2011 Interim Report q1 1 January - 31 March 2011 The Group s order book rose 53% and was at end of March MEUR 104 (MEUR 68). Consolidated net sales in the review period increased 58% and totalled MEUR 144 (MEUR 91). Capacity utilization rate during the review period was 71% (50%) Operating profit excluding one-time items was MEUR 8.5 (MEUR 0.3). Operating profit after onetime items was MEUR 6.0 (MEUR 0.3). Result after financial items excluding one-time items was MEUR 3.2 (MEUR -5.6). Result after financial items and after one-time items was MEUR 0.7 (MEUR -5.6). Earnings per share excluding one-time items was EUR 0.13 (EUR -0.24). Earnings per share after one-time items was EUR 0.03 (EUR -0.24). Unused committed credit facilities and cash in bank at the end of review period were MEUR 67.
Clear improvement in result, demand outlook for rest of year still encouraging Net sales and order book The Group s net sales in January - March were EUR 144.1 (91.2) million. Net sales increased 58% and the value of production 59%. The Group s capacity utilization during the review period was 71% (50%). The order book at the end of March was 53% higher than at the same time in the previous year, standing at EUR 104.3 (68.0) million. The order book comprises confirmed orders for the next two months. Net sales of the Turkey operations rose 67% from the previous year to EUR 67.9 (40.6) million. The order book at the end of the review period stood at EUR 54.0 (32.6) million. The order book in Turkey was boosted particularly by encouraging developments in construction and mining machinery and in automotive industries. Net sales for operations in Finland rose 37% from the previous year and were EUR 28.5 (20.8) million. The operations had an order book at the end of the period of EUR 17.6 (13.6) million. Increased orders from the heavy truck and machine building industries were the main factors strengthening the order book in Finland. Net sales for the Holland operations rose 43% from the previous year to EUR 26.7 (18.7) million. The order book at the end of the review period stood at EUR 17.7 (13.4) million. The order book in the Netherlands comes mainly from manufacturers of construction and mining machinery and agricultural machinery, and from the heavy trucks and machine building industries. Net sales for operations in Sweden rose 104% from the previous year to EUR 32.4 (15.8) million. The order book at the end of the review period was EUR 23.2 (13.3) million. Increased orders from the heavy trucks and machine building industries in particular boosted the order book in Sweden. Componenta s net sales by customer sector were as follows: heavy trucks 29% (24%), construction and mining 21% (21%), machine builidng 19% (21%), automotive 18% (20%), agriculture 11% (13%), wind power 1% (1%) and other sales 1% (1%). Result The Group s EBITDA for the review period excluding one-time items was EUR 13.3 (3.6) million and after one-time items EUR 12.9 (3.6) million. EBITDA improved clearly from the previous year mainly due to higher production volumes and measures taken earlier to adjust costs. However, the rapid rise in raw material prices that started at the end of previous quarter had a negative impact on EBITDA in the review period, estimated at EUR -2.4 million. Other operating income includes exchange rate differences on sales and purchases. The consolidated operating profit for the first quarter excluding one-time items was EUR 8.5 (0.3) and after one-time items EUR 6.0 (0.3) million. The one-time item of EUR -2.4 million included in the operating profit is related to the write -downs of machines and equipment due to the closing of the Pietarsaari machine shop (MEUR -2.0) and to estimated unefficiencies in production due to closure decision of the unit (MEUR -0.4). The Group s net financial costs for the review period were EUR -5.3 (-5.9) million. Net financial costs decreased from the previous year due to lower interest costs. The Group s result for the period after financial items, excluding one-time items, was EUR 3.2 (-5.6) million and after onetime items EUR 0.7 (-5.6) million. Income taxes calculated from the result for the review period excluding one-time items totalled EUR -0.5 (+1.5) million and after one-time items EUR +0.1 (+1.5) million. The net result for the period excluding one-time items was EUR 2.6 (-4.1) million and after one-time items EUR 0.8 (-4.1) million. Basic earnings per share for the review period excluding one-time items were EUR 0.13 (-0.24) and after one-time items EUR 0.03 (-0.24). The return on investment excluding one-time items was 11.5% (1.1%) and after one-time items 8.4% (1.1%). The return on equity excluding one-time items was 15.8% (-23.5%) and after one-time items 4.9% (-23.5%). Quarterly analysis of changes in income statement MEUR Q1/2011 Q1/2010 Change % Net sales 144.1 91.2 58 Value of production 150.0 94.4 59 Materials -61.6-34.3 79 Direct wages and external services -33.7-24.2 39 Other variable and fixed costs -41.8-32.3 30 Total costs -136.7-90.8 51 EBITDA 13.3 3.6 267 2
