants as the company's auditor for the 2022 financial year. The Meeting resolved that the auditor's fees shall be paid according to the auditor's invoice. PricewaterhouseCoopers Oy had notified that Mr. Mikko Nieminen, Authorized Public Accountant, will act as its principal auditor.
The Annual General Meeting 2022 decided, based on a request by the significant shareholders of the company, that a Shareholders' Nomination Board will be established to the company to prepare proposals concerning the composition and remuneration of the Board of Directors to the General Meeting. It was decided that the Nomination Board shall serve until further notice until the General Meeting decides otherwise. Further, the Annual General Meeting adopted the Rules of Procedure for the Shareholders' Nomination Board.
Based on the company's list of shareholders dated September 1, 2022, the three largest shareholders were defined, who appointed the following members to the Nomination Board: Ms. Päivi Marttila, appointed by Etola Group and Erkki Etola, Mr. Kyösti Kakkonen, appointed by Joensuun Kauppa ja Kone Oy and Mr. Mikko Montonen, representing himself.
The Nomination Board submits proposals regarding the company's Board members and their fees to the 2023 Annual General Meeting. The proposals are announced in the AGM notice.
In its organization meeting on April 26, 2022, 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 2022, 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.
Mikko Montonen, M.Sc. (Eng.) is the President and CEO of Aspocomp Group Plc. The Management Team includes Mikko Montonen, President and CEO, Antti Ojala, COO and Deputy CEO, Ari Beilinson, VP, Sales and Marketing, Jouni Kinnunen, CFO and Mitri Mattila, CTO.
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, 2022 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.
A total of 1,249,161 Aspocomp Group Plc. shares were traded on Nasdaq Helsinki during the period from January 1 to December 30, 2022. The aggregate value of the shares exchanged was EUR 8,104,344. The shares traded at a low of EUR 4.80 and a high of EUR 7.74. The average share price was EUR 6.47. The closing price at December 30, 2022 was EUR 7.34, which translates into market capitalization of EUR 50.2 million. The company had 4,177 shareholders at the end of the review period. Nominee-registered shares accounted for 0.8 percent of the total shares.
Mandatum Henkivakuutusyhtiö's holdings and voting rights in Aspocomp reached 5% treshold on July 29, 2022.
The Corporate Governance Statement for 2022 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.
The Board of Directors of Aspocomp Group Plc decided on the establishment of a share-based long-term incentive scheme for the company's top management and selected key employees on July 20, 2022. The objectives of the Performance Share Plan are to align the interests of Aspocomp's management with those of the company's shareholders and, thereby promote shareholder value creation in the long term as well as to commit the management to achieving Aspocomp's strategic targets.
The Performance Share Plan consists of annually commencing individual performance share plans. The commencement of each new plan is subject to a separate decision of Aspocomp's Board of Directors. Each plan comprises a performance period followed by the payment of the potential share rewards in listed shares of Aspocomp. The payment of the rewards is conditional on the achievement of the performance targets set by the Board of Directors for the respective plan.
The performance period of the first plan, PSP 2022- 2024, covers the period from the beginning of July 2022 until the end of the year 2024. Eligible for participation in PSP 2022-2024 are approximately 20 individuals, including the members of Aspocomp's Management Team.
The share rewards potentially payable thereunder will be paid during the first half of the year 2025. The performance measures based on which the potential share rewards under PSP 2022-2024 will be paid are cumulative EBIT and the total shareholder return of Aspocomp's share (absolute TSR).
If all the performance targets set for the first plan, PSP 2022–2024, are fully achieved, the aggregate maximum number of shares to be paid as a reward based on this plan is approximately 92,000 shares (referring to gross earnings before the withholding of the applicable payroll tax).
Inflation and interest rates, the risk of recession and the uncertainties posed by Russia's war of aggression will affect the operating environment of the company and its customers in the financial year 2023. The cycle of the Semiconductor Industry segment is expected to return to growth in the second half of the year.
Aspocomp estimates that its net sales for 2023 will increase from 2022 and its operating result for 2023 will be at the same level as in 2022. In 2022, net sales amounted to EUR 39.1 million and the operating result to EUR 4.5 mil-
Aspocomp Group OMX Helsinki Small Cap PI Volume
| Shares | Number of shareholders |
% of share holders |
Number of shares |
% of shares |
|---|---|---|---|---|
| 1 – 100 | 2,015 | 48.3 | 83,525 | 1.2 |
| 101 – 500 | 1,327 | 31.7 | 349,457 | 5.1 |
| 501 – 1,000 | 398 | 9.5 | 318,365 | 4.6 |
| 1,001 – 5,000 | 336 | 8.0 | 755,353 | 11.1 |
| 5,001 – 10,000 | 47 | 1.1 | 327,506 | 4.8 |
| 10,001 – 50,000 | 39 | 0.9 | 743,594 | 10.9 |
| 50,001 – 100,000 | 6 | 0.2 | 418,558 | 6.1 |
| 100,001 – 500,000 | 7 | 0.2 | 1,680,619 | 24.6 |
| 500,001 – | 2 | 0.1 | 2,164,166 | 31.6 |
| Shares in trust and awaiting clearance | 0 | - | 297 | - |
| Total | 4,177 | 100% | 6,841,440 | 100% |
| of which nominee registered | 9 | 52,112 | 0.8 |
| Number of shareholder |
% of share holder |
Number of shares |
% of shares | |
|---|---|---|---|---|
| Household | 4,009 | 96.0 | 3,590,577 | 52.5 |
| Companies | 135 | 3.2 | 2,486,483 | 36.3 |
| Financial and insurance institution | 10 | 0.2 | 724,263 | 10.6 |
| Non-domestic | 17 | 0.4 | 38,260 | 0.6 |
| Non-profit organizations | 6 | 0.2 | 1,560 | 0.0 |
| Public sector organizations | 0 | - | 0 | - |
| Shares in trust and awaiting clearance | 0 | 297 | - | |
| Total | 4,177 | 100% | 6,841,440 | 100% |
| Shareholders | Shares | Ownership, % |
|---|---|---|
| Joensuun Kauppa ja Kone Oy | 1,163,162 | 17.00 |
| Etola Group Oy | 1,001,004 | 14.63 |
| Montonen Mikko | 390,000 | 5.70 |
| Mandatum Henkivakuutusosakeyhtiö | 352,103 | 5.15 |
| Etola Erkki | 300,000 | 4.39 |
| Nordea Henkivakuutus Suomi Oy | 275,000 | 4.02 |
| Lahdenperä Matti | 128,800 | 1.88 |
| Lähdesmäki Tuomo | 120,000 | 1.75 |
| Koskinen Jouni | 114,716 | 1.68 |
| Lauren Karri-Pekka | 91,722 | 1.34 |
| Vuorialho Kari | 74,006 | 1.08 |
| Ruotanen Jaakko | 67,345 | 0.98 |
| Aj Eab Value Hedge Sr | 65,800 | 0.96 |
| Haaron Perunatila Oy | 61,000 | 0.89 |
| Lahdenperä Marja Helena | 58,685 | 0.86 |
| Lemmetti Juhani | 45,457 | 0.66 |
| Aaltonen Veijo | 35,670 | 0.52 |
| Frontier Liquidity Oy | 35,664 | 0.52 |
| Eyemaker's Finland Oy | 35,000 | 0.51 |
| Yli-Krekola Antti | 34,389 | 0.50 |
| 20 major shareholders | 4 ,449,523 | 65,04 |
| Other shareholders total | 2 ,391,917 | 34,96 |
| Total shares | 6,841,440 | 100 |
lion.
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.
The COVID-19 pandemic may affect the availability of parts and components required by electronic assemblers, which would weaken demand.
Russia's war against Ukraine and the sanctions imposed on Russia in response are not 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 geopolitical situation and the COVID-19 pandemic have increased the risks related to customers' global supply chains. Weak economic development, inflation and rising interest rates cause uncertainty in the operating environment and may affect customer demand. Cyber risks and disruptions in information systems can affect production. Disturbances in the labor market can also affect production and delivery capacity.
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.
Although Aspocomp is a marginal player in global electronics market, changes in global PCB demand also have an impact on the company's business. Competition for quickturn 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.
According to the financial statements dated December 31, 2022 the parent company's distributable earnings amounted to EUR 9,542,884.91, of which the retained earnings were EUR 6,517,665.13.
The Board of Directors will propose to the Annual General Meeting to be held on April 20, 2023, that a dividend of EUR 0.21 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 24, 2023. The Board of Directors proposes that the dividend will be paid on May 2, 2023.
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.
On February 15, 2023, the Board of Directors of Aspocomp Group Plc approved commencement of a new performance period within the share-based long-term incentive scheme for the company's top management and selected key employees, the Performance Share Plan (also "PSP"): Aspocomp Group originally announced the establishment of the long-term incentive scheme with a stock exchange release issued on July 20, 2022.
The next plan within the PSP structure, PSP 2023-2025, commences as of the beginning of 2023 and the share rewards potentially earned thereunder will be paid during H1 2026. The payment of the rewards is conditional on the achievement of the performance targets set by the Board of Directors for the plan. The performance measures based on which the potential share rewards under PSP 2023- 2025 will be paid are cumulative EBIT and the total shareholder return of Aspocomp's share (absolute TSR). Eligible for participation in PSP 2023-2025 are approximately 20 individuals, including the members of Aspocomp's Management Team.
