ANNUAL REPORT 2023

CEO'S REVIEW3
REPORT OF THE BOARD OF DIRECTORS4
KEY INDICATORS 2023–2019 FORMULAS AND DEFINITIONS	12 13
FINANCIAL STATEMENTS	14
CONSOLIDATED FINANCIAL STATEMENTS, IFRS14
Consolidated Income Statement 14
Consolidated Balance Sheet	15
Consolidated Statements of Changes in Equity	16
Consolidated Cash Flow Statement 17
Notes to the Consolidated Financial Statements	18
PARENT COMPANY FINANCIAL STATEMENTS, FAS50
Parent Company Income Statement50
Parent Company Balance Sheet (FAS) 51
Parent Company Cash Flow Statement (FAS) 52
Notes to the Financial Statements of the Parent Company, FAS53
BOARD OF DIRECTORS DIVIDEND PROPOSAL AND SIGNATURES64
THE AUDITOR'S NOTE64
AUDITOR'S REPORT65
GOVERNANCE71
THE BOARD OF DIRECTORS71
THE MANAGEMENT TEAM72
INFORMATION FOR SHAREHOLDERS AND CONTACT INFORMATION 73

This report is an English translation of Aspocomp's Annual Report 2023 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 2023 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).

REPORT OF THE BOARD OF DIRECTORS

CEO'S REVIEW

2023 was a challenging year for Aspocomp. Full-year net sales decreased by 17 percent to EUR 32.3 million. In the last quarter of the year, net sales decreased by 42 percent. The development of net sales was affected by sluggish demand in several of Aspocomp's customer segments, weakened product mix and, in the last quarter, a temporary process disruption in the company's production.

The weak demand situation was particularly reflected in the Semiconductor Industry, Telecommunication, and Industrial Electronics customer segments. In the Automotive customer segment, full-year net sales increased when the industry's component shortage eased and customers could be provided with the order book deliveries they had been waiting for. In the Security, Defense and Aerospace customer segment, net sales decreased from the comparison period, but active demand in the segment was reflected at Aspocomp as an increase in the number of requests for quotations and orders. Order cycles are typically long in the Security, Defense and Aerospace customer segment.

Aspocomp's loss-making operating result for the last quarter, EUR 1.8 million, pushed the full-year 2023 operating result to a loss of EUR 1.7 million. The decrease in the operating result was caused by a decline in net sales due to muted demand, the weakened product mix, the recognition of EUR 0.5 million in design costs not included in the usual business in the third quarter, and a significant rise in material costs. Material costs were increased by a temporary process disruption in production in the last quarter. Material use is estimated to normalize during the first quarter of 2024. Aspocomp carried out temporary personnel layoffs in the third and fourth quarters in order to adjust costs.

As the financial year's result remains loss-making, Aspocomp's Board of Directors will propose to the Annual General Meeting that no dividend will be paid for the financial year 2023 (EUR 0.21 per share for the financial year 2022).

There are already visible signs that the semiconductor market cycle is turning to growth, but the release of high inventory levels in different parts of the value chain is happening in stages. Therefore, the demand for the company's products is also expected to recover gradually during 2024. In the longer term, the semiconductor industry's growth prospects are still strong as digitization progresses, for example with the spread of artificial intelligence applications.

Inflation and interest rates, the economic recession, the uncertainties posed by Russia's war of aggression, and global trade policy tensions will affect the operating environment of Aspocompand its customers in the 2024 fiscal year. Demand for Aspocomp's products is expected to recover gradually during 2024. We estimate that Aspocomp's net sales for 2024 will increase from 2023 and its operating result improve from 2023. In 2023, net sales amounted to EUR 32.3 and the operating result was a loss of EUR 1.7 million.

I would like to express my warm thanks to the company's personnel for their valuable contribution and especially for the flexibility and perseverance they have shown in the challenging year of 2023.

MIKKO MONTONEN, President and CEO

REPORT OF THE BOARD OF DIRECTORS

2023 IN BRIEF

Net sales EUR 32.3 (39.1) million, decrease of 17%
Operating result EUR -1.7 (4.5) million, 5.4% (11.5%) of net sales
Earning per share EUR -0.24 (0.52)
Operative cash flow EUR 5.1 (3.6) million
Equity ratio 71.7% (69.4%)
Orders received EUR 21.4 (27.4), decrease of 22%
Order book at the end of the review period EUR 10.5 (14.3) million, decrease of 27%
Dividend/share EUR 0.00* (0.21)

*The Board of Directors proposal to AGM

NET SALES AND EARNINGS 2023

January-December 2023 net sales amounted to EUR 32.3 (39.1) million, a year-on-year decrease of 17%.

The Semiconductor Industry customer segment's net sales decreased by 26% to EUR 11.8 (15.9) million. The decrease in net sales was due to the delayed recovery of the market and the semiconductor cycle, as well as the high inventory levels in the value chain.

The Industrial Electronics customer segment's net sales decreased by 35% to EUR 3.6 (5.5) million. Customers have postponed their investment decisions due to the global economic situation and high interest rates.

The Security, Defense and Aerospace customer segment's net sales decreased by 2% to EUR 6.0 (6.1) million. Active demand in the segment was reflected at Aspocomp as an increase in the number of requests for quotations and orders, but the order cycles are long, and the results are visible with a delay.

The Automotive customer segment's net sales increased by 13% to EUR 7.7 (6.8) million. The customer segment's full-year net sales increased when the component shortage eased in the industry and the company could deliver orders from the order book to end customers.

The Telecommunication customer segment's net sales amounted to EUR 3.3 (4.7) million, a year-on-year decrease of 31%. Customers' investment decisions in mobile networks are postponed due to the global economic situation and high interest rates, and weak demand reduces customers' investments in product development projects.

The five largest customers accounted for 56 (55) percent of net sales. In geographical terms, 85 (89) percent of net sales were generated in Europe and 15 (11) percent on other continents.

The January-December operating result amounted to

EUR -1.7 (4.5) million. The decline in the operating result was due to the decreased net sales caused by muted demand, the weakened product mix, the recognition of EUR 0.5 million in design costs not included in the usual business in the third quarter, and a significant rise in material costs. Material costs were increased by a temporary process disruption in production in the last quarter.

January-December operating result was -5.4 (11.5) percent of net sales.

Net financial expenses amounted to EUR 0.3 (0.1) million. Earnings per share were EUR -0.24 (0.52).

The order book at the end of the review period was EUR 10.5 (14.3) million. The order book decreased due to the weakened demand caused by the recession and the customers' higher than usual inventory levels.

Of the order book, EUR 10.5 million has been scheduled for delivery this year.

INVESTMENTS AND R&D

Investments during January-December 2023 amounted to EUR 2.7 (2.5) million. 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 to further strengthen its position as a strategic partner to leading companies in the semiconductor, automotive, defense and aerospace, and telecommunications (5G) industries. For the second phase of the investment program launched in the spring of 2020, the company was granted development support from the ELY Center for approximately 25 percent of the project's realized total costs. The second phase, which ended in September 2023, aimed in particular at increasing the capacity of the Oulu plant, improved automation and increased production efficiency. In the completed investment program, all the new equipment was installed in the existing Oulu plant and no additional plant space was built.

CASH FLOW AND FINANCING

January-December 2023 cash flow from operations amounted to EUR 5.1 (3.6) million. Cash flow weakened mainly due to the decrease in working capital.

Cash assets amounted to EUR 1.3 (1.4) million at the end of the period. Dividend payment was EUR 1.4 (1.0) million. Interest-bearing liabilities amounted to EUR 2.0 (3.1) million. Interest-bearing liabilities are subject to covenant terms. The covenant terms were breached in the 2023 financial statements, but waiver consents have been obtained from financiers. Gearing was 3% (8%). Non-interest-bearing liabilities amounted to EUR 5.4 (6.5) million.

At the end of the period, the Group's equity ratio amounted to 71.7% (69.4%).

The company has a EUR 4.0 (2.0) million credit facility. Neither the credit facility nor the company's recourse factoring agreement was in use at the end of the review period.

DEFERRED TAX ASSETS

At the end of 2023, the company had EUR 4.5 (4.2) 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.

PERSONNEL

During the review period, the company had an average of 164 (145) employees. The personnel count on December 31, 2023, was 163 (156). Of them, 106 (100) were blue-collar and 57 (56) white-collar employees.

The Group's personnel expenses amounted to EUR 9.6 (9.6) million. In addition, the Group booked personnel service costs of EUR 0.6 (0.5) million in 2023.

On August 15, 2023, Aspocomp started change negotiations at the Oulu plant in Finland. The goal of the negotiations was to prepare for a partial adjustment of production to correspond to temporarily low delivery volumes. The negotiations covered most of the Oulu plant's approximately 120 blue-collar employees. The change negotiations ended on August 30, 2023, and as a result, the company's plan was to lay off 20-30 production blue-collar employees at a time for a maximum of 90 days during the six months following the end of negotiations.

ENVIRONMENT

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

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

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

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

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

• Reducing waste and raw material consumption

The Oulu plant accounts for most of the company's energy and water consumption and waste. Every year, the

R E PO RT O F B OA R D O F D I R E CTO R S

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 2023, 100 percent of the electricity we used came from fossil-free sources. In 2023, the recovery rate of waste was 58 percent, and waste is reused for the recovery of materials and the production of energy. We are constantly striving to promote the recycling of waste. The PCB manufacturing process requires a large amount of water. After the manufacturing process, all water is treated at the plant's own wastewater treatment facility before being diverted to municipal wastewater treatment.

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

ANNUAL GENERAL MEETING 2023

The Annual General Meeting 2023 was held on April 20, 2023, 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 2022. The Annual General Meeting approved the Remuneration Report for the governing bodies 2022.

The Board of Directors

The Annual General Meeting 2023 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.

Dividend

The Annual General Meeting 2023 decided to pay a dividend of EUR 0.21 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 24, 2023. The dividend were paid on May 2, 2023.

Authorizations given to the Board

The Annual General Meeting 2023 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 24, 2022, 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, 2024.

Auditor

The Annual General Meeting 2023 re-elected in accordance with the proposal of the Board of Directors PricewaterhouseCoopers Oy, Authorized Public Accountants as the company's auditor for the 2023 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. Tuukka Kiuru, Authorized Public Accountant, will act as its principal auditor.

The Board of Directors' organization meeting

In its organization meeting on April 20, 2023, 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 2023, the Board of Directors performed an evaluation of Board members' independence. According to the evaluation, all Board members are independent of the company and independent of the company's major shareholders.