Balance sheet, financing and cash flow At the end of March the Group had outstanding capital notes and convertible capital notes with a total value of EUR 40.5 million, as defined in IFRS. During the three month period, new long-term bilateral bank loans totalling EUR 34.9 million were drawn, to refinance short-term bank loans that matured in the period. The outstanding loan balance of the syndicated credit facility was EUR 13.0 million higher compared to the previous quarter. At the end of March Componenta s liquidity was strong. Cash and bank receivables at the end of the review period totalled EUR 15.7 million. In addition, unused committed credit facilities totalled EUR 51.5 million at the end of March. The Group also has a EUR 150 million commercial paper programme, from which the company had a debt of EUR 3.0 million at the end of the review period. The Group s interest-bearing net debt, excluding the outstanding capital notes of EUR 40.5 million, totalled EUR 197.6 (214.9) million at the end of March. The company s net debt as a proportion of shareholders equity, including the capital notes in the shareholders equity, was 192.3 % (218.2 %). Componenta s net cash flow from operations during the review period was EUR -6.6 (3.5) million, and of this the change in net working capital was EUR -14.2 (3.1) million. Inventories were higher than earlier because production volumes were increasing is especially towards the end of review period. Componenta makes more efficient use of capital with a programme to sell its trade receivables. Under this arrangement, some of the trade receivables are sold without any right of recourse. By the end of March the company had sold trade receivables totalling EUR 79.7 (40.8) million. The higher amount of sold trade receivables could not totally compensate the capital tied up in working capital due to high volumes. At the end of March the Group s equity ratio was 14.3% (17.0 %). The change in the translation difference caused by the weakening of the Turkish lira against the euro affected the equity ratio during the review period. The cumulative translation difference since 1 January 2011 was EUR -9 million. The Group s shareholders equity at the end of March, including the capital notes in shareholders equity, as a proportion of the balance sheet total was 23.5% (23.6%). Investments Investments in production facilities during the quarter totalled EUR 1.9 (0.8) million. The net cash flow from investments was EUR -2.0 (-3.2) million, which includes the cash flow from the Group s investments in tangible and intangible assets, and the cash flow from shares sold and purchased and from the sale of fixed assets. Performance of operations Turkey operations The operations in Turkey comprise the iron foundry and machine shop in Orhangazi and the aluminium foundry and production unit for aluminium wheels in Manisa. Net sales for the operations in Turkey rose 67% in the first three months to EUR 67.9 (40.6) million. Operating profit was EUR 8.3 million, corresponding to 12.2% of net sales (EUR 3.2 million, 7.9%). The operating profit for the period was boosted by extremely positive developments in volumes especially in the construction and mining machinery and automotive industries. The operating profit was affected, however, by the rapid rise in the price of iron raw materials, amounting to EUR -0.4 million. At the end of March, the order book for the Turkey operations was 66% higher than in the previous year, at EUR 54.0 (32.6) million. Finland operations The operations in Finland consist of the iron foundries in Iisalmi, Karkkila, Pietarsaari and Pori and the machine shops in Lempäälä and pietarsaari. The operations also include the production unit for pistons in Pietarsaari. Net sales for the operations in Finland rose 37% in the quarter to EUR 28.5 (20.8) million. The operating profit was EUR -1.3 million or -4.7% of net sales (EUR -0.6 million, -2.8%). The rapid rise in iron raw material prices and in some regional raw material prices had a negative impact on the operating result for the period, totalling EUR -1.0 million. In addition, the operating profit of the Pietarsaari business unit weakened clearly. At the end of March, the order book for the Finland operations was 29% higher than in the previous year, at EUR 17.6 (13.6) million. On 14 March 2011 Componenta announced that machining operations in Pietarsaari will be terminated by the end of 2011. Factors leading up to the decision were that the profitability of machining operations at Pietarsaari has remained weak for a long time and the strategic changes that 3
