Incap Corporation’s President and CEO Otto Pukk

I would like to start with thanking our entire Incap team all over the world. Again, we have reached an all-time high result and again our fantastic people have made it happen and delivered.

We continue to see a growing demand in several segments from existing and new customers. This contributed to the growth of our revenue in the third quarter to EUR 70.6 million. In particular, we see growth in industrial electronics, green energy and green mobility. Our efficient and cost effective decentralized operational model increased our profitability to the highest level we have seen in Incap’s history.

The material availability situation is still difficult, and our sourcing teams work hard together with our customers to find different solutions and alternatives to secure deliveries. That said, we are now starting to see the market situation slowly improving, giving confidence for the coming year.

There are still many disturbances in the market caused by the pandemic, the ongoing war in Europe and the tensions in trade relations between USA and China. Many markets are now in recession, and inflation is rising and putting pressure on salaries. We have seen energy and raw material prices increasing in all units. Any significant changes in our cost structure are per our agreements passed on to our customers. I would like to emphasize that this applies to both increases and decreases.

Our engineers work hard every day to find ways to optimize our production and to make it more efficient and cost effective, and to find better and more competitively priced components and materials. We remain committed in delivering our services to the highest standard and work closely with our customers to create the best value for them as long-term partners.

Throughout the year, we have kept investing in our factories in Europe and India. In our European units we have continued to invest in production capabilities and capacity, and we begin to see positive effects of these investments. The third factory project in India is scheduled for completion by the end of the year, and currently we estimate it will be ready as planned despite recent challenging weather conditions in the region.

Our financial position remains solid, and we are well placed to actively pursue growth through M&A in addition to our continued organic growth. We are concentrating in companies with a strong cultural fit and good profitability. We look for opportunities for geographical expansion in markets with a well-functioning operating environment such as, but not exclusively, Germany and USA.

On 17 November, we will organise our first Capital Markets Day in Helsinki, Finland. The event will be held in conjunction with the Slush event, and we welcome our investors to join us live or participate in the webcast. For further information, please follow our releases and webpage.

Overall, the times have been challenging and will most likely remain so moving forward. Even if we see some things improving, other challenges are adding up. However, the long-term outlook for our industry remains positive and we see that the growth in electronics will continue. I am confident in our team and our business model, and I am sure we will continue to deliver our excellent services to our customers also in the future.