THE MANAGEMENT TEAM DECEMBER 31, 2023

Mikko Montonen, M.Sc. (Eng.) is the President and CEO of Aspocomp Group Plc. The Management Team included on December 31, 2023 Mikko Montonen, President and CEO, Antti Ojala, COO and Deputy CEO, Ari Beilinson, VP, Sales and Marketing, Jouni Kinnunen, CFO and Mitri Mattila, CTO.

SHARES AND OWNERSHIP STRUCTURE

Number of shares

Aspocomp Group Plc. shares have been listed on the main list of the Helsinki Stock Exchange since October 1, 1999. The company's trading code on the Nasdaq Helsinki Small Cap segment is ACG1V. The total number of Aspocomp's shares at December 31, 2023 was 6,841,440 and the share capital stood at EUR 1,000,000. The company did not hold any treasury shares. Each share is of the same share series and entitles its holder to one vote at a General Meeting and to have an identical dividend right.

Share turnover and price

The total number of Aspocomp's shares at December 31, 2023 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 971,433 Aspocomp Group Plc. shares were traded on Nasdaq Helsinki during the period from January 1 to December 31, 2023. The aggregate value of the shares exchanged was EUR 5,399,390. The shares traded at a low of EUR 3.38 and a high of EUR 8.30. The average share price was EUR 5.56. The closing price at December 31, 2023 was EUR 3.83, which translates into market capitalization of EUR 26.2 million.

The company had 4,268 shareholders at the end of the review period. Nominee-registered shares accounted for 1.4% of the total shares.

MAJOR SHAREHOLDER ANNOUNCEMENTS IN 2023

On October 1, 2023, Aspocomp received notification from both Sampo Plc and Mandatum Plc in accordance with Chapter9, Section 10 of Finnish Securities Market Act and according to both of them the legal entity exercising the ultimate control of the shares subject to the flagggin obligation held by Mandatum Life Insurance Company Limited has changed from Sampo Plc to Mandatum Plc in connection with the partial demerger of Sampo Plc on October 1, 2023.

In addition, according to Mandatum Plc 's notification, Mandatum Plc owned indirectly a total of 352,103 shares in Aspocomp on October 1, 2023. The holding corresponded to 5.15% of all shares and votes in Aspocomp.

In addition, according to Sampo Plc's notification, Sampo Plc owned a total of 0 shares in Aspocomp on October 1, 2023.

CORPORATE GOVERNANCE STATEMENT

The Corporate Governance Statement for 2023 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.

REMUNERATION

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 (PSP) 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 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 launch of a long-term Performance Share Plan has been announced in a separate stock exchange release on July 20, 2022.

On February 15, 2023, Aspocomp Group Plc's Board of Directors decided on the commencement of a new performance period in the share-based long-term Performance Share Plan (PSP) for the company's senior management and selected key employees. The next plan within the PSP structure, PSP 2023-2025, commenced as of the beginning of 2023 and the share rewards potentially earned thereunder will be paid during H1 2026. The new performance period of the long-term Performance Share Plan has been announced in a separate stock exchange release on February 15, 2023.

OUTLOOK FOR 2024

Inflation and interest rates, weak economic development, the uncertainties posed by Russia's war of aggression, and global trade policy tensions will affect the operating environment of Aspocomp and its customers in the 2024 fiscal year. The company estimates that the demand in the Semiconductor segment will gradually recover starting from the first half of 2024, while at the same time unloading high inventory levels in various parts of the value chain. In order for investments to pick up in several of Aspocomp's customer segments, consumer demand must improve, and interest rates decline, among other factors. Demand for Aspocomp's products is expected to recover gradually during 2024.

Aspocomp estimates that its net sales for 2024 will increase from 2023 and its operating result will improve from 2023. In 2023, net sales amounted to EUR 32.3 million and the operating result was a loss of EUR 1.7 million.

ASSESMENT OF SHORT TERM BUSINESS RISKS

In accordance with its goal, the company has systematically expanded its services to cover the PCB needs of its customers over the entire life cycle and thereby has successfully balanced out variations in demand and the order book.

Risks affecting the operating environment

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 or Belarus. However, the changed operating environment may affect our sourcing and logistics chains.

The geopolitical situation has increased the risks related to customers' global supply chains. Weak economic development, inflation and high interest rates cause uncertainty in the operating environment and may affect customer demand and delay customers' investment decisions.

Cyber risks and disruptions in information systems can affect production. Aspocomp's ability to operate may deteriorate due to the production interruptions by suppliers or disruptions in the company's production. Disturbances in the labor market can also affect production and delivery capacity.

Dependence on key customers

Aspocomp's customer base is concentrated; approximately half of sales are generated by five key customers. This exposes the company to significant fluctuations in demand. In addition, variations in the product mix can have a major impact on profitability.

Market trends

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

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

THE BOARD OF DIRECTORS' DIVIDEND PROPOSAL

According to the financial statements dated December 31, 2023 the parent company's distributable earnings amounted to EUR 6,248,015.53, of which the retained earnings were EUR 3,220,736.75.

The Board of Directors will propose to the Annual General Meeting to be held on April 18, 2024, that no dividend will be paid.

EVENTS AFTER THE FINANCIAL PERIOD

On January 4, 2024, Aspocomp announced that it will start change negotiations regarding possible temporary layoffs and redundancies in Finland. Change negotiations were initiated to improve the company's profitability and competitiveness and to secure future operational capacity in a weakened market situation. The company's entire personnel in Finland, approximately 150 people, were covered by the negotiations.

On January 8, 2024 Aspocomp announced the changes to the composition of its Management Team. Aspocomp's Management Team includes as of January 8, 2024 Mr. Mikko Montonen, President and CEO, Mr. Antti Ojala, CCO and Deputy CEO, Mr. Pekka Holopainen, COO, Mr. Jouni Kinnunen, CFO and Mr. Mitri Mattila, CTO.

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Muurinen, Mr. Jukka Huuskonen and Mr. Anssi Korhonen be re-elected as members to the Board of Directors. In addition the Nomination Board proposes that the number of members of the Board be five and that Ville Vuori be elected as a new member of the Board of Directors. The Nomination Board proposes to the inaugural meeting of the Board of Directors to be held after the Annual General Meeting that Ms. Päivi Marttila is re-elected as chairman of the Board of Directors. The Shareholders' Nomination Board proposes to the Annual General Meeting that the amount of remuneration payable to the Board of Directors remain the same as in the ending term and that Board Members be thus compensated as follows: EUR 30,000 for the chairman of the Board of Directors, EUR 20,000 for the vice chairman, and EUR 15,000 for each of the other members in remuneration for their term of office. The Nomination Board further proposes that EUR 1,000 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 Nomination Board also proposes that the members of the Board of Directors be reimbursed for reasonable travel costs. The Nomination Board further proposes that earning-related pension insurance contributions are paid voluntarily for the paid remuneration.

On February 15, 2024, Aspocomp announced that the Board of Directors of Aspocomp Group Plc has appointed Mr. Manu Skyttä (b. 1975), MSc, Aeronautical Engineering, as President and CEO. Manu Skyttä succeeds Mr. Mikko Montonen, who has agreed with the Board of Directors of the company that he will step down from the role of President and CEO of the company. Mr. Mikko Montonen has committed to remain as company's President and CEO to secure an orderly transition to Manu Skyttä, at latest on August 14, 2024.

On February 16, 2024, Aspocomp announced that the company has completed the change negotiations started on January 4, 2024. As a result of the negotiations, two employees will be dismissed. The company's layoff authorization applies to 40 people. Layoffs can be implemented for the time being if the company's financial or production situation so requires.

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Aspocomp 2022-2023 Aspocomp Group OMX Helsinki Small Cap PI Volume 3.0 4.5 6.0 7.5 9.0 EUR 0 100 200 300 400 Shares thousands 2022 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Aspocomp's share price development and share turnover per month 2022-2023

Ownership structure

Size by holding, December 31, 2023

Shares	Number of shareholders	% of share holders	Number of shares	% of shares
1 – 100	2,019	49.0	83,868	1.3
101 – 500	1,322	31.0	351,468	5.1
501 – 1,000	407	9.5	320,833	4.7
1,001 – 5,000	355	8.3	800,095	11.7
5,001 – 10,000	43	1.0	297,329	4.3
10,001 – 50,000	34	0.8	638,620	9.3
50,001 – 100,000	6	0.1	378,333	5.5
100,001 – 500,000	8	0.2	1,781,371	26.1
500,001 –	2	0.1	2,187,226	32.0
Shares in trust and awaiting clearance	0	-	297	-
Total	4,268	100%	6,841,440	100%
of which nominee registered	9		93,736	1.4

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Shareholders by sector, December 31, 2023

	Number of shareholder	% of share holder	Number of shares	% of shares
Household	4,092	95.9	3,480,572	50.9
Companies	142	3.3	2,551,578	37.3
Financial and insurance institution	10	0.2	766,451	11.2
Non-domestic	18	0.4	40,096	0.6
Non-profit organizations	6	0.2	2,446	0.0
Public sector organizations	0	-	0	-
Shares in trust and awaiting clearance	0		297	-
Total	4,268	100%	6,841,440	100%

Shareholders

Shareholders, December 31, 2023

Shareholders	Shares	Ownership, %
Joensuun Kauppa ja Kone Oy	1,186,222	17.34
Etola Group Oy	1,001,004	14.63
Montonen Mikko	390,000	5.70
Mandatum Henkivakuutusosakeyhtiö	352,103	5.15
Etola Erkki Olavi	300,000	4.39
Nordea Henkivakuutus Suomi Oy	275,000	4.02
Lahdenperä Matti	127,830	1.87
Lähdesmäki Tuomo	120,000	1.75
Koskinen Jouni	114,716	1.68
Lauren Karri-Pekka	101,722	1.49
Vuorialho Kari	74,006	1.08
Yli-Krekola Antti	63,966	0.93
Noveco Oy	63,200	0.92
AJ EAB Value Hedge sr	62,855	0.92
Lahdenperä Marja Helena	58,900	0.86
Skandinaviska Enskilda Banken (Nomineereg.)	55,406	0.81
Frontier Liquidity Oy	49,544	0.72
Lemmetti Juhani	41,372	0.60
Eyemaker's Finland Oy	35,000	0.51
Salminen Roni	30,000	0.44
20 major shareholders	4 ,502,846	65.82
Other shareholders total	2 ,338,594	34.18
Total shares	6,841,440	100

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KEY INDICATORS 2023–2019

	2023	2022	2021	2020	2019
Net sales, M€	32.3	39.1	33.2	25.6	31.2
Operating result before depreciation (EBITDA), M€	0.3	6.4	4.1	1.5	4.7
Operating profit/loss, M€	-1.7	4.5	2.2	-0.1	3.4
Share of net sales, %	-5.4	11.5	6.8	-0.5	10.9
Pre-tax profit from operations, M€	-2.0	4.4	2.2	-0.4	3.3
Share of net sales, %	-6.2	11.3	6.6	-1.7	10.4
Net profit/loss for the period, M€	-1.6	3.5	2.1	-0.1	3.9
Share of net sales, %	-5.1	9.1	6.4	-0.4	12.6
Net cash flow from operating activities, M€	5.1	3.6	2.3	3.7	4.3
Return of equity (ROE), %	-8.7	17.3	11.6	-0.6	23.9
Return of investment (ROI), %	-6.0	15.1	9.3	0.8	18.4
Equity ratio, %	71.7	69.4	60.8	63.6	61.3
Gearing, %	3.4	7.6	8.7	16.6	19.0
Investments, M€	2.7	2.5	1.3	2.0	3.5
Share of net sales, %	8.2	6.5	3.9	7.7	11.4
Order book at the end of period, M€	10.5	14.3	16.5	4.4	4.4
Personnel, year end	162	156	145	138	132
Personnel, average	164	145	139	140	124
Earnings/share (EPS), €	-0.24	0.52	0.31	-0.01	0.59
Dividend/share, €	0,00*	0,21	0.15	0.00	0.15
Price/earnings ratio (P/E)	-16.01	14.17	19.49	-392.00	8.92

* Board proposal

The Board of Directors will propose to the Annual General Meeting to be held on April 18, 2024, that no dividend be paid.

