Artificial Intelligence
Aspocomp’s Financial Statement Release 2020
Aspocomp Group Plc, Financial Statement Release, March 10, 2021 at 9:00 a.m.
Key figures 10-12/2020 in brief
Key figures 1-12/2020 in brief
OUTLOOK FOR 2021
The COVID-19 pandemic and the restrictions it has caused are having a broad impact on the supply chains of the electronics industry and on customer orders. Due to the major uncertainties related to customer demand, the outlook for 2021 involves a significantly higher risk than normal. Aspocomp estimates that its net sales for 2021 will increase and its operating result for 2021 will improve from 2020. In 2020, net sales amounted to EUR 25.6 million and the operating result to EUR -0.1 million.
“The decline in net sales continued in the last quarter of the year, when demand was lower than expected, especially in the Telecommunications and Automotive segments. Net sales for 2020 amounted to EUR 25.6 million, a year-on-year decrease of 18 percent in total. A balance was achieved in full-year sales between different customer segments.
In the Telecommunications segment, net sales decreased by 60 percent to EUR 5.4 million because customers had lower PCB needs in their product development projects than in the previous year. In addition, Asian PCB mass suppliers have still had overcapacity due to the weaker market situation, which allowed them to exceptionally respond to changing customer needs. The oversupply situation is not expected to ease before the COVID-19 pandemic subsides and the economy recovers.
In the Automotive segment, sales decreased by 27 percent to EUR 5.4 million. The decline in net sales was mainly due to the weak market situation in the European automotive industry at the beginning of the year and the consequent increase in PCB inventories. Inventory levels are expected to return to a normal level at the beginning of the year, but the availability of semiconductor components may weaken and affect the development of the automotive industry. In the Security, Defense and Aerospace segment, sales increased by 107 percent to EUR 5.1 million. During the year, we continued to make significant R&D investments in the segment’s product development and customers’ special requirements. The first phase of the development project to achieve AS9100 defense and aviation quality certification was successfully approved at the Oulu plant. The development project and final certification will be completed in the early months of the year.
The strong growth in the Semiconductor segment leveled off in the last quarter of the year. In 2020, sales of the Semiconductor segment increased by 65 percent to EUR 5.1 million. Growth has been driven particularly by the increased use of remote access devices. Likewise, the rapid development of digitalization is leading to the renewal of artificial intelligence and 5G semiconductor components and increasing their testing needs.
Sales of the Industrial Electronics segment decreased by 9 percent to EUR 4.4 million because COVID-19 restrictions delayed industrial investment.
The year-end order book was at the same level as a year earlier and amounted to EUR 4.4 million.
The operating result in the fourth quarter was clearly lower than in the previous year and amounted to EUR 0.0 million. The operating result was particularly burdened by the decline in net sales and the weaker demand for quick-turn deliveries. The operating result for 2020 remained EUR 0.1 million in the red, including a EUR 0.3 million loan loss provision. The COVID-19 pandemic and the weakened economy continue to make it difficult to assess near-term customer needs. Despite the exceptional circumstances, we have continued to invest in capacity and increased our product development investments in new products and more challenging technologies.”
Impact of the COVID-19 pandemic
Due to the COVID-19 pandemic and the resulting decline in general demand, as well as for financial reasons, some customers have had to postpone or even cancel their orders. Asian PCB mass suppliers have had overcapacity due to the weaker market situation, which allowed them to exceptionally respond to changing customer needs. In the Automotive segment, demand has continued to decline as customers have reduced their inventory levels in line with the weakened demand.
Despite the COVID-19 pandemic, Aspocomp has been able to purposefully expand and grow its customer base and product offering. In the Security, Defense and Aerospace segment, demand has doubled and in the Semiconductor Industry segment, demand has grown over 65 percent.
The company’s production at the Oulu plant has continued normally and delivery capacity has been good. The company has continued to invest in new capacity and increased its product development investments in new products and more challenging technologies. The pandemic has not affected the company’s liquidity. The cash situation has remained good and the credit facilities have not been used. The company has had no need to recognize write-downs of goodwill.
NET SALES AND EARNINGS
October-December 2020 The five largest customers accounted for 43 (59) percent of net sales. In geographical terms, 89 (98) percent of net sales were generated in Europe and 11 (2) percent on other continents.
The operating result for the fourth quarter amounted to EUR -0.0 (0.7) million. Fourth-quarter operating result was -0.8 (8.1) percent of net sales. The operating result was burdened by the decline in net sales and the weaker demand for quick-turn deliveries during the fourth quarter. Net financial expenses amounted to EUR 0.1 (0.1) million. Earnings per share were EUR 0.02 (0.19).
The order book at the end of the review period was EUR 4.4 (4.4) million, which is at the same level as a year earlier.
Financial year 2020 The five largest customers accounted for 41 (58) percent of net sales. In geographical terms, 85 (98) percent of net sales were generated in Europe and 15 (2) percent on other continents.
The full-year operating result amounted to EUR -0.1 (3.4) million, including a EUR 0.3 million loan loss provision. The operating result was weakened by lower net sales and weaker demand for quick-turn deliveries. Net financial expenses amounted to EUR 0.3 (0.1) million. Earnings per share were EUR -0.01 (0.59).
