Q4 2019 January - December Strong fourth quarter as expected, - - PowerPoint PPT Presentation

Strong fourth quarter as expected, stable development throughout the year

FINANCIAL STATEMENT

Q4

PETTERI JOKITALO, CEO, SCANFIL PLC

2019

January - December

Highlights

• Strongest quarter in terms of sales, + 15 M€ / +10%
• 2/3 of the growth from HASEC
• Strong growth particularly in Industrial & Medtec

segment

• Profitability according to expectations 6.5%, growth from

last year +33%

2

Q4 DRIVERS AND MARKET DEVELOPMENT

Q4 2019

154.7 M€

Turnover

+10.3%

Increase in turnover

10.0 M€ / 6.5%

Operating profit

+ 33.2% increase 9.8 M€

Net profit

0.15 €

Earnings per share

Highlights

• Stable development, 579.4 M€, turnover grew +2.9%
• Growth challenging in H1, H2 growth continued
• HASEC aquisition, strategic importance
• The Board of Directors proposes a dividend of EUR

0.15 (0.13) per share to be paid for year 2019

• Dividend proposal, dividend has raised for 7

consecutive years

3

Q1 - Q4 DRIVERS AND MARKET DEVELOPMENT

Q1 - Q4 2019

579.4 M€

Turnover

+2.9%

Increase in turnover

39.4 M€ / 6.8%

Adjusted operating profit*

35.3 M€/ 6.1%

Operating profit

28.1 M€

Net profit

0.44 €

Earnings per share

0.50 €

Adjusted earnings per share

*The adjustment items during January-December include expenses related to the acquisition of Scanfil Electronics GmbH (former name HASEC-Elektronik GmbH) (EUR 0.4 million) and the impairment of Scanfil GmbH’s goodwill (EUR 3.6 million)

Customer Segments

4

EUR million

Q4/2018 2018 Q1/2019 Q2 /2019 Q3/2019 Q4/2019 2019 % of turnover 2019 Communication 27.2 97.5 17.9 19.4 21.4 20.7 79.4 13.7 % Consumer Applications 25.1 125.6 23.5 27.6 27.8 28.3 107.3 18.5 % Energy & Automation 27.7 107.5 25.7 28.3 27.9 29.4 111.3 19.2 % Industrial 35.1 134.6 35.9 41.5 49.0 46.8 173.3 29.9 % Medtec & Life Science 25.2 97.9 26.9 25.7 26.1 29.4 108.1 18.7 % Total 140.2 563.0 129.9 142.6 152.3 154.7 579.4 100.0 %

Operating Profit

3.9 3.5 6.2 4.1 5.0 5.3 6.5 6,6 7.4 7.4 6.7 5.4 5.3 7.2 7.9 6.5

1 2 3 4 5 6 7 8 0,0 2,0 4,0 6,0 8,0 10,0 12,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2018 2019

% EUR million

Liikevoitto, oikaistu (EUR million) Liikevoitto, % oikaistu

5

2016 - 2019

Operating profit adjusted (EUR million) Operating profit % adjusted

Key Figures

6

Q4/2019 Q4/2018 Change% 2019 2018 Change % Turnover, EUR million 154.7 140.2 10.3% 579.4 563.0 2.9% Operating Profit, EUR million 10.0 7.5 33.2% 35.3 37.8

• 6.4%

Operating Profit, Adjusted, EUR million 10.0 7.5 33.2% 39.4 37.8 4.2% Operating Profit, % 6.5 5.4 6.1 6.7 Operating Profit, Adjusted, % 6.5 5.4 6.8 6.7 Net Profit, EUR million 9.8 6.4 52.2% 28.1 28.9

• 2.7%

Net Profit, Adjusted, EUR million 9.8 6.4 52.2% 32.1 28.9 11.1% Earnings per Share, EUR 0.15 0.10 50.0% 0.44 0.45

• 3.3%

Earnings per Share, Adjusted, EUR 0.15 0.10 50.0% 0.50 0.45 10.5% Return on Equity, % 18.0 21.5 Return on Equity, Adjusted, % 20.4 21.5 Equity Ratio, % 49.1 47.7 Net Gearing, % 27.7 19.5 Net Cash Flow from Operations, EUR million 35.9 29.0 23.4% Employees (Average) 3 530 3 414 3.4%