R E PO RT O F T H E B OA R D O F D I R E CTO R S

FORMULAS AND DEFINITIONS

Earnings/ share (EPS), €		Profit attrbutable to equity shareholders
	=	––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 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.

The Alternative Performance Measures (APM) used by the Group

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
Equity ratio, %	=	––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Total assets - advances received
		Net interest bearing liabilities
Gearing, %	=	––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 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.

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED INCOME STATEMENT

1,000 €	Note	1.1.-31.12.2023	1.1.-31.12.2022
Net sales	1	32,301	39,114
Change in inventory of finised goods and work in progress		-380	240
Other operating income	2	65	5
Materials and services	3	-16,068	-18,089
Personnel expenses	4, 5	-9,569	-9,641
Depreciation and impairment		-2,026	-1,903
Other operating expenses	6	-6,065	-5,223
Operating profit		-1,741	4,502
Financial income	7	8	6
Financial expenses	7	-274	-104
Profit before tax		-2,007	4,404
Income tax	8	370	-859
Profit for the period		-1,637	3,545

Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension plan		-18	118
Income tax relating these items		3	-20
Items that may be reclassified subsequently to profit or loss:
Currency translation differences		-15	-6
Other comprehensive income for the period, net of tax		-30	92
Total comprehensive income		-1,667	3,637

Earnings per share (EPS)	9
Bacis EPS		-0.24	0.52
Dilutex EPS		-0.24	0.52

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED BALANCE SHEET

Assets 1,000 €	Note	31.12.2023	31.12.2022
Non-current assets
Intangible assets	10	3,348	3,309
Property, plant and equipment	11	6,180	5,967
Right-of-use assets	12	515	642
Financial assets at fair value through profit or loss		95	95
Deferred tax assets	8	4,513	4,152
Total non-current assets		14,652	14,164
Current assets
Inventories	14	5,247	6,136
Short-term receivables	15	4,972	9,723
Cash and bank deposits	16	1,322	1,410
Total current assets		11,541	17,269
Total assets		26,193	31,433

Equity and liabilities 1,000 €	Note	31.12.2023	31.12.2022
Equity	26
Share capital		1,000	1,000
Reserve for invested unrestricted equity		4,842	4,774
Remeasurements of defined benefit pension plans		-64	-49
Retained earnings		12,990	16,078
Total equity		18,767	21,803
Liabilities
Non-current liabilities
Long-term financing loans	13, 17, 18	436	1,427
Lease liabilities	12, 13, 17, 18	344	412
Employee benefits and remeasurements of defined pension plans	5		358
Deferred tax liabilities	8	323	57
Current liabilities		36
Short-term financing loans	17		992
Lease liabilities	17	992	242
Trade ans other payables	13,17	192	6,142
Total liabilities		5,102	9,630
Total equity and liabilities		26,193	31,433

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

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, 2023	1,000	4,774	-49	6	16,072	21,803
Comprehensive income
Comprehensive income for the period					-1,637	-1,637
Other comprehensive income for the period, net of tax
Remeasurements of defined benefits
plans			-15			-15
Translation differences				-15		-15
Total comprehensive income for the period	0	0	-15	-15	-1,637	-1,667
Business transactions with owners
Dividends paid					-1,437	-1,437
Share-based payment		68				68
Business transactions with owners, total	0	68	0	0	-1,437	-1,368
Balance at Dec. 31, 2023	1,000	4,842	-64	-9	12,999	18,767

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, 2022	1,000	4,736	-148	12	13,554	19,155
Comprehensive income
Comprehensive income for the period Other comprehensive income for the period, net of tax					3,545	3,545
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

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED CASH FLOW STATEMENT

1, 000 €	Note	1.1.-31.12.2023	1.1.-31.12.2022
Cash flow from operating activities
Profit for the period		-1,637	3,545
Adjustments
Non-cash transactions	21	2,269	1,927
Other adjustments	21	-425	859
Change in working capital	21	5,152	-2,571
Interest income		8	6
Interest expenses		-217	-129
Taxes		-23	-19
Net cash flow from operating activities		5,128	3,618

Cash flow from investing activities
Investments in property, plant and equipment		-2,655	-2,523
Proceeds from sale of property, plant and equipment		56	0
Net cash flow from investing activities		-2,599	-2,523
Net cash flow before financing		2,528	1,095

Cash flow from financing activities
Loans drawn down		116	170
Loans repaid		-991	-992
Decrease in lease liabilities		-266	-587
Dividends paid		-1,437	-1,026
Net cash flow from financing activities		-2,577	-2,435
Change in cash equivalents		-49	-1,340
Cash and cash equivalents at the beginning of period 16		1,410	2,631
Effects of exchange rate changes on cash & cash equivalent		-39	119
Cash and cash equivalents at the end of period	16	1,322	1,410

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ACCOUNTING PRINCIPLES OF THE CONSOLIDATED

FINANCIAL STATEMENTS

Basis of preparation

The financial statements for 2023 have been prepared in accordance with the IFRS Accounting Standards as adopted by the European Union 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.

Accounting principles

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

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

Acquisition-related costs are expensed as incurred.

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

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

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

Segment reporting

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

Recognition policies

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

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

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

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

Conversion of items denominated in currencies other than the euro

Foreign currency transactions

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

Conversion of the financial statements of foreign subsidiaries

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

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

Share-based payments

The Group has two share reward plan for management and key employees.

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.

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

Employee benefits

Pension liabilities

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

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

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

Long service rewards

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

Operating profit/loss

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

Income taxes

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

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

Intangible assets

Goodwill

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

Research and development expenditure

The company does not engage in actual product development. Research and development expenditure represent general development of the production process that can-

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

Software

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

Intangible rights

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

The estimated useful lives of intangible assets are:

• Intangible rights 3 - 10 years.

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

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

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

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

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

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

Gains and losses resulting from derecognition of

property, plant and equipment are entered under other operating income or expenses.

Impairment of tangible and intangible assets

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

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

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

Presentation of asset grants

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

Inventories

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

Financial assets and financial liabilities

Financial assets

The group's financial assets are classified into the groups "Financial assets valued at amortized cost" and "Financial assets valued at fair value through profit or loss". Classification takes place based on the purpose of acquisition of financial assets, and they are

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

classified in connection with the initial acquisition. All purchases and sales of financial assets are recorded on the transaction date. Financial assets are derecognised from the balance sheet when the group has lost its contractual right to cash flows or when it has transferred significant parts of risks and profits outside the group.

Cash and cash equivalents

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

Financial liabilities

Group's financial liabilities are classified in the groups "Accounts payable," "Other short-term payables," "Loans," "Factoring dept," "Lease liabilities". Transaction costs are included in financial liabilities' initial carrying amount. Later all financial liabilities are recognized at amortized cost. The difference between the money received (less transaction costs) and the amount to be repaid is entered in the income statement using the effective interest method over the loan period. Financial liabilities are included in non-current and current liabilities.

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

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

Impairment of financial assets

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

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

Shareholders' equity

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

Provisions

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

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

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

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

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

Accounting estimates and assumptions

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

Goodwill impairment testing

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

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

Recognition of deferred tax assets

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 2023 tax year.

Deferred tax assets are presented in Note 8.

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

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

Inventories

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

More information on inventories is presented in Note 14.

Application of IFRS 16 Leases

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

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

Application of new or revised IFRS and IAS standards

The IASB has issued amendments to IAS in January 2020 and in February 2022. According to IAS 1, to classify a liability as non-current, an entity must have the right to defer settlement of the liability for at least twelwe months after the reporting period.

Non-Current Liabilities with Covenants - Amendments to IAS 1, effective January 1, 2024.:

Covenants of loan arrangements which an entity must comply with only after the reporting date do not affect theclassification of a liability as current or non-current at the reporting date. However, those covenents that an entity is required to comply with on or before the reporting date would affect classification as current or non-current, even if the covenant is only assessed after the entity's reporting date. The amendments introduce additional disclosure requirements on loans which contain covenants including:

a) the carrying amount of the liability

b) information about the covenants, and

c) facts and circumstances, if any, that indicate that the entity may have difficulty complying with the covenents.