have taken place in the customer base in the heavy trucks industry. The decision has an impact on personnel meaning that jobs of a maximum of 60 people will be phased out at Componenta s Pietarsaari unit gradually during 2011, by terminating fixed-term employment contracts and through retirement schemes and redundancies. One-time costs from the termination of machining operations are estimated to be some EUR 3 million and investment and product transfer costs at EUR 1 million in 2011. Holland operations The operations in the Netherlands comprise the iron foundries in Weert and Heerlen, the machine shop operations in Weert and the pattern shop in Tegelen. Net sales for the Netherlands operations rose 43% to EUR 26.7 (18.7) million and the operating profit was EUR 0.3 million, or 1.3% of net sales (EUR -0.1 million, -0.7%). Factors contributing to the improvement in the operating profit were the cost savings carried out earlier and the increase in production volumes. However, the rapid rise in iron raw material prices, in regional raw materials and in some other raw materials that are not included in surcharge system, weakened the operating profit for the period by EUR -1.0 million. At the end of March, the order book for the Holland operations was 32% higher than in the previous year, at EUR 17.7 (13.4) million. Sweden operations The operations in Sweden comprise the Främmestad machine shop and the Wirsbo forge. Net sales for operations in Sweden increased 104% in the quarter to EUR 32.4 (15.8) million, and the operating profit was EUR 1.2 million, corresponding to 3.7% of net sales (EUR -1.4 million, -8.9%). The operating profit for Sweden operations improved from the previous year due to the considerably higher volumes, especially in the heavy trucks customer industry. At the end of March, the order book for the Sweden operations was 74% higher than in the previous year, at EUR 23.2 (13.3) million. Other business Other business comprises the sales and logistics company Componenta UK Ltd in Great Britain, service and real estate companies in Finland, the Group s administrative functions and associated company Kumsan A.S. in Turkey. Other business recorded an operating profit of EUR 0.1 (-0.7) million in the quarter. Personnel The Group had on average 4,601 (3,776) employees during the review period, including 452 (114) leased employees. The number of Group personnel at the end of the review period was 4,727 (3,845), which includes 488 (151) leased employees. At the end of March 53% (48%) of the personnel were in Turkey, 22% (27%) in Finland, 16% (17%) in the Netherlands and 8% (8%) in Sweden. Shares and share capital The shares of Componenta Corporation are quoted on the NASDAQ OMX Exchange in Helsinki. At the end of the rewied period the company had a total of 17,457,798 shares. The company s share capital at the end of March stood at EUR 21.9 (21.9) million. The quoted price on 31 March 2011 stood at EUR 5.90 (4.53). The average price during the period was EUR 5.86, the lowest was EUR 5.50 and the highest EUR 6.24. At the end of the review period the share capital had a market capitalization of EUR 103.0 (79.1) million and the volume of shares traded during the period was equivalent to 6.8% (32.7%) of the share stock. Purchase and disposal of own shares The AGM held on 28 February 2011 resolved, in accordance with the proposal of the Board of Directors, to authorize the Board of Directors to decide on the purchase of a maximum of 1,700,000 of the Company s own shares, in one or several instalments, using the Company s unrestricted shareholders equity. The shares shall be purchased otherwise than in proportion to the holdings of the shareholders through public trading organized by NASDAQ OMX Helsinki Ltd at the market price prevailing at the moment of purchase. The authorization is valid for a period of 18 months from the date of the decision of the AGM. The authorization cancelled the authorization to resolve on the purchase of own shares given to the Board of Directors by the Annual General Meeting on 10 March 2010 The AGM on 26 February 2007 authorized the Board of Directors to decide to issue shares and grant option rights and other special rights with an entitlement to shares under the following terms and conditions: 1. under the authorization the Board may decide to issue shares and grant option rights and other special rights as GROUP QUARTERLY NET SALES MEUR 150 120 90 60 30 0 Q1 Q2 Q3 Q4 OPERATING PROFIT EXCLUDING ONE-TIME ITEMS MEUR 10 8 6 4 2 0 Q1 Q2 Q3 Q4 % 6 5 4 3 2 1 0 RESULT AFTER FINANCIAL ITEMS EXCLUDING ONE-TIME ITEMS MEUR 4 3 2 1 0-1 -2-3 -4-5 -6 Q1 Q2 Q3 Q4 2010 2011 2010 2011 2010, % 2011, % 2010 2011 4