If all the performance targets set for PSP 2023–2025 are fully achieved, the aggregate maximum number of shares payable as a reward based on this plan is approximately 91,000 shares (referring to gross earnings before the withholding of the applicable payroll tax). The maximum value of the rewards payable to the participants based on PSP 2023-2025 is limited by a cap which is linked to Aspocomp's share price development.
| 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|
| Net sales, M€ | 39.1 | 33.2 | 25.6 | 31.2 | 29.1 |
| Operating result before depreciation (EBITDA), M€ |
6.4 | 4.1 | 1.5 | 4.7 | 4.0 |
| Operating profit/loss, M€ | 4.5 | 2.2 | -0.1 | 3.4 | 2.9 |
| Share of net sales, % | 11.5 | 6.8 | -0.5 | 10.9 | 9.9 |
| Pre-tax profit from operations, M€ | 4.4 | 2.2 | -0.4 | 3.3 | 2.8 |
| Share of net sales, % | 11.3 | 6.6 | -1.7 | 10.4 | 9.5 |
| Net profit/loss for the period, M€ | 3.5 | 2.1 | -0.1 | 3.9 | 3.2 |
| Share of net sales, % | 9.1 | 6.4 | -0.4 | 12.6 | 11.1 |
| Net cash flow from operating activities, M€ | 3.6 | 2.3 | 3.7 | 4.3 | 2.0 |
| Return of equity (ROE), % | 17.3 | 11.6 | -0.6 | 23.9 | 24.0 |
| Return of investment (ROI), % | 15.1 | 9.3 | 0.8 | 18.4 | 19.8 |
| Equity ratio, % | 69.4 | 60.8 | 63.6 | 61.3 | 57.6 |
| Gearing, % | 7.6 | 8.7 | 16.6 | 19.0 | 19.3 |
| Investments, M€ | 2.5 | 1.3 | 2.0 | 3.5 | 3.4 |
| Share of net sales, % | 6.5 | 3.9 | 7.7 | 11.4 | 11.5 |
| Order book at the end of period, M€ | 14.3 | 16.5 | 4.4 | 4.4 | 2.8 |
| Personnel, year end | 156 | 145 | 138 | 132 | 117 |
| Personnel, average | 145 | 139 | 140 | 124 | 116 |
| Earnings/share (EPS), € | 0.52 | 0.31 | -0.01 | 0.59 | 0.49 |
| Dividend/share, € | 0,21* | 0.15 | 0.00 | 0.15 | 0.12 |
| Price/earing ratio (P/E) | 14.17 | 19.49 | -392.00 | 8.92 | 7.55 |
The Board of Directors will propose to the Annual General Meeting to be held on April 20, 2023, that a dividend of EUR 0.21 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 24, 2023. The Board of Directors proposes that the dividend will be paid on May 2, 2023.
| Profit attrbutable to equity shareholders | ||
|---|---|---|
| Earnings/ share (EPS), € | = | ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Adjusted weighted average number of shares outstanding |
| Dividend/share, € | = | Dividend for the period |
| Share price at the end of period | ||
| Price/ earnings (P/E) | = | ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Earnings/ share |
Treasury shares are eliminated when calculating share based ratios.
Aspocomp presents in its financial reporting alternative performance measures, which describe businesses' financial performance and its development as well as investment 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 ratio, % | = | Equity ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– |
| Gearing, % | = | Total assets - advances received 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. |
| 1,000 € | Note | 1.1.-31.12.2022 | 1.1.-31.12.2021 |
|---|---|---|---|
| Net sales | 1 | 39,114 | 33,154 |
| Change in inventory of finised goods and work in progress | 240 | 1,309 | |
| Other operating income | 2 | 5 | 51 |
| Materials and services | 3 | -18,089 | -17 ,63 |
| Personnel expenses | 4, 5 | -9,641 | -8,890 |
| Depreciation and impairment | -1,903 | -1,809 | |
| Other operating expenses | 6 | -5,223 | -4,208 |
| Operating profit | 4,502 | 2,243 | |
| Financial income | 7 | 6 | 1 |
| Financial expenses | 7 | -104 | -39 |
| Profit before tax | 4,404 | 2,204 | |
| Income tax | 8 | -859 | -98 |
| Profit for the period | 3,545 | 2,106 | |
| Other comprehensive income | |||
| Items that will not be reclassified to profit or loss: | |||
| Remeasurements of defined benefit pension plan | 118 | -169 | |
| Income tax relating these items | -20 | 28 | |
| Items that may be reclassified subsequently to profit or loss: | |||
| Currency translation differences | -6 | 10 | |
| Other comprehensive income for the period, net of tax | 92 | -131 | |
| Total comprehensive income | 3,637 | 1,976 | |
| Earnings per share (EPS) | 9 | ||
| Bacis EPS | 0.52 | 0.31 | |
| Dilutex EPS | 0.52 | 0.31 |
| Assets 1,000 € |
Note | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Non-current assets | |||
| Intangible assets | 10 | 3,309 | 3,232 |
| Property, plant and equipment | 11 | 5,967 | 5,504 |
| Right-of-use assets | 12 | 642 | 697 |
| Financial assets at fair value through profit or loss | 95 | 95 | |
| Deferred tax assets | 8 | 4,152 | 4,972 |
| Total non-current assets | 14,164 | 14,500 | |
| Current assets | |||
| Inventories | 14 | 6,136 | 4,967 |
| Short-term receivables | 15 | 9,723 | 9,410 |
| Cash and bank deposits | 16 | 1,410 | 2,631 |
| Total current assets | 17,269 | 17,008 | |
| Total assets | 31,433 | 31,508 | |
| Equity and liabilities 1,000 € |
Note | 31.12.2022 | 31.12.2021 |
| Equity | 26 | ||
| Share capital | 1,000 | 1,000 | |
| Reserve for invested unrestricted equity | 4,774 | 4,736 | |
| Remeasurements of defined benefit pension plans | -49 | -148 | |
| Retained earnings | 16,078 | 13,566 | |
| Total equity | 21,803 | 19,155 | |
| Liabilities | |||
| Non-current liabilities | |||
| Long-term financing loans | 13, 17, 18 | 1,427 | 2,419 |
| Lease liabilities | 12, 13, 17, 18 |
412 | 507 |
| Employee benefits and remeasurements of defined pension | 5 | 358 | 467 |
| plans | |||
| Deferred tax liabilities | 8 | 57 | 38 |
| Current liabilities | |||
| Short-term financing loans | 17 | 992 | 992 |
| Lease liabilities | 17 | 242 | 376 |
| Trade ans other payables | 13,17 | 6,142 | 7,554 |
| Total liabilities | 9,630 | 12,353 | |
| Total equity and liabilities | 31,433 | 31,508 |
| 1,000 € | Share capital |
Reser ve for invest ed un restric te equity |
Remeasure ments of defined pension plan |
Trans lation diffe ren ces |
Re tained earnin gs |
Total equity |
|---|---|---|---|---|---|---|
| Balance at Jan. 1, 2022 | 1 000 | 4,736 | -148 | 12 | 13,554 | 19,155 |
| Comprehensive income | ||||||
| Comprehensive income for the period | 3,545 | 3,545 | ||||
| Other comprehensive income for the period, net of tax |
||||||
| Remeasurements of defined benefits | ||||||
| plans | 99 | 99 | ||||
| Translation differences | -6 | -6 | ||||
| Total comprehensive income for the period | 0 | 0 | 99 | -6 | 3,545 | 3,637 |
| Business transactions with owners | ||||||
| Dividends paid | -1,026 | -1,026 | ||||
| Share-based payment | 37 | 37 | ||||
| Business transactions with owners, total | 0 | 37 | 0 | 0 | -1,026 | -989 |
| Balance at Dec. 31, 2022 | 1 ,00 | 4 ,774 | -49 | 6 | 16,072 | 21,803 |
| 1,000 € | Share capital |
Reser ve for invest ed unres tricted equity |
Remeasu rements of defined pension plan |
Trans lation diffe ren ces |
Re tained earnin gs |
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 |
||||||
| Remeasurements of defined benefits | ||||||
| plans | -141 | -141 | ||||
| Translation differences | 10 | 10 | ||||
| Total comprehensive income for the period | 0 | 0 | -141 | 10 | 2 ,06 | 1,976 |
| Business transactions with owners | ||||||
| Dividends paid | 0 | 0 | ||||
| Share-based payment | 32 | 32 | ||||
| Business transactions with owners, total | 0 | 32 | 0 | 0 | 0 | 32 |
| 1, 000 € | Note | 1.1.-31.12.2022 | 1.1.-31.12.2021 |
|---|---|---|---|
| Cash flow from operating activities | |||
| Profit for the period | 3,545 | 2,106 | |
| Adjustments | |||
| Non-cash transactions | 21 | 1,927 | 1,792 |
| Other adjustments | 21 | 859 | 59 |
| Change in working capital | 21 | -2,571 | -1,557 |
| Interest income | 6 | 1 | |
| Interest expenses | -129 | -130 | |
| Taxes | -19 | -12 | |
| Net cash flow from operating activities | 3,618 | 2,258 | |
| Cash flow from investing activities | |||
| Investments in property, plant and equipment | -2,523 | -1,300 | |
| Proceeds from sale of property, plant and equipment | 0 | 39 | |
| Net cash flow from investing activities | -2,523 | -1,260 | |
| Net cash flow before financing | 1,095 | 998 | |
| Cash flow from financing activities | |||
| Loans drawn down | 170 | 0 | |
| Loans repaid | -992 | -992 | |
| Decrease in lease liabilities | -587 | -358 | |
| Dividends paid | -1,026 | 0 | |
| Net cash flow from financing activities | -2,435 | -1,350 | |
| Change in cash equivalents | -1,340 | -342 | |
| Cash and cash equivalents at the beginning of period | 16 | 2,631 | 2,801 |
| Effects of exchange rate changes on cash & cash equivalent | 119 | 172 | |
| Cash and cash equivalents at the end of period | 16 | 1,410 | 2,631 |
The Aspocomp Group sells and manufactures PCBs. Aspocomp's products are used in the electronics industry, for instance, in telecommunications networks, automobiles and many types of industrial applications..