INVESTMENTS
In 2020, investments amounted to EUR 2.0 (3.5) million. The investments were mainly focused on upgrading the capabilities of the Oulu plant, improving automation, and increasing production efficiency. The first phase of the EUR 10 million investment program launched in 2017 was completed in early 2020. The first two years of the investment program focused on enhancing the capabilities of the Oulu plant, particularly in the Semiconductor Industry segment. The goals of the project were successfully achieved: the customer base was strengthened, and the planned technological improvements were implemented.
The investment program continued with its second phase of investments in the spring of 2020. The company was granted a total of EUR 1.35 million in development support by the ELY Center for the implementation of the second phase of its Oulu plant investment, corresponding to about 25 percent of its total cost. No additional plant space will be built; all of the new equipment will be installed in an existing plant building. The second-phase investments will be carried out in the period between 2020 and 2022. The second phase of the investment program aims in particular to increase the capacity of the Oulu plant, improve automation and increase production efficiency. With these investments, the company aims to further strengthen its position as a strategic partner to leading companies in the semiconductor, automotive, defense and aerospace, and telecommunications (5G) industries.
CASH FLOW AND FINANCING Cash flow from operations amounted to EUR 3.7 (4.3) million in 2020.
Cash assets amounted to EUR 2.8 (2.4) million at the end of the period. Interest-bearing liabilities amounted to EUR 5.7 (5.8) million. Gearing was 17 (19) percent. Non-interest-bearing liabilities amounted to EUR 4.1 (5.6) million.
At the end of the period, the Group’s equity ratio amounted to 63.6 (61.3) percent.
The company has a EUR 1.0 (1.0) million credit facility, which was not in use at the end of the review period. In addition, the company has a recourse factoring agreement, of which EUR 0.0 (0.0) million was in use.
DEFERRED TAX ASSETS At the end of the 2020 financial year, the company had EUR 5.0 million in deferred tax assets in its balance sheet. The deferred tax assets are primarily due to decelerated tax depreciation.
PERSONNEL
During the review period, the company had an average of 140 (124) employees. The personnel count on December 31, 2020 was 138 (132). Of them, 87 (80) were blue-collar and 51 (52) white-collar employees.
ANNUAL GENERAL MEETING, THE BOARD OF DIRECTORS AND AUTHORIZATIONS GIVEN TO THE BOARD
The decisions of the Annual General Meeting 2020, the authorizations given to the Board of Directors by the AGM and the decisions relating to the organization of the Board of Directors have been published in separate stock exchange releases on June 9, 2020. Aspocomp’s Annual General Meeting 2021 is scheduled for Thursday, April 13, 2021 at 10:00 a.m. EET. The meeting will be convened by the company’s Board of Directors later.
SHARES
The total number of Aspocomp’s shares at December 31, 2020 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.
Aspocomp Group Plc’s CEO subscribed a total of 130,000 new Aspocomp shares under the company’s 1/2014 stock option terms on March 13, 2020 with the 2014C option rights. After the subscription, the company’s 1/2014 stock option terms and conditions no longer entitle to subscribe for new Aspocomp shares. The new shares were registered in the Trade Register on March 30, 2020. After the registration of the new shares, the total number of Aspocomp Group Plc’s shares increased to 6,834,505. The new shares were incorporated into the book-entry system and admitted to trading on Nasdaq Helsinki in the same class with the company’s other shares on March 31, 2020.
The Board of Directors of Aspocomp Group Plc decided on June 9, 2020 on a directed share issue without payment based on Aspocomp’s Share Reward Plan 2016-2019 for key employees for the performance period 2019. According to the terms and conditions of the Share Reward Plan 2016-2019 and after deduction of the cash payment portions of the remunerations meant for taxes and tax-like contributions, the persons included in the share-based incentive scheme received altogether 6,935 new shares in the company through a directed share issue without payment. The shares were entered in the Trade Register on June 23, 2020. After the registration of the new shares, the total number of Aspocomp Group Plc shares is 6,841,440. A total of 2,530,573 Aspocomp Group Plc. shares were traded on Nasdaq Helsinki during the period from January 1 to December 31, 2020. The aggregate value of the shares exchanged was EUR 10,552,941. The shares traded at a low of EUR 3.20 and a high of EUR 6.20. The average share price was EUR 4.17. The closing price at December 31, 2020 was EUR 3.92, which translates into market capitalization of EUR 26.8 million.
The company had 3,702 shareholders at the end of the review period. Nominee-registered shares accounted for 2.4 percent of the total shares. EVENTS AFTER THE FINANCIAL YEAR The COVID-19 pandemic and the restrictions it has caused are having a broad impact on the supply chains of the electronics industry and on customer orders. Due to the major uncertainties related to customer demand, the outlook for 2020 involves a significantly higher risk than normal. Aspocomp estimates that its net sales will increase and its operating result for 2021 will improve from 2020. In 2020, net sales amounted to EUR 25.6 million and the operating result to EUR -0.1 million.
