Capital Markets Day
14 March 2017
Agenda and presenters
Aspocomp’s Strategy
Mikko Montonen, CEO
Aspocomp’s customer
segments and solutions
Tero Päärni, VP Sales
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Capital Markets Day
Aspocomp’s global
supply chain
Antti Ojala, VP Business
Development
Financials
Jouni Kinnunen, CFO
ASPOCOMP’S STRATEGY
Mikko Montonen
CEO
Aspocomp – PCB technology company
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Capital Markets Day
Strong year 2016
Main strategic objective of “Accelerate growth” well achieved
Turn around in profitability
Positive cash flow
Automotive industry segment doubled its sales compared to 2015
The new generation of telecommunication network systems generated demand
for PCBs
•
•
•
•
•
NET SALES
EBITDA
EBIT
EUR million
EUR million
EUR million
+24%
25
20
21.6
EUR
2
+1.8 million
1.8
1.8
0.7
0.5
1.6
17.5
1 +1.9 million
EUR
1.4
15
0
1.2
1
10
-0.5
0.8
0.6
5
0.2
0
2015
5
-1
0.4
2016
14.3.2017
0
0
2015
-1.5
2016
Capital Markets Day
-1.2
2015
2016
Aspocomp’s strategy path 2014 – 2017
2014
2015
2016
EVALUATE
OPPORTUNITIES
& SET TARGETS
EXPAND
CUSTOMER BASE
ACCELERATE
GROWTH
DELIVER
• Win market share
• Invest more in capacity
• Independency of single
customers or segments
• Profitable growth
• Expanded offering as the
basis of growth
• Operational excellence
• New strategy
• Customer focus
• Centralised own
production in Finland
• Volume production in
Asia
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14.3.2017
• Grow customer base
• Expand volume production
offering: New products
• New Area: North America
• Production development:
TS quality certification
Capital Markets Day
2017
Aspocomp’s strategy path 2014 – 2017
– Delivering the promises
2014
2015
2016
EVALUATE
OPPORTUNITIES
& SET TARGETS
EXPAND
CUSTOMER BASE
ACCELERATE
GROWTH
• New strategy launched
• Teuva plant closed and
own production
consolidated to the
Oulu plant
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14.3.2017
• Focus on expanding
customer base: 20+ new
accounts
• Invested in large European
markets: Germany, France
and the UK
• Flex PCBs from a new
partner
• Automotive TS quality
certification implemented
in the Oulu plant
• Growth targets achieved
• Sales in automotive
customer segment doubled
• New partners for volume
supply chain audited
Capital Markets Day
2017
DELIVER
• Foothold established in
the US
Becoming a customer focused
service company
EXPANDING GEOGRAPHICALLY AND SECTOR-WISE
We are expanding our business geographically and
from telecom sector to other sectors like e.g.
automotive, security & defence and IC testing.
SERVING OUR CUSTOMERS DURING THE WHOLE
LIFECYCLE OF THEIR PRODUCT WITH OUR
PARTNERS
We are utilising our strong partner network to serve
our customers during the whole lifecycle of their
product.
Growing in the existing geographies and expanding
to new ones
Maintaining our strong
position:
the Nordic countries
Growing in the fast
developing markets:
Germany, France, the UK and
Poland
Entering new markets:
USA, Italy, Spain, Czech,
Romania, Hungary and Turkey
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Capital Markets Day
Strengthening the
foothold in the US
2014–2015
• Investigating
opportunities
in the US
2016
• Seeking for
local
representatives
and visiting
potential
customer
projects
2017
• Local
representative
hired in
January 2017
with over 20
years of
experience
Target:
2018–2022
• Own local
office with full
customer
support
capabilities
• Goal is to have 10–20% of total company sales coming from the US
• Target market
• To support telecom network and IC testing customer segments
• Initially: complex, high-end boards from the Oulu plant
• Later: to fulfill customers’ all PCB needs
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Capital Markets Day
Key customer segments for Aspocomp
SEMICONDUCTOR
R&D AND
IC TESTING
AUTOMOTIVE
SECURITY &
DEFENCE
INDUSTRIAL
ELECTRONICS
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TELECOMMUNICATION
INFRASTRUCTURE
Capital Markets Day
Telecommunication infrastructure the
largest customers segment, but
automotive driving growth
2%
1%
2%
2015
2016
13%
1%
11%
19%
31%
15%
19%
45 %
13
39 %
Automotive
Automotive
Telecommunication Infrastructure
Telecommunication Infrastructure
Industrial Electronics
Industrial Electronics
Security & Defence
Security & Defence
Semiconductor R&D and IC testing
Semiconductor R&D and IC testing
Other
Other
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Capital Markets Day
Why have we selected these segments?