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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. NET SALES INFORMATION

The Group manufactures and provides high-tech PCB trading services for the electronics industry. Aspocomp's net sales are based solely on product sales. All revenues are recognized in accordance with the terms of 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	2023		2022
Net sales
Telecommunication	3,262	10%	4,751	12%
Automotive	7,703	24%	6,836	17%
Industrial Electronics	3,611	11%	6,082	16%
Security & Defence & Aerospace	5,961	18%	5,531	14%
Semiconductor industry	11,765	36%	15,914	41%
Total	32,301	100%	39,114	100%
Geographical areas
Net sales by geographical area
Finland	5,623	17%	6,303	16%
Europe	21,910	68%	26,392	67%
Other areas	4,768	15%	6,419	16%
Total	32,301	100%	39,114	100%

The share of the five largest customers in the net sales		55%		53%

Order book	10,457		14,286

Net sales by largest customers
Customer 1	7,045	22%	7,695	20%
Customer 2	4,699	15%	5,633	14%
Customer 3	1,564	5%	4,169	11%
Customer 4	1,229	4%	1,781	5%
Customer 5	1,314	4%	1,587	4%
Five (5) largest customers, total	15,851	49%	20,864	53%

2. OTHER OPERATING INCOME

EUR 1,000	2023	2022
Gains on sale of fixed assets	56	0
Other operating income	10	5
Total	65	5

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3. MATERIALS AND SERVICES

EUR 1,000	2023	2022
Purchase of materials and supplies	14,705	17,917
Change of inventories	517	-928
Materials and services, total	15,222	16,988
Outsourced services	846	1,101
Total	16,068	18,089

4. PERSONNEL EXPENSES

EUR 1,000	2023	2022
Wages and salaries	7,932	7,937
Share-based rewards	0	43
Other long-term employee benefits	-15	0
Pension costs - defined contribution plans	1,212	1,243
Other personnel expenses	441	418
Total	9,569	9,641

Personnel, average	164	145

Personnel at Dec. 31
Blue-collar	106	100
White-collar	57	56
Total	163	156

5. EMPLOYEE BENEFITS

EUR 1,000	2023	2022
Obligation at the beginning of the year	67	66
Increases during the financial year	23	8
Realized during the financial year	-39	-8
Obligation at the end of the year	50	67

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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. EMPLOYEE BENEFITS (CONTINUES)

PENSION OBLIGATIONS

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

The defined benefit plans are used in Finland. 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	2023	2022
Defined benefit obligation	1,030	1,055
Fair value of plan assets	757	763
Net liability, Dec. 31	273	292

Defined benefit pension liabilities in the income statement and comprehensive income statement::
Current service cost	2	3
Interest cost	10	4
Defined benefit expenses recognized in the income statement	12	6
Changs in acturial gains and losses	0	0
Defined benefit expenses recognized in the income statement and comprehensive	12	6
income statement
Change in net liability for defined benefit
Net liability for defined benefit, Jan.1.	292	401
Contributions paid to the fund	-46	-17
Expenses recognized in the income statement	12	6
Reameasurement gain (-)/ loss included in the consolidated income statement	15	-99
Net liability for defined benefit, Dec. 31	273	292

Acturial assumptions	2023	2022
Discount rate	3.75%	3.70%
Future pension increase	2.70%	2,85%

AS PO C O M P 2 0 2 3

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. EMPLOYEE BENEFITS (CONTINUES)

PENSION OBLIGATIONS

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%	-5.3 %	5.9 %
Future pension increase	0.25%	2.6 %	-2.4 %
Mortality change	5.00%	-1.4 %	1.5 %
Assumption fair value of plan assets	Change in assumtion	Impact of increase	Impact of decrease
Discount rate	0.50%	-4.4 %	4.8 %
Future pension increase	0.25%	0.0 %	0.0 %
Mortality change	5.00%	-1.2 %	1.2 %

6. OTHER OPERATING EXPENSES

EUR 1,000	2023	2022
Rental expenses	176	72
Maintenance and repair costs	995	971
Energy costs	602	666
Water consumption and wastewater treatment	284	312
Other variable expenses of production	589	626
Voluntary social costs	323	285
Real estate costs	646	489
Insurance charges	221	174
Travel costs	211	153
IT costs	454	363
External services	885	427
Audit fees	76	78
Administration costs	395	413
Other costs	210	194
Total	6,065	5,223

Authorized Public Accountants' (PwC Ltd) fees	2023	2022
Auditing	61	63
Tax consultation	0	0
Certificates and statements	1	1
Other services	14	14
Total	76	78

AS PO C O M P 2 0 2 3

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7. FINANCIAL INCOME AND EXPENSES

EUR 1,000	2023	2022
Income
Interest income on loans and other receivables	8	6
Total financial income	8	6

Expenses
Interest expenses on bank loans and overdrafts	274	104
Total financial expenses	274	104
Total financial income and expenses	266	98

8. INCOME TAXES

EUR 1,000	2023	2022
Current income tax
Current income tax for the year	-25	-20
Current income tax for previous years	13	0
Deferred income tax	382	-839
Total current income tax	370	-859

A reconciliation of the income tax expense computed at statutory rates and income tax
expense recorded in the income statement
Profit before tax	-2,009	4,404
Taxes at Finnish statutory tax rate 20.0%	369	-860
Different tax rates of foreign subsidiaries	1	1
Non-deductible expenses	0	0
Total income tax expense	370	-859

The taxable income of the Group companies for 2023 was EUR -58 thousand. If the result for 2023 is confirmed in taxation, the total amount of confirmed losses would be EUR 4,261 thousand. After the taxes for 2022 have been confirmed, the remaining losses amount to EUR 4,203.

Foreign subsidiaries do not have significant distributable funds.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. INCOME TAXES (CONTINUES)

Deferred income taxes	2023	2022
Deferred income tax liabilities
- Deferred income tax liabilities due after 12 months	0	0
- Deferred income tax liabilities due within the next 12 months	36	57
	36	57
Deferred income tax assets
- Deferred income tax assets due after 12 months	4,513	4,972
	4,513	4,152

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, 2022	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
Recognized in net profit for the year	-21	-21
Recognized in comprehensive income for the year
Recognized directly in equity
Dec. 31, 2023	36	36

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. INCOME TAXES (CONTINUES)

Deferred income tax assets	From dece lerated tax depreciation	Tax losses	Empoyee benfits	Others	Total
Jan. 1, 2022	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
Recognized in net profit for the year	357	12	-7	0	361
Recognized in comprehensive income for the year
Recognized directly in equity
Unrecognized portion of the change
Dec. 31, 2023	3,597	852	65	0	4,513

The deferred tax asset results mainly from the slowed tax depreciation and goodwill amortization in taxation in the financial year 2023. A deferred tax asset of EUR 852 thousand has been recognized on the company's tax result. The company decelerated its tax depreciation during the 2015-2022 tax years.

In the 2023 tax year, the company will decelerate depreciation to a total of about EUR 18.0 million, resulting in deferred tax assets of about EUR 3,597 thousand under the current 20.0% corporate tax rate.

9. EARNINS PER SHARE

EUR 1,000	2023	2022
(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	-1,637	3,545
Weighted average number of shares (1,000)	6,841	6,841

(b) Diluted earnings per share

Diluted earnings per share are calculated by adjusting the weighted average number of shares outstanding such that all dilutive potential shares are considered to be traded shares. There were no diluting effects in 2023 and 2022.

AS PO C O M P 2 0 2 3

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10. INTANGIBLE ASSETS

EUR 1,000	Intangible rights	Group goodwill	Total
Acquistion costs at Jan. 1, 2023	910	3,000	3,910
Increase	196	0	196
Decrease	0	0	0
Transfers between lines	0	0	0
Acquisition costs at Dec. 31, 2023	1,106	3,000	4,106
Total accumulated depreciation and impairment Jan. 1, 2023	601	0	601
Accumulated depreciation of decreases and transfers	0	0	0
Depreciation for the year	157	0	157
Total accumulated depreciation and impairment Dec. 31, 2023	758	0	758
Book value Dec. 31, 2023	348	3,000	3,348

Acquisition 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

The principles of the impairment testing of goodwill are presented in Note 24.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

EUR 1,000	Land and water areas	Buildings and structu res	Mach inery and equip ment	Advances	Total
Acquistion costs at Jan. 1, 2023	168	1,734	22,472	489	24,863
Increase	0	100	1 796	60	1 956
Decrease	0	0	-384	0	-384
Transfers between lines	0	0	489	-489	0
Acquisition costs at Dec. 31, 2023	168	1,834	24,372	60	26,435
Total accumulated depreciation and impairment Jan. 1, 2023	31	463	17,761	0	18,254
Accumulated depreciation of decreases and transfers	0	0	-384	0	-384
Depreciation for the year	8	131	1,730	0	1,869
Total accumulated depreciation and impairment Dec. 31, 2023	38	594	19,106	0	19,739
Book value Dec. 31, 2023	130	1,240	5,266	60	6,696

Acquisition 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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12. RIGHT-OF-USE ASSETS

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, 2023	168	2,445	2,613
Increase	0	47	47
Decrease	0	0	0
Acquisition costs at Dec. 31, 2023	168	2,492	2,660
Total accumulated depreciation and impairment Jan. 1, 2023	31	1,941	1,971
Accumulated depreciation of decreases and transfers	0	0	0
Depreciation for the year	8	173	173
Total accumulated depreciation and impairment Dec. 31, 2023	31	2,114	2,144
Book value Dec. 31, 2023	138	378	515

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

LEASE LIABILITIES

EUR 1,000	2023	2022
Lease liabilities
Short term	192	242
Long term	344	412
Total	535	653

AS PO C O M P 2 0 2 3

NOTES TO THE CONSOLILDATED FINANCIAL STATEMENTS

13. FINANCIAL ASSETS AND LIABILITIES

EUR 1,000	2023	2022
Financial assets
Financial assets at amortized cost
Accounts receivable	4,689	8,704
Other cash and cash equivalents at amortized cost
Cash and cash equivalents	1,322	1,410
Financial assets recognized at fair value through profit or loss
Shares	95	95
Total	6,106	10,208

EUR 1,000	2022	2022
Financial liabilities
Liabilities at amortized cost
Loans	1,428	2,419
Factoring debt	0	0
Lease liabilities	535	653
Total	1,963	3,073

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14. INVENTORIES

EUR 1,000	2023	2022
Materials and supplies	3,045	3,562
Work in progress	1,663	1,711
Finished goods	538	862
Total	5,247	6,136

Write down of inventories	194	151

15. SHORT-TERM RECEIVABLES AND OTHER RECEIVABLES

EUR 1,000	2023	2022
Short-term receivables
Trade receivable	4,689	8,704
Accrued receivables	142	552
Other receivables	142	468
Total	4,972	9,723

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		3,327	0.4	-13	3,314	6,413	0.4	-22	6,391
Expired
	in less than 30 days	610	1.5	-9	601	1,230	1.3	-16	1,214
	in 30-60 days	147	2.7	-4	143	833	2.6	-21	812
	in 61-90 days	35	4.2	-1	33	156	3.8	-6	150
	over 90 days	630	5.5	-33	598	144	5.2	-7	137
Total		4,749		-60	4,689	8,775		-72	8,704

NOTE TO THE CONSOLIDATED FINANCIAL STATEMENTS

15. SHORT-TERM RECEIVABLES AND OTHER RECEIVABLES (CONTINUES)

EUR 1,000	2023	2021
The breakdown by currencies of short-term receivables
EUR	1,732	5,205
USD	2,957	3,499
Total	4,689	8,704

The company's business is mainly carried out at Aspocomp Group Plc. Accounts receivable are denominated in euros or USD. The euro is Aspocomp Group Plc's functional currency, due to which USD-denominated receivables pose an exchange rate risk, which is partially offset by the currency risk caused by USD-denominated accounts payable. The breakdown of accounts receivable into receivables denominated in euros and USD is shown in the table below. More information on exchange rate risk and its management is provided in Note 25.