ASSESSMENT OF SHORT-TERM BUSINESS RISKS
A major share of Aspocomp’s net sales is generated by quick-turn deliveries and R&D series, and thus the company’s order book is short. The company’s aim is to systematically expand its services to cover the PCB needs of customers over the entire life cycle and thereby balance out variations in demand and the order book.
Impact of the COVID-19 pandemic on the electronics supply chain Dependence on key customers Market trends Aspocomp’s main market area comprises Northern and Central Europe. In case Aspocomp’s clients would transfer their R&D and manufacturing out of Europe, demand for Aspocomp’s offerings might weaken significantly.
BOARD OF DIRECTORS’ DIVIDEND PROPOSAL AND ANNUAL GENERAL MEETING
According to the financial statements dated December 31, 2020 the parent company’s distributable earnings amounted to EUR 6,602,810.28, of which the retained earnings were EUR 3,619,383.52.
The Board of Directors will propose to the Annual General Meeting to be held on April 13, 2021, that the Annual General Meeting decide to authorize the Board of Directors to decide, at its discretion, on the distribution of up to EUR 0.07 per share from retained earnings and / or return on invested equity in one or more tranches. It is proposed that the authorization be valid until the beginning of the next Annual General Meeting. The company will publish any Board decision on the distribution of funds separately and at the same time confirms the relevant reconciliation and payment dates. There have been no significant changes in the company’s financial position since the close of the financial period. According to the Board of Directors, the proposed dividend distribution does not endanger the company’s financial standing.
Aspocomp’s Annual Report will be published on Tuesday, March 23, 2021. The Annual Report will include the report of the Board of Directors, the consolidated and the parent company’s financial statements and the Auditors’ Report for the financial year January 1-December 31, 2020. At the same time, the company will release its Corporate Governance Statement. The Annual Report and the Corporate Governance Statement are available on the company’s website at www.aspocomp.com/governance as of March 23, 2021. Aspocomp’s Remuneration Report for Governing bodies 2020 will be published on Wednesday, March 10, 2021. The Remuneration Report is available on the company’s website at www.aspocomp.com/governance as of March 10, 2021. PUBLICATION OF FINANCIAL RELEASES FOR 2021 Interim report January-March 2021: Wednesday, April 27, 2021 The interim and half-year reports will be published at around 9:00 a.m. (EET) on the given date.
Aspocomp’s silent period commences 30 days prior to the publication of its financial information.
Espoo, March 10, 2021
ASPOCOMP GROUP PLC Some statements in this stock exchange release are forecasts and actual results may differ materially from those stated. Statements in this stock exchange release relating to matters that are not historical facts are forecasts. All forecasts involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performances or achievements of the Aspocomp Group to be materially different from any future results, performances or achievements expressed or implied by such forecasts. Such factors include general economic and business conditions, fluctuations in currency exchange rates, increases and changes in PCB industry capacity and competition, and the ability of the company to implement its investment program. ACCOUNTING POLICIES AND CHANGES IN ACCOUNTING POLICES
The reported operations include the Group’s parent company, Aspocomp Group Plc. All figures presented for the review period have been audited. This interim report has been prepared in accordance with IAS 34 (Interim Financial Reporting), following the same accounting principles as in the annual financial statements for 2019; however, the company complies with the standards and amendments that came into effect as from January 1, 2020.
R&D New and revised standards adopted by the Group
Amendments to IAS 1 and IAS 8 Definition of Material The IASB has issued the following new or revised standards and interpretations that the Group has not yet applied. The Group adopts them from the effective date of each standard and interpretation, or, if the effective date is other than the first day of the financial year, from the beginning of the financial year following the effective date.
The IASB has amended IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to use a uniform definition of materiality throughout IRFSs and the Conceptual Framework for Financial Reporting, clarifying when information is material and includes guidance on irrelevant information.
In particular, the amendments clarify:
• that the reference to obscuring information applies to situations where the effect is similar to the omission or misstatement of that information and that the entity assesses materiality in the light of the financial statements as a whole; and
• that “primary users of financial statements for general use” means those to whom the financial statements are addressed and include “many current and potential investors, lenders and other creditors” who are largely required to meet their financial information needs through publicly available financial statements. Any other IFRS or IFRIC interpretation already issued but not yet effective is not expected to have a material impact on the Group.
Further information Aspocomp – heart of technology
A printed circuit board (PCB) is used for electrical interconnection and as a component assembly platform in electronic devices. Aspocomp provides PCB technology design, testing and logistics services over the entire lifecycle of a product. The company’s own production and extensive international partner network guarantee cost-effectiveness and reliable deliveries.
