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  • Incap posts record growth in 2022 and expects stronger growth in 2023


    Outlook for 2023

    Incap estimates that its revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2023 will be higher than in 2022.

    The estimates are given provided that unexpected events impacting Incap’s business environment do not occur, for example, in the availability of components.

    Otto Pukk, President and CEO of Incap Corporation:

    “I want to extend my warmest thanks to our customers, partners, and shareholders for their trust in Incap. Incap achieved in year 2022 all-time high revenue and profitability. Considering that the material availability remained difficult throughout the year, team Incap’s performance was particularly strong, and I want to thank our fantastic employees for their hard work.

    We ended 2022 with another strong quarter with revenue of EUR 78.7 million, and our full year 2022 revenue reached EUR 263.8 million, which was 55% more than in 2021. Our profitability remained on a good level with a full year EBIT of 14.8 per cent of revenue.

    Our strong growth was driven by the demand for electronics from existing and new customers, all-time-high orderbook and supported with our earlier investments in capacity in our factories. In particular, we saw growth in industrial electronics, green energy and green mobility. Relative profitability remained on a good level thanks to our efficient and cost-effective operational model and favourable product mix.

    How companies operate has become increasingly important and we would like to see more and more companies aiming at sustainable operations. Therefore, we see the increasing ESG reporting requirements as positive developments and for our part, we are committed to continue developing our own operations in a sustainable way. In 2022, we further developed our corporate responsibility and reporting. Our goal is to start reporting the CO2 emissions of our business.

    In November, we held our first Capital Markets Day. It was great to meet so many current and potential future shareholders in person. We will continue developing our investor relations by means of open and versatile communications.

    The construction of our third factory in India is being finalised and the production ramp-up will begin at the end of the first quarter 2023 as planned.

    There is still some uncertainty in the market when entering 2023. As component availability and lead times keep improving, we expect that visibility will come down to more normal levels as customers don’t need to place orders so much in advance. With components available equally for all on the market, we expect competition to increase in many segments.

    The long-term perspective for EMS business remains positive. We expect our organic growth to continue in 2023 but with a more modest pace, improving our cashflow and giving us possibility to reduce our inventory levels.

    Our financial position remains solid. We remain committed to actively invest in our operations and develop them. In line with our growth strategy, we focus even more on pursuing M&A.

    Our estimate is that our revenue, operating profit and adjusted operating profit in 2023 will be higher than in 2022. We are convinced that our decentralised operational model and our committed team will help to maintain the good level of profitability also in the future.”

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