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 60 thousand has been recognized.

16. CASH AND EQUIVALENTS

EUR 1,000	2023	2022
Cash and bank accounts	1,322	1,410
Total	1,322	1,410

On the balance sheet date, cash and cash equivalents totaled EUR 900 thousand in Finland and EUR 420 thousand in other countries. Cash and cash equivalents were primarily held in bank accounts.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

17. FINANCIAL LOANS

EUR 1,000	2023		2022
	Book value	Fair value	Book value	Fair value
Long-term financing loans
Bank borrowings	436	436	1,427	1,427
Lease liabilities	344		412
Total	780		1,839

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.

Financial leasing

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%	2.0%

Short-term financing loans
Bank borrowings	992	992
Lease liabilities	192	242
Factoring-debt	1	0
Total	1,184	1,234

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

Bank loans

Aspocomp had a EUR 4 million credit facility costing 5.15 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.

AS PO C O M P 2 0 2 3

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

17. FINANCIAL LOANS (CONTINUES)

The breakdown of the maturity of payables EUR 1,000

Dec. 31, 2023	Balance sheet value	Cash flow	12 months	1-2 years	2-5 years	Over 5 years
Bank borrowings
Principal	1,428	1,428	992	436	0	0
Paid interest expenses		21	19	2	0	0
Lease liabilities
Principal	535	535	192	301	43	0
Paid interest expenses		19	7	11	1	0
Factoring debt	1	1	1	0	0	0
Trade and other pay	5,102	5,102	5,102	0	0	0
ables
Total	7,066	7,106	6,313	750	44	0

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 ables	6,142	6,142	6,142	0	0	0
Total	9,215	9,295	7,409	1,404	482	0
Trade and other payables EUR 1,000					2023	2022
The breakdown by currencies of accounts payable
EUR					1,723	1,892
GBP					10	29
CHF					4	8
CNY					117	117
SEK					0	0
USD					1,795	1,872
Total					3,649	3,918

The company's business is mainly carried out at Aspocomp Group Plc. Accounts payable are created at the Plc level, due to which they pose an exchange rate risk for the group when they are denominated in currencies other than the euro. The amounts of accounts payable by currency are presented in the table below. The biggest exchange risk arises from accounts payable denominated in USD, which is partially offset by exchange rate risk caused by trade receivables denominated in USD (see Note 15).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

17. FINANCIAL LOANS (CONTINUES)

Other payables
Personnel expenses	1,265	1,920
Accrued interest on loans	12	6
Total	1,276	1,926

18. STATEMENT OF CHANGES IN INTEREST-BEARING LIABILITIES

EUR 1,000	Long-term interest-bearing liabilities	Short-term interest-bearing liabilities	Total interest-bearing liabilities
Liabilities December 31, 2022	1,839	1,234	3,073
Loan withdrawals (cash flow)	0	0	0
Lease debt withdrawals (other change)	197	6	203
Loan payments (cash flow)	-992	0	-992
Lease debt payment (cash flow)	-265	-56	-321
Factoring loan payment (cash flow)	0	0	0
Liabilities December 31, 2023	780	1,184	1,963

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

19. NET FOREIGN EXCHANGE GAINS/LOSSES

EUR 1,000	2023	2022
The exchange differences charged/credited to the income statement
Other operating costs	39	-10
Financial expenses	69	-17
Total	108	-27

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

20. CONSTINGENCIES AND COMMITMENTS

EUR 1,000	2023	2022
Other rental payables
Minimum rents of other rent agreements that cannot be terminated
Within one year	103	70
After one year but not more than five years	0	0
More than five years	0	0
Total	103	70

Contingent liabilities
Guarantees
Business mortage	6,000	6,000
Special pledge commitment as collateral note for Handelsbanken's loan	1,200	1,200
Guaranteed contingent liability towards the Finnish Customs	35	35
Total	7,235	7,235

EUR 6 million corporate mortgages are collateral for the loans.

21. ADJUSTMENTS TO CASH FLOW FROM OPERATING ACTIVITIES

EUR 1,000	2023	2022
Non-cash transactions
Depreciation	2,026	1,903
Others	243	24
Non-cash transactions, total	2,269	1,927

Other adjustments
Sales profit	-56	0
Taxes	-370	859
Other adjustments, total	-425	859

Change in net working capital
Change in receivables	4,751	-313
Change in inventories	889	-1,169
Change in trade and other payables	-488	-1,089
Total	5,152	-2,571

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

22. RELATED-PARTY DISCLOSURES

EUR 1,000	2023	2022
Aspocomp Group Plc's related parties include subsidiaries, members of the
Board of Directors, the CEO and members of the Management Team, as well as
close family members of key persons in the company's management, as well as
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	322	292
Options	0	0
Pension costs, defined contribution plans	57	42
Other Management Team
Salaries and fringe benefits	546	526
Share-based payment	0	0
Pension costs, defined contribution plans	97	80
Fees of members of the Board
Ms. Päivi Marttila, Chairman of the Board	42	42
Ms. Kaarina Muurinen, Vice Chairman (as of March 26, 2015)	26	26
Mr. Jukka Huuskonen (member as of April 13, 2021)	21	21
Mr. Anssi Korhonen (member as of April 13, 2021)	21	21
Total remunerations of the members of the Board	110	110
Management's total employment benefits	1,022	939

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, 2023	Dec. 31, 2022
Members of the Board	44,931	40,697
CEO	390,000	390,000
Other management	15,711	15,711
Total shareholdings	450,642	446,408
Votes conferred by shares	6,6 %	6,5 %

	2023	2022
The amount of dividends paid to management	95	66
Compensation recieved by key management personnel
Short-term employment benefits	166	133
Long-term benefits	0	0
Share-based payments	0	0

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

23. SHARE-BASED PAYMENTS

PSP 2022-2024

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.

PSP 2023-2025

During the financial year 2023 the Board of Directors of Aspocomp Group Plc has approved 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"). 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 second performance period, PSP 2023-2025, commenced as of the beginning of 2023

Plan Performance Share Programme 2023
Instrument	PSP 2022-2024	PSP 2023-2025	Total/ Weighted average
Maximum amount, pcs	92,000	91,000	183,000
Initial allocation date	2.9.2022	03.03.2023
Vesting date	30.4.2025	30.04.2026
Maximum contractual life, yrs	2,7	3,2	2,95
Remaining cotractual life, yrs	1,3	2,3	1,8
Number of persons at the end of reporting year	20	23
Payment method	Cash and equity (not settlement)	Cash and equity (not settelement)
Changes during period	PSP 2022-2024	PSP 2023-2025	Total
1.1.2023
Outstanding in the beginning of the period	92,000	0	92,000
Changes during period
Granted	0	90,000	90,000
Forfeited	3,000	0	3 000
Exercised	0	0	0
31.12.2023
Outstanding at the end of period	89,000	90,000	179,000

Share-based incentives during the period 1.1.2023-31.12.2023

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

23. SHARE-BASED PAYMENTS (CONTINUES)

Fair value determination

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.

Valuation parameters for instruments granted during the period

Share price at grant, €	6,8
Share price at reporting period end, €	3,83
Expected volatility	40,55 %
Maturity, years	3
Risk-free rate	3,14 %
Expected dividends, €	0,86
Valuation model	Monte Carlo
Fair Value	6,4235

* Expected volatility was determined by calculating the historical volatility of the Group`s share using monthly observations over corresponding maturity

Effect of Share-based Incentives on the result and financial position in 2023

Expenses for the financial year, share-based payments, EUR 1,000	66,412
Expenses for the financial year, share-based payments, equity-settled, EUR 1,000	66,708
Liabilities arising from share-based payments 31.12.2023, EUR 1,000	66
Estimated amount of the settlement of the employee tax obligation 31.12.2023, EUR 1,000	21,544

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24. IMPAIRMENT TESTING

EUR 1,000	2023	2022
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 10,9 million, and thus goodwill was not impaired in 2023 (EUR 19.4 million in 2022).

Key variables and assumptions used in impairment testing	2023	2022
Annual growth in net sales is based on the budget approved by management for the years	13.3%	6.3%
2024-2027. The growth rate after the end of the forecast period is assumed to be one (2)
precent.
The sales margin is based on the average budgeted margin for the forecast period	37%	39%
The discount rate is set using the weighted average cost of capital (WACC), which descri	11.6%	10.3%
bes the total cost of equity and liabilities, accounting for the specific risks of asset items.
The discount rate is determined before taxes.

Investments during the period under review are based on the strategic investment plan approved by management.

Sensitivity analysis of impairment testing

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	-3.1%	- 16.4 ppts
Average sales margin	31.0%	- 6.4 ppts
Discount rate	14.7%	+ 3.1 ppts

Assumptions concerning the discount rate	2023	2022
Risk-free market yield	2.6 %	3.1%
Gearing target (average based on an industry analysis)	9.5 %	9,5%
Equity market risk premium (EMRP)	8.0 %	6,0%
Additional risk premium for small companies with no liquid assets	2.0 %	2,0%
Loan margin	2.1 %	2,1%
Weighted average cost of capital (WACC)	11.6 %	10.3%

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25. FINANCIAL RISK MANAGEMENT

EUR 1,000

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

Liquidity risk

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

At the end of the financial year 2023, the nominal value of interest-bearing liabilities was EUR 2.0 million. Gearing was 3.4 percent (7.6%) and equity ratio was 71.7 percent (69.4%).

The company has a credit facility of EUR 4.0 million, of which EUR 0.0 milloin was in use at the end of the financial year 2023. The credit facility is binding.

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 2024. 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 4.0 million credit facility, of which EUR 0.0 million was in use as at December 31, 2023, and a recourse factoring agreement, of which EUR 0.0 million was in use at the end of the review period. The company's interest-bearing liabilities are subject to the usual financial covenants related to the following ratios: the company's equity ratio and the ratio of interest-bearing liabilities to EBITDA. At the time of closing the accounts, the book value of interest-bearing liabilities subject to covenant terms was EUR 1,963 million. The covenant term for the ratio of interest-bearing liabilities to EBITDA was broken in the 2023 financial statements, but in 2023 the financiers granted a waiver for the financial year 2023.