Aspocomp’s customers are companies that design and manufacture telecommunication systems and equipment, automotive and industrial electronics, and systems for testing semiconductor components for security technology. The company has customers around the world and most of its net sales are generated by exports. Aspocomp is headquartered in Espoo and its plant is in Oulu, one of Finland’s major technology hubs.
www.aspocomp.com
Attachment
10-12/2020
10-12/2019
Change *
Net sales
5.9
M€
8.2
M€
-27
%
EBITDA
0.4
M€
1.0
M€
-61
%
Operating result
0.0
M€
0.7
M€
-107
%
% of net sales
-0.8
%
8.1
%
-9
ppts
Earnings per share
0.02
€
0.19
€
-89
%
Operative cash flow
0.2
M€
-0.7
M€
134
%
Equity ratio
63.6
%
61.3
%
2
ppts
1-12/2020
1-12/2019
Change *
Net sales
25.6
M€
31.2
M€
-18
%
EBITDA
1.5
M€
4.7
M€
-68
%
Operating result
-0.1
M€
3.4
M€
-104
%
% of net sales
-0.5
%
10.9
%
-11
ppts
Earnings per share
-0.01
€
0.59
€
-102
%
Operative cash flow
3.7
M€
4.3
M€
-14
%
Equity ratio
63.6
%
61.3
%
2
ppts
Order book at the end of period
4.4
M€
4.4
M€
0
%
* The total may deviate from the sum totals due to rounding up and down.
CEO’S REVIEW
Fourth-quarter net sales amounted to EUR 5.9 (8.2) million, a year-on-year decrease of 27 percent. Net sales decreased particularly due to lower demand in the Telecommunication and Automotive segments.
Net sales amounted to EUR 25.6 (31.2) million, a year-on-year decrease of 18 percent. During the financial year, sales between the different customer segments were balanced and each segment accounted for about one-fifth of net sales. In the Telecommunications segment, net sales decreased by 60 percent because customers had lower PCB needs in their product development projects than in the previous year. In the Automotive segment, sales decreased by 27 percent mainly due to the weak market situation in the European automotive industry at the beginning of the year and the consequent increase in PCB inventories. In the Security, Defense and Aerospace segment, net sales increased by 107 percent. Significant R&D investments in the segment’s product development and customers’ special requirements supported the segment’s positive development. The strong growth in the Semiconductor segment leveled off in the last quarter of the year and full-year net sales were up 65 percent. Growth in demand has been driven particularly by the increased use of remote access devices. In addition, the rapid development of digitalization is leading to the renewal of artificial intelligence and 5G semiconductor components and increasing their testing needs. Sales of the Industrial Electronics segment decreased by 9 percent because COVID-19 restrictions delayed investment.
THE GROUP’S KEY FIGURES
10-12/20
10-12/19
Change
2020
2019
Change
Net sales, M€
5.9
8.2
-27
%
25.6
31.2
-18
%
EBITDA, M€
0.4
1.0
-61
%
1.5
4.7
-68
%
Operating result, M€
0.0
0.7
-107
%
-0.1
3.4
-104
%
% of net sales
-1%
8%
-9
ppts
-1%
11%
-11
ppts
Pre-tax- profit/loss, M€
-0.2
0.6
-132
%
-0.4
3.3
-113
%
% of net sales
-3%
7%
-10
ppts
-2%
10%
-12
ppts
Profit/loss for the period, M€
0.1
1.3
-89
%
-0.1
3.9
-102
%
% of net sales
2%
16%
-13
ppts
0%
13%
-13
ppts
Earnings per share, €
0.02
0.19
-89
%
-0.01
0.59
-102
%
Investments, M€
0.4
1.4
-74
%
2.0
3.5
-44
%
% of net sales
6%
17%
-11
ppts
8%
11%
-4
ppts
Cash, end of the period
2.8
2.4
42
%
2.8
2.4
42
%
Equity / share, €
2.51
2.7
-19
%
2.51
2.70
-19
%
Equity ratio, %
64%
61%
2
ppts
64%
61%
2
ppts
Gearing, %
17%
19%
-2
ppts
17%
19%
-2
ppts
Personnel, end of the period
138
132
6
persons
138
132
6
persons
* The total may deviate from the sum totals due to rounding up and down.
Date
Change
Number of shares
Jan. 1, 2020
Mar. 30
Stock option
+ 130,000
6,704,505
130,000
Jun. 23
Directed share issue
+ 6,935
6,935
Dec. 31, 2020
6,841,440
Aspocomp made changes to its Management Team on January 7, 2021. In addition to Mikko Montonen, President and CEO, the Management Team includes Mr. Antti Ojala, COO, Mr. Ari Beilinson, VP, Sales and Marketing, Mr. Jouni Kinnunen, CFO and Mr. Mitri Mattila, CTO.
OUTLOOK FOR 2021
The COVID-19 pandemic and the restrictions it has caused are having a major impact on the supply chains of the entire electronics industry. At the same time, the COVID-19 pandemic may affect the availability of parts and components required by electronic assemblers, which would weaken demand.
Aspocomp’s customer base is concentrated; nearly half of sales are generated by five key customers. This exposes the company to significant fluctuations in demand.
Although Aspocomp is a marginal player in 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.
PUBLICATION OF THE FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS
Aspocomp Group Plc.’s financial information publication schedule for 2021 is:
Half-year report for January-June 2021: Thursday, August 12, 2021
Interim report January-September 2021: Thursday, November 4, 2021
Board of Directors
R&D costs comprise general production development costs. These costs do not fulfill the IAS 38 definition of either development or research and are therefore booked into plant overheads.