The Group's parent company is Aspocomp Group Plc. Aspocomp Group Plc is a public limited company (company ID: 1547801-5) whose shares are listed on Nasdaq Helsinki as of October 1, 1999. The parent company is domiciled in Helsinki, Finland and its registered address is Keilaranta 1, 02150 Espoo, Finland.
Copies of the consolidated financial statements are available on the company's Internet site at www.aspocomp.com/reports and from the parent company's head office.
On March 15, 2023, the Board of Directors of Aspocomp Group Plc. approved these financial statements for publication. Pursuant to the Finnish Companies Act, shareholders have the right to either adopt or reject the financial statements at the General Meeting held after their publication. The General Meeting also has the right to revise the financial statements.
The financial statements for 2022 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, 2022 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.
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.
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.
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:
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.
Dividend income is recognized when the right to receive payment is established.
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.
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.
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 23.
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 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.
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.
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.
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.
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).
Purchased software is recorded in the balance sheet at the original cost less accumulated amortization and impairment, if any.
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:
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.
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.
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 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.
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 non-current 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 non-current 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
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.
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.
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.
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.
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 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.
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 25.
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.
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 25).
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 24.
The deferred tax asset results mainly from slowed tax depreciation. The company decelerated its tax depreciation during the 2015-2021 tax years and will decelerate in the 2022 tax year.
Deferred tax assets are presented in Note 8.
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.
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 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.
At inception of a contract, an entity assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Leases of property, plant and equipment, where the Group is the lessee, are recognised as assets and liabilities for the lease term. The cost of right-of-use asset comprises the amount of initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives and any initial direct costs incurred by the lessee. The asset is depreciated during the lease term or, if shorter, during its useful life.
Lease term is reassessed if there's a significant event or change in circumstances that is within the control of the lessee and affects whether the lessee is reasonably certain to exercise option not previously included in lease term or not to exercise an option previously included in the lease term.
The lease liability is valued at the present value of the unpaid rents at the valuation date (commencement date of the lease). Rental costs include fixed rents and variable rents that depend on changes in the index or price level specified in the agreement. The Group applies the practical expedient and will not separate non-lease component from lease components and will instead account for each lease component and any associated non-lease components as a single lease component. Other variable rents included in the lease are treated as an expense for the period. Rents are discounted at the internal rate of the lease. If the internal rate is not readily determinable, the company's additional credit interest rate is used.
In income statement leasing costs are classified as depreciation and interest. Lease payments are apportioned between the interest expenses and the repayment of lease liabilities. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. In cash flow statement the cash payments for the interest portion of the lease liability are presented in cash flow from operations. Cash payments for the principal portion of the lease liability are shown in cash flow from financing.
The right-of-use assets and lease liabilities are presented separately in the balance sheet. The cash payments for the principal portion of the lease liability, which are paid in the next 12 months, are shown in current lease liabilities in balance sheet.
The Group applies the exemption for short-term leases (lease term 12 months or shorter than 12 months) and for leases for which underlying asset is of low value and continues to recognise those leases straight-line basis as an expense. In cash flow statement short-term lease pay-
ments and payments for leases of low-value assets are included in cash flow from operations.
The lease payments received for operating leases are shown under other operating income. The Group has no leases classified as finance leases in which it is a lessor.
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.
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 delivelry at a point in time the products and the control of the products is transferred to the customer. For freght 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.
| EUR 1,000 | 2022 | 2021 | ||
|---|---|---|---|---|
| Net sales | ||||
| Telecommunication | 4,751 | 12% | 4,516 | 14% |
| Automotive | 6,836 | 17% | 8,947 | 27% |
| Industrial Electronics | 6,082 | 16% | 6,051 | 18% |
| Security & Defence & Aerospace | 5,531 | 14% | 7,136 | 22% |
| Semiconductor industry | 15,914 | 41% | 6,170 | 19% |
| Others | 0 | 0% | 334 | 1% |
| Total | 39,114 | 100% | 33,154 | 100% |
| Geographical areas | ||||
| Net sales by geographical area | ||||
| Finland | 6,303 | 16% | 5,729 | 17% |
| Europe | 26,392 | 67% | 21,965 | 66% |
| Other areas | 6,419 | 16% | 5,460 | 16% |
| Total | 39,114 | 100% | 33,154 | 100% |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Gains on sale of fixed assets | 0 | 39 |
| Other operating income | 5 | 11 |
| Total | 5 | 51 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Purchase of materials and supplies | 17,917 | 17,482 |
| Change of inventories | -928 | -726 |
| Materials and services, total | 16,988 | 16,756 |
| Outsourced services | 1,101 | 607 |
| Total | 18,089 | 17,363 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Wages and salaries | 7,937 | 7,310 |
| Share-based rewards | 43 | 79 |
| Other long-term employee benefits | 0 | -24 |
| Pension costs - defined contribution plans | 1,243 | 1,172 |
| Other personnel expenses | 418 | 353 |
| Total | 9,641 | 8,890 |
| Personnel, average | 145 | 139 |
| Personnel at Dec. 31, 2022 | ||
| Blue-collar | 100 | 92 |
| White-collar | 56 | 53 |
| Total | 156 | 145 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Obligation at the beginning of the year | 66 | 89 |
| Increases during the financial year | 8 | 10 |
| Realized during the financial year | -8 | -33 |
| Obligation at the end of the year | 67 | 66 |
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.
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. In 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:
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Defined benefit obligation | 1,055 | 1,546 |
| Fair value of plan assets | 763 | 1,145 |
| Net liability, Dec. 31, 2022 | 292 | 401 |
| Defined benefit pension liabilities in the income statement and comprehensive income statement:: Current service cost Interest cost Defined benefit expenses recognized in the income statement Changs in acturial gains and losses Defined benefit expenses recognized in the income statement and comprehensive income statement |
3 4 6 0 6 |
2 1 4 0 4 |
| Change in net liability for defined benefit | ||
| Net liability for defined benefit, Jan.1. | 401 | 250 |
| Contributions paid to the fund | -17 | 6 |
| Expenses recognized in the income statement | 6 | 4 |
| Reameasurement gain (-)/ loss included in the consolidated income statement | -99 | 141 |
| Net liability for defined benefit, Dec. 31 | 292 | 401 |
| Acturial assumptions | 2022 | 2021 |
| Discount rate | 3.70% | 0,95% |
| Future salary incease | N/A | N/A |
| Future pension increase | 2,85% | 2,30% |
Sensitivity of defined benefit obligation to changes in the weighted principal assumptions:
| Assumption | Change in assumption |
Impact of increase |
Impact of decrease |
|---|---|---|---|
| Discount rate | 0.50% | -5.5% | 6.1% |
| Future salary increase | 0.50% | N/A | N/A |
| Future pension increase | 0.25% | 2.7% | -2.4% |
| Mortality change | 5.00% | -1.4% | 1.5% |
| Assumption fair value of plan assets | Change in | Impact of | Impact of |
| assumtion | increase | decrease | |
| Discount rate | 0.50% | -4.6% | 5.0% |
| Future salary increase | 0.50% | N/A | N/A |
| Future pension increase | 0.25% | 0.0% | 0.0% |
| Mortality change | 5.00% | -1.1% | 1.1% |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Rental expenses | 72 | 86 |
| Maintenance and repair costs | 971 | 869 |
| Energy costs | 666 | 460 |
| Water consumption and wastewater treatment | 312 | 271 |
| Other variable expenses of production | 626 | 293 |
| Voluntary social costs | 285 | 205 |
| Real estate costs | 489 | 457 |
| Insurance charges | 174 | 148 |
| Travel costs | 153 | 52 |
| IT costs | 363 | 315 |
| External services | 427 | 381 |
| Audit fees | 78 | 85 |
| Administration costs | 413 | 390 |
| Other costs | 194 | 195 |
| Total | 5,223 | 4,208 |
| Authorized Public Accountants' (PwC Ltd) fees | EUR 1,000 | 2022 | 2021 |
|---|---|---|---|
| Auditing | 63 | 61 | |
| Tax consultation | 0 | 12 | |
| Certificates and statements | 14 | 10 | |
| Other services | 1 | 1 | |
| Total | 78 | 85 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Income | ||
| Interest income on loans and other receivables | 6 | 1 |
| Total financial income | 6 | 1 |
| Expenses | ||
| Interest expenses on bank loans and overdrafts | 104 | 39 |
| Total financial expenses | 104 | 39 |
| Total financial income and expenses | 98 | 39 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Current income tax | ||
| Current income tax for the year | -20 | -28 |
| Current income tax for previous years | 0 | 20 |
| Deferred income tax | -839 | -91 |
| Total current income tax | -859 | -98 |
| A reconciliation of the income tax expense computed at statutory rates and income tax expense recorded in the income statement |
||
| Profit before tax | 4,404 | 2,204 |
| Taxes at Finnish statutory tax rate 20.0% | -880 | -440 |
| Different tax rates of foreign subsidiaries | 1 | 1 |
| Non-deductible expenses | 0 | 0 |
| Deferred tax assets on other temporary differences | 20 | 341 |
| Total income tax expense | -859 | -98 |
The taxable income of the Group companies for 2022 was EUR 5,934 thousand. If the result for 2022 is confirmed in taxation, the total amount of confirmed losses would be EUR 4,203 thousand. After the taxes for 2021 have been confirmed, the remaining losses amount to EUR 10,137.