Capital management

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

Interest rate risk

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 market interest rate when withdrawing the loan was -0.253%.

Foreign currency risk

The Group's production activities are carried out in Finland. In addition, the Group has subsidiaries in Germany and China. The Group's main currency is the euro and 37 percent of the Group's receivables are denominated in euros. The breakdown by currencies of the receivables is presented in Note 15. All the Group's long-term liabilities are denominated in euro. At the end of the year, 47 percent of the short-term debts were denominated in euros.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25. FINANCIAL RISK MANAGEMENT (CONTINUES)

EUR 1,000

Calculation of exchange rate risk sensitivity

Change in exchange rate
EUR 1,000	Gross	-10%	+ 10%
USD/EUR	1,203	-169	138
SEK/USD	0	0	0
CHF/EUR	-3	3	-3
GBP/EUE	-10	3	-3
	1,190	-163	132

Credit risk

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

The five largest customers accounted for 55% of net sales (53% in 2022). During the financial year were recorded credit losses of EUR 0.0 million .

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

26. NOTES TO THE CONSOLIDATED CHANGES IN EQUITY

EUR 1,000

	Number of shares
Jan. 1, 2022	6 ,841,440
Dec. 31, 2022	6,841,440
Jan. 1, 2023	6,841,440
Dec. 31, 2023	6,841,440

Share capital

Aspocomp Group Plc. has one share series. The maximum number of shares is 6,841,440 (6,841,440 shares in 2022). All issued shares are fully paid.

Treasury shares

The treasury share fund includes the treasury shares owned by the parent company, measured at acquisition cost. At the end of the fiscal years 2022 and 2023, the company did not hold any treasury shares.

Reserve for invested unrestricted equity

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

Payment of dividends

The Board of Directors will propose to the Annual General Meeting that no dividends be paid.

AS PO C O M P 2 0 2 3

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

27. EVENTS AFTER THE FINANCIAL PERIOD

On January 17, 2024 Aspocomp announced that Shareholder's Nomination Board have submitted to the Board of Directors ist proposals to the 2024 Annual General Meeting. The Shareholder's Nomination Board proposes to the Annual General Meeting that the current members of the Board of Directors Ms. Päivi Marttila, Ms. Kaarina Muurinen, Mr. Jukka Huuskonen and Mr. Anssi Korhonen be re-elected as members to the Board of Directors. In addition the Nomination Board proposes that the number of members of the Board be five and that Ville Vuori be elected as a new member of the Board of Directors. The Nomination Board proposes to the inaugural meeting of the Board of Directors to be held after the Annual General Meeting that Ms. Päivi Marttila is re-elected as chairman of the Board of Directors. The Shareholders' Nomination Board proposes to the Annual General Meeting that the amount of remuneration payable to the Board of Directors remain the same as in the ending term and that Board Members be thus compensated as follows: EUR 30,000 for the chairman of the Board of Directors, EUR 20,000 for the vice chairman, and EUR 15,000 for each of the other members in remuneration for their term of office. The Nomination Board further proposes that EUR 1,000 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 Nomination Board also proposes that the members of the Board of Directors be reimbursed for reasonable travel costs. The Nomination Board further proposes that earning-related pension insurance contributions are paid voluntarily for the paid remuneration.

PARENT COMPANY FINANCIAL STATEMENTS, FAS

PARENT COMPANY INCOME STATEMENT (FAS)

€	Note	1.1.-31.12.2023	1.1.-31.12.2022
Net sales	1.1	31,970,782.63	39,122,565.93
Change in finished goods and work in progress		-406,093.97	76,535.76
Other operating income	1.2	65,350.83	3,670.69
Materials and services	1.3	-15,677,843.41	-18,057,814.93
Personnel costs	1.4	-9,137,310.63	-9,220,848.88
Depreciation and write-downs	1.5	-1,999,648.34	-2,868,664.25
Other operating expenses	1.6	-6,412,289.68	-5,675,726.69
Operating loss		-1,597,052.57	3,379,717.63
Financial income and expenses	1.7	-261,395.26	-91,516.49
Profit/loss before appropriations and taxes		-1,858,447.83	3,288,201.14
Income tax	1.8	-1,778.15	-15,971.00
Profit/loss for the year		-1,860,225.98	3,272,230.14

PARENT COMPANY FINANCIAL STATEMENTS, FAS

PARENT COMPANY BALANCE SHEET (FAS)

Assets	Liite	31.12.2023	31.12.2022
Non-current assets
Intangible assets	2.1	371,670.32	308,607.83
Property, plant and equipment	2.2	6,086,168.47	5,966,978.22
Right-of-use assets	2.3	479,883.38	634,265.66
Investments	2.4	207,166.94	207,166.94
Total non-current assets		7,144,889.11	7,117,018.65

Current assets
Inventories	2.5	5,242,816.76	6,165,909.39
Short-term receivables	2.6	4,691,377.43	9,136,946.27
Cash and cash equivalents		865,303.69	899,304.71
Total current assets		10,799,497.88	16,202,160.37
Total assets		17,944,386.99	23,319,179.02



Liabilities and shareholders' equity
Shareholders' equity	2.7
Share capital		1,000,000.00	1,000,000.00
Reserve for invested unrestricted equity		3,027,278.78	3,025,219.78
Retained earnings		5,080,962.73	3,245,434.99
Net profit/loss for the period		-1,860,225.98	3,272,230.14
Total shareholders' equity		7,248,015.53	10,542,884.91

Liabilities
Long-term liabilities	2.8	755,728.80	1,839,301.27
Short-term liabilities	2.9	9,940,642.66	10,936,992.84
Total liabilities		10,696,371.46	12,776,294.11
Total liabilities and shareholders' equity		17,944,386.99	23,319,179.02

AS PO C O M P 2 0 2 3

PARENT COMPANY FINANCIAL STATEMENTS, FAS

PARENT COMPANY CASH FLOW STATEMENT (FAS)

€	1.1.-31.12.2023	1.1.-31.12.2022
Cash flow from operations
Operating profit/loss	-1,860,225.98	3,272,230.14
Adjustments
Non-cash transactions	2,159,970.78	2,875,431.21
Change in working capital	4,978,905.39	-2,491,249.19
Paid interest expenses	-192,104.28	-113,411.85
Received interest income	7,414.56	4,710.84
Taxes	-12,302.19	-14,950.87
Net cash flow from operations	5,081,658.28	3,532,760.28

Cash flow from investing activities
Purchase of tangible and intangible assets	-2,570,645.78	-2,523,055.76
Proceeds from sale of tangible and intangible assets	55,562.81	0.00
Net cash flow from investing activities	-2,515,082.97	-2,523,055.76
Net cash flow before financing	2,566,575.31	1,009,704.52

Cash flow from financing activities
Loans drawn down	75,638.76	169,621.78
Loans repaid	-991,578.96	-991,578.96
Decrease in lease liabilities	-228,415.85	-574,032.00
Payments of dividends	-1,436,639.24	-1,026,171.45
Net cash flow from financing activities	-2,580,995.29	-2,422,160.63
Change in cash and cash equivalents	-14,419.98	-1,412,456.11
Effects of exchange rate changes on cash and cash equiva lents	-19,581.04	128,038.56
Cash and cash equivalents at the beginning of period	899,304.71	2,183,722.26
Cash and cash equivalents at the end of period	865,303.69	899,304.71

NOTES TO THE FINANCIAL STATEMENTS OF THE PAREN COMPANY, FAS

ACCOUNTING PRINCIPLES OF THE PARENT COMPANY

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

Tangible and intangible assets

INTANGIBLE ASSETS

Goodwill

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

Research and development expenditure

The company does not engage in actual product development. Research and development expenditure represents general development of the production process that cannot be directly allocated to any customer order, but which does not fulfill the capitalization criteria. 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.

Software

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

Intangible rights

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

The estimated useful lives of intangible assets are:

• Intangible rights 3 - 10 years.

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

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

•	Buildings and structures	15 – 30 years
•	Machinery and 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.

Impairment of tangible and in tangible assets

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

se cash flows can be separated out from other cash flows.

Presentation of asset grants

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

Financial assets and financial liabilities

Financial assets

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. Financial assets at fair value through profit or loss during the disclosed periods only include investments in unquoted shares whose acquisition cost is substantially equal to their fair value (based on, for instance, recent transactions). The markets for said shares are inactive and the company does not intend to divest itself of these shares in the near future.

Cash and cash equivalents

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

Financial liabilities

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

Impairment of financial assets

The Group applies a simplified procedure for the recognition of expected credit losses in accordance with IFRS 9, whereby all trade receivables and contractual assets are recognized over the life of the loan. For the purposes of de-

NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY

termining expected credit losses, trade receivables and contractual assets are grouped based on common credit risk characteristics and late payment.

Net sales

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

Research and development expenditure

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

Extraordinary income and expenses

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

Provisions

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

Pension arrangement

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

Items denominated in foreign currencies

Taxes

Taxes on the company's financial results for the period, adjustments of taxes from previous periods and the change in deferred taxes are recorded as the Group's taxes. The deferred tax asset or liability is calculated on all temporary differences between carrying amounts and taxable values, applying the tax rates confirmed on the closing date. Deferred tax assets are recognized from confirmed losses 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.

NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY

1.1 NET SALES BY GEOGRAPHICAL AREA

€	2023	2022
Europe	28,240,227.16	32,735,157.76
Rest of the world	3,730,555.47	6,387,408.17
Total	31,970,782.63	39,122,565.93

1.2. OTHER OPERATING INCOME

€	2023	2022
Gains on sale of tangible assets	55,562.81	0.00
Other income	9,788.02	3,670.69
Total	65,350.83	3,670.69

1.3 MATERIALS AND SERVICES

€	2023	2022
Purchase during accounting period	14,314,553.11	17,885,341.23
Change in inventories	516,998.66	-928,498.00
Subcontracting (external services)	846,291.64	1,100,971.70
Total	15,677,843.41	18,057,814.93

1.4 NOTES ON PERSONNEL AND MEMBERS OF ADMINISTRATIVE BODIES

€	2023	2022
Personnel costs
Salaries and wages	7,494,925.33	7,589,433.94
Pension costs	1,246,254.58	1,253,258.88
Other personnel costs	396,130.72	378,156.06
Total	9,137,310.63	9,220,848.88

Management salaries and benefits
CEO and Board Members	432,388.40	402,002.60

Personnel at the end of year
Non-office workers	106	100
Salaried employees	52	52
Total	158	152

Personnel on average during the year
Non-office workers	107	92
Salaried employees	53	49
Total	160	141

N OT E S TO T H E F I N A N C I A L STAT E M E N T S O F T H E PA R E N T C O M PA N Y

1.5 DEPRECIATIONS AND WRITE-DOWNS

€	2023	2022
Depreciation of intangible rights	133,239.17	1,103,009.86
Depreciation of machinery and equipment	1,866,409.17	1,765,654.39
Total	1,999,648.34	2,868,664.25

1.6 OTHER OPERATING EXPENSES

€	2023	2022
Rental expenses	164,443.48	58,032.86
Real estate costs	490,422.55	338,970.46
Energy costs	990,361.59	1,057,909.14
IT costs	452,574.20	362,131.45
External services	1,445,821.40	950,371.47
Other expenses	2,868,666.46	2,908,311.31
Total	6,412,289.68	5,675,726.69

Auditor's fees
1. Auditing	61,000.00	63,000.00
2. Tax consultation	0.00	0.00
3. Certificates and statements	1,230.00	14,165.00
4. Other services	14,000.00	1,010.00
Total	76,230.00	78,175.00

1.7 FINANCIAL INCOME AND EXPENSES

€	2023	2022
Interest and other financial income
From group companies	0.00	0.00
From others	7,414.56	4,710.84
Total	7,414.56	4,710.84
Interest and other financial expenses
To group companies	0.00	0.00
To others	268,809.82	96,227.33
Total	268,809.82	96,227.33
Total financial income and expenses	-261,395.26	-91,516.49

1.8 INCOME TAX

€	2023	2022
Branch taxes previous year	-12,648.85	0.00
Branch taxes	14,427.00	15 ,971.00
Total	1,778.15	15,971.00

N OT E S TO T H E F I N A N C I A L STAT E M E N T S O F T H E PA R E N T C O M PA N Y,

2.1 INTANGIBLE ASSETS

2023	Intangible rights	Goodwill	Total
Acquisition cost Jan. 1, 2023	1,434,689.81	13,051,744.81	14,486,434.62
Increase	196,301.66	0.00	196,301.66
Decrease	0.00	0.00	0.00
Acquisition cost Dec. 31, 2023	1,630,991.47	13,051,744.81	14,682,736.28
Accumulated depreciation Jan. 1, 2023	1,126,081.98	13,051,744.81	14,177,826.79
Accumulated depreciation of
decreases and transfers	0.00	0.00	0.00
Depreciation for the year	133,239.17	0.00	133,239.17
Accumulated depreciation Dec. 31, 2023	1,259,321.15	13,051,744.81	14,311,065.96
Book value Dec. 31, 2023	371,670.32	0.00	371,670.32

2022
Acquisition cost Jan. 1, 2022	1,234,977.81	13,051,744.81	14,286,722.62
Increase	199,712.00	0.00	199,712.00
Decrease	0.00	0.00	0.00
Acquisition cost Dec. 31, 2022	1,434,689.81	13,051,744.81	14,486,434.62
Accumulated depreciation Jan. 1, 2022	1,001,952.99	12,072,863.94	13,074,816.93
Accumulated depreciation of
decreases and transfers	0.00	0.00	0.00
Depreciation for the year	124,128.99	978,880.87	1,103,009.86
Accumulated depreciation Dec. 31, 2022	1,126,081.98	13,051,744.81	14,177,826.79
Book value Dec. 31, 2022	308,607.83	0.00	308,607.83

N OT E S TO T H E F I N A N C I A L STAT E M E N T S O F T H E PA R E N T C O M PA N Y

2.2 TANGIBLE ASSETS AND RIGHT-OF-USE ASSETS

2023	Buildings and structures	Land areas	Machinery and equipment	Advance payments & constructions in progress	Total
Acquisition cost Jan. 1, 2023	1,733,994.87	168,065.23	14,231,876.65	488,867.48	16,622,804.23
Increase	100,399.76	0.00	1,671,032.40	59,784.98	1,831,217.14
Decrease	0.00	0.00	-384,300.62	0.00	-384,300.62
Transfers between items	0.00	0.00	488,867.48	-488,867.48	0.00
Acquisition cost Dec. 31, 2023	1,834,394.63	168,065.23	16,007,475.91	59,784.98	18,069,720.75
Accumulated depreciation Jan. 1, 2023	463,137.98	30,557.28	9,527,865.09	0.00	10,021,560.35
Accumulated depreciation of
decreases and transfers	0.00	0.00	-384,300.62	0.00	-384,300.62
Depreciation for the year	131,361.02	7,639.32	1,727,408.83	0.00	1,866,409.17
Accumulated depreciation Dec. 31, 2023	594,499.00	38,196.60	10,870,973.30	0.00	11,503,668.90
Book value Dec. 31, 2023	1,239,895.63	129,868.63	5,136,502.61	59,784.98	6,566,051.85

2022
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

NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY

2.3 RIGHT-OF-USE-ASSETS

Property, plant and equipment include leased as follows:

2023	Land areas	Machinery and equipment	Total
Acquisition cost Jan. 1, 2023	168,065.23	2,407,544.58	2,575,609.81
Increase	0.00	5,848.34	5,848.34
Decrease	0.00	0.00	0.00
Aquisition cost Dec. 31, 2023	168,065.23	2,413,392.92	2,581,458.15
Accumulated depreciation Jan. 1, 2023	30,557.28	1,910,786.87	1,941,344.15
Accumulated depreciation of
decreases and transfers	0.00	0.00	0.00
Depreciation of the year	7,639.32	152,591.30	160,230.62
Accumulated depreciation Dec. 31, 2023	38,196.60	2,063,378.17	2,101,574.77
Book value Dec. 31, 2023	129,868.63	350,014.75	479,883.38

2022
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

N OT E S TO T H E F I N A N C I A L STAT E M E N T S O F T H E PA R E N T C O M PA N Y

2.4 INVESTMENTS

	SHARES		RECEIVABLES	TOTAL
2023	Group companies	Others	Group companies
Book value Jan. 1, 2023	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, 2023	112,234.00	94,932.94	0,00	207,166.94

2022
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

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	420	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

2.5 INVENTORIES

€	2023	2022
Materials and supplies	3,044,959.34	3,561,958.00
Work in progress	1,497,165.00	1,480,395.00
Finished goods	700,692.42	1,123,556.39
Total	5,242,816.76	6,165,909.39

NOTES TO THE FINANCIAL STATEMENTS OF THE PARENT COMPANY

2.6 SHORT-TERM RECEIVABLES

€	2023	2022
Accounts receivable	4,393,344.48	8,197,151.94
Other receivables	141,391.66	467,698.25
Other accrued income	156,641.29	472,096.08
Short-term receivables, total	4,691,377.43	9,136,946.27

2.7 SHAREHOLDERS' EQUITY

€	2023	2022
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	3,025,219.78	3,015,009.82
Increase	2,059.00	10,209.96
Reserve for invested unrestricted equity Dec. 31	3,027,278.78	3,025,219.78

Retained earnings Jan. 1	6,517,665.13	4,271,650.99
Dividends paid	-1,436,702.40	-1,026,216.00
Retained earnings Dec. 31	5,080,962.73	3,245,434.99

Net profit/loss for the period	-1,860,225.98	3,272,230.14

Total balance	7,248,015.53	10,542,884.91

Distributable funds in unrestricted equity	6,248,015.53	9,542,884.91

2.8 NON-CURRENT LIABILITIES

€	2023	2022
Loans from financial institutions
Loans from financial institutions	435,789.43	1,427,368.39
Financial leasing debts	187,789.61	273,361.40
Lease liability	132,149.76	138,571.48
Non-current liabilities, total	755,728.80	1,839,301.27

N OT E S TO T H E F I N A N C I A L STAT E M E N T S O F T H E PA R E N T C O M PA N Y

2.9 CURRENT LIABILITIES

€	2023	2022
Loans from financial institutions
Bank loans	991,578.95	991,578.95
Financial leasing debts	172,488.55	227,672.78
Lease liability	6,421.72	6,240.74
Factoring debt	624.18	493.01
Total	1,171,113.40	1,225,985.48

Accounts payable, other payables and accrued expenses
Accounts payable	3,494,103.74	3,770,966.32
Other payables	164,550.20	171,639.39
Accrued expenses	1,271,547.89	1,937,496.46
Total	4,930,201.83	5,880,102.17

Material items in accrued expenses:
Periodization of personnel expenses	1,105,123.44	1,750,914.35
Interest periodization of loans	11,829.12	4,051.78
Other items	154,595.33	179,935.02
Total	1,271,547.89	1,934,901.15

Liabilities to Group companies
Liabilities to Group companies	3,839,327.43	3,830,905.19
Current liabilities, total	9,940,642.66	10,936,992.84

3.1 CONTINGENCIES AND COMMITMENTS

€	2023	2022
Other rental payables
Minimum rents of other rent agreements that cannot be terminated
Within one year	100,619.53	64,285.52
After one year but not more than five years	2,040.00	5,517.00
More than five years	0.00	0.00
Total	102,659.53	69,802.52

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

THE BOARD OF DIRECTORS' DIVIDEND PROPOSAL AND SIGNATURES

According to the financial statements dated December 31, 2023, the parent company's distributable earnings amounted to EUR 6,248,015.53, of which the retained earnings were EUR 3,220,736.75.

The Board of Directors will propose to the Annual General Meeting to be held on April 18, 2024, that no dividend will be paid for the financial year 2023.

Helsinki, March 13, 2024

Päivi Marttila Kaarina Muurinen

Chair of the Board Vice Chair of the Board

Jukka Huuskonen Anssi Korhonen Member Member

Mikko Montonen President and CEO

THE AUDITOR'S NOTE

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

Helsinki, March 13, 2024

PricewaterhouseCoopers Oy Authorized Public Accountants

Tuukka Kiuru Authorized Public Accountant

AUDITOR'S REPORT

(Translation of the Finnish Original)

To the Annual General Meeting of Aspocomp Group Plc

Report of the Audit of the Financial Statements

OPINION

In our opinion

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

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

What we have audited

We have audited the financial statements of Aspocomp Group Oyj (business identity code 1547801-5) for the year ended 31 December 2023.

The financial statements comprise:

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

BASIS FOR OPINION

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

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

Independence

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

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

AUDITOR'S REPORT

OUR AUDIT APPROACH

Overview

• Overall group materiality: EUR 290,00 (previous year EUR 350,000), which represents 0.9% of net sales 2023

___________________________________________________

Audit scope: The audit scope included the Group parent entity
Revenue recognition

___________________

Valuation of goodwill
Valuation of deferred tax assets

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

Materiality

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

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

Overall group materiality	EUR 290,000 (provious year EUR 350,000)
How we determined it	0.9% of net sales 2023
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.