PROFIT & LOSS STATEMENT
October-December 2020
1 000 €
10-12/2020
10-12/2019
Change
Net sales
5,942
100%
8,169
100%
-27%
Other operating income
16
0%
2
0%
596%
Materials and services
-2,573
-43%
-3,569
-44%
-28%
Personnel expenses
-1,976
-33%
-2,256
-28%
-12%
Other operating costs
-1,023
-17%
-1,344
-16%
-24%
Depreciation and amortization
-431
-7%
-342
-4%
26%
Operating result
-45
-1%
660
8%
-107%
Financial income and expenses
-144
-2%
-68
-1%
Profit/loss before tax
-190
-3%
592
7%
-132%
Income taxes
329
6%
686
8%
Profit/loss for the period
140
2%
1,278
16%
-89%
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension
plans
6
0%
50
1%
Income tax relating these items
-1
0%
-8
0%
Items that may be reclassified subsequently to profit or loss:
Currency translation differences
0
0%
0
0%
Total other comprehensive income
5
0%
42
1%
Total comprehensive income
145
2%
1,319
16%
-89%
Earnings per share (EPS)
Basic EPS
0.02
€
0.19
€
-89%
Diluted EPS
0.02
€
0.19
€
-89%
PROFIT & LOSS STATEMENT
January-December 2020
1 000 €
1-12/2020
1-12/2019
Change
Net sales
25,635
100%
31,189
100%
-18%
Other operating income
83
0%
73
0%
14%
Materials and services
-11,971
-47%
-13,963
-45%
-14%
Personnel expenses
-7,856
-31%
-7,763
-25%
1%
Other operating costs
-4,380
-17%
-4,881
-16%
-10%
Depreciation and amortization
-1,643
-6%
-1,263
-4%
30%
Operating result
-131
-1%
3,393
11%
-104%
Financial income and expenses
-294
-1%
-136
0%
116%
Profit/loss before tax
-426
-2%
3,257
10%
-113%
Income taxes
327
1%
683
2%
Profit/loss for the period
-98
0%
3,940
13%
-102%
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension
plans
6
0%
50
0%
Income tax relating these items
-1
0%
-8
0%
Items that may be reclassified subsequently to profit or loss:
Currency translation differences
0
0%
-2
0%
–
Other comprehensive income, net of tax
0
0%
40
0%
–
Total comprehensive income
-93
0%
3,979
13%
-102%
Earnings per share (EPS)
Basic EPS
-0.01
€
0.59
€
-102%
Diluted EPS
-0.01
€
0.59
€
-102%
CONSOLIDATED BALANCE SHEET
1 000 €
12/2020
12/2019
Change
Assets
Non-current assets
Intangible assets
3,247
3,260
0%
Tangible assets
5,916
5,607
6%
Right-of-use assets
1,029
1,333
-23%
Financial assets at fair value through profit or loss
95
15
537%
Deferred income tax assets
5,043
4,673
8%
Total non-current assets
15,330
14,888
3%
Current assets
Inventories
2,932
3,321
-12%
Short-term receivables
5,891
8,937
-34%
Cash and bank deposits
2,801
2,382
18%
Total current assets
11,623
14,639
-21%
Total assets
26,953
29,527
-9%
Equity and liabilities
Share capital
1,000
1,000
0%
Reserve for invested non-restricted equity
4,705
4,534
4%
Remeasurements of defined benefit pension plans
-7
-12
-42%
Retained earnings
11,450
12,574
-9%
Total equity
17,148
18,096
-5%
Long-term financing loans
4,245
4,326
-2%
Other non-current liabilities
340
355
-4%
Deferred income tax liabilities
19
25
-26%
Short-term financing loans
1,408
1,486
-5%
Trade and other payables
3,794
5,239
-28%
Total liabilities
9,806
11,431
-14%
Total equity and liabilities
26,953
29,527
-9%
CONSOLIDATED CHANGES IN EQUITY
January-December 2020
1000 €
Share capital
Other reserve
Remeasurements of employee benefits
Translation differences
Retained earnings
Total equity
Balance at Jan. 1, 2020
1,000
4,534
-12
2
12,572
18,096
Comprehensive income
Comprehensive income for the period
-98
-98
Other comprehensive income for the period, net of tax
Remeasurements of defined benefit pension plans
5
5
Translation differences
0
0
Total comprehensive income for the period
0
0
5
0
-98
-93
Business transactions with owners
Dividends paid
-1,026
-1,026
Share-based payment
171
171
Business transactions with owners, total
0
171
0
0
-1,026
-855
Balance at December 31, 2020
1,000
4,705
-7
2
11,448
17,148
January-December 2019
Balance at Jan. 1, 2019
1,000
4,504
-53
4
9,432
14,888
Comprehensive income
Comprehensive income for the period
3,940
3,940
Other comprehensive income for the period, net of tax
Remeasurements of defined benefit pension plans
41
41
Translation differences
0
-2
-2
Total comprehensive income for the period
0
0
41
-2
3,940
3,979
Business transactions with owners
Dividends paid
-800
-800
Share-based payment
29
0
29
Business transactions with owners, total
0
29
0
0
-800
-770
Balance at December 31, 2019
1,000
4,534
-12
2
12,572
18,096
CONSOLIDATED CASH FLOW STATEMENT
January-December
1 000 €
1-12/2020
1-12/2019
Profit for the period
-98
3,940
Adjustments
1,775
658
Change in working capital
2,303
-159
Received interest income
0
0
Paid interest expenses
-292
-151
Paid taxes
-14
-1
Cash flow from operating activities
3,674
4,287
Investments
-1,986
-3,548
Proceeds from sale of property, plant and equipment
28
66
Cash flow from investing activities
-1,959
-3,482
Increase in financing
3,000
1,000
Decrease in financing
