Incap Oyj : Incap's future outlook, annual report, auditor's report and corporate governance statement published

Tue Mar 19, 2013 2:30am EDT

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Incap Corporation
Stock Exchange Release   19 March 2013 at 8.30 a.m.


Incap Corporation's annual report including the consolidated financial statements for 2012, has
been published in Finnish and in English. The report is available in PDF form on the company's
website at report. The annual report has been published only in
electronic format, but prints of it can be ordered using e-mail

The annual report includes among others the report of the Board of Directors, consolidated
financial statements and the auditor's report. 

Future outlook
According to the new Securities Market Act, a company is obliged to present its future outlook in
the report of the Board of Directors. Incap Corporation's Board of Directors will continue the
company's previous practice and present its estimate on future outlook both in the report of the
Board of Directors and in interim reports. 

Incap Corporation's Board of Directors repeats its future outlook as published on 26 February 2013
in the financial statements release for 2012 as follows:

Incap's estimates for future business development are based both on its customers' forecasts and
on the company's own assessments. In the energy efficiency sector, demand is expected to grow from
the 2012 level both in Europe and in India. Revenue from well-being technology products is
estimated to decrease from last year due to the discontinuation of manufacturing of certain volume

The closure of the Helsinki plant in 2012 was the last phase of the company's strategic change to
production structure, creating the prerequisites for profitable growth. Reduction of the number of
plants and other efficiency improvements in production, together with the streamlining of the
Group services, will improve the company's profitability in 2013.

Incap estimates that the Group's revenue in 2013 will be the same or somewhat lower than the EUR
64.1 million achieved in 2012. The company estimates that its full-year operating result (EBIT)
will be clearly positive. In 2012 the operating result was negative EUR -0.7 million. 

Auditor's report
In its report the auditor wants, without qualifying its opinion, to draw attention to the issues
described in the report of the Board of Directors and in paragraph 26 of the notes to the
financial statements about the company's financing and sufficiency of working capital. According
to the cash flow forecast, the company's working capital does not correspond with the company's
needs for the next 12 months. According to the company's estimate the additional working capital
requirement is about EUR 4-6 million. The matters in the report of the Board of Directors and in
the notes to the financial statements indicate the existence of significant uncertainty which may
cast a significant doubt about the company's ability to continue as a going concern. 

In addition, without qualifying its opinion, the auditor wants to draw attention to the valuation
of the subsidiary shares and related significant uncertainty, which is described in section 11 in
notes to the financial statements of the parent company.

The auditor further gives its notification in accordance with Securities Market Act 7:8§. Without
qualifying its opinion, the auditor wants to draw attention to the section "Information related to
the liquidity risk and continuity of operations in the interim report for January-June" in the
report of the Board of Directors. The company's Interim Report for January-June has not complied
with all the requirements of IAS 34 standard. The company has later provided the missing
information in a prospectus and a separate stock exchange release on 14.9.2012. 

Corporate governance statement
Incap has published the corporate governance statement as a separate document, which is available
on the company's website at Governance.


Sami Mykkänen
President and CEO

Further information:
Sami Mykkänen, President and CEO, tel. +358 40 559 9047
Kirsti Parvi, CFO, tel. +358 50 517 4569 
Hannele Pöllä, Director, Communications and IR, tel. +358 40 504 8296

NASDAQ OMX Helsinki Ltd
Principal media 

Annual report and financial statements including the report of the Board of Directors and
Auditor's report
Corporate governance statement

Incap Corporation is an internationally operating contract manufacturer whose comprehensive
services cover the entire life-cycle of electromechanical products from design and manufacture to
maintenance services. Incap's customers include leading equipment suppliers in energy efficiency
and well-being technologies, for which the company produces competitiveness as a strategic
partner. Incap has operations in Finland, Estonia, India and China. The Group's revenue in 2014
amounted to approx. EUR 64.1 million and the company currently employs approx. 610 people. Incap's
share is listed on the NASDAQ OMX Helsinki. Additional information:


Incap_Report on corporate governance 2012 
Incap_Annual Report_2012 


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Source: Incap Oyj via Thomson Reuters ONE