AUDITOR'S REPORT

How we tailored our group scope

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

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

KEY AUDIT MATTERS

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

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

KEY AUDIT MATTER IN THE AUDIT OF THE GROUP

Revenue recognition

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

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

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

HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER

Our audit procedures included for example the following procedures:

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

Valuation of goodwill

For information on valuation of goodwill refer to Accounting Principles of the Group Financial Statements and Note 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:

We reviewed the estimates of annual increase in net sales and discount rate used in impairment testing, and traced them to budgets approved by the board of directors.
We evaluated and challenged the future cash flow forecasts and discount rate, and reviewed the process of forming those forecasts. We validated the mathematic accuracy of the impairment testing calculations

AUDITOR'S REPORT

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 2023.

We compared the actual results of the year ended with the forecasts used in the impairment testing calculations, and reviewed impairment testing of prior years in view of realization in order to ensure that the management forecasts were not too optimistic e.g. in terms of estimated margins and net sales increase rate.
We reviewed the sensitivity analyses made by the management, which have been prepared by estimating the effects of the increase of net sales, weakening of the gross margin and changes in the discount rate both individually and in aggregate to the results of the impairment testing.

Valuation of deferred tax assets

For information on valuation of deferred tax assets refer to Accounting Principles of the Group Financial Statements and Note 8. Income Taxes

The Group's consolidated balance sheet includes deferred tax assets of € 4.5 million, which were mainly recorded from slowed tax depreciations and from confirmed losses. During the financial year the deferred tax asset balance have remained materially at the same level with previous year. Valuation of deferred tax assets involves inherent management judgement, since utilisation of the tax assets is subject to the company being likely to have taxable income in the future, based on which valuation of deferred tax assets is a key audit matter.

Our audit procedures included for example the following procedures:

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

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

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

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

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

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

AUDITOR'S REPORT

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

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

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

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

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

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

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

AS PO C O M P 2 0 2 3

AUDITOR'S REPORT

Other Reporting Requirements

APPOINTMENT

PricewaterhouseCoopers Oy was first appointed as auditors by the annual general meeting of Aspo Oyj (demerged company liquidated) which decided on the demerger 15.4.1999. Our appointment represents a total period of uninterrupted engagement of 25 years starting from the establishment of Aspocomp Group Oyj 1.10.1999 and the Company has been public interest entity for the whole period.

OTHER INFORMATION

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

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

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

In our opinion

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

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

Helsinki, March 13, 2024

PricewaterhouseCoopers Oy Authorized Public Accountants

Tuukka Kiuru Authorised Public Accountant (KHT)

CORPOR ATE GOVERNANCE / THE BOARD OF DIRECTORS

GOVERNANCE

THE BOARD OF DIRECTORS, DECEMBER 31, 2023

PÄIVI MARTTILA

Chair of the Board

M.Sc. (Econ.), born 1961, Finnish Citizen

Independent member of the Board since 2013 and the Chairman of the Board since 2014

Primary work experience

Sievi Capital Plc, CEO, 2018 –2021, Midagon Oy, CEO, 2012–16, Flextronics Group, VP Sales and Marketing, 2005–2011, Plamec Oy, CEO 2002–2005, QPR Software Oyj, Director and Founder, 1991–2001.

Key positions of trust

Reka Industrial Oyj, Member of the Board, Business Finland Oy, Chairman of the Board.

KAARINA MUURINEN

Vice Chair of the Board

M.Sc. (Econ.), born 1958, Finnish Citizen

Independent member and Vice Chairman of the Board since 2015

Primary work experience

Vaisala Oyj, CFO, 2011–2023, 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.

Key positions of trust

VTT Technical Research Centre of Finland Ltd, Member of the Board.

JUKKA HUUSKONEN

Member of the Board

B.B.A, born 1964, Finnish Citizen Independent member of the Board since 2021

Primary work experience

Admiwin Oy, Partner, CEO, 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.

Key positions of trust

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

ANSSI KORHONEN

Member of the Board

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

Primary work experience

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

CORPOR ATE GOVERNANCE / MANAGEMENT TE AM

THE MANAGEMENT TEAM, DECEMBER 31, 2023

MIKKO MONTONEN

President and CEO

M.Sc. (Tech.), born 1965, Finnish Citizen

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

Primary work experience

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.

ANTTI OJALA

Vice President, COO and Deputy CEO

M.Sc. (Eng.), born 1979, Finnish Citizen

Member of the Management Team as of , October 25, 2013

Primary work experience:

Various positions in Aspocomp Group Plc. since 2003.

ARI BEILINSON

Vice President, Sales and Marketing

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

Member of the Management Team as of April 29, 2019

Primary work experience

Ramboll Finland Oy, Sales and Management positions, 2018, Recright.com, CEO, 2011–2017, iConsulting Finland Oy, CEO and consultant, 2009–2011, SRV Group, EVP, 2006–2009, Nokia Oyj, Sales and Management positions, 1994–2006, IBM, Sales and Management positions, 1988–1994.

JOUNI KINNUNEN

Chief Financial Officer

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.

MITRI MATTILA

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.

GOVERNANCE / INFORMATION FOR SHAREHOLDERS

INFORMATION FOR SHAREHOLDERS

INVESTOR RELATIONS

The Group's investor relations contact is Mikko Montonen, CEO. Tel. +358 20 776 6860, mikko.montonen(at)aspocomp.com.

FINANCIAL INFORMATION 2024

Interim Report for January-March: Thursday, April 18.2024, at around 8:00 (Finnish time)
Half-year report for January-June: Thursday, July 18, 2024, at around 9:00(Finnish time)
Interim Report for January-September: Wednesday, October 30, 2024, at around 9:00 (Finnish time).

ANNUAL GENERAL MEETING 2024

The Annual General Meeting of Aspocomp Group Plc. will be held on Thursday, April 18, 2024 at 10:00 a.m. (Finnish time). The meeting will take place at Keilaranta 1, 1st floor Auditorium, 02150 Espoo, Finland.

Each shareholder, who on the record date of the Annual General Meeting, April 8, 2024, is registered in the shareholders' register of the company held by Euroclear Finland Ltd., has the right to participate in the Annual General Meeting. Each shareholder, whose shares are registered on his/her/its personal Finnish book-entry account, is registered in the shareholders' register of the company.

A shareholder, that is registered in the shareholders' register of the company, who wants to participate in the Annual General Meeting, shall register for the meeting within the period March 14, 2024 – April 15, 2024. The registration must be available at the company at the latest on Monday, April 15, 2024, by 10 a.m. (Finnish time)

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 14, 2024.

PAYMENT OF DIVIDENDS

The Board of Directors will propose to the Annual General Meeting to be held on April 18, 2024, that no dividend will be paid.

GOVERNANCE / CONTACT INFORMATION

ASPOCOMP GROUP OYJ

SALES	Finland	Tutkijantie 11, 90590 Oulu Keilaranta 1, 02150 Espoo	P: +358 20 775 6860 P: +358 20 775 6860
		United Kingdom 8 Second Cross road, TW2 5RF Twickenham	P: +44 776 142 228
	Germany	Am Stadtgraben 1, 79539 Lörrach Paracelsusstrasse 10, 72762 Reutlingen	P: +49 162 718 2619 P. +49 7121 230 902
PRODUCTION		Tutkijantie 11, 90590 Oulu	P: +358 20 775 6860
CHINA OPERATIONS		Room 901B, Building B, Nanxian commercial Plaza, 43# of MeiLong Road, LongHua district, Shenzhen, People's Republic of China (Post code: 518131)	P: +86 755 8376 156 F: +86 755 8376 1766
HEADQUARTERS		Keilaranta 1, 02150 Espoo	P: +358 20 775 6860

AI Terminal

Aspocomp Group Oyj

3301_10-k_2024-03-27_3d4cd3df-ef11-44b9-a271-bc494f74b994.pdf

ANNUAL REPORT 2023

ANNUAL REPORT 2023

REPORT OF THE BOARD OF DIRECTORS

CEO'S REVIEW

MIKKO MONTONEN, President and CEO

REPORT OF THE BOARD OF DIRECTORS

2023 IN BRIEF

NET SALES AND EARNINGS 2023

INVESTMENTS AND R&D

CASH FLOW AND FINANCING

DEFERRED TAX ASSETS

PERSONNEL

ENVIRONMENT

R E PO RT O F B OA R D O F D I R E CTO R S

ANNUAL GENERAL MEETING 2023

The Board of Directors

Dividend

Authorizations given to the Board

Auditor

The Board of Directors' organization meeting

THE MANAGEMENT TEAM DECEMBER 31, 2023

SHARES AND OWNERSHIP STRUCTURE

Number of shares

Share turnover and price

MAJOR SHAREHOLDER ANNOUNCEMENTS IN 2023

CORPORATE GOVERNANCE STATEMENT

REMUNERATION

OUTLOOK FOR 2024

ASSESMENT OF SHORT TERM BUSINESS RISKS

Risks affecting the operating environment

Dependence on key customers

Market trends

THE BOARD OF DIRECTORS' DIVIDEND PROPOSAL

EVENTS AFTER THE FINANCIAL PERIOD

R E PO RT O F B OA R D O F D I R E CTO R S

R E PO RT O F B OA R D O F D I R E CTO R S

Aspocomp 2022-2023 Aspocomp Group OMX Helsinki Small Cap PI Volume 3.0 4.5 6.0 7.5 9.0 EUR 0 100 200 300 400 Shares thousands 2022 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2023 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Aspocomp's share price development and share turnover per month 2022-2023

Ownership structure

Size by holding, December 31, 2023

R E PO RT O F B OA R D O F D I R E CTO R S

Shareholders by sector, December 31, 2023

Shareholders

Shareholders, December 31, 2023

R E PO RT O F B OA R D O F D I R E CTO R S

KEY INDICATORS 2023–2019

* Board proposal

R E PO RT O F T H E B OA R D O F D I R E CTO R S

FORMULAS AND DEFINITIONS

The Alternative Performance Measures (APM) used by the Group

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED BALANCE SHEET

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

CONSOLIDATED FINANCIAL STATEMENTS, IFRS

CONSOLIDATED CASH FLOW STATEMENT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Company information

ACCOUNTING PRINCIPLES OF THE CONSOLIDATED

FINANCIAL STATEMENTS

Basis of preparation

Accounting principles

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Segment reporting

Recognition policies

Dividend income

Conversion of items denominated in currencies other than the euro

Foreign currency transactions

Conversion of the financial statements of foreign subsidiaries

Share-based payments

Employee benefits

Pension liabilities

Long service rewards