-2,852
-828
Decrease in lease liabilities
-380
-356
Stock options exercised
139
0
Dividends paid
-1,026
-800
Cash flow from financing activities
-1,119
-983
Change in cash and cash equivalents
596
-179
Cash and cash equivalents at the beginning of period
2,382
2,565
Effects of exchange rate changes on cash and cash equivalents
-177
-5
Cash and cash equivalents at the end of period
2,801
2,382
KEY INDICATORS
Q4/2020
Q3/2020
Q2/2020
Q1/2020
2019
Net sales, M€
5.9
5.9
7.1
6.7
31.2
Operating result before depreciation (EBITDA), M€
0.4
0.5
0.6
0.0
4.7
Operating result (EBIT), M€
0.0
0.1
0.3
-0.4
3.4
of net sales, %
-1%
2%
4%
-6%
11%
Profit/loss before taxes, M€
-0.2
0.0
0.2
-0.4
3.3
of net sales, %
-3%
0%
3%
-7%
10%
Net profit/loss for the period, M€
0.1
0.0
0.2
-0.4
3.9
of net sales, %
2%
0%
3%
-7%
13%
Equity ratio, %
64%
63%
62%
64%
61%
Gearing, %
17%
14%
14%
21%
19%
Gross investments in fixed assets, M€
0.4
0.3
0.3
1.0
3.5
of net sales, %
6%
6%
5%
14%
11%
Personnel, end of the quarter
138
142
144
139
132
Earnings/share (EPS), €
0.02
0.00
0.03
-0.07
0.59
Equity/share, €
2.51
2.48
2.63
2.60
2.70
The Alternative Performance Measures (APM) used by the Group
Aspocomp presents in its financial reporting alternative performance measures, which describe the businesses’ financial performance and its development as well as investments and return on equity. In addition to accounting measures which are defined or specified in IFRS, alternative performance measures complement and explain presented information. Aspocomp presents in its financial reporting the following alternative performance measures:
EBITDA
=
Earnings before interests, taxes, depreciations and amortizations
EBITDA indicates the result of operations before depreciations, financial items and income taxes. It is an important key figure, as it shows the profit margin on net sales after operating expenses are deducted.
Operating result
=
Earnings before income taxes and financial income and expenses presented in the IFRS consolidated income statement.
The operating result indicates the financial profitability of operations and their development.
Profit/loss before taxes
=
The result before income taxes presented in the IFRS consolidated statements.
Equity ratio, %
=
Equity
x 100
Total assets – advances received
Gearing, %
=
Net interest-bearing liabilities
x 100
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 + received interest income – paid interest expenses – paid taxes
CONTINGENT LIABILITIES
1 000 €
12/2020
12/2019
Business mortgage
6,000
4,000
Collateral note
1,200
1,200
Guaranteed contingent liability towards the Finnish Customs
35
95
Total
7,235
5,295
For further information, please contact Mikko Montonen, President and CEO,
tel. +358 40 5011 262, mikko.montonen(at)aspocomp.com.
Artificial Intelligence
Huawei Wen Tong: 6G Needs to Embrace AI for Shaping Future Network
SHENZHEN, China, Sept. 29, 2024 /PRNewswire/ — At the 6G Conference held in Istanbul, on September 24, 2024, Dr. Wen Tong, Huawei Wireless CTO, delivered a keynote speech on 6G standardization and innovation. With the release of the ITU-R 6G vision framework, the 3GPP will start 6G standardization in 2025. “6G is a new generation of mobile technology, not a simple upgrade of 5G, it should bring new value to users,” said Dr. Tong, “6G is a true intergenerational technological disruption. 6G standard, key technologies, and network architecture should be re-defined based on application scenarios and requirements from 2030 to 2040. 6G should not be another way to implement 5G. Instead, 6G should embrace the AI revolution with a quantum leap and generate new values for the consumers. In this way, 3GPP standards can truly realize the 6G vision and create greater value for the entire industry.”
Centered “6G Standardization Direction” and “6G Innovation Driving Force”, Dr. Tong shared important views on the future architecture, terminal development, and key technologies of 6G.
In terms of architecture design, 6G should go beyond Service-Based Architecture and move towards Application-Driven Network.
5G has already achieved market success and continues to evolve towards 5G-Advanced. 6G will not simply reuse 5G network architecture, without generational and fundamental innovations, which will limit the mobile industry’s aspiration and imagination to dive the innovation in the 6G era. 6G must have obvious cross-generational characteristics and technical breakpoint.
On the core side, reusing the 5G core network will hinder the innovation in AI. We should use Agentic-AI based technology to re-architect 6G Core that goes beyond 5G Service-Based Architecture and support the foundational capabilities of AI, Sensing and NTN , and thus evolve towards the Application Driven Network .