Foreign subsidiaries do not have significant distributable funds.
| Deferred income taxes | 2022 | 2021 |
|---|---|---|
| Deferred income tax liabilities | ||
| - Deferred income tax liabilities due after 12 months | 0 | 0 |
| - Deferred income tax liabilities due within the next 12 months | 57 | 38 |
| 57 | 38 | |
| Deferred income tax assets | ||
| - Deferred income tax assets due after 12 months | 4,972 | 5,043 |
| - Deferred income tax assets due within the next 12 months | -820 | -71 |
| 4,152 | 4,972 | |
| Deferred income tax (net) | 4,095 | 4,934 |
EUR 1,000
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, 2021 | 19 | 19 |
| Recognized in net profit for the year | 19 | 19 |
| Recognized in comprehensive income for the year | ||
| Recognized directly in equity | ||
| Dec. 31, 2021 | 38 | 38 |
| Recognized in net profit for the year | 19 | 19 |
| Recognized in comprehensive income for the year | ||
| Recognized directly in equity | ||
| Dec. 31, 2022 | 57 | 57 |
| Deferred income tax assets | From dece lerated tax depreciation |
Tax losses | Empoyee benfits |
Others | Total |
|---|---|---|---|---|---|
| Jan. 1, 2021 | 4,881 | 0 | 68 | 94 | 5,043 |
| Recognized in net profit for the year | -2,169 | 2,072 | 26 | 0 | -71 |
| Recognized in comprehensive income for the year |
|||||
| Recognized directly in equity | |||||
| Unrecognized portion of the change | |||||
| Dec. 31, .2021 | 2,712 | 2,072 | 94 | 94 | 4,972 |
| Recognized in net profit for the year | 528 | -1,231 | -22 | -94 | -820 |
| Recognized in comprehensive income for the year |
|||||
| Recognized directly in equity | |||||
| Unrecognized portion of the change | |||||
| Dec. 31, 2022 | 3,240 | 841 | 72 | 0 | 4,152 |
The deferred tax asset results mainly from the slowed tax depreciation and goodwill amortization in taxation in the financial year 2022. A deferred tax asset of EUR 841 thousand has been recognized on the company's tax result. The company decelerated its tax depreciation during the 2015-2021tax years.
In the 2022 tax year, the company will decelerate depreciation to a total of about EUR 16.2 million, resulting in deferred tax assets of about EUR 3,240 thousand under the current 20.0% corporate tax rate.
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| (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 attrbutable to equity holders of the company | 3,545 | 2,106 |
| Weighted average number of shares (1,000) | 6,841 | 6 ,841 |
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 2022 and 2021.
| EUR 1,000 | Intangible rights | Group goodwill |
Total |
|---|---|---|---|
| Acquistion costs at Jan. 1, 2022 | 710 | 3,000 | 3,710 |
| Increase | 200 | 0 | 200 |
| Decrease | 0 | 0 | 0 |
| Transfers between lines | 0 | 0 | 0 |
| Acquisition costs at Dec. 31, 2022 | 910 | 3,000 | 3,910 |
| Total accumulated depreciation and impairment Jan. 1, 2022 | 478 | 0 | 478 |
| Accumulated depreciation of decreases and transfers | 0 | 0 | 0 |
| Depreciation for the year | 123 | 0 | 123 |
| Total accumulated depreciation and impairment Dec. 31, 2022 | 601 | 0 | 601 |
| Book value Dec. 31, 2022 | 309 | 3,000 | 3,309 |
| Acquisition costs at Jan. 1, 2021 | 591 | 3,000 | 3,591 |
| Increase | 131 | 0 | 131 |
| Decrease | -12 | 0 | -12 |
| Transfers between lines | 0 | 0 | 0 |
| Acquisition costs 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 |
The principles of the impairment testing of goodwill are presented in Note 24.
| EUR 1,000 | Land and water areas |
Buildings and structu res |
Mach inery and equip ment |
Advances | Total |
|---|---|---|---|---|---|
| Acquistion costs at Jan. 1, 2022 | 168 | 1,619 | 20,287 | 727 | 22,801 |
| Increase | 0 | 115 | 1,583 | 489 | 2,187 |
| Decrease | 0 | 0 | -125 | 0 | -125 |
| Transfers between lines | 0 | 0 | 727 | -727 | 0 |
| Acquisition costs at Dec. 31, 2022 | 168 | 1,734 | 22,472 | 489 | 24,863 |
| Total accumulated depreciation and impairment Jan. 1, 2022 |
23 | 342 | 16,235 | 0 | 16,600 |
| Accumulated depreciation of decreases and transfers | 0 | 0 | -125 | 0 | -125 |
| Depreciation for the year | 8 | 121 | 1,651 | 0 | 1,779 |
| Total accumulated depreciation and impairment Dec. 31, 2022 |
31 | 463 | 17,761 | 0 | 18,254 |
| Book value Dec. 31, 2022 | 138 | 1,271 | 4,711 | 489 | 6 ,609 |
| Acquisition costs 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 costs 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 |
23 | 342 | 16,235 | 0 | 16,600 |
| Book value Dec. 31, 2021 | 145 | 1,277 | 4,052 | 727 | 6,201 |
Property, plant and equipment include property, plant and equipment where the Group is the lessee under IFRS 16.
| EUR 1,000 | Land and water areas |
Machinery and equipment |
Total |
|---|---|---|---|
| Acquistion costs at Jan. 1, 2022 | 168 | 2,275 | 2,443 |
| Increase | 0 | 170 | 170 |
| Decrease | 0 | 0 | 0 |
| Acquisition costs at Dec. 31, 2022 | 168 | 2,445 | 2,613 |
| Total accumulated depreciation and impairment Jan. 1, 2022 |
23 | 1,724 | 1,746 |
| Accumulated depreciation of decreases and transfers | 0 | 0 | 0 |
| Depreciation for the year | 8 | 217 | 225 |
| Total accumulated depreciation and impairment Dec. 31, 2022 |
31 | 1,941 | 1,971 |
| Book value Dec. 31, 2022 | 138 | 504 | 642 |
| Acquisition costs at Jan. 1, 2021 | 168 | 2,297 | 2,465 |
| Increase | 0 | 83 | 83 |
| Decrease | 0 | -105 | -105 |
| Acquisition costs 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, 2022 |
23 | 1,724 | 1,746 |
| Book value Dec. 31, 2021 | 145 | 552 | 697 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Lease liabilities | ||
| Short term | 242 | 376 |
| Long term | 412 | 507 |
| Total | 653 | 883 |
| EUR 1,000 | 2022 | 2021 | |
|---|---|---|---|
| Financial assets | |||
| Financial assets at amortized cost | |||
| Accounts receivable | 8,704 | 8,870 | |
| Other cash and cash equivalents at amortized cost | |||
| Cash and cash equivalents | 1,410 | 2,631 | |
| Shares | 95 | 95 | |
| Total | 10,208 | 11,595 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Financial liabilities | ||
| Liabilities at amortized cost | ||
| Trade and other payables | 6,142 | 7,554 |
| Loans | 2,419 | 3,411 |
| Factoring debt | 0 | 1 |
| Lease liabilities | 653 | 883 |
| Total | 9,215 | 11,848 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Materials and supplies | 3,562 | 2,633 |
| Work in progress | 1,711 | 1,565 |
| Finished goods | 862 | 768 |
| Total | 6,136 | 4,967 |
| Write down of inventories | 151 | 63 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Short-term receivables | ||
| Trade receivable | 8,704 | 8,870 |
| Accrued receivables | 552 | 358 |
| Other receivables | 468 | 183 |
| Total | 9,723 | 9,410 |
Age distribution of accounts receivable
Trade receivable that not are impaired
| Gross | Avera ge loss % |
Impair ment IFRS 9 |
Net | Gross | Ave rage loss% |
Impair ment IFRS 9 |
Net | ||
|---|---|---|---|---|---|---|---|---|---|
| Receivables carried forward |
6,391 | 0.4 | -22 | 6,369 | 5,919 | 0.4 | -21 | 5,898 | |
| Expired | |||||||||
| in less than 30 days |
1,214 | 1.3 | -16 | 1,198 | 2,261 | 1.1 | -24 | 2,237 | |
| in 30-60 days | 812 | 2.6 | -21 | 791 | 370 | 2.1 | -8 | 362 | |
| in 61-90 days | 150 | 3.8 | -6 | 144 | 34 | 3.2 | -1 | 33 | |
| over 90 days | 137 | 5.2 | -7 | 130 | 287 | 3.8 | -11 | 276 | |
| Total | 8,704 | -72 | 8,632 | 8,870 | -64 | 8,805 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| The breakdown by currencies of short-term receivables | ||
| EUR | 5,205 | 3,153 |
| USD | 3,499 | 5,717 |
| Total | 8,704 | 8,870 |
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.