defined in chapter 10, section 1 of the Finnish Companies Act, such that a maximum of 2,000,000 shares are issued under the authorization. The authorization does not exclude the right of the Board of Directors to decide on a direct issue of shares. 2. The authorization is valid for a period of five years from the date of the decision of the AGM. Under the above authorization 12,100 Componenta Corporation shares were issued in 2009 to pay the bonus for the 2007-2008 earning periods in Componenta s 2007-2009 share-based incentive scheme. Share-based incentive scheme 2010-2012 The Board of Directors of Componenta Corporation resolved on 10 March 2010 on a long-term bonus and incentive plan for key personnel. The target group for the plan comprises key positions in the Group as determined by the Board of Directors. At the end of the review period the target group contained 52 people. The plan includes three earning periods, the calendar years 2010, 2011 and 2012. The Board of Directors decides on the earning criteria for each earning period and on the targets for these. The earning criterion for the 2011 earning period is Componenta Group s result after financial items excluding one-time items. The amount of the bonus in the earning period is determined after the end of the period by the extent to which the target set for the earning criteria has been achieved. The bonuses will be paid in 2011, 2012 and 2013 as a combination of company shares and cash. The part to be paid in cash is intended to cover the taxes and tax-related costs arising from the bonus. If shares are paid in the incentive scheme, the shares may not be conveyed, pledged or otherwise used during a two-year restriction period. The Board of Directors decided to allocate 161,100 Componenta Corporation shares for the 2011 earning period, and of this the allocation for the President and CEO was 50,000 shares and for the other key personnel 111,100 shares. The scheme s impact on the Group s result before tax at the end of March was EUR -0.03 million. Board of Directors and Management After the AGM on 28 February 2011, the Board of Directors held its organization meeting and elected Heikki Bergholm as its Chairman and Juhani Mäkinen as its Vice Chairman. Heikki Lehtonen is president and CEO of Componenta. At the end of the review period the Corporate Executive Team (CET) of Componenta Corporation comprised the following members: President and CEO Heikki Lehtonen, COO Yrjö Julin, CFO Mika Hassinen, Hakan Göral, SVP, Operations, Turkey; Olli Karhunen, SVP, Operations, Finland; Patrick Steensels, SVP, Operations, Holland; Michael Sjöberg, SVP, Operations, Sweden; Anu Mankki, SVP, HR and General Counsel Pauliina Rannikko. Communications Director Pirjo Aarniovuori acts as Secretary to CET. At the end of the review period the Extended Corporate Executive Team comprised the members of CET and Secretary to CET listed above and the following: Tapio Rantala, VP, Foundry Technology Development; Ömer Lütfi Erten, VP, Internal Sourcing; Juha Alhonoja, VP, Machining Technology Development; Ville Taipale, VP, Sourcing; Karri Koskela, VP, Supply Chain Management; Bert Duit, VP, Quality and Environment; Antti Lehto, VP, Sales and Product Development; Lauri Eklin, VP, Sales and Product Development; Jari Leino, VP, Sales and Product Development and Hein Strijbos, VP, Engineering. 5
Risks and business uncertainties The most significant risks for Componenta are risks related to the business environment (competition and price risk, commodity and environmental risks), operational risks (customer and supplier risks, productivity, production and process risks, labour market disruptions, contract and product liability risks, personnel risks, and data security risks) as well as financial risks (funding and liquidity risk, currency, interest rate and credit risks). In order to manage the Group s business operations it is essential to secure the availability of certain raw materials, such as recycled metal and pig iron, and energy, at competitive prices. The cost risk relating to raw materials is mainly managed with price agreements, and under these agreements the prices of products are adjusted in line with the changes in raw material prices. Increases in prices for raw materials may tie up more funds in working capital than estimated. The financial risks relating to Componenta s business operations are managed in accordance with the treasury policy approved by the Board of Directors. The objective is to protect the Group against unfavourable changes in the finance markets and to secure the Group s financial performance and financial position. More information related to Componenta s risks and risk management is given in the 2010 annual report and on the company s website at www.componenta.com. Events after end of period Componenta listed the subordinated capital loan and the bond issued in 2010 on the NASDAQ OMX Helsinki stock exchange on 19 April 2011. Market outlook The demand outlook in all the Group s customer sectors is good at the beginning of the second quarter of 2011. Demand in the heavy trucks industry is expected to continue to remain on good level, in particular because of market development in Europe. Demand for construction and mining machinery components is expected to continue to develop favourably, mainly because of the rise in material prices and the recovery in the economy. Demand for agricultural machinery is estimated to rise from the previous year as a result of higher food prices and developments in demand in European and North American markets. As a result of growing exports by Turkey s automotive industry and encouraging developments in demand for aluminium allow wheels, demand in the automotive industry is estimated to pick up