In terms of terminal evolution, 6G user device calls for a breakthrough to lead the success of the entire industry chain.
It is the law of the mobile industry to drive the evolution of the market with the pioneering technology. The 6G networks and 6G terminals must meet the requirements of consumers and vertical industries in the 6G market phase from 2030 to 2040.
Currently, smartphones are evolving to AI terminals to usher in the mobile AI era. In post-MBB era, breakthroughs in terminal technologies will be the key to the evolution of the mobile industry. Therefore, 6G user device calls for a breakthrough towards “Full-AI”, thus to drive 6G network upgrade and the success of the entire industry ecosystem.
In terms of technology development, AI will become a key enabler for 6G with network paradigm shifting.
Twenty years ago, the Internet was the enabler of the technology innovations. Mobile communications embraced the Internet and achieved great business success. Today, AI maybe the disruptive enabler of the latest technology innovations.
6G should embrace the AI revolution with a quantum leap. However, 6G networks should not be limited to generative AI, Artificial General Intelligence (AGI) and Embodiment-AI are the main directions of future AI development. Therefore, AGI should run through the whole process of sensing, reasoning, decision, and action of terminals, wireless networks, and core networks of 6G, to welcome the arrival of a new network paradigm.
At the end, Dr. Tong Wen emphasized the relationship between 5G and 6G: “The global 5G deployment is on the rise and evolving to 5G-Advanced, which not only meets the current requirements of operators, but also protects their investment. Therefore, 6G technologies should not overlap with 5G in technologies and market space. The specifications, technologies, and architecture of 6G must be based on the scenarios and requirements from 2030 to 2040. We should focus on true generational technology disruption, embrace the new opportunities brought by AI, expand the mobile industry in the next generation.”
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Artificial Intelligence
How AIoT shapes the future of mobility: Hikvision at ITS World Congress 2024
HANGZHOU, China, Sept. 27, 2024 /PRNewswire/ — Hikvision made a significant impact at the ITS World Congress in Dubai with its captivating theme, “Embrace AIoT for safer, smarter, and greener mobility.” Its booth became a hub of innovation, where visitors explored AIoT solutions that are reshaping the transportation landscape, sparking deep conversations on the future of urban mobility.
Road safety revolution: harnessing AIoT for secure transportation
Hikvision’s commitment to road safety was on full display at its booth through the impressive array of AIoT solutions designed to create secure and reliable traffic environments. The company’s technology provides 24/7 traffic monitoring, ensuring continuous oversight of motor vehicles, non-motorized vehicles, pedestrians and environmental factors. This comprehensive, real-time information collection enables traffic managers to prevent accidents and enhance road safety. Among the showcased products was the 20 MP IR ANPR Checkpoint Capture Unit, renowned for its high-definition capture capabilities, bolstering traffic safety measures.
A standout innovation was the integration of advanced radar and camera technologies, ensuring uninterrupted, comprehensive detection even in adverse weather conditions. The Radar-Video Fusion Incident Detection Cameras, featured prominently in the product experience area, enable early detection and warning of potential hazards. They are particularly effective in challenging situations such as curved roads, blind spots at intersections, and obstacles beyond visual range.
Attendees also engaged with onboard monitoring products on the simulated bus, including dome network cameras, which is designed to enhance passenger safety. Driving assistance products, such as the Driver Status Monitor (DSM), were demonstrated to mitigate unsafe driving behaviors and ensure safer journeys.
Urban mobility redefined: smart traffic innovations
In the realm of smarter mobility, Hikvision showcased its multidimensional sensing technology, which integrates visible light sensors, infrared sensors, radar, and sonar. This technology expands perception capabilities, significantly improving traffic management and situational awareness. The use of AI-powered comprehensive sensing elevates incident monitoring and violation detection to unprecedented levels of accuracy and efficiency.
A major attraction was the Radar-Video Fusion TandemVu PTZ Camera, which integrates millimeter-wave radar with high-resolution cameras for extensive traffic detection and data analysis. AI-based algorithms combine these two systems to enhance target information, detecting up to 16 types of incidents. This leads to the development of a large-scale fusion model that merges spatial physical data with image semantic information. The result is ultra-long-range perception, achieving over 95% accuracy in vehicle trajectory detection. This robust system improves traffic violation management and optimizes traffic flow, significantly enhancing road efficiency.
At the simulated bus station, visitors observed how AI-assisted people counting automated the collection of passenger flow statistics at peak stop hours and bus line frequency during busy periods. Paired with smart bus stop digital signage, the solution improves bus service quality, operational efficiency, passenger experience, and overall public transport effectiveness.
Sustainable transportation: leading the charge for greener cities
Hikvision’s commitment to sustainable urban mobility was evident through its innovative green wave technology and eco-friendly checkpoint solutions. Green wave technology efficiently manages traffic flow to reduce congestion and lower carbon emissions, aligning with global sustainability goals. Visitors were particularly impressed by a case study showcasing a green wave solution implemented in Zhoushan, China. Over a stretch of 21 kilometers and 34 intersections, this main road cut travel times by 50%.
