Incap - Interim Management statement

Incap Goup Interim Management Statement for 1 January - 12 November 2015

Incap Corporation
Interim Management Statement             12 November 2015 at 8.30 a.m. (EET)



INCAP GROUP INTERIM MANAGEMENT STATEMENT FOR 1 JANUARY - 12 NOVEMBER 2015


Strong performance continued: Revenue and result increased clearly, financing
position improved.

The information in this Interim Management Statement of Incap Group refers to
the continued operations of the company without the factory in Vaasa, which was
divested in December 2014. The figures of this Statement describe the
development during the period of January-September 2015 and the corresponding
period in the year 2014, unless otherwise stated. The figures are unaudited.

Key figures in January-September 2015

  * The Group's revenue was EUR 21.2 million, increasing 64.6% year-on-year (1-
    9/2014: EUR 12.9 million).
  * The operating profit (EBIT) amounted to EUR 2.5 million (1-9/2014: EUR 0.1
    million).
  * Net profit for the period amounted to EUR 1.2 million (1-9/2014: EUR -0.5
    million).


                             |        |        |        |        |
 (EUR thousand)              |1-9/2015|1-9/2014|1-6/2015|1-6/2014|1-12/2014
                             |        |        |        |        |
-----------------------------+--------+--------+--------+--------+---------
                             |        |        |        |        |
-----------------------------+--------+--------+--------+--------+---------
 Revenue                     |  21,214|  12,887|  13,254|   8,155|   18,499
-----------------------------+--------+--------+--------+--------+---------
 Operating profit/loss (EBIT)|   2,517|      94|   1,478|    -144|    1,061
-----------------------------+--------+--------+--------+--------+---------
 Profit/loss for the period  |   1,247|    -494|     845|    -637|      151



Key events of the period 1 January - 12 November 2015

The Group's revenue increased steadily during the report period thanks to the
launch of new customers' production and the increased volumes for established
customer relationships. The revenue in January-September increased by 64.6% on
the comparison period in the year 2014 to EUR 21.2 million (1-9/2014: EUR 12.9
million). The growth was favoured remarkably also by the strengthening of the
Indian Rupee in relation to Euro.

The company's profitability improved further based on the growing volumes in
production, the increased efficiency of operations and the strategic focusing.
The positive effect of currency fluctuation on the result was remarkable. The
operating profit (EBIT) in January-September was EUR 2.5 million (1-9/2014: EUR
0.1 million. Earnings per share for January-September 2015 was EUR 0.007 (1-
9/2014: EUR -0.003). The number of the company's shares was doubled to
218,228,070 shares in the rights issue in June. Incap Group's equity ratio on
30 September 2015 was 28.4% (31 December 2014: 9.9%).

The cash position of the company improved due to the increased profitability,
the rights issue and the renewal of financing contracts. The company's interest-
bearing debt reduced from EUR 9.3 at the turn of the year to EUR 6.3 million on
30 September 2015. During the report period the company has paid back the
capital investment of Finnfund made in 2009. The last instalment in the payment
arrangement with the Finnish Tax Administration was paid in September.

Short-term risks and factors of uncertainty concerning operations

General risks related to the company's business operations and sector include
the development of customer demand, price competition in contract manufacturing,
successful acquisition of new customers, availability and price development of
raw material and components, sufficiency of funding, liquidity and exchange rate
fluctuations.

As a result of the improved profitability and the rights issue in June 2015, the
financing position of the company has improved and the sufficiency of financing
or working capital is posing no remarkable risk at the moment.

Outlook for 2015

Incap's estimates for future business development are based both on its
customers' forecasts and on the company's own assessments. Due to the general
economic uncertainty it is very hard to estimate the development of customer
demand.

The company estimates that the Group's revenue for the full year 2015 will be
approximately EUR 25-30 million and the full-year operating profit (EBIT)
excluding any extraordinary items approximately EUR 2.9-3.5 million. In its
previous guidance given on 6 August 2015 the company estimated that the Group's
revenue and operating profit (EBIT) in 2015 will be clearly higher than in
2014, when the revenue was EUR 18.5 million and the operating profit (EBIT) EUR
1.1 million.

Ville Vuori, President and CEO of Incap Group:"Our business has now shifted to a solid growth mode. The strategic focus on the
electronics manufacturing and on the actual core business has been a successful
decision. We can be satisfied that our efforts have shown results, especially
considering the fact that the competition in the market in general is very
challenging. The currency fluctuation has affected favourably on our
profitability. In order to secure our long-term profitability we shall - also in
the growing business - be loyal to our light operational model and seek
continuously new means to lower costs for example in material sourcing."

INCAP CORPORATION
Board of Directors


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

Distribution:
NASDAQ OMX 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 400 people. Incap's share is listed on the
NASDAQ OMX Helsinki Ltd. Additional information: www.incapcorp.com.



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