encouragingly in 2011. Demand in the wind power sector is expected to remain at a low level in Europe during the first half of year. Demand in the machine building industry is expected to continue to pick up gradually. Outlook for Componenta Componenta s prospects for 2011 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta s order intake and order book. Componenta s order book at the end of March was 53% higher than at the same time in the previous year. In 2011 the Group s net sales are expected to rise clearly and the result after financial items excluding one-time items to be positive. Full year net cash flow from operations is expected to remain positive and changes in working capital should continue to be moderate, due to the sale of trade receivables. Investments in production facilities in 2011 are expected to increase from EUR 15 million to some EUR 20 million, due to good development in new sales and transfer of the Pietarsaari machining operations mainly to Främmestad in Sweden. SALES BY MARKET AREA SALES BY CUSTOMER INDUSTRY PERSONNEL BY COUNTRY Sweden 21% Germany 18% Turkey 15% UK 11% Finland 10% Benelux 8% France 7% Italy 5 Other Europe 2% Other countries 4% Heavy trucks 29% Construction and mining 21% Machine building 19% Automotive 18% Agriculture 11% Wind power 1% Orher sales 1% Turkey 53% Finland 22% Netherlands 16% Sweden 8% 6
Interim report tables Componenta has applied the same accounting principles in this interim report as in the financial statements for 2010. The financial tables in this unaudited interim report have not been prepared in full compliance with IAS 34 accounting principles. Consolidated income statement excluding one-time items MEUR 1.1.-31.3.2011 1.1.-31.3.2010 1.1.-31.12.2010 Net sales 144.1 91.2 451.6 Other operating income 0.4-0.3 0.6 Operating expenses -131.2-87.3-422.7 Depreciation, amortization and write-downs -4.9-3.3-16.0 Share of the associated companies' result 0.1 0.1 0.2 Operating profit 8.5 0.3 13.6 % of net sales 5.9 0.4 3.0 Financial income and expenses -5.3-5.9-23.5 Result after financial items 3.2-5.6-9.9 % of net sales 2.2-6.1-2.2 Income taxes -0.5 1.5 2.5 Net profit 2.6-4.1-7.4 Allocation of net profit for the period To equity holders of the parent 2.3-4.2-7.8 To non-controlling interest 0.3 0.1 0.4 2.6-4.1-7.4 Earnings per share calculated on the profit attributable to equity holders of the parent Earnings per share, EUR 0.13-0.24-0.45 Consolidated income statement MEUR 1.1.-31.3.2011 1.1.-31.3.2010 1.1.-31.12.2010 Net sales 144.1 91.2 451.6 Other operating income 0.4-0.3 0.6 Operating expenses -131.7-87.3-422.8 Depreciation, amortization and write-downs -6.9-3.3-16.0 Share of the associated companies' result 0.1 0.1 0.2 Operating profit 6.0 0.3 13.5 % of net sales 4.2 0.4 3.0 Financial income and expenses -5.3-5.9-23.5 Result after financial items 0.7-5.6-10.0 % of net sales 0.5-6.1-2.2 Income taxes 0.1 1.5 2.5 Net profit 0.8-4.1-7.5 Allocation of net profit for the period To equity holders of the parent 0.5-4.2-7.9 To non-controlling interest 0.3 0.1 0.4 0.8-4.1-7.5 Earnings per share calculated on the profit attributable to equity holders of the parent Earnings per share, EUR 0.03-0.24-0.45 Earnings per share with dilution, EUR 0.03-0.24-0.45 Consolidated statement of comprehensive income MEUR 1.1.-31.3.2011 1.1.-31.3.2010 1.1.-31.12.2010 Net profit 0.8-4.1-7.5 Other comprehensive income Translation differences -8.7 6.7 6.7 Cash flow hedges -0.7 0.3 4.8 Income tax on other comprehensive income 0.2-0.1-1.3 Other comprehensive income, net of tax -9.2 6.9 10.3 Total comprehensive income -8.4 2.9 2.8 Allocation of total comprehensive income To equity holders of the parent -8.4 2.5 2.0 To non-controlling interest 0.0 0.4 0.8-8.4 2.9 2.8 7
Consolidated statement of financial position MEUR 31.3.2011 31.3.2010 31.12.2010 Assets Non-current assets Intangible assets 6.4 6.9 6.7 Goodwill 31.2 33.0 33.1 Investment properties 1.7 1.8 1.8 Tangible assets 234.7 247.3 245.3 Investment in associates 1.3 1.2 1.3 Receivables 6.0 5.4 6.0 Other investments 0.6 0.4 0.5 Deferred tax assets 22.4 18.7 20.9 Total non-current assets 304.4 314.9 315.6 Current assets Inventories 63.6 47.7 52.2 Receivables 53.0 40.9 41.7 Tax receivables 0.0 0.2 0.0 Cash and cash equivalents 15.7 13.5 11.0 Total current assets 132.3 102.2 104.8 Total assets 436.6 417.1 420.4 Shareholders' equity and liabilities Shareholders' equity Share capital 21.9 21.9 21.9 Other equity 33.1 41.9 41.5 Equity attributable to equity holders of the parent company 55.0 63.8 63.4 Non-controlling interest 7.3 6.9 7.3 Shareholders' equity 62.3 70.7 70.7 Liabilities Non-current Capital loans 35.4 27.8 35.3 Interest bearing 199.4 206.4 185.1 Provisions 7.4 7.4 8.5 Deferred tax liability 8.9 6.8 9.6 Current Capital loans 5.1-5.1 Interest bearing 13.9 22.0 15.3 Interest free 100.8 74.4 89.5 Tax liabilities 1.5 0.1 0.1 Provisions 1.8 1.6 1.2 Total liabilities 374.4 346.4 349.7 Total shareholders' equity and liabilities 436.6 417.1 420.4 8
