Scanfil Oyj - Financial Statement Release

SCANFIL GROUP’S FINANCIAL STATEMENTS FOR 1 JANUARY – 31 DECEMBER 2016

SCANFIL PLC          FINANCIAL STATEMENTS RELEASE        24 FEBRUARY 2017     
11.15 A.M. 

SCANFIL GROUP’S FINANCIAL STATEMENTS FOR 1 JANUARY – 31 DECEMBER 2016

October – December
- Turnover totalled EUR 122.3 million (Q4 2015: 142.8), down 14.3%
- Operating profit EUR 2.8 million (3.9), 2.3% (2.7%) of turnover,
  adjusted operating profit* EUR 4.7 (5.4) million, 3.8% (3.8%) of turnover
- Profit was EUR 1.3 million (1.2)
- Earnings per share amounted EUR 0.02 (0.02),
  earnings per share before adjustment items* EUR 0.05 (0.05)

January – December
- Turnover totalled to EUR 508.0 million (1-12/2015: 377.3), up to 34.6%
- Operating profit EUR 7.2 million (14.4), 1.4% (3.8%) of turnover,
  adjusted operating profit* EUR 22.3 (20.0) million, 4.4% (5.3%) of turnover
- Profit for the review period was EUR 0.1 million (8.4)
- Earnings per share were EUR 0.00 (0.15),
  earnings per share before adjustment items* EUR 0.25 (0.24)
- Comparison figures for 2015 include the figures of the 2015 acquired
PartnerTech AB 
  from 1 June 2015 onwards.

Future prospects

Scanfil estimates that its turnover for 2017 will be EUR 480–520 million and
the operating profit will amount to EUR 26–31 million. 

Key Indicators                                                                  
                                                              1 - 12      1 - 12
                                                                2016        2015
                                                                                
Return on equity, %                                              0,1         8,6
Return on investment, %                                          4,5        10,6
Interest-bearing liabilities, EUR million                       60,1        87,8
Gearing, %                                                      36,9        65,4
Equity ratio, %                                                 40,7        33,4
Gross investments, EUR million                                   5,5        54,3
% of net turnover                                                1,1        14,4
Personnel, average                                             3 649       2 690
                                                                                
Earnings per share, EUR                                         0,00        0,15
Shareholders´ equity per share, EUR                             1,70        1,74
Dividend per share, EUR                                         0,09        0,08
Dividend per earnings, %                                     6 118,9        55,2
Effective dividend yield, %                                     2,58        2,10
Price-to-earnings ratio (P/E)                                2 372,8        26,3
                                                                                
Year´s lowest share price, EUR                                  2,86        2,36
Year´s highest share price, EUR                                 3,80        4,06
Average share price for year, EUR                               3,41        2,92
Share price at year´s end, EUR                                  3,49        3,81
Market capitalization at end of year, EUR million              222,2       220,0
                                                                                
Number of shares at                                                             
the end of period, 000´s                                                        
- not counting own shares                                     63 670      57 730
- weighted average                                            62 423      57 730
                                                                                
Owing to the nature of the sector, the company´s order book covers only a short 
 period of time and                                                             
does not give an accurate picture of future development.                        



Petteri Jokitalo, CEO of Scanfil plc:

“In 2016, we went through a significant transformation.  The year was strongly
marked by the integration of PartnerTech that was acquired in 2015. We combined
and streamlined organizations, and harmonized operating processes and IT
systems. We eliminated overlapping functions and reorganized unprofitable
plants. As a result, our cost structure is significantly lighter than before.
We continue operations in ten plants, each of which has a distinct role, a
broad customer base, and a sufficient sales volume. Our plant network is in
good shape, and all of our plants are well placed for profitable and
competitive operations. 

We have also kept our foot on the gas; last year we initiated an investment
program. We decided to double the production space in Sieradz and Myslowice. We
also made an investment in electronics assembly lines for both in Sieradz and
Suzhou. Additionally, we invested in punching machines in Myslowice. Parts of
production equipment from closed factories are also being transferred to
continuing factories. With these transfers, we have enhanced our manufacturing
capacity e.g. in Myslowice as well as added new manufacturing technology, such
as electronics assembly lines, to Hamburg. 

Our current customer base offers a good opportunity for increasing sales. We
aim to find new customers, especially in the Nordic countries and Central
Europe. We will develop our operations in cooperation with our customers, based
on their needs. Our aim is to stand out from our competitors by offering
excellent performance and by being our customers' trusted partner for
manufacturing services. Our customers have given us positive feedback on our
stronger strategic position and increased potential to add value. 

I am extremely satisfied with Scanfil's development in 2016, and I wish to
thank our committed personnel, customers and other stakeholders.” 

Financial development

The Group’s turnover for January - December was EUR 508.0 (377.3) million.  The
breakdown of turnover by regional segment was as follows: Europe and USA 78%
(74%), Asia 22% (26%). 