Turnover

7

2012 - 2019

181 189 215 377 508 530 563 579 50 100 150 200 250 300 350 400 450 500 550 600 M€ CAGR 18%

2012 2013 2014 2015 2016 2017 2018 2019

Operating Profit

8

2012 - 2019

8.1 11.8 16.2 31.3 37.8 39.4 4.5% 6.3% 7.6% 5.2% 4.4% 5.9% 6.7% 6.8%

2 4 6 8 10 12 5 10 15 20 25 30 35 40

2013 2014 2015 2016 2017 2018

M€ % CAGR 25%

22.3 19.6 2012

Operating Profit Operating Profit adjusted

2019

Cash Flow from Operations

11.2 13.2 11.0 13.0 16.5 21.3 29.0

5 10 15 20 25 30 35 40

35.9

9

2012 - 2019

EUR 3.2 million impact from IFRS 16

M€ 2012 2013 2014 2015 2016 2017 2018 2019

Strong Financials

Net Debt

• 1,8
• 9,8
• 9,9

65,6 40 40,7 28,2 46,2

• 20
• 10

10 20 30 40 50 60 70

EUR million

Net debt

2012 2013 2014 2015 2016 2017 2018 2019

10

2012 - 2019

Lease liability 2019 EUR 22.3 million

Strong Financials

Gearing

11

2012 – 2019

Gearing without IFRS 16 impact 16.1% 2012 2017 2016 2015 2014 2013 2018 2019

%

• 2,4
• 12.2
• 10.5

65.4 36.9 32.6 19.5

• 20
• 10

10 20 30 40 50 60 70

27.7

ROE and ROI

12

2012 - 2019

7.9% 10.6% 14.0% 8.6% 0.1% 22.2% 21.5% 18.0% 13.8% 13.6% 20.4%

2012 2013 2014 2015 2016 2017 2018 2019

ROE ROE, adjusted

8.1% 11.4% 16.5% 10.6% 4.6% 19.4% 20.2% 17.0%

2012 2013 2014 2015 2016 2017 2018 2019

ROI

ROI

ROE

EPS

13

2012 - 2019

CAGR 26%

2013 2014 2015 2016 2018 2012 2019 2017 0.10 0.14 0.21 0.40 0.45 0.24 0.25

0,00 0,10 0,20 0,30 0,40 0,50 0,60 EPS EPS adjusted

0.50

Growing Dividend and Pay-Out Ratio

0.04 0.05 0.07 0.08 0.09 0.11 0.13 0.15

14

2012 - 2019 Pay-Out Ratio %

Dividend per share

2013 2014 2015 2016 2017 2018

CAGR 21%

€

2012 2019 proposal 40.5 35.1 32.9 55.2 27.2 34.3 28,9 N/A

2020 Outlook

15

Scanfil estimates that its turnover for 2020 will be EUR 590 – 640 million and adjusted operating profit will amount to EUR 39 – 43 million. The estimation is based on our existing understanding of impact of Coronavirus. The 2020 guidance is subject to exceptional uncertainty due to the potential negative impact of the Coronavirus epidemic on customer demand and, in particular, the situation in China.

Long term target

Scanfil has updated its long-term target: In 2023, Scanfil is organically aiming for EUR 700 million turnover and 7% operating profit. In addition, Scanfil is actively exploring acquisitions, especially in the Nordic countries and Central Europe.

16

Time for questions

17

Contact information and analysts

PETTERI JOKITALO, CEO +358 44 7882400 petteri.jokitalo@scanfil.com MINNA OKSANEN, Communications Director +358 44 7882409 minna.oksanen@scanfil.com

Inderes Oy Antti Viljakainen +358 44 591 2216 antti.viljakainen(at)inderes.fi Evli Pankki Oyj Joonas Ilvonen +358 44 430 9071 joonas.ilvonen(at)evli.com OP Yrityspankki Oyj Kimmo Stenvall +358 10 252 4561 kimmo.stenvall(at)op.fi Nordea Oyj Pasi Väisänen +358 9 5300 5192 pasi.vaisanen(at)nordea.com

Disclaimer

Not to be published or distributed, directly or indirectly, in any country where its distribution or publication is unlawful. Forward looking statements: certain statements in this presentation may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Scanfil Oyj to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. When used in this presentation, such statements use such words as "may," "will," "expect," "anticipate," "project," "believe," "plan" and other similar terminology. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Scanfil Oyj to be materially different from those contained in forward-looking

• statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as

a prediction of actual results. The forward-looking information contained in this presentation is current only as of the date of this presentation. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised, except as provided by the law or obligatory regulations, whether as a result of new information, changing circumstances, future events or otherwise.

19

Global contract manufacturer and systems supplier