Condensed consolidated cash flow statement MEUR 1.1.-31.3.2011 1.1.-31.3.2010 1.1.-31.12.2010 Cash flow from operating activities Result after financial items 0.7-5.6-10.0 Depreciation, amortization and write-downs 6.9 3.3 16.0 Net financial income and expenses 5.3 5.9 23.5 Other income and expenses, adjustments to cash flow -0.5 1.3 1.7 Change in net working capital -14.2 3.1 13.6 Cash flow from operations before financing and income taxes -1.7 8.0 44.8 Interest received and paid and dividends received -4.9-4.5-20.6 Taxes paid 0.0-0.1 0.9 Net cash flow from operating activities -6.6 3.5 25.2 Cash flow from investing activities Capital expenditure in tangible and intangible assets -1.9-2.9-10.0 Proceeds from tangible and intangible assets 0.0-0.0 Other investments and loans granted -0.1-0.3-0.4 Proceeds from other investments and repayments of loan receivables 0.0-0.1 Net cash flow from investing activities -2.0-3.2-10.4 Cash flow from financing activities Dividends paid - - - Repayment of finance lease liabilities -0.7-0.5-2.4 Draw-down (+)/ repayment (-) of current loans 1.0-29.7-36.3 Draw-down of non-current loans 47.9 43.0 54.3 Repayment of non-current loans and other changes -34.4-7.4-27.2 Net cash flow from financing activities 13.8 5.4-11.7 Change in liquid assets 5.2 5.6 3.1 Cash and cash equivalents at the beginning of the period 11.0 7.6 7.6 Effects of exchange rate changes on cash -0.5 0.3 0.3 Cash and cash equivalents at the period end 15.7 13.5 11.0 Change during the financial period 5.2 5.6 3.1 Statement of changes in consolidated shareholders equity MEUR Share capital Share premium account Other reserves Cash flow hedges Translation differences Retained earnings Total Noncontrolling interest Shareholders' equity 1.1.2010 21.9 15.0 34.6-1.3-24.5 15.6 61.3 6.5 67.8 Net profit -4.2-4.2 0.1-4.1 Translation differences 6.5 6.5 0.3 6.7 Cash flow hedges 0.2 0.2 0.2 Total comprehensive income 0.2 6.5-4.2 2.5 0.4 2.9 Shareholders' equity 31.3.2010 21.9 15.0 34.6-1.1-18.0 11.4 63.8 6.9 70.7 Shareholders equity total MEUR Share capital Share premium account Other reserves Cash flow hedges Translation differences Retained earnings Total Noncontrolling interest Shareholders' equity 1.1.2011 21.9 15.0 34.7 2.3-18.1 7.7 63.4 7.3 70.7 Net profit 0.5 0.5 0.3 0.8 Translation differences -8.4-8.4-0.4-8.7 Cash flow hedges -0.5-0.5-0.5 Total comprehensive income -0.5-8.4 0.5-8.4 0.0-8.4 Shareholders' equity 31.3.2011 21.9 15.0 34.7 1.8-26.5 8.2 55.0 7.3 62.3 Shareholders equity total 9
Key Ratios 31.3.2011 31.3.2010 31.12.2010 Equity ratio, % 14.3 17.0 16.8 Equity per share, EUR 3.15 3.65 3.63 Invested capital at period end, MEUR 316.1 326.9 311.5 Return on investment, excl. one-time items, % 11.5 1.1 5.0 Return on investment, % 8.4 1.1 5.0 Return on equity, excl. one-time items, % 15.8-23.5-10.2 Return on equity, % 4.9-23.5-10.3 Net interest bearing debt, preferred capital note in debt, MEUR 238.1 242.7 229.8 Net gearing, preferred capital note in debt, % 382.4 343.3 325.0 Order book, MEUR 104.3 68.0 94.6 Investments in non-current assets without finance leases, MEUR 1.9 0.8 8.2 Investments in non-current assets incl. finance leases, MEUR 1.9 0.8 8.5 Investments in non-current assets, % of net sales 1.4 0.8 1.9 Average number of personnel during the period 4,150 3,662 3,853 Average number of personnel during the period, incl. leased personnel 4,601 3,776 4,155 Number of personnel at period end 4,239 3,694 4,016 Number of personnel at period end, incl. leased personnel 4,727 3,845 4,414 Share of export and foreign activities in net sales, % 89.8 87.9 88.1 Contingent liabilities, MEUR 244.5 220.5 247.5 Earnings per share (EPS), EUR 0.03-0.24-0.45 Earnings per share, with dilution (EPS), EUR 0.03-0.24-0.45 Cash flow per share, EUR -0.38 0.20 1.44 Changes in tangible assets and goodwill MEUR 1-3/2011 1-3/2010 1-12/2010 Changes in tangible assets Acquisition cost at the beginning of the period 556.3 531.1 531.1 Translation differences -13.1 13.3 24.1 Additions 1.6 0.7 6.3 Disposals -6.7-1.2-5.2 Acquisition cost at the end of the period 538.1 543.9 556.3 Accumulated depreciation at the beginning of the period -311.0-286.9-286.9 Translation differences 7.3-6.8-12.5 Accumulated depreciation on disposals and transfers 6.7 0.3 2.4 Depreciation, amortization and write-downs during the period -6.4-3.2-14.0 Accumulated depreciation at the end of the period -303.4-296.6-311.0 Book value at the end of the period 234.7 247.3 245.3 Goodwill Acquisition cost at the beginning of the period 33.1 31.5 31.5 Translation difference -1.9 1.5 1.6 Book value at the end of the period 31.2 33.0 33.1 10
