1. Capital Markets Day
14 March 2017

2. Agenda and presenters Aspocomp’s global supply chain
Antti Ojala, VP Business Development
Aspocomp’s Strategy
Mikko Montonen, CEO
Aspocomp’s customer
segments and solutions
Tero Päärni, VP Sales
Financials
Jouni Kinnunen, CFO
Capital Markets Day

3. ASPOCOMP’S STRATEGY
Mikko Montonen
CEO

4. Aspocomp – PCB technology company
Capital Markets Day

5. 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
+24%
EUR +1.8 million
EUR +1.9 million
2015
2016
Capital Markets Day

6. Aspocomp’s strategy path 2014 – 2017
2015
2016
2017
EVALUATE OPPORTUNITIES
& SET TARGETS
EXPAND
CUSTOMER BASE
ACCELERATE GROWTH
DELIVER
New strategy
Customer focus
Centralised own production in Finland
Volume production in Asia
Grow customer base
Expand volume production offering: New products
New Area: North America
Production development: TS quality certification
Win market share
Invest more in capacity
Independency of single customers or segments
Profitable growth
Expanded offering as the basis of growth
Operational excellence
Input from Board:
How satisfied are you with the development?
Things to emphasize
2016: haettiin segmentteja
2015: ei menty assemblyyn (mentiin flexiin), katso yhtiökokousesitys
Capital Markets Day

7. Aspocomp’s strategy path 2014 – 2017 – Delivering the promises
2015
2016
2017
EVALUATE OPPORTUNITIES
& SET TARGETS
EXPAND
CUSTOMER BASE
ACCELERATE GROWTH
DELIVER
Foothold established in the US
New strategy launched
Teuva plant closed and own production consolidated to the Oulu plant
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
Input from Board:
How satisfied are you with the development?
Things to emphasize
2016: haettiin segmentteja
2015: ei menty assemblyyn (mentiin flexiin), katso yhtiökokousesitys
Capital Markets Day

8. ASPOCOMP TOMORROW STRATEGY FOR 2017–2022

9. 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.
BECOMING A CUSTOMER FOCUSED SERVICE COMPANY
Aspocomp is transforming from a product and technology company into a customer focused service company.
1. TURNING POINT
Aspocomp is currently in a turning point – 2016 was a year of increased net sales and returning to profitability. Now its time to set new financial targets for the coming years.
2. EXPANSION GEOGRAPHICALLY AND SECTOR-WISE
Aspocomp is successfully expanding its business geographically and from telecom sector to other sectors like e.g. automotive, security & defence and IC testing.
3. SERVING CUSTOMERS DURING THE WHOLE LIFECYCLE WITH STRONG PARTNERS
Aspocomp is utilising a strong partner network to serve its customers during their whole lifecycle.

10. 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
Expanding at existing and to new geographical areas
Europe being our main existing market
Keeping market leader position in Nordic countries
Seeking growth in Germany and the UK
Focusing prospect customers in France
Developing Poland market
New potential areas
USA
Pros: High-end customers matching with our technologies, attractive price level, culture
Cons: Logistics
Other Europe (Italy, Spain, Czech, Romania, Hungary, Turkey)
Pros: Growing market, potential volume projects
Cons: Competitive market
Capital Markets Day

11. 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
Capital Markets Day

12. TELECOMMUNICATION INFRASTRUCTURE INDUSTRIAL ELECTRONICS
Key customer segments for Aspocomp
SEMICONDUCTOR R&D AND
IC TESTING
AUTOMOTIVE
SECURITY & DEFENCE
TELECOMMUNICATION INFRASTRUCTURE
INDUSTRIAL ELECTRONICS
Possible talking points:
We serve the following segment presented in the slide
Short introduction to different market segments
Capital Markets Day

13. Telecommunication infrastructure the largest customers segment, but automotive driving growth
Capital Markets Day

14. Why have we selected these segments?
Overall, several megatrends in each segment drive growth and therefore provide growth opportunities for Aspocomp. These include:
Automotive
increased electronics in cars
Telecommunication Infrastructure
5G development & ramp up
Industrial electronics
M2M, IoT, robotics
Semiconductor R&D and IC Testing
attractive growth in semiconductor segment
Security & Defence
overall geopolitical situation
Telecommunications
Telecom segment has historically been Aspocomp’s core business area with a strong customer base. Today, several megatrends affect its new growth phase, inlucluding 5G development and ramp up.
Automotive
Segment driven by the amount of electronics in cars that is growing steadily.
New drivers include, for example, hybrid and electronic cars, LED lights, increased safety, autonomous driving, connectivity and radars/lidars.
Majority of growth comes through Aspocomp’s partner network.
Security & Defence
This segment is driven by the overall geopolitical situation affected by terrorism, cyber crime, increased defence budgets as well as major defence force purchases.
Industrial electronics
Segment driven by machine-to-machine (M2M), IoT, connectivity and robotics.
IC Testing
One of the new focus areas for Aspocomp.
This segment’s products and volumes are well suited and expand the product portfolio of own manufacturing.
Segment of high techonology and quality grade.
* Aspocomp’s estimate
Capital Markets Day

15. Aspocomp’s growth drivers in the next strategy period 2017–2022
Inorganic growth opportunities
New business from existing customers
New PCB customers
Streamlining current business
Capital Markets Day

16. Aspocomp’s growth drivers during the next strategy period 2017–2022
Inorganic growth opportunities
New business from existing customers
New PCB customers
Streamlining current business
New business from existing customers
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

17. Aspocomp’s growth drivers during the next strategy period 2017–2022
Inorganic growth opportunities
New business from existing customers
New PCB customers
Streamlining current business
New PCB customers
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

18. Aspocomp’s growth drivers during the next strategy period 2017–2022
Inorganic growth opportunities
New business from existing customers
New PCB customers
Streamlining current business
Streamlining current business
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 step-by-step and optimizing product mix during the strategy period
 Goal to achieve some 50% higher net sales in the Oulu plant
Capital Markets Day

19. Aspocomp’s growth drivers during the next strategy period 2017–2022
Inorganic growth opportunities
New business from existing customers
New PCB customers
Streamlining current business
Inorganic growth opportunities (no activity as of today)
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

20. BUILDING CAPABILITY TO SUPPORT NEW CUSTOMER SEGMENT
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
Expanding Customer Base:
new customers annually
Expanding Manufacturing Capacity:
-Oulu plant 50% increase in sales
Expanding/Introducing Service Sales Models:
-commercializing service packages
Building capability to support new customer segment:
-Investigating requirements in new segment
-investing new processes and capabilities in Oulu
Investigating Inorganic Business Opportunities:
-to accelerate growth -
2017
2022
Capital Markets Day

21. Growth average of 10% annually
Introducing Aspocomp’s new long term financial targets for the strategic period of 2017–2022
TARGET LEVEL
2016 PERFORMANCE
2015 PERFORMANCE
Net sales
Growth average of 10% annually
24%
-17%
EBIT margin, %
>7% (by latest 2022)
3.2%*
-5.4%*
Introducing Aspocomp’s new long term financial targets during strategic period of
Strategiakauden taloudelliset tavoitteet
-Liikevaihto kasvaa keskimäärin 10% vuodessa
-Liikevoitto (EBIT) yli 7 % liikevaihdosta viimeistään strategiakauden lopussa
* Comparable EBIT margin
Capital Markets Day

22. Summary We are becoming a customer focused service company
We are in a turning point We are expanding geographically and business-wise We are serving our customers through full product lifecycle with best suitable services and strong partners
We are becoming
a customer focused
service company
Capital Markets Day