Incap - Interim report (Q1 and Q3)

Incap Group Business Review for January-March 2017: Revenue growth 26%, operating profit affected by increased material costs

Incap Corporation
Interim report                       16 May 2017 at 8.30 a.m.
(EET)


INCAP GROUP BUSINESS REVIEW FOR JANUARY-MARCH 2017: REVENUE GROWTH 26%,
OPERATING PROFIT AFFECTED BY INCREASED MATERIAL COSTS

The information in this business review concerns the development of Incap Group
in January-March 2017 and in the corresponding period of 2016, unless otherwise
stated. The figures are unaudited.

Key figures in January-March 2017
  * The Group's revenue amounted to EUR 11.0 million, up 26% on the
    corresponding period of previous year (Jan-Mar 2016: EUR 8.7 million).
  * The Group's operating profit (EBIT) amounted to EUR 1.0 million, down 17% on
    the corresponding period (EUR 1.2 million).
  * Net profit for the period amounted to EUR 0.66 million, up 2% on the
    corresponding period (EUR 0.65 million).
  * The company repeats its previous outlook for full year 2017.


                                1-3/  1-3/  4-6/   7-9/ 10-12/  1-12/
 (EUR thousand)                 2017  2016  2016   2016   2016   2016




 Revenue                      10,986 8,686 9,186 10,048 10,706 38,626

 Operating profit/loss (EBIT)    966 1,165 1,037  1,063  1,121  4,386

 Profit/loss for the period      664   651   614    778    699  2,742



Key events of the period

Incap Group's revenue for January-March 2017 developed favourably both in India
and in Estonia, growing by 26% on the comparison period. The growth was mainly
based on increased demand of long-term customers.

The operating profit (EBIT) amounted to EUR 1.0 million, showing a decrease of
17% on the comparison period last year. Major reason for the decrease was the
higher material costs. Due to the current growth of global electronics market
the prices of main commodity raw materials such as copper, led and tin are
increasing, resulting in higher component prices.

The Group's operating profit margin amounted to 8.8%, being in the upper end of
the common levels in the electronics manufacturing services business. During the
preceding quarter October-December 2016 the operating profit amounted to 10.5%
and in the corresponding period January-March 2016 to 13.4%.

The extension of the export production facilities in India was inaugurated
during the review period. Also in the factory in Estonia the manufacturing
capacity was increased by a new SMT line.

Outlook for 2017

Incap repeats its previous guidance and outlook for the year 2017. The Group's
revenue in 2017 is estimated to be higher than in 2016 when it was EUR 38.6
million. The operating profit (EBIT) is estimated to be somewhat higher than in
2016 when it was EUR 4.4 million. The figures have been estimated based on the
assumption that there are no major changes in exchange rates.

Incap will publish its half-year report for January-June 2017 in accordance with
IAS 34 on Wednesday, 23 August 2017.

Ville Vuori, President and CEO of Incap Group:

"The first quarter of 2017 met with our expectations. The production portfolio
was as forecasted a bit unfavorable with respect to profitability due to high
material shares and increasing raw material prices, which will take some time to
mitigate. The increase in volumes is positive and improves our position in many
ways.

Overall, our outlook remains positive. We are expecting organic growth to
continue and even though the relative profitability is approaching the market
standards levels, we trust in our business model and aim to be among the best in
the peer group also in future especially in terms of profitability."

INCAP CORPORATION
Board of Directors


For additional information, please contact:
Ville Vuori, President and CEO, tel. +358 400 369 438

Distribution:
Nasdaq Helsinki Ltd.
Principal media
The company's home page www.incapcorp.com


INCAP IN BRIEF
Incap Corporation is an international electronics 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 Hong Kong, and the
company currently employs approximately 520 people. Incap's share is listed on
the Nasdaq Helsinki Ltd. as from 1997. Additional information:
www.incapcorp.com.


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