Group development Net sales by market area MEUR 1-12/2010 1-3/2010 1-3/2011 Sweden 81.7 15.5 29.8 Germany 76.0 15.2 25.3 Turkey 73.7 14.3 21.4 Finland 53.8 11.0 14.7 UK 47.5 9.9 15.9 Benelux countries 35.2 7.1 11.5 France 27.8 6.1 9.6 Italy 20.7 3.8 7.1 Other European countries 9.1 2.2 2.4 Other countries 26.1 6.1 6.4 Total 451.6 91.2 144.1 Quarterly development by market area MEUR Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Sweden 15.5 21.9 19.5 24.8 29.8 Germany 15.2 20.9 18.6 21.2 25.3 Turkey 14.3 19.1 18.8 21.5 21.4 Finland 11.0 13.6 12.9 16.3 14.7 UK 9.9 12.0 12.5 13.1 15.9 Benelux countries 7.1 9.4 8.7 10.0 11.5 France 6.1 7.1 6.5 8.1 9.6 Italy 3.8 4.2 5.9 6.8 7.1 Other European countries 2.2 2.2 2.5 2.3 2.4 Other countries 6.1 6.9 6.5 6.6 6.4 Total 91.2 117.3 112.3 130.7 144.1 Group development MEUR 1-12/2010 1-3/2010 1-3/2011 Net sales 451.6 91.2 144.1 Operating profit 13.5 0.3 6.0 Net financial items *) -23.5-5.9-5.3 Profit after financial items -10.0-5.6 0.7 *) Net financial items are not allocated to business segments 11
Group development Group development by business segment Net sales, MEUR 1-12/2010 1-3/2010 1-3/2011 Turkey 204.8 40.6 67.9 Finland 103.6 20.8 28.5 Holland 85.1 18.7 26.7 Sweden 84.7 15.8 32.4 Other business 65.3 14.3 21.8 Internal items -91.9-19.0-33.2 Componenta total 451.6 91.2 144.1 Operating profit, MEUR 1-12/2010 1-3/2010 1-3/2011 Turkey 15.2 3.2 8.3 Finland -0.2-0.6-1.3 Holland -1.5-0.1 0.3 Sweden 0.8-1.4 1.2 Other business -1.0-0.7 0.1 One-time items *) -0.1 0.0-2.4 Internal items 0.4 0.0-0.2 Componenta total 13.5 0.3 6.0 *) one-time items 1-3/2011 relate to terminating machining operations at Pietarsaari machine shop which belongs to business segment Finland Order book, MEUR 12/2010*) 3/2010 3/2011 Turkey 47.8 32.6 54.0 Finland 15.7 13.6 17.6 Holland 16.4 13.4 17.7 Sweden 22.0 13.3 23.2 Internal items -7.4-5.0-8.3 Componenta total 94.6 68.0 104.3 *) Order book on 10 January 2011 Group development by quarter MEUR Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Net sales 91.2 117.3 112.3 130.7 144.1 Operating profit 0.3 4.0 3.4 5.8 6.0 Net financial items *) -5.9-6.2-5.5-5.9-5.3 Profit after financial items -5.6-2.2-2.1-0.1 0.7 *) Net financial items are not allocated to business segments Quarterly development by business segment Net sales, MEUR Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Turkey 40.6 53.1 51.5 59.6 67.9 Finland 20.8 27.0 25.1 30.6 28.5 Holland 18.7 23.4 20.8 22.1 26.7 Sweden 15.8 21.3 20.6 26.9 32.4 Other business 14.3 16.2 16.8 18.1 21.8 Internal items -19.0-23.7-22.5-26.7-33.2 Componenta total 91.2 117.3 112.3 130.7 144.1 Operating profit, MEUR Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Turkey 3.2 3.3 4.5 4.3 8.3 Finland -0.6 0.7-0.9 0.6-1.3 Holland -0.1 0.2-1.0-0.5 0.3 Sweden -1.4 0.0 0.6 1.6 1.2 Other business -0.7-0.1 0.0-0.2 0.1 One-time items *) 0.0 0.0 0.0-0.1-2.4 Internal items 0.0-0.2 0.3 0.2-0.2 Componenta total 0.3 4.0 3.4 5.8 6.0 *) one-time items Q1/11 relate to terminating machining operations at Pietarsaari machine shop which belongs to business segment Finland Order book at period end, MEUR Q1/10 Q2/10 Q3/10 Q4/10*) Q1/11 Turkey 32.6 42.4 42.5 47.8 54.0 Finland 13.6 15.8 16.7 15.7 17.6 Holland 13.4 14.6 14.7 16.4 17.7 Sweden 13.3 16.5 18.7 22.0 23.2 Internal items -5.0-5.7-6.8-7.4-8.3 Componenta total 68.0 83.6 85.8 94.6 104.3 *) Order book on 10 January 2011 12
Group development Group development excluding one-time items MEUR 1-12/2010 1-3/2010 1-3/2011 Net sales 451.6 91.2 144.1 Operating profit 13.6 0.3 8.5 Net financial items *) -23.5-5.9-5.3 Profit after financial items -9.9-5.6 3.2 *) Net financial items are not allocated to business segments Group development by business segment excluding one-time items Operating profit, MEUR 1-12/2010 1-3/2010 1-3/2011 Turkey 15.2 3.2 8.3 Finland -0.2-0.6-1.3 Holland -1.5-0.1 0.3 Sweden 0.8-1.4 1.2 Other business -1.0-0.7 0.1 Internal items 0.4 0.0-0.2 Componenta total 13.6 0.3 8.5 Group development by quarter excluding one-time items MEUR Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Net sales 91.2 117.3 112.3 130.7 144.1 Operating profit 0.3 4.0 3.4 5.9 8.5 Net financial items *) -5.9-6.2-5.5-5.9-5.3 Profit after financial items -5.6-2.2-2.1 0.0 3.2 *) Net financial items are not allocated to business segments Quarterly development by business segment excluding one-time items Operating profit, MEUR Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Turkey 3.2 3.3 4.5 4.3 8.3 Finland -0.6 0.7-0.9 0.6-1.3 Holland -0.1 0.2-1.0-0.5 0.3 Sweden -1.4 0.0 0.6 1.6 1.2 Other business -0.7-0.1 0.0-0.2 0.1 Internal items 0.0-0.2 0.3 0.2-0.2 Componenta total 0.3 4.0 3.4 5.9 8.5 Business segments MEUR 31.3.2011 31.3.2010 31.12.2010 Turkey Assets 209.6 195.7 210.8 Liabilities 38.2 25.6 33.5 Investments in non-current assets (incl. finance leases) 1.1 0.5 4.8 Depreciation, amortization and write-downs 1.7 0.7 4.9 Finland Assets 80.6 78.1 85.7 Liabilities 26.6 20.4 24.2 Investments in non-current assets (incl. finance leases) 0.3 0.2 2.4 Depreciation, amortization and write-downs *) 3.3 1.0 4.8 Holland Assets 52.3 51.5 48.7 Liabilities 17.1 10.3 12.8 Investments in non-current assets (incl. finance leases) 0.2 0.1 0.4 Depreciation, amortization and write-downs 0.4 0.3 1.5 Sweden Assets 53.1 43.0 51.5 Liabilities 28.1 15.9 25.7 Investments in non-current assets (incl. finance leases) 0.1 0.1 0.5 Depreciation, amortization and write-downs 0.8 0.6 2.1 Other business Assets 55.8 50.6 53.9 Liabilities 26.2 26.2 25.7 Investments in non-current assets (incl. finance leases) 0.3 0.0 0.5 Depreciation, amortization and write-downs 0.7 0.6 2.7 *) Depreciation, amortization and write-downs of Finland operations on 31 March 2011 include one-time items of EUR 2.0 million related to write-downs of non-current assets. 13