The Group's operating profit for January – December  was EUR 7.2 (14.4)
million, representing 1.4% (3.8%) of turnover. Adjusted operating profit was
EUR 22.3 (20.0) million, representing 4.4% (5.3%) of turnover. The operating
profit for the period under review includes adjustments of EUR 15.1 million,
consisting of the restructuring and reorganisation costs of the plant network
related to the divestment and the closure of subsidiaries with low
profitability. The adjustments for the previous year consisted of costs related
to the acquisition of PartnerTech AB, the fair value measurement of the
subsidiary PartnerTech Aerodyn AB and an impairment related to the Hungarian
operations, totaling EUR 5.6 million. 

The result for the period was EUR 0.1 million (8.4 million), and the result
before adjustment items was EUR 15.7 (13.9) million. 

Earnings per share were EUR 0.00 (0.15) for the period under review, and
earnings per share before adjustments were EUR 0.25 (0.24). The return on
investment was 4.5% (10.6%). 

The Group's turnover for October–December amounted to EUR 122.3 (142.8) million
and operating profit was EUR 2.8 (3.9) million, or 2.3% (2.7%) of turnover. The
fourth quarter includes a total of EUR 1.9 (1.5) million of adjustments.
Operating profit before adjustments was EUR 4.7 (5.4) million, representing
3.8% (3.8%) of turnover. 

Annual General Meeting 2017 and Board of Directors’ proposals to the Annual
General Meeting 

Scanfil plc’s Annual General Meeting will be held on 26 April 2017 at the
company’s head office in Sievi, Finland. 

Dividend for 2016
The company aims to pay dividends amounting to approximately 1/3 of its annual
result on a regular basis. 
The parent company's distributable funds are EUR 34,338,367.26 including
retained earnings EUR 6,276,359,64. The Board of Directors proposes to the
Annual General Meeting that a dividend of EUR 0.09 per share be paid for a
total of EUR 5.730.339,51 for the financial year ending on 31 December 2016
.The dividend matching day is 28 April 2017. The dividend will be paid to those
shareholders who, on the matching day, are entered in the Company’s Register of
Shareholders, kept by Euroclear Finland Ltd. The dividend payment day is 8 May
2017. 

No significant changes have taken place in the company’s financial position
since the end of the financial year. In the view of the Board of Directors, the
proposed dividend pay-out will not put the company’s liquidity at risk. 

The proposal of Scanfil plc's nomination committee to the General Meeting for
the composition of Scanfil plc's Board of Directors will be published in
connection with the invitation to the General Meeting. 

The company publishes a notice of the Annual General Meeting later separately.

Publication of financial releases

This stock exchange release is a summary of the Scanfil Group’s Financial
Statements Release 1 January – 31 December, 2016 and includes the most relevant
information of the report. The complete report is attached to this release as a
pdf file and is also available on the company’s website at www.scanfil.com. 



Petteri Jokitalo
CEO



Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111



Distribution         NASDAQ OMX, Helsinki
                           Major Media
                           www.scanfil.com



Scanfil is an international contract manufacturer and system supplier for the
electronics industry with 40 years of experience in demanding contract
manufacturing. Scanfil provides its customers with an extensive array of
services, ranging from product design to product manufacturing, material
procurement and logistics solutions. Vertically integrated production and a
comprehensive supply chain are the foundation of Scanfil’s competitive
advantages: speed, flexibility and reliability. 

Typical Scanfil products include mobile and communications network devices,
automation system modules, frequency converters, lift control systems,
analysers, various slot and vending machines, and devices related to medical
technology and meteorology. Scanfil services are used by numerous international
automation, energy, IT and health service providers, as well as companies
operating in the field of urbanisation. Scanfil’s network of factories consists
of 12 production units in Europe, Asia and North America. The total number of
employees is 3,500. 

Not to be published or distributed, directly or indirectly, in any country
where its distribution or publication is unlawful. Forward looking statements:
certain statements in this stock exchange release may constitute
"forward-looking" statements which involve known and unknown risks,
uncertainties and other factors which may cause actual results, performance or
achievements of Scanfil Oyj to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. When used in this stock exchange release, such statements use such
words as "may," "will," "expect," "anticipate," "project," "believe," "plan"
and other similar terminology. New risk factors may arise from time to time and
it is not possible for management to predict all of those risk factors or the
extent to which any factor or combination of factors may cause actual results,
performance and achievements of Scanfil Oyj to be materially different from
those contained in forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on forward-looking
statements as a prediction of actual results. The forward-looking information
contained in this stock exchange release is current only as of the date of this
stock exchange release. There should not be an expectation that such
information will in all circumstances be updated, supplemented or revised,
except as provided by the law or obligatory regulations, whether as a result of
new information, changing circumstances, future events or otherwise.

Attachments:

Scanfil plc Financial Statemets Release.pdf