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Cash and bank accounts | 1,410 | 2,631 |
| Total | 1,410 | 2,631 |
On the balance sheet date, cash and cash equivalents totaled EUR 936 thousand in Finland and EUR 474 thousand in other countries. Cash and cash equivalents were primarily held in bank accounts.
| EUR 1,000 | 2022 | 2021 | ||
|---|---|---|---|---|
| Book value | Fair value | Book value | Fair value | |
| Long-term financing loans | ||||
| Bank borrowings | 1,427 | 1,427 | 2,419 | 2,435 |
| Lease liabilities | 412 | 412 | 507 | 506 |
| Total | 1,839 | 2,925 |
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 riskfree interest and a company-specific risk premium.
In financial leasing, fair values are estimated by discounting future cash flows with an interest rate corresponding to the interest on equivalent leasing agreements on the closing date.
| Discount rates used in determining fair values | ||
|---|---|---|
| Bank borrowings | 2.0% | 1.5% |
| Financial leasing | 4.0% | 2.5% |
| Short-term financing loans | ||
| Bank borrowings | 992 | 992 |
| Lease liabilities | 242 | 376 |
| Factoring-debt | 0 | 1 |
| Total | 1,234 | 1,369 |
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.
Aspocomp had a EUR 2 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.
| Dec. 31, 2022 | Balance sheet value |
Cash flow | 12 months | 1-2 years | 2-5 years | Over 5 years |
|---|---|---|---|---|---|---|
| Bank borrowings | ||||||
| Principal | 2,419 | 2,419 | 992 | 992 | 436 | 0 |
| Paid interest expenses | 62 | 41 | 19 | 2 | 0 | |
| Lease liabilities | ||||||
| Principal | 653 | 653 | 228 | 383 | 43 | 0 |
| Paid interest expenses | 18 | 6 | 10 | 1 | 0 | |
| Factoring debt | 0 | 0 | 0 | 0 | 0 | 0 |
| Trade and other pay | 6,142 | 6,142 | 6,142 | 0 | 0 | 0 |
| ables | ||||||
| Total | 9,215 | 9,295 | 7,409 | 1,404 | 482 | 0 |
| Dec. 31, 021 | Balance sheet value |
Cash flow | 12 months | 1-2 years | 2-5 years | Over 5 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 pay | 7,554 | 7,554 | 7,554 | 0 | 0 | 0 |
| ables | ||||||
| Total | 11,848 | 12,030 | 8,957 | 2,656 | 417 | 0 |
| Trade and other payables EUR 1,000 | 2022 | 2021 |
|---|---|---|
| The breakdown by currencies of accounts payable | ||
| EUR | 1,892 | 1,641 |
| GBP | 29 | 13 |
| CHF | 8 | 3 |
| CNY | 117 | 198 |
| SEK | 0 | 2 |
| USD | 1,872 | 3,553 |
| Total | 3,918 | 5,411 |
| Other payables | 2,224 | 2,143 |
| Total trade and other payables | 6,142 | 7,554 |
| Other payables | ||
| Personnel expenses | 1,920 | 1,577 |
| Accrued interest on loans | 6 | 4 |
| VAT liabilities | 0 | 12 |
| Total | 1,926 | 1,593 |
| EUR 1,000 | Long-term interest-bearing liabilities |
Short-term interest-bearing liabilities |
Total interest-bearing liabilities |
|---|---|---|---|
| Liabilities December 31, 2021 | 2,926 | 1,368 | 4,294 |
| Loan withdrawals (cash flow) | 0 | 0 | 0 |
| Lease debt withdrawals (other change) | 170 | 6 | 175 |
| Loan payments (cash flow) | -992 | 0 | -992 |
| Lease debt payment (cash flow) | -265 | -140 | -405 |
| Factoring loan payment (cash flow) | 0 | 0 | 0 |
| Liabilities December 31, 2022 | 1,839 | 1,234 | 3,073 |
| EUR 1,000 | Long-term interest-bearing liabilities |
Short-term interest-bearing liabilities |
Total interest-bearing 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 | 54 |
| 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 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| The exchange differences charged/credited to the income statement | ||
| Other operating costs | -10 | -125 |
| Financial expenses | -17 | -90 |
| Total | -27 | -215 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Other rental payables | ||
| Minimum rents of other rent agreements that cannot be terminated | ||
| Within one year | 70 | 56 |
| After one year but not more than five years | 0 | 0 |
| More than five years | 0 | 0 |
| Total | 70 | 56 |
| Contingent liabilities at Dec. 31, 2021 | ||
| 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 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| Non-cash transactions | ||
| Depreciation | 1,903 | 1,809 |
| Others | 24 | -17 |
| Non-cash transactions, total | 1,927 | 1,792 |
| Other adjustments | ||
| Sales profit | 0 | -39 |
| Taxes | 859 | 98 |
| Other adjustments, total | 859 | 59 |
| Change in net working capital | ||
| Change in receivables | -313 | -3,520 |
| Change in inventories | -1,169 | -2,035 |
| Change in trade and other payables | -1,089 | 3,997 |
| Total | -2,571 | -1,557 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| 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 | 292 | 241 |
| Options | 0 | 0 |
| Pension costs, defined contribution plans | 42 | 41 |
| Other Management Team | ||
| Salaries and fringe benefits | 526 | 457 |
| Share-based payment | 0 | 0 |
| Pension costs, defined contribution plans | 80 | 77 |
| Fees of members of the Board | ||
| Ms. Päivi Marttila, Chairman of the Board | 42 | 39 |
| Ms. Julianna Borsos (member until April 13, 2021) | 0 | 6 |
| Mr. Juha Putkiranta (member until April 13, 2021) | 0 | 6 |
| Ms. Kaarina Muurinen, Vice Chairman (as of March 26, 2015) | 26 | 25 |
| Mr. Jukka Huuskonen (member as of April 13, 2021) | 21 | 14 |
| Mr. Anssi Korhonen (member as of April 13, 2021) | 21 | 14 |
| Total remunerations of the members of the Board | 110 | 103 |
| Management's total employment benefits | 939 | 816 |
The CEO's age of retirement and grounds for his/her pension are in accordance with current legislation. If the contract of service of the CEO is terminated either by the CEO or by the company, the notice period is 6 months. If 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, 2022 | Dec. 31, 2021 |
|---|---|---|
| Members of the Board | 40,697 | 34,963 |
| CEO | 390,000 | 390,000 |
| Other management | 15,711 | 15,711 |
| Total shareholdings | 446,408 | 440,674 |
| Votes conferred by shares | 6.5% | 6.4% |
On February 25, 2016, the Board of Directors of Aspocomp Group Plc. decided to introduce share-based incentive and commitment plans for the company's 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. In 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. If 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 period | 2022 | 2021 |
|---|---|---|
| Impact of the scheme on the profit for the period | 43 | 79 |
During the financial year 2022 Aspocomp decided on the establishment of a share-based long-term incentive scheme for the company's selected key employees. It comprises a Performance Share Plan (also "PSP). The objectives of the Performance Share Plan are to align the interests of Aspocomp's management with those of the company's shareholders and, thus, to promote shareholder value creation in the long term as well as to commit the management to achieving Aspocomp's strategic targets. The Performance Share Plan consists of annually commencing individual performance share plans. The performance of the first period, PSP 2022-2024 covers the period from the beginning of September 2022.
| Plan | Performance Share Programme 2022 |
|---|---|
| Type | Share |
| Instrument | Performance Share Programme 2022 |
| Initial amount, pcs | 92,000 |
| Initial allocation date | 2.9.2022 |
| Vesting date | 30.4.2025 |
| Maximum contractual life, yrs | 2.7 |
| Remaining contractual life, yrs | 2.3 |
| Number of persons at the end of reporting year | 21 |
| Payment method | Cash and Equity (net settlement) |
| Changes during the period | Performance Share Programme 2022 | |
|---|---|---|
| 1.1.2022 | ||
| Outstanding in the beginning of the period | 0 | |
| Changes during period | ||
| Granted | 92 000 | |
| Forfeited | 0 | |
| Exercised | 0 | |
| 31.12.2022 | ||
| Outstanding at the of the period | 92 000 | |
The fair value of share based incentives have been determined at grant date and the fair value is expensed until vesting. Market condition, in this case Total Shareholder Return of the Performance Share Plan was taken into account when determining the fair value at grant and it will not be changed during the plan. The fair value of the cost estimate of the Performance Share Plan will only be changed as far as service condition and non-market performance conditions are concerned.
