Incap - Interim report (Q1 and Q3)

Incap Group Business Review for January-September 2016

Incap Corporation
Interim report             15 November 2016 at 8.30 a.m.
(EET)

INCAP GROUP BUSINESS REVIEW FOR JANUARY-SEPTEMBER 2016

Revenue was increased by 32% and operating profit by 30% on the corresponding
period last year. Construction work of the factory extension in India proceeding
as scheduled.

The information in this business review concerns the development of Incap Group
in January-September 2016 and in the corresponding period of 2015, unless
otherwise stated. The figures are unaudited.

Key figures in January-September 2016

  * The Group's revenue amounted to EUR 27.9 million, up 32% on the
    corresponding period of previous year (Jan-Sep 2015: EUR 21.2 million).
  * The Group's operating profit (EBIT) amounted to EUR 3.3 million, up 30% on
    the corresponding period (EUR 2.5 million).
  * Net profit for the period amounted to EUR 2.0 million, up 64% on the
    corresponding period (EUR 1.2 million).


                                1-9/   1-9/   7-9/  4-6/  1-3/  1-12/
 (EUR thousand)                 2016   2015   2016  2016  2016   2015




 Revenue                      27,920 21,214 10,048 9,186 8,686 30,566

 Operating profit/loss (EBIT)  3,265  2,517  1,063 1,037 1,165  3,692

 Profit/loss for the period    2,043  1,247    778   614   651  2,012



Key events of the period

Incap Group's revenue for January-September 2016 developed favourably both in
India and in Estonia, growing by 32% on the comparison period. Thanks to the
ramp-up of a new customer's volume production the manufacturing quantities in
Estonia have increased enabling further strong business development of the unit.
The currency fluctuation between Euro and Indian Rupee weakened the revenue by
approximately EUR 1.2 million on the corresponding period last year.

The operating profit (EBIT) amounted to EUR 3.3 million, increasing by 30% on
the comparison period last year. The operating profit margin stayed on a good
level at 11.7% even though it decreased slightly towards the end of the review
period as expected.

The financing position of the company remained good and the equity ratio on 30
September 2016 was 34.6% (30 September 2015: 28.4%).

The construction of the expansion of the production facilities in India has
proceeded on schedule, and the extension of approximately 2,000m(2) is planned
to be taken into operation in the beginning of 2017. The expansion enables
future growth of export deliveries, which is required both by present and new
potential customers. At present, the export production is running at full
capacity.

Outlook for 2016

Incap's estimates for future business development are based both on its
customers' forecasts and on the company's own assessments.

The company continues to estimate that the Group's revenue in 2016 will be
approximately EUR 35-40 million. The operating profit (EBIT) in 2016 is
estimated to be approximately at the same level or somewhat higher than in
2015, when the operating profit was EUR 3.7 million, provided that there are no
major changes in exchange rates.

Incap will publish its financial statement release for January-December 2016 in
accordance with IAS 34 on Tuesday, 21 February 2017.

Ville Vuori, President and CEO of Incap Group:

"The business of Incap continues proceeding with good tempo. Both units are
recruiting and developing their production capacity. Our financial situation
keeps improving. All in all, we have succeeded in aligning our management and
business model effectively with our service promise. We are able to react fast
and improve our position in continuously changing market conditions. We expect
the positive trend to continue. By keeping the focus on continuous development
our long-term future outlook is optimistic."

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 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 470 people. Incap's share is listed on the
Nasdaq Helsinki Ltd. as from 1997. Additional information: www.incapcorp.com.


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Attachments:

Incap Group Business Review January-September 2016.pdf