Q4/20 and 2020: Solid performance in exceptional year.  Customer demand picked up towards year end. 

October - December

  • Turnover totalled EUR 154.1 million (Q4 2019: 154.7), decrease of 0.4%
  • Adjusted operating profit* EUR 10.4 (10.0) million,  6.8% (6.5%) of turnover, increase of 3.9%
  • Operating profit EUR 4.3 (10.0) million, 2.8% (6.5%) of turnover, decrease of 56.9%
  • Net profit was EUR 3.1 (9.8) million
  • Earnings per share were EUR 0.05 (0.15), adjusted earnings per share EUR 0.14

January – December

  • Turnover totalled to EUR 595.3 (1-12/2019: 579.4) million, increase of 2.7%
  • Adjusted operating profit** EUR 39.1 (39.4) million,  6.6% (6.8%) of turnover, decrease of 0.7%
  • Operating profit EUR 44.4 (35.3) million, 7.5% (6.1%) of turnover, increase of 25.8%
  • Net profit for the review period was EUR 36.9 (28.1) million
  • Earnings per share were EUR 0.57 (0.44), adjusted earnings per share EUR 0.50
  • The Board of Directors proposes a dividend of EUR 0.17 (0.15) per share to be paid for year 2020, increase of 13.3%

* The operating profit includes a total of EUR -6.1 million of adjustments, consisting of costs arising from the shutdown of the factory of German subsidiary Scanfil GmbH.

** The operating profit includes a total of EUR 5.3 million of adjustments, consisting of the aforementioned costs arising from the shutdown of the factory of German subsidiary Scanfil GmbH and the sales gains of EUR 11.4 million of Chinese subsidiary Scanfil (Hangzhou) Co. Ltd.

Future Outlook
Scanfil estimates that its turnover for 2021 will be EUR 600 – 640million and its adjusted operating profit will be EUR 40–44 million.

The guidance for 2021 involves uncertainty arising from the potential negative impact of the availability of certain materials, especially semiconductors, and Covid 19 pandemic on customer demand and the delivery capability of the component supply chain.

Long Term Target
Scanfil’s long-term target: In 2023, Scanfil is organically aiming for EUR 700 million turnover and 7% operating profit.

Key Figures
Q4/2020Q4/2019Change%20202019Change %
Turnover, EUR million154.1154.7-0.4 %595.3579.42.7 %
Operating Profit, EUR million4.310.0-56.9 %44.435.325.5 %
Operating Profit, Adjusted, EUR million10.410.03.9 %39.139.4-0.7 %
Operating Profit, %2.86.5 7.56.1 
Operating Profit, Adjusted, %6.86.5 6.66.8 
Net Profit, EUR million3.19.8-68.1 %36.928.131.4 %
Net Profit, Adjusted, EUR million7.59.8-23.2 %32.532.11.2 %
Earnings per Share, EUR0.050.15-67.6 %0.570.4431.2 %
Earnings per Share, Adjusted, EUR0.140.15-4.6 %0.500.501.1 %
Return on Equity,  %   21.118.0 
Return on Equity, Adjusted, %   18.420.4 
Equity Ratio, %   54.349.1 
Net Gearing, %   9.927.7 
Net Cash Flow from Operations, EUR million  35.235.9-1.8 %
Employees (Average)   3 3873 530-4.1 %

Petteri Jokitalo, CEO:

"The turnover for the fourth quarter was EUR 154.1 million. The growth was mainly driven by the Medtec & Life Science, Energy & Automation and Consumer Applications” customer segments. Also, demand among several customers, affected negatively by the Covid-19 pandemic earlier in the year, recovered during the fourth quarter.

The adjusted operating profit for the quarter was EUR 10.4 million, comprising 6.8% of turnover. Our countermeasures to coronavirus were successful and the performance of our personnel and factories remained high.

The year 2020 was an operationally strong year for Scanfil despite exceptionally challenging circumstances and proof of Scanfil's personnel's capability and the flexibility of the company cost structure. Covid 19 pandemic shaped the year, and the operative focus stayed on employees' safety and ensuring customer deliveries continuity. Our turnover in 2020 was EUR 595.3 million, and our adjusted operating profit was EUR 39.1 million, or 6.6% of turnover.

The sale of Hangzhou factory was realized in July, and now Scanfil's focus in China is on the manufacture of electronics and integrated products at the Suzhou factory. In December, we decided to close the Hamburg factory and continue its production at other Scanfil factories in Germany and Poland.  Production is expected to be transferred, and the plant to be closed, by the end of the third quarter of 2021. The arrangement is expected to result in annual cost savings of approximately EUR 2.5 million. These measures aim to secure and further improve the long-term performance and competitiveness of Scanfil's factory network.

The reported operating profit for 2020 of EUR 44.4 million includes sales gains from the Hangzhou factory
and adjustments related to the Hamburg factory's shutdown.

The Board of Directors proposes that EUR 0.17 per share be paid in dividends for 2020. If the Annual General Meeting to be held this spring approves the dividend proposal, Scanfil increases its dividend for the eighth year in succession. At the same time, the dividend distribution ratio has remained at the targeted level, approximately one-third of earnings per share.

Our strategic goal is to expand our customer base and increase our market share, especially in Germany and more broadly in Central Europe. The region has a highly attractive contract manufacturing market, offering large growth potential for Scanfil. The idea is to provide our customers both a local manufacturing partnership with our Wutha factory in Germany and Scanfil's global partnership, factory network and service range. We made positive progress with our strategic goal during the year; our turnover developed positively in Central Europe, and we signed new global agreements with our current local customers in the region.