| Share price at grant, € | 6,2 |
|---|---|
| Share price at reporting period end, € | 7,34 |
| Expected volatility | 40,90 % |
| Maturity, years | 2,5 |
| Risk-free rate | 1,30 % |
| Expected dividends, € | 0,3 |
| Valuation model | Monte Carlo |
| Fair Value | 2,5394 |
* Expected volatility was determined by calculating the historical volatility of the Group`s share using monthly observations over corresponding maturity
| Expenses for the financial year, share-based payments, EUR 1,000 | 29 |
|---|---|
| Expenses for the financial year, share-based payments, equity-settled, EUR 1,000 | 29 |
| Liabilities arising from share-based payments 31.12.2022, EUR 1,000 | 0 |
| Estimated amount of the settlement of the employee tax obligation 31.12.2022, EUR 1,000 | 106 |
| EUR 1,000 | 2022 | 2021 |
|---|---|---|
| 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 19.4 million, and thus goodwill was not impaired in 2022 (EUR 26.9 million in 2021) despite the COVID-19 pandemic.
| Key variables and assumptions used in impairment testing | 2022 | 2021 |
|---|---|---|
| Annual growth in net sales is based on the budget approved by management for the years 2023-2026. The growth rate after the end of the forecast period is assumed to be one (1) precent. |
6.3% | 8.8% |
| The sales margin is based on the average budgeted margin for the forecast period | 39% | 42% |
| The discount rate is set using the weighted average cost of capital (WACC), which descri bes the total cost of equity and liabilities, accounting for the specific risks of asset items. The discount rate is determined before taxes. |
10.3% | 7.4% |
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.
| The following changes in the values of each of the key variables (if all the other variables remain unchanged) would mean that the book value of the unit would be the same as its recoverable amount. |
Zero limit of the sensitivity analysis |
Compared with the assumed figure |
|---|---|---|
| Annual growth in net sales | -8.0% | - 14.3 ppts |
| Average sales margin | 25.6% | - 13.9 ppts. |
| Discount rate | 20.4% | + 10.0 ppts. |
| Assumptions concerning the discount rate | 2022 | 2021 |
| Risk-free market yield | 3.1% | 0.1% |
| 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 | 2,1% | 2.0% |
| Weighted average cost of capital (WACC) | 10.3% | 7.4% |
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.
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 2022, the nominal value of interest-bearing liabilities was EUR 3.1 million. Gearing was 7.6 percent (8.7%) and equity ratio was 69.4 percent (60.8%).
The company has a credit facility of EUR 2.0 million, of which EUR 0.0 milloin was in use at the end of the financial year 2022.
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 2023. 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 2.0 million credit facility, of which EUR 0.0 million was in use as at December 31, 2022, 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 terms. The covenant terms were not broken during the financial year 2022.
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.
The Group has hedged against rises in the interest rates of the loan drawn down in 2020 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.
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 60 percent of the Group's receivables are denominated in euros (at the end of year: 36%). The breakdown by currencies of the receivables is presented in Note 15. All the Group's longterm liabilities are denominated in euro. At the end of the year, 67 percent of the short-term debts were denominated in euros.
Calculation of exchange rate risk sensitivity
| EUR 1,000 | Gross | -10% | + 10% |
|---|---|---|---|
| USD/EUR | 1,523 | -169 | 138 |
| SEK/USD | -2 | 0 | 0 |
| CHF/EUR | -8 | 3 | -3 |
| GBP/EUE | -26 | 3 | -3 |
| 1,487 | -163 | 132 |
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 53% of net sales (48% in 2021). During the financial year were recorded credit losses of EUR 0.0 million .
The age distribution of accounts receivable is presented in Note 15.
| Number of shares | |
|---|---|
| Jan. 1, 2021 | 6 ,841,440 |
| Stock options | 0 |
| Dec. 31, 2021 | 6,841,440 |
| Jan. 1, 2022 | 6,841,440 |
| Stock options | 0 |
| Dec. 31, 2022 | 6,841,440 |
Aspocomp Group Plc. has one share series. The maximum number of shares is 6,841,440 (6,841,440 shares in 2021). All issued shares are fully paid.
The treasury share fund includes the treasury shares owned by the parent company, measured at acquisition cost. At the end of the fiscal years 2021 and 2022, the company did not hold any treasury shares.
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.
The Board of Directors will propose to the Annual General Meeting to be held on April 20, 2023, that a dividend of EUR 0.21 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 24, 2023. The Board of Directors proposes that the dividend will be paid on May 2, 2023.
The Board of Directors of Aspocomp Group Plc has approved on February 15, 2023 the commencement of a new performance period within the share-based long-term incentive scheme for the company's top management and selected key employees, the Performance Share Plan (also "PSP"): Aspocomp Group originally announced the establishment of the long-term incentive scheme with a stock exchange release issued on July 20, 2022.
The next plan within the PSP structure, PSP 2023-2025, commences as of the beginning of 2023 and the share rewards potentially earned thereunder will be paid during H1 2026. The payment of the rewards is conditional on the achievement of the performance targets set by the Board of Directors for the plan. The performance measures based on which the potential share rewards under PSP 2023-2025 will be paid are cumulative EBIT and the total shareholder return of Aspocomp's share (absolute TSR). Eligible for participation in PSP 2023-2025 are approximately 20 individuals, including the members of Aspocomp's Management Team.
If all the performance targets set for PSP 2023–2025 are fully achieved, the aggregate maximum number of shares payable as a reward based on this plan is approximately 91,000 shares (referring to gross earning before the withholding of the applicable payroll tax). The maximum value of the rewards payable to the participants based on PSP 2023- 2025 is limited by a cap which is linked to Aspocomp's share price development.
| € | Note | 1.1.-31.12.2022 | 1.1.-31.12.2021 |
|---|---|---|---|
| Net sales | 1.1 | 39,122,565.93 | 32,511,904.58 |
| Change in finished goods and work in progress | 76,535.76 | 1,323,218.11 | |
| Other operating income | 1.2 | 3,670.69 | 50,723.06 |
| Materials and services | 1.3 | -18,057,814.93 | -16,838,323.80 |
| Personnel costs | 1.4 | -9,220,848.88 | -8,513,740.01 |
| Depreciation and write-downs | 1.5 | -2,868,664.25 | -3 ,00,536.30 |
| Other operating expenses | 1.6 | -5,675,726.69 | -4,740,972.79 |
| Operating loss | 3,379,717.63 | 692,272.85 | |
| Financial income and expenses | 1.7 | -91,516.49 | -44,928.47 |
| Profit/loss before appropriations and taxes | 3,288,201.14 | 647,344.38 | |
| Income tax | 1.8 | -15,971.00 | 4,923.09 |
| Profit/loss for the year | 3,272,230.14 | 652,267.47 |
| Assets | Liite | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Non-current assets | |||
| Intangible assets | 2.1 | 308,607.83 | 1,211,905.69 |
| Property, plant and equipment | 2.2 | 5,966,978.22 | 5,502,867.19 |
| Right-of-use assets | 2.3 | 634,265.66 | 676,977.68 |
| Investments | 2.4 | 207,166.94 | 207,166.94 |
| Total non-current assets | 7,117,018.65 | 7,598,917.50 | |
| Current assets | |||
| Inventories | 2.5 | 6,165,909.39 | 5,160,875.63 |
| Short-term receivables | 2.6 | 9,136,946.27 | 8,635,437.59 |
| Cash and cash equivalents | 899,304.71 | 2,183,722.26 | |
| Total current assets | 16,202,160.37 | 15,980,035.48 | |
| Total assets | 23,319,179.02 | 23,578,952.98 | |
| Liabilities and shareholders' equity | |||
| Shareholders' equity | 2.7 | ||
| Share capital | 1,000,000.00 | 1,000,000.00 | |
| Reserve for invested unrestricted equity | 3,025,219.78 | 3,015,009.82 | |
| Retained earnings | 3,245,434.99 | 3,619,383.52 | |
| Net profit/loss for the period | 3,272,230.14 | 652,267.47 | |
| Total shareholders' equity | 10,542,884.91 | 8,286,660.81 | |
| Liabilities | |||
| Long-term liabilities | 2.8 | 1,839,301.27 | 2,917,837.72 |
| Short-term liabilities | 2.9 | 10,936,992.84 | 12,374,454.45 |
| Total liabilities | 12,776,294.11 | 15,292,292.17 | |
| Total liabilities and shareholders' equity | 23,319,179.02 | 23,578,952.98 |
| € | 1.1.-31.12.2022 | 1.1.-31.12.2021 |
|---|---|---|
| Cash flow from operations | ||
| Operating profit/loss | 3,272,230.14 | 652,267.47 |
| Adjustments | ||
| Non-cash transactions | 2,875,431.21 | 3,050,371.66 |
| Change in working capital | -2,491,249.19 | -1,459,022.62 |
| Paid interest expenses | -113,411.85 | -136,260.30 |
| Received interest income | 4,710.84 | 309.28 |
| Taxes | -14,950.87 | 0.00 |
| Net cash flow from operations | 3,532,760.28 | 2 ,07,665.49 |
| Cash flow from investing activities | ||
| Purchase of tangible and intangible assets | -2,523,055.76 | -1,299,801.50 |
| Proceeds from sale of tangible and intangible assets | 0.00 | 39,400.00 |
| Net cash flow from investing activities | -2,523,055.76 | -1,260,401.50 |
| Net cash flow before financing | 1,009,704.52 | 847,263.99 |
| Cash flow from financing activities | ||
| Loans drawn down | 169,621.78 | 0.00 |
| Loans repaid | -991,578.96 | -991,780.43 |
| Decrease in lease liabilities | -574,032.00 | -335,539.57 |
| Payments of dividends | -1,026,171.45 | 0.00 |
| Net cash flow from financing activities | -2,422,160.63 | -1,327,320.00 |
| Change in cash and cash equivalents | -1,412,456.11 | -480,056.01 |
| Effects of exchange rate changes on cash and cash equiva lents |
128,038.56 | 172,396.64 |
| Cash and cash equivalents at the beginning of period | 2,183,722.26 | 2,491,381.63 |
| Cash and cash equivalents at the end of period | 899,304.71 | 2,183,722.26 |
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.
