A word from the CEO

Overall, 2023 was a good year for the electronics contract manufacturing market, although increased inventory levels were a common problem that maintained price pressure. In early 2023, also Incap’s largest customer for the Indian factory announced that their stock level had become too high and that they had to reduce their orders. The full impact of the decreased volumes of the Indian factory was only visible in the last months of the year. At other factories, production volumes increased.

In 2023, our revenue decreased 16% year on year and amounted to EUR 221.6 million. Excluding sales to our largest customer, our revenue grew 35% year on year and also excluding the impact of the Pennatronics acquisition, the growth was 17%. The increase in revenue was boosted by all other Incap’s units in Europe, effective sales work to existing and new customers, and the successful acquisition in the US.

Although our profitability was affected by the lower utilisation ratio of our factory in India, we were able to quickly adjust our cost level and to keep our own inventories on a healthy level. Our EBIT in 2023 was EUR 28.2 million or 12.7% of revenue, which we think is an indication of our strong operating model and agility.

When it comes to sustainability, we want to be a forerunner in the industry and invested in sustainable development at all our factories. We supplemented our corporate responsibility programme by defining more detailed targets for previously selected key figures. In the autumn, we conducted a Group-wide employee engagement survey for the first time and launched a double materiality assessment. We prepared for the new CSRD reporting requirements by, for instance, extending our CO2 reporting. We see that the standardised reporting requirements contribute to the positive development we are committed to.

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Otto Pukk,
President and CEO of Incap Corporation

Otto Pukk Incap
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Sustainability at Incap

As a globally operating electronics manufacturing services company and a growing organisation, sustainable operations are a must in achieving our goals. Acting in a responsible and trustful way is an integral part of our mission, strategy and operations. We are committed to actively promoting sustainable development to ensure that we will continue to be the trusted partner in our industry and to meet the increasing expectations of all our stakeholders also in the future. Our most important stakeholders are our personnel, customers, suppliers, our current owners and potential investors as well as local communities.
Sustainability Policy

OUR CORPORATE RESPONSIBILITY FOCUS

We support sustainable development and strive to increase the positive impact of our operations – our handprint – and reduce our negative footprint through systematic development work focused on the most material themes. Those economic, social and environmental themes are defined through a materiality analysis involving key stakeholders – employees, customers and investors. Based on the selected themes we have defined our sustainability targets and indicators for monitoring them. The development of sustainability will be promoted as defined in our sustainability programme.
Incap’s sustainability programme
ENVIRONMENTAL RESPONSIBILITY
KEY THEMES

→ Transition to sustainable energy
→ Reduction of energy intensity
→ Reduction of GHG emissions from own operations
→ Reduction of GHG in the value chain / related to transportation
→ Recycling of waste and hazardous waste

TOPICS

→ ESRS E1 Climate change
→ ESRS E5 Resource use and circular economy

TARGETS

→ Share of renewable energy in total energy consumption 24-28% (Scope 1,2)
→ Development and implementation of Climate Transition Plan
→ 0 environmental non-compliance cases
→ Recycling rate over 68%
→ Recycling rate of hazardous waste over 65%

 

UN SDGs

SOCIAL RESPONSIBILITY
KEY THEMES

→ Working conditions
→ Health and safety
→ Equal treatment and diversity
→ Workers’ rights and treatment in the value chain

TOPICS

→ ESRS S1 Own workforce
→ ESRS S2 Workers in the value chain

 

TARGETS

→ 100% new employees receive the training on Code of Conduct
→ Employee satisfaction over 7/10 / eNPS at least +10
→ Employee turnover less than 10%
→ 0 major injuries
→ 100% of workers covered by ISO 45001
→ 0 average lost-days rate
→ Equal pay for equal work
→ Training hours per employee at least 8 per year
→ 0 discrimination cases
→ 0 severe human rights violation cases

UN SDGs

GOVERNANCE
KEY THEMES

→ Decentralized structure
→ Legal compliance
→ Protection of whistle-blowers

TOPICS

→ ESRS G1 Business conduct
→ Incap’s Business Strategy

TARGETS

→ NPS at least +68
→ Revenue growth
→ Profitability
→ Net working capital
→ Earnings per share
→ Control over operating expenses, personnel expenses, taxes
→ Supporting the local communities related to our business units
→ 0 breaches of Code of Conduct (incl. zero incidents of anti-competitive behaviour and zero incidents of corruption)

UN SDGs

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OUR CORPORATE RESPONSIBILITY FOCUS

Social responsibility

Social responsibility is at the heart of Incap’s corporate culture and strategy. Our employees are our most important asset and by investing in them we ensure our competitiveness now and in the future. We invest in skills development, cooperation and well-being and expect fair and ethical behaviour towards all. We believe that providing equal opportunities is a prerequisite for success now and in the future. We also want to actively promote sustainable development in our local communities.
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Environmental responsibility

Incap contributes to sustainable development by improving the efficiency of its production and by considering all environmental impacts of its operations and striving to minimise them. The most important thing we can influence is the efficient use of resources and materials. The most significant environmental impacts of our activities are carbon dioxide emissions from energy consumption and waste from production. Continuous improvement is based on continuous identification, measurement and reporting of environmental impacts.
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Economic responsibility

Incap’s economic responsibility is based on solid growth ambitions and good financial performance. Our aim is to be a sustainable growing business partner for our customers and suppliers. With a sustainable financial performance, we aim to provide our personnel stable job opportunities and create value for our investors. ​As a growing and profitable business, we are in a good position to meet the expectations of all our shareholders. As such, economic responsibility forms the basis for us to consider the environmental and social responsibility aspects of our operations.
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