Incap's Strong Growth in Revenue and Profitability Continued in 1H19

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Key figures in January-June 2019

• Incap Group’s revenue in January-June 2019 amounted to EUR 37.2 million, an increase of 38% (1-6/2018: EUR 27.0 million).
• The Group’s operating profit (EBIT) was EUR 5.7 million, an increase of 87% (EUR 3.1 million), corresponding to 15.5% of revenue (11.4% of revenue).
• Net profit for the report period was EUR 4.3 million (EUR 2.1 million).
• Earnings per share were EUR 0.99 (EUR 0.48).
• The company maintains its previous guidance and estimates that the Group’s full-year revenue and operating profit (EBIT) in 2019 will be higher than in 2018, provided that there are no major changes in exchange rates or in component availability.

Key figures in April-June 2019

• The revenue of the second quarter amounted to EUR 18.7 million, showing an increase of 29.1% (4-6/2018: EUR 14.5 million).
• Operating profit (EBIT) for the second quarter was EUR 2.9 million, an increase of 50.2% (4-6/2018: EUR 1.9 million).

Unless otherwise stated, the comparison figures refer to the corresponding period in the previous year. This half-year financial report is unaudited.

Incap Group's CEO Otto Pukk:

"Incap's second quarter was strong again. In January-June our revenues increased by 38% compared to the first half of the previous year, and operating profit (EBIT) margin increased to 15.5%.

The growth of sales was mainly due to deliveries to new customers. We managed to broaden our customer base especially in the area of IoT (Internet of things) and light vehicles. At the same time, the business continued smoothly with our long-term established customers both in our production units in India and Estonia.

For good profitability, our lean organization structure, flexibility, and continuous improvements in the production lines together with increased volumes are the key elements. On top of that, we have highly professional and efficient teams in both units who want to offer superior service to our customers.

In general, the growth of contract manufacturing in electronics is expected to continue. The growth is based not only on the increasing interest in the contract manufacturing business model, but also on the growing market for IoT and new types of electronic gadgets manufactured globally.

Even though the competition in electronic manufacturing is harsh and the problems with component availability still remain, I am confident that with our focus on efficiency, we are able to maintain our strong position in the markets. We aim to continue to grow our business organically. However, should suitable opportunities arise, with our good financial position it is also possible to grow our business through acquisitions."

About Incap Corporation

Incap Corporation is an international contract manufacturer. Incap's customers are leading suppliers of high-technology equipment in their own business segments, and Incap increases their competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and China, and the company currently employs approximately 830 people. Incap's share is listed on the Nasdaq Helsinki Ltd. as from 1997. Additional information: www.incapcorp.com.