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.
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).
Purchased software is recorded in the balance sheet at the original cost less accumulated amortization and impairment, if any.
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 rights 5 – 10 years.
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 equiment | 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.
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 le-
vel 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.
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.
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 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.
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 non-current 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 non-current 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 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 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.
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.
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.
Discounts, VAT and exchange rate differences of accounts receivable have been accounted for under adjustments to net sales.
Research and development expenditure is fully expensed during the financial year in which it was incurred.
Extraordinary income and expenses include exceptional and significant events that are not related to the company's line operations.
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.
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.
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
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.
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.
| € | 2022 | 2021 |
|---|---|---|
| Europe | 32,735,157.76 | 27,599,946.82 |
| Rest of the world | 6,387,408.17 | 4,911,957.76 |
| Total | 39,122,565.93 | 32,511,904.58 |
| € | 2022 | 2021 |
|---|---|---|
| Gains on sale of tangible assets | 0.00 | 39,400.00 |
| Other income | 3,670.69 | 11,323.06 |
| Total | 3,670.69 | 50,723.06 |
| € | 2022 | 2021 |
|---|---|---|
| Purchase during accounting period | 17,885,341.23 | 16,956,770.99 |
| Change in inventories | -928,498.00 | -725,906.00 |
| Subcontracting (external services) | 1,100,971.70 | 607,458.81 |
| Total | 18,057,814.93 | 16,838,323.80 |
| € | 2022 | 2021 |
|---|---|---|
| Personnel costs | ||
| Salaries and wages | 7,589,433.94 | 7,040,522.02 |
| Pension costs | 1,253,258.88 | 1,162,406.61 |
| Other personnel costs | 378,156.06 | 310,811.38 |
| Total | 9,220,848.88 | 8,513,740.01 |
| Management salaries and benefits | ||
| CEO and Board Members | 402,002.60 | 343,879.40 |
| Personnel at the end of year | ||
| Non-office workers | 100 | 92 |
| Salaried employees | 52 | 49 |
| Total | 152 | 141 |
| Personnel on average during the year | ||
| Non-office workers | 92 | 87 |
| Salaried employees | 49 | 48 |
| Total | 141 | 135 |
| € | 2022 | 2021 |
|---|---|---|
| Depreciation of intangible rights | 1,103,009.86 | 1,454,592.25 |
| Depreciation of machinery and equipment | 1,765,654.39 | 1,645,944.05 |
| Total | 2,868,664.25 | 3,100,536.30 |
| € | 2022 | 2021 |
|---|---|---|
| Rental expenses | 58,032.86 | 72,938.24 |
| Real estate costs | 338,970.46 | 274,089.40 |
| Energy costs | 1,057,909.14 | 860,717.75 |
| IT costs | 362,131.45 | 313,676.98 |
| External services | 950,371.47 | 864,199.18 |
| Other expenses | 2,908,311.31 | 2,355,351.24 |
| Total | 5,675,726.69 | 4,740,972.79 |
| Auditor's fees | ||
| 1. Auditing | 63,000.00 | 61,136.00 |
| 2. Tax consultation | 0.00 | 12,396.53 |
| 3. Certificates and statements | 14,165.00 | 10,400.00 |
| 4. Other services | 1,010.00 | 750.00 |
| Total | 78,175.00 | 84,682.53 |
| € | 2022 | 2021 |
|---|---|---|
| Interest and other financial income | ||
| From group companies | 0.00 | 0.00 |
| From others | 4,710.84 | 309.28 |
| Total | 4,710.84 | 309.28 |
| Interest and other financial expenses | ||
| To group companies | 0.00 | 0.00 |
| To others | 96,227.33 | 45,237.75 |
| Total | 96,227.33 | 45,237.75 |
| Total financial income and expenses | -91,516.49 | -44,928.47 |
| € | 2022 | 2021 |
|---|---|---|
| Branch taxes previous year | 0.00 | -20,392.09 |
| Branch taxes | 15 ,971.00 | 15,469.00 |
| Total | 15,971.00 | -4,923.09 |
| 2022 | Intangible rights |
Goodwill | Other long-lived assets |
Total |
|---|---|---|---|---|
| Acquisition cost Jan. 1, 2022 | 709,935.94 | 13,051,744.81 | 525,041.87 | 14,286,722.62 |
| Increase | 199,712.00 | 0.00 | 0.00 | 199,712.00 |
| Decrease | 0.00 | 0.00 | 0.00 | 0.00 |
| Acquisition cost Dec. 31, 2022 | 909,647.94 | 13,051,744.81 | 525,041.87 | 14,486,434.62 |
| Accumulated depreciation Jan. 1, 2022 | 477,615.19 | 12,072,863.94 | 524,337.80 | 13,074,816.93 |
| Accumulated depreciation of | ||||
| decreases and transfers | 0.00 | 0.00 | 0.00 | 0.00 |
| Depreciation for the year | 123,424.92 | 978,880.87 | 704.07 | 1,103,009.86 |
| Accumulated depreciation Dec. 31, 2022 |
601,040.11 | 13,051,744.81 | 525,041.87 | 14,177,826.79 |
| Book value Dec. 31, 2022 | 308,607.83 | 0.00 | 0.00 | 308,607.83 |
| 2021 | ||||
| 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 |
| 2022 | Buildings and structures |
Land areas | Machinery and equipment |
Advance payments & constructions in progress |
Total |
|---|---|---|---|---|---|
| Acquisition cost Jan. 1, 2022 | 1,618,742.66 | 168,065.23 | 12,047,319.21 | 726,623.73 | 14,560,750.83 |
| Increase | 115,252.21 | 0.00 | 1,582,933.71 | 488,867.48 | 2,187,053.40 |
| Decrease | 0.00 | 0.00 | -125,000.00 | 0.00 | -125,000.00 |
| Transfers between items | 0.00 | 0.00 | 726,623.73 | -726,623.73 | 0.00 |
| Acquisition cost Dec. 31, 2022 | 1,733,994.87 | 168,065.23 | 14,231,876.65 | 488,867.48 | 16,622,804.23 |
| Accumulated depreciation Jan. 1, 2022 |
341,965.77 | 22,917.96 | 8,016,022.23 | 0.00 | 8,380,905.96 |
| Accumulated depreciation of | |||||
| decreases and transfers | 0.00 | 0.00 | -125,000.00 | 0.00 | -125,000.00 |
| Depreciation for the year | 121,172.21 | 7,639.32 | 1,636,842.86 | 0.00 | 1,765,654.39 |
| Accumulated depreciation Dec. 31, 2022 |
463,137.98 | 30,557.28 | 9,527,865.09 | 0.00 | 10,021,560.35 |
| Book value Dec. 31, 2022 | 1,270,856.89 | 137,507.95 | 4,704,011.56 | 488,867.48 | 6,601,243.88 |
| 2021 | |||||
| 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 |
Property, plant and equipment include leased as follows:
| 2022 | Land areas | Machinery and equipment |
Total |
|---|---|---|---|
| Acquisition cost Jan. 1, 2022 | 168,065.23 | 2,219,818.57 | 2,387,883.80 |
| Increase | 0.00 | 187,726.01 | 187,726.01 |
| Decrease | 0.00 | 0.00 | 0.00 |
| Aquisition cost Dec. 31, 2022 | 168,065.23 | 2,407,544.58 | 2,575,609.81 |
| Accumulated depreciation Jan. 1, 2022 | 22,917.96 | 1,687,988.16 | 1,710,906.12 |
| Accumulated depreciation of | |||
| decreases and transfers | 0.00 | 0.00 | 0.00 |
| Depreciation of the year | 7,639.32 | 222,798.71 | 230,438.03 |
| Accumulated depreciation Dec. 31, 2022 | 30,557.28 | 1,910,786.87 | 1,941,344.15 |
| Book value Dec. 31, 2022 | 137,507.95 | 496,757.71 | 634,265.66 |
| 2021 | |||
| 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 |
| Aquisition 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 of 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 |
| SHARES | RECEIVABLES | TOTAL | ||
|---|---|---|---|---|
| 2022 | Group companies | Others | Group companies | |
| Book value Jan. 1, 2022 | 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, 2022 | 112,234.00 | 94,932.94 | 0,00 | 207,166.94 |
| 2021 | ||||
| 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 |
| Group companies | Domi cile |
Group interest (%) |
Parent company (%) |
Parent compa ny's (no) |
Shares/ owned by parent Nominal value |
participants the company Book value |
|---|---|---|---|---|---|---|
| Aspocomp Trading Oy | Finland | 100.00 | 100.00 | 320 | 0.00 | 0.00 |
| Aspocomp GmbH | Germa ny |
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 participants |
Total 94,932.94
| € | 2022 | 2021 |
|---|---|---|
| Materials and supplies | 3,561,958.00 | 2,633,460.00 |
| Work in progress | 1,480,395.00 | 1,397,135.00 |
| Finished goods | 1,123,556.39 | 1,130,280.63 |
| Total | 6,165,909.39 | 5,160,875.63 |
| € | 2022 | 2021 |
|---|---|---|
| Accounts receivable | 8,197,151.94 | 8,168,129.25 |
| Other receivables | 467,698.25 | 182,618.92 |
| Other accrued income | 472,096.08 | 284,689.42 |
| Short-term receivables, total | 9,136,946.27 | 8,635,437.59 |
| € | 2022 | 2021 |
|---|---|---|
| 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 | 3,015,009.82 | 2,983,426.76 |
| Increase | 10,209.96 | 31,583.06 |
| Reserve for invested unrestricted equity Dec. 31 | 3,025,219.78 | 3,015,009.82 |
| Retained earnings Jan. 1 | 4,271,650.99 | 3,619,383.52 |
| Dividends paid | -1,026,216.00 | 0.00 |
| Retained earnings Dec. 31 | 3,245,434.99 | 3,619,383.52 |
| Net profit/loss for the period | 3,272,230.14 | 652,267.47 |