Overall, several megatrends in each
segment drive growth and therefore
provide growth opportunities for
Aspocomp. These include:
BUSINESS POTENTIAL*
Automotive
increased electronics in cars
Telecommunication Infrastructure
5G development & ramp up
Security & Defence
Industrial electronics
M2M, IoT, robotics
Semiconductor R&D and IC Testing
Industrial electronics
Semiconductor R&D and IC Testing
attractive growth in semiconductor segment
Telecommunication Infrastructure
Automotive
* Aspocomp’s estimate
Security & Defence
overall geopolitical situation
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Capital Markets Day
Aspocomp’s growth drivers in the
next strategy period 2017–2022
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Inorganic
growth
opportunities
New business
from existing
customers
Streamlining
current
business
New PCB
customers
Capital Markets Day
Aspocomp’s growth drivers during
the next strategy period 2017–2022
New business from existing customers
Inorganic
growth
opportunities
Streamlining
current
business
16
New business
from existing
customers
New PCB
customers
14.3.2017
•
•
•
•
•
Transformation from a prototype provider to
a provider of total solutions
Utilizing cost effective partners in Asia and in
Europe for high volume orders
Increasing our share from customer’s wallet
Expanding our portfolio by utilizing partners
New services: PCB procurement,
warehousing, logistic, auditing, testing,
planning etc.
Capital Markets Day
Aspocomp’s growth drivers during
the next strategy period 2017–2022
New PCB customers
17
Inorganic
growth
opportunities
New business
from existing
customers
Streamlining
current
business
New PCB
customers
14.3.2017
•
Continuing active new customer
acquisition and focusing especially in new
markets in Central Europe and in the US
•
The increasing technical capabilities and
customer understanding opens up new
customer opportunities especially in
semiconductor R&D and IC testing
segments
Capital Markets Day
Aspocomp’s growth drivers during
the next strategy period 2017–2022
Streamlining current business
•
Inorganic
growth
opportunities
New business
from existing
customers
•
Streamlining
current
business
18
New PCB
customers
14.3.2017
•
The plant in Oulu focuses on technologically
advanced and short lead time products that
bring high added value to customers
Utilizing volume partners for ramp up and large
volumes as well as product technologies outside
Oulu offering
Increasing the capacity of the plant in Oulu stepby-step and optimizing product mix during the
strategy period
 Goal to achieve some 50% higher net sales in
the Oulu plant
Capital Markets Day
Aspocomp’s growth drivers during
the next strategy period 2017–2022
Inorganic growth opportunities
(no activity as of today)
Inorganic
growth
opportunities
Streamlining
current
business
New business
from existing
customers
1.
2.
New PCB
customers
3.
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Acquiring a PCB trading company to
• speed up the US market entry
• strengthen the European presence
• open a new market area
Acquiring a PCB manufacturing company to
• support and expand to new/different end
customer segments
• support new manufacturing technology other
than the Oulu plant
Acquiring electronic/PCB design company to
• offer and expand design/development support to
existing customers
Capital Markets Day
How to make it happen?
Key strategy programs to ensure
successful execution of strategy
EXPANDING CUSTOMER BASE
EXPANDING MANUFACTURING CAPACITY
EXPANDING/INTRODUCING SERVICE SALES MODELS
BUILDING CAPABILITY TO SUPPORT NEW CUSTOMER
SEGMENT
INVESTIGATING INORGANIC BUSINESS OPPORTUNITIES
2017
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2022
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Capital Markets Day
Introducing Aspocomp’s new long term
financial targets for the strategic
period of 2017–2022
Net sales
EBIT margin, %
TARGET LEVEL
2017-2022
2016 PERFORMANCE
2015 PERFORMANCE
Growth average of 10%
annually
24%
-17%
>7% (by latest 2022)
3.2%*
-5.4%*
* Comparable EBIT margin
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Capital Markets Day
Summary
We are in a turning point
We are becoming
a customer
focused
service company
We are expanding
geographically and business-wise
We are serving our customers
through full product lifecycle
with best suitable services and
strong partners
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Capital Markets Day