We enter 2021 with confidence. Our customers' forecasts for the year are mainly showing growth, and we target for growth in both sales and operating profit. However, it is clear that the year also includes uncertainties: the coronavirus pandemic is still here, and there are also signs of risks associated with the availability of certain materials.  We have identified these risks and defined as well as launched appropriate actions to mitigate.

Our long-term target for 2023 is to achieve a turnover of EUR 700 million and an operating profit rate of 7%. We are also actively investigating acquisition opportunities, especially in the Nordic countries and Central Europe.

Overall, I am satisfied with our performance in 2020. I want to thank our committed personnel and our customers and other stakeholders for your trust.

Financial development

The Group’s turnover for January – December was EUR 595.3 (579.4) million, increase of 2.7% compared to the previous year. The turnover increased mainly due to the acquisition of the operations of HASEC during the second quarter of 2019.
Turnover by customer segment developed as follows: The turnover of the Communication segment increased by EUR 12.0 million (15.0%) as a result of positive demand for base station products at the beginning of the year. Furthermore, the divestment of the Hangzhou plant in July had no significant impact annually on the Communication segment’s turnover, because customers transferred their orders partly to other Scanfil units. This sale was mainly intermediate sales, which had not significant impact on result.

The Consumer Applications segment’s turnover decreased by EUR 19.5 million (18.1%) year-on-year. The negative impact of the coronavirus pandemic was particularly reflected in this segment’s full-year demand, even though demand picked up clearly during the final quarter.

The Energy and Automation segment’s demand increased by EUR 15.4 million (13.8%). The growth came broadly from the segment's customer base.

The turnover of the Industrial segment increased by EUR 8.8 million (5.1%), primarily as a result of the HASEC business acquisition completed during the second quarter of 2019.

The turnover of the Medtec & Life Science segment remained annually at the previous year’s level.

The Group’s operating profit for January – December was EUR 44.4 (35.3) million, 7.5% (6.1%) of turnover. The net profit for the review period was EUR 36.9 (28.1) million. Earnings per share for the review period were EUR 0.57 (0.44). Return on investment was 19.5% (17.0%). The increase in the key figures is mainly attributable to the adjustments described below.

The operating profit includes a total of EUR 5.3 million of adjustments, consisting of sales gains from the divestments of all shares in Chinese subsidiary Scanfil (Hangzhou) Co. Ltd and costs arising from the closure of the Hamburg plant of German subsidiary Scanfil GmbH.

The divestment of the Hangzhou subsidiary was completed on July 14, 2020, and its positive impact on the operating profit was EUR 11.4 million, of which EUR 7.9 million consisted of equity translation differences.

The consultation process concerning the personnel of the Hamburg factory was completed on December 17, 2020, and Scanfil GmbH decided to close the Hamburg plant. Production will be transferred to the Wutha factory in Germany and the Sieradz factory in Poland. This arrangement is expected to result in non-recurring expenses of approximately EUR 6.1 million, recognized for the final quarter of 2020. The arrangement is expected to result in annual cost savings of around EUR 2.5 million. These steps are expected to be completed by the end of the third quarter of 2021.

The previous year’s operating profit includes a total of EUR -4.0 million of adjustments, consisting of expenses related to the acquisition of HASEC-Elektronik GmbH (EUR -4.0 million) and a write-down of goodwill (EUR 3.6 million) related to Scanfil GmbH’s business operations.

The adjusted operating profit was EUR 39.1 (39.4) million, or 6.6% (6.8%) of turnover. The adjusted operating profit decreased by 0.7% year-on-year. As a result of the divestment of the Hangzhou subsidiary, part of the Communication segment’s turnover consisted of intermediate sales with low profitability, which reduced total profitability.

In addition, the Covid 19 pandemic reduced productivity and resulted additional costs. These are described in more detail in the “The Impact of Covid-19 Pandemic during the Review Period” section.
The Group’s low effective tax rate of 11.6% primarily results from the low tax on sales gains from Chinese subsidiary Scanfil (Hangzhou) Co., Ltd and tax relief related to investments in the Polish Special Economic Zone.

The Group’s turnover in October–December was EUR 154.1 (154.7) million and its operating profit was EUR 4.3 (10.0) million, 2.8% (6.5%) of turnover. The adjusted operating profit was EUR 10.4 million, or 6.8% of turnover. The operating profit for the fourth quarter includes expenses of EUR 6.1 million from the closure of the plant of German subsidiary Scanfil GmbH. The result for October–December was EUR 3.1 (9.8) million.

Annual General Meeting 2021 and Board of Directors’ proposals to the Annual General Meeting

Scanfil plc’s Annual General Meeting is planned to be held on 22 April 2021 at the company’s head office in Sievi, Finland.

Dividend for 2020

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 73,734,335.62 including retained earnings EUR 41,558,744.08. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.17 (0.15) per share be paid for a total of EUR 10,960,113.35 for the financial year ending on 31 December 2019.The dividend matching day is 26 April 2021. 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 3 May 2021.

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 Statement Release 1 January – 31 December, 2020 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

Webcast Q4 and 2020 results

In conjunction with releasing our Q4 and 2020 results, we arrange a webcast on 18 February 2021 at 10.00 am. You can follow the webcast The presentation is in Finnish, and it will be held by CEO Petteri Jokitalo. On-demand recording from the webcast will be available on the company’s webpages later the same day.


Petteri Jokitalo

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

Distribution         NASDAQ OMX, Helsinki
                           Major Media

Scanfil is an international manufacturing partner 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 11 production units in Europe, Asia and North America. The total number of employees is about 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.