The use of DarkFighterX technology in checkpoint cameras also received significant attention. This technology senses both visible and invisible light, resulting in more accurate and realistic images. It enhances traffic violation enforcement efficiency while minimizing the need for high ambient light levels, thus reducing light pollution. The 9M DarkfightX ANPR Checkpoint Camera exemplified this dedication to environmental stewardship.
Frank Zhang, President of Hikvision MEA, remarked, “Hikvision supports sustainable urban planning by empowering traffic departments to address congestion and transportation challenges.” He further emphasized, “Our system’s openness fosters a secure and reliable platform for developing smart and green cities. Additionally, our solar technology is extensively utilized in remote areas, while our smart street lighting solutions reduce energy consumption by 20-30%, promoting intelligent urban transportation and advancing global sustainability objectives.”
Hikvision’s presence at the ITS World Congress in Dubai underscored its leadership in integrating AIoT technologies to drive safer, smarter, and greener mobility solutions. The engaging presentations and advanced product demonstrations captured significant attention from industry partners and customers, reaffirming the company’s role as a pioneer in shaping the future of urban transportation. As the world moves towards more intelligent and sustainable transportation systems, Hikvision remains at the forefront, embracing AIoT to create a safer, smarter, and greener future for all.
To find out more about Hikvision’s advanced traffic and public transport solutions, please explore the Hikvision official website.
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Artificial Intelligence
Anti-Drone Market worth $7.05 billion by 2029 – Exclusive Report by MarketsandMarkets™
DELRAY BEACH, Fla., Sept. 27, 2024 /PRNewswire/ — The global anti-drone market was valued at USD 2.16 billion in 2024 and is projected to reach USD 7.05 billion by 2029; it is expected to register a CAGR of 26.7% during the forecast period according to a new report by MarketsandMarkets™. Increasing government spending on counter-drone technologies, rising incidence of critical infrastructure security breaches by unauthorized drones, and surge in adoption of aerial remote sensing technologies to safeguard critical infrastructure are attributed to the demand for anti-drone.
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Browse in-depth TOC on “Anti-Drone Market” 178 – Tables61 – Figures253 – Pages
Anti-Drone Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 2.16 billion
Estimated Value by 2029
$ 7.05 billion
Growth Rate
Poised to grow at a CAGR of 26.7%
Market Size Available for
2020–2029
Forecast Period
2024–2029
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By System Type, Application, Platform type, Vertical, and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Vulnerability to hacking
Key Market Opportunities
Emphasis on improving unmanned aircraft systems technology
Key Market Drivers
Growing number of illicit activities
By System Type: Hybrid systems to account for the larger market share in the forecasted year.
The hybrid segment accounted for the largest share of the anti-drone market in 2029. The trends of integrating multiple anti-drone technologies are rising since they are most effective in detecting, tracking, and neutralizing drone threats. These systems merge electronic, kinetic, and lasers, providing a comprehensive defense solution against UAVs. Hybrid systems use electronic, kinetic, and laser-based countermeasures to offer optimum protection against drones. These systems are designed to detect, track, identify, categorize, and mitigate drones at operational wide ranges ranging from a few km up to tens of km.
By Platform: The ground-based segment accounted for the largest market share in the forecast year.
The ground-based segment will hold a major share of the anti-drone market in 2029. Many ground-based anti-drone systems use several electronic technologies, such as radar, IR sensors, acoustic systems, and RF & GNSS jammers. MESA radar solutions are used mostly for counter-UAS purposes, protecting critical infrastructure, military camps, and other security-sensitive sites from unauthorized drones. One such solution is EchoGuard, a ground-based airspace management solution that contains a software-defined 3D radar that can be specific to the site. This system can identify single or multiple off-chance drones, including swarms in unauthorized areas. They provide accurate and sustained airspace surveillance for the field of view (FOV) they are configured, and both human and AI-monitored visual checks. The system can be easily transported and integrated directly with the command-and-control centers or another identification sensor for portable use, and multiple units of the system can be combined to cover vast areas or lengths of borders. Major providers of ground-based counter-drone systems include companies like EchoDyne Corporation, DeTect, Meteksan Defense, and WhiteFox Defense. Acoustics-based Discovair G2 utilizes patented microphone arrays. With 128 interconnected microphone elements, the Discovair sensor units can establish azimuth and elevation to the target in real-time using advanced digital signal processing.
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By Region: Americas are expected to hold the largest share of the anti-drone market during the forecast period.
Americas is expected to capture the largest share in the anti-drone industry during the forecast period. The growth can be attributed to protecting crucial infrastructure in the region. Governments, particularly in the US, invest in anti-drone systems for military bases, borders, and critical infrastructure. For Instance, in April 2023, RTX secured a USD 237 million contract from the US Army to provide Ku-band Radio Frequency Sensors (KuRFS) and Coyote effectors. These systems are designed to detect and neutralize unmanned aircraft systems (UAS). The contract includes stationary and mobile systems and a specified quantity of effectors, all aimed at enhancing the Army’s operations within the US Central Command region.
Key Players-
The key companies offering anti-drone companies include RTX (US), Lockheed Martin Corporation (US), Leonardo S.p.A. (Italy), Thales (France), and IAI (Israel).
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About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
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