Fair values of derivative instruments MEUR Fair value, positive 31.3.2011 31.3.2010 31.12.2010 Fair value, negative Fair value, net Fair value, net Fair value, net Currency derivatives Foreign exchange forwards 0.0 0.0 0.0 0.0-0.3 Currency swaps 0.6-0.1 0.4-0.7-1.5 Foreign exchange options 0.0 0.0 0.0 - -0.1 Interest rate derivatives Interest rate options 0.1-0.4-0.3 0.2-0.3 Interest rate swaps 1.1-0.3 0.9-1.7-0.3 Commodity derivatives Electricity price forwards 2.3 0.0 2.3-0.5 3.3 Total 4.2-0.8 3.3-2.7 0.8 Nominal values of derivative instruments MEUR 31.3.2011 31.3.2010 31.12.2010 Nominal value Nominal value Nominal value Currency derivatives *) Foreign exchange forwards 2.1 6.7 11.0 Currency swaps 62.4 45.4 69.2 Foreign exchange options 2.8-2.8 Interest rate derivatives Interest rate options 28.0 42.0 28.0 Interest rate swaps Maturity in less than a year 28.0 24.0 28.0 Maturity after one year and less than five years 60.0 28.0 60.0 Commodity derivatives Electricity price forwards Maturity in less than a year 3.2 2.9 4.0 Maturity after one year and less than five years 8.2 6.1 5.7 Total 194.7 155.1 208.7 *) Currency derivatives mature in less than a year. Contingent liabilities MEUR 31.3.2011 31.3.2010 31.12.2010 Real-estate mortgages For own debts 14.7 15.2 15.3 Business mortgages For own debts - - - Pledges For own debts 222.0 197.0 222.0 Other leasing commitments 2.5 3.2 5.5 Other commitments 5.4 5.1 4.7 Total 244.5 220.5 247.5 Key exchange rates for the Euro Closing rate Average rate One Euro is 31.3.2011 31.3.2010 31.3.2011 31.3.2010 SEK 8.9329 9.7135 8.8642 9.9464 USD 1.4207 1.3479 1.3680 1.3829 GPB 0.8837 0.8898 0.8539 0.8876 TRY (Turkish central bank) 2.1816 2.0523 2.1469 2.0787 14
Calculation of key financial ratios Return on equity -% (ROE) *) = Profit after financial items income taxes 100 Shareholders equity without preferred capital notes + non-controlling interest (quarterly average) Return on investment -% (ROI) *) = Profit after financial items + interest and other financial expenses 100 Shareholders equity + interest bearing liabilities (quarterly average) Equity ratio, % = Shareholders equity, preferred capital notes excluded + non-controlling interest 100 Balance sheet total - advances received Earnings per share, EUR (EPS) = Profit after financial items income taxes +/- non-controlling interest Average number of shares during the financial period Earnings per share with dilution, EUR = As above, the number of shares has been increased with the warrants outstanding. When calculating the dilution effect of warrants, the number of shares has been adjusted with the number of own shares which the company could have acquired, if it would have used the funds generated from the warrants to buy back of own shares at market price (= average trading price). After tax interest expense of the convertible loan has been added to the profit of the period. Number of shares that can be subscribed by the loan has been added to the number of total shares. Cash flow per share, EUR (CEPS) = Net cash flow from operating activities Average number of shares during the financial period Equity per share, EUR Shareholders equity, preferred capital notes excluded = Number of shares at period end Net interest bearing debt, MEUR = Interest bearing liabilities + preferred capital notes - cash and bank accounts Net gearing, % = Net interest bearing liabilities 100 Shareholders equity, preferred capital notes excluded + non-controlling interest *) The profit for the first quarter in ROE and ROI has been calculated as an average annual return (annualised) Largest registered shareholders on 31 March 2011 Shareholder Shares Share of total voting rights, % 1 Lehtonen Heikki 5,311,340 30.42 Cabana Trade S.A. 3,501,988 Oy Högfors-Trading Ab 1,806,052 Lehtonen Heikki 3,300 2 Etra Capital Oy 4,347,464 24.90 3 Varma Mutual Pension Insurance Company 978,968 5.61 4 Finnish Industry Investment Ltd 666,666 3.82 5 Ilmarinen Mutual Pension Insurance Company 354,266 2.03 6 Mandatum Life Insurance Company Limited 297,000 1.70 7 Fund Alfred Berg Small Cap Finland 251,738 1.44 8 Bergholm Heikki 240,016 1.37 9 Finnish Cultural Foundation 236,000 1.35 10 Laakkonen Mikko 200,000 1.15 Nominee-registered shares 589,031 3.37 Other shareholders 3,985,309 22.83 Total 17,457,798 100.00 The members of the Board of Directors own 32.2 % of the shares. All shares have equal voting rights. If all the warrants were converted to shares, the holding of shares by the members of the Board of Directors would change to 31.7 %. Helsinki 20 April 2011 COMPONENTA CORPORATION Board of Directors 15
Componenta Corporation Panuntie 4 FI-00610 Helsinki, Finland www.componenta.com