Etk Ems Skanderborg A/S

Business activities
The year's activity, similary to previous years, has consisted of fabrication of and trading in electronic
equipment and expertise concerning such.
Business review
The company's income statement for the year ended 30 June shows a profit of EUR 667,866, and the balance sheet at 30 June 2019 shows equity of EUR 2,603,409.
Financial review
In our 40 years anniversary financial year, 2018/19, ETK EMS Group did not only achieve to keep the growth level as previous years but actually to improve. For this financial year, the result exceeds the expectation of the shareholders.

The result for 2018/19 was budgeted to be in the area of 10-11% growth and the result ended by 29%, which is satisfactory for the Management. The expectation for the financial year 2019/20 is to continue to grow the result. After the result of the first quarter of financial year, 2019/20 the expectation is to reach a result minimum in the level of our previous 5 years.

The global EMS market have after several years with unstable supply chain of components reach into a much more stable situation where demand is matching the global availability. Growth in the market is still very fragmented as some industries are having effect of global political issues like Brexit, Trade wars and general unbalance, but other industries are seeing stable growth. Markets with high activity level is e.g. Medico, Food Quality management, Agriculture & Robotics.
The year at a glance and follow-up on expectations expressed last year
In the financial year, 2018/19 ETK EMS acquired another EMS competitor in the Danish market. October 2018 we acquired Delfi Electronics, located in Sønderborg and the transformation into being part of the ETK EMS Group started immediately. Delfi Electronics had severe losses in the last years in business and it required significant changes both mentally but also in business systems to change this outcome in only few months. Already this financial year ETK EMS Sønderborg have participated into growing the financial result for ETK EMS Group. The shareholders are extraordinary proud of this performance.

One of our strategic goals is to be first mover of real digitalization in our EMS industry as well as in the Industry in general. In 2018/19, we have implemented several new internal systems that reduce the level of managerial interference and paperwork in the production areas. By these new systems, we have gained even more flexibility, agility and transparency around the organization. Besides having the already market proven ETK EMS Intelligence system upstream towards our customer base the next year will have several projects optimizing the present systems downstream to our supplier base. This high level of digitalization around the organization proved to be one of the key elements in transferring the new site in Sønderborg to be profitable in only very few months.
Description of non-financial conditions
In September 2018, ETK EMS celebrated our 40th year’s anniversary together with customers, suppliers and business partners. We are very thankful for the support all these parties have given our company during these years and we look forward to live up to both our own and their expectations for the years to come.

ETK EMS Group are committed to support the sustainable development goals set by UN not only by our own internal efforts to make a real difference but certainly also by given focus and support to the number of customers we have actually creating products supporting directly some of these 17 goals. This year one of our own CSR activities was to plant 400 mangrove trees in Thailand.
Significant events occurring after end of reporting period
No events have occurred after the balance sheet date which could significantly affect the company's financial position.