| Total balance | 10,542,884.91 | 8,286,660.81 |
| Distributable funds in unrestricted equity | 9,542,884.91 | 7,286,660.81 |
| € | 2022 | 2021 |
|---|---|---|
| Loans from financial institutions | ||
| Loans from financial institutions | 1,427,368.39 | 2,418,947.35 |
| Financial leasing debts | 273,361.40 | 354,078.15 |
| Lease liability | 138,571.48 | 144,812.22 |
| Non-current liabilities, total | 1,839,301.27 | 2,917,837.72 |
| € | 2022 | 2021 |
|---|---|---|
| Loans from financial institutions | ||
| Bank loans | 991,578.95 | 991,578.95 |
| Financial leasing debts | 227,672.78 | 357,377.88 |
| Lease liability | 6,240.74 | 6,064.86 |
| Factoring debt | 493.01 | 690.96 |
| Total | 1,225,985.48 | 1,355,712.65 |
| Accounts payable, other payables and accrued expenses | ||
| Accounts payable | 3,770,966.32 | 5,212,964.01 |
| Other payables | 171,639.39 | 148,383.73 |
| Accrued expenses | 1,937,496.46 | 1,829,047.53 |
| Total | 5,880,102.17 | 7,190,395.27 |
| Material items in accrued expenses: | ||
| Periodization of personnel expenses | 1,750,914.35 | 1,554,480.41 |
| Interest periodization of loans | 4,051.78 | 4,073.42 |
| Other items | 179,935.02 | 270,493.70 |
| Total | 1,934,901.15 | 1,829,047.53 |
| Liabilities to Group companies | ||
| Liabilities to Group companies | 3,830,905.19 | 3,828,346.53 |
| Current liabilities, total | 10,936,992.84 | 12,374,454.45 |
| € | 2022 | 2021 |
|---|---|---|
| Other rental payables | ||
| Minimum rents of other rent agreements that cannot be terminated | ||
| Within one year | 64,285.52 | 53,631.68 |
| After one year but not more than five years | 5,517.00 | 2,016.00 |
| More than five years | 0.00 | 0.00 |
| Total | 69,802.52 | 55,647.68 |
| Contingent liabilities at Dec. 31, 2021 | ||
| 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 |
According to the financial statements dated December 31, 2022, the parent company's distributable earnings amounted to EUR 9,542,884.91, of which the retained earnings were EUR 6,517,665.13.
The Board of Directors will propose to the Annual General Meeting to be held on April 20, 2023, that a dividend of EUR 0.21 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 24, 2023. The Board of Directors proposes that the dividend will be paid on May 2, 2023.
Helsinki, March 15, 2023
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 audit carried out has been submitted Auditor's Report today.
Helsinki, March 15, 2023
PricewaterhouseCoopers Oy Authorized Public Accountants
Mikko Nieminen Authorized Public Accountant
(Translation of the Finnish Original)
To the Annual General Meeting of Aspocomp Group Plc
In our opinion
Our opinion is consistent with the additional report to the Audit Committee of the Board of Directors.
We have audited the financial statements of Aspocomp Group Oyj (business identity code 1547801-5) for the year ended 31 December 2022.
The financial statements comprise:
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.
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.
• Overall group materiality: EUR 350,00 (previous year EUR 300,000), which represents 0.9% of net sales 2022
___________________________________________________
___________________
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.
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 | EUR 350,000 (provious year EUR 300,000) | |
|---|---|---|
| How we determined it | 0.9% of net sales 2022 | |
| 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. |
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 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.
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:
For information on valuation of goodwill refer to Accounting Principles of the Group Financial Statements and Note 24. 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
Our audit procedures included for example the following procedures:
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.
Based on impairment testing, the recoverable amount exceeded the book value and thus goodwill was not impaired in 2022.
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 € 4.2 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 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.
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.
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:
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.
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 24 years starting from the establishment of Aspocomp Group Oyj 1.10.1999 and the Company has been public interest entity for the whole period.
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
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, March 15, 2023
PricewaterhouseCoopers Oy Authorized Public Accountants
Mikko Nieminen Authorised Public Accountant (KHT)
M.Sc. (Econ.), born 1961, Finnish Citizen
Independent member of the Board since 2013 and the Chairman of the Board since 2014
Sievi Capital Plc, CEO, 2018 –2021, Midagon Oy, CEO, 2012–16, Flextronics Group, VP Sales and Marketing, 2005–2011, Plamec Oy, CEO 2002–2005, QPR Software Oyj, Director and Founder, 1991–2001.
Patria Oyj, Member of the Board.
M.Sc. (Econ.), born 1958, Finnish Citizen
Independent member and Vice Chairman of the Board since 2015
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.
VTT Technical Research Centre of Finland Ltd, Member of the Board.
B.B.A, born 1964, Finnish Citizen Independent member of the Board since 2021
Admiwin Oy, Partner, CEO, Chaiman, 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 (now Nordea), Managing Director, Asset MGMT/First Vice President, Baltic sand Poland, 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.
Admiwin Oy, Chairman of the Board, Viikinkiravintola Harald Oy, Member of the Board, Aro Systems Ltd, Member of the Board, 2015-2016.
M.Sc. (Electrical Engineering), born 1965, Finnish Citizen Independent member of the Board since 2021
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.
M.Sc. (Tech.), born 1965, Finnish Citizen
CEO and Chairman of the Management Team as of May, 15, 2014
Okmetic Oyj, Executive Vice President,Customers and Markets, 2010–14, Deputy to the President, 2008–14, Executive Vice President, 2008–10, Sales and Marketing, 2004–07, Okmetic Inc. North America, Vice President, Sales and Marketing, 2000–04, Okmetic Oy, Sales Manager, process Engineer, 1991–99.
Vice President, Sales and Marketing M.Sc. (Econ.), born 1979, Finnish Citizen
Member of the Management Team as of , October 25, 2013
Various positions in Aspocomp Group Plc. since 2003.
M.Sc. (Econ.), born 1963, Finnish Citizen
Member of the Management Team as of April 29, 2019
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 Oyj, Sales and Management positions, 1994–2006, IBM, Sales and Management positions, 1988–1994.
Diploma in Business and Administration, born 1960, Finnish Citizen Member of the Management Team as of September 19, 2011 Primary work experience
Various positions in Aspocomp Group Plc. since 1984.
Chief Technology Officer M.Sc. (Eng.), born 1973, Finnish Citizen Member of the Management Team as of February 26, 2018 Primary work experience Various positions in Aspocomp Group Plc. since 1997.
The Group's investor relations contact is Mikko Montonen, CEO. Tel. +358 20 776 6860, mikko.montonen(at)aspocomp.com.
The Annual General Meeting of Aspocomp Group Plc. will be held on Thursday, April 20, 2023 at 10:00 a.m. (EET). The meeting will take place at Keilaranta 1, 1st 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 6, 2023 are entitled to attend the Meeting.
Shareholders wishing to attend the Meeting are requested to notify the company by April 17, 2023 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 16, 2023.
The Board of Directors will propose to the Annual General Meeting to be held on April 20, 2023, that a dividend of EUR 0.21 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 24, 2023. The Board of Directors proposes that the dividend will be paid on May 2, 2023.
| SALES | Finland | Tutkijantie 11, 90590 Oulu | P: +358 20 775 6860 |
|---|---|---|---|
| Keilaranta 1, 02150 Espoo United Kingdom 8 Second Cross road, TW2 5RF Twickenham |
P: +358 20 775 6860 P: +44 776 142 228 |
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| Sweden | Pilåkersvägen 5 C, 217 47 Malmö | P. +46 702 120 065 | |
| Germany | Siegfriedstraße 1, 86356 Neusäß | P: +49 821 454 4913 | |
| Paracelsusstrasse 10, 72762 Reutlingen | P. +49 7121 230 902 | ||
| PRODUCTION | Tutkijantie 11, 90590 Oulu | P: +358 20 775 6860 | |
| CHINA OPERATIONS | Room 901B, Building B, | P: +86 755 8376 156 | |
| Nanxian commercial Plaza, | F: +86 755 8376 1766 | ||
| 43# of MeiLong Road, | |||
| LongHua district, Shenzhen, People's Republic of China (Post code: 518131) |
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| HEADQUARTERS | Keilaranta 1, 02150 Espoo | P: +358 20 775 6860 | |
www.aspocomp.com
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