Componenta Corporation Financial statements 1 Jan - 31 Dec 2007
· Componenta Group's net sales in 2007 totalled MEUR 634.7
(MEUR 362.1).
· The operating profit excluding one-time items was MEUR 38.2
(MEUR 14.9) and the result after financial items excluding one-time
items was MEUR 14.9 (MEUR 5.0).
· The net sales for the final quarter were MEUR 162.9 (MEUR 95.5), the
operating profit excluding one-time items was MEUR 8.8 (MEUR 4.2) and
the result after financial items excluding one-time items was MEUR 3.1
(MEUR 1.2).
· Componenta's basic earnings per share in 2007 were EUR 1.97
(EUR 0.36). Earnings per share excluding one-time items were EUR 1.01
(EUR 0.40).
· The Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.50 per share be paid for 2007.
Events in 2007 in brief
In February Componenta sold all of its 50% holding in the shares of
associated company Ulefos NV AS to Cappelen Holding AS. The selling
price was EUR 14.0 million and Componenta recorded a profit on the sale
of about EUR 6.4 million.
Componenta's tender offer made on 19 February 2007, in accordance with
Turkish law, to purchase the remaining shares and voting rights of
Döktas Dökümcülük Ticaret ve Sanayi A.S. (Döktas), which is quoted on
the Istanbul Stock Exchange, ended on 5 March 2007. As a result of the
tender offer, at the end of 2007 Componenta owns 92.6% of the shares of
Döktas.
On 6 March 2007 Componenta signed an agreement to sell in an MBO
Componenta Albin AB to the company's operative management. The selling
price was EUR 14.3 million. Componenta recorded a profit of
EUR 13.0 million on the sale.
In June Componenta decided to consolidate the operations of the
Componenta Åmål machine shop to Componenta Främmestad in Sweden. The
consolidation of operations took place during 2007 and one-time costs of
EUR 6.1 million were recorded for the project. The consolidation is
expected to improve the combined result of the business units by some
EUR 2 million as from 2008.
On 23 August 2007 Componenta announced that it was strengthening its way
of operating with a new corporate structure to be introduced on
1 October 2007. The current division structure of the Group remains mainly
unchanged. Hakan Göral, Sales Director at Döktas, was appointed Senior
Vice President of Componenta Döktas Division and Managing Director of
Componenta Döktas A.S. as from 1 October 2007.
In November Componenta signed a contract with Moventas Oy, under which
the Group's foundries in Iisalmi, Finland and in Heerlen, the
Netherlands will supply Moventas with castings for wind generator gear
components with a total value of EUR 70 million during the period
2008 - 2011. As a result of this contract, investments of EUR 6 million
will be made at Suomivalimo in Iisalmi to raise production capacity by 70%
in summer 2008. At the same time Componenta announced that it will increase
machining capacity in Turkey by building a new plant in Orhangazi. The
building project should be completed in summer 2008 and will cost
EUR 3 million. It is planned to double the machining capacity at Componenta
Orhangazi from its current level with machinery investments of EUR 6
million during 2008 - 2009.
Componenta recorded the total amount of compensation, EUR 1.9 million,
arising from the decision of the Helsinki Court of Appeal as a one-time
item in the result for the final quarter of 2007. The compensation
relates to the contract to supply train wheels signed with VR in 1990
and to deliveries of train wheels made in 1991 and 1992.
Net sales
Componenta's financial statements have been prepared in accordance with
international financial reporting standards (IFRS).
The Group's net sales in 2007 totalled EUR 634.7 (362.1) million. Fourth
quarter net sales were EUR 162.9 (95.5) million.
Consolidated net sales in 2007 by customer sector were as follows:
off-road industry 36% (26%), heavy truck industry 27% (43%), cars and light
trucks 17% (1%), machine building industry 11% (17%), power and
transmission industry 8% (12%) and other sales 1% (1%).
The Group's net sales in 2007 by geographical area were as follows:
Nordic countries 28% (49%), other European countries 63% (45%) and other
countries 9% (6%).
The Group's order book at the end of 2007 stood at EUR 129.0 (95.4)
million.
Result
The consolidated operating profit excluding one-time items was
EUR 38.2 (14.9) million and the profit after financial items excluding
one-time items was EUR 14.9 (5.0) million. The Group's net financing costs
were EUR -23.2 (-9.9) million. The operating profit for the final quarter
excluding one-time items was EUR 8.8 (4.2) million and the result after
financial items excluding one-time items was EUR 3.1 (1.2) million.
Componenta's operating profit including one-time items was
EUR 45.9 (14.5) million, the result after financial items was
EUR 22.7 (4.6) million, and the profit for the fiscal year was
EUR 21.6 (3.5) million.
Componenta's taxes totalled EUR -1.1 (-1.1) million. Deferred tax
receivables have been recorded in the balance sheet, and it is estimated
that these can be utilized in the Netherlands in 2008 and in Finland
during the next 4 - 6 years.
Componenta's basic earnings per share were EUR 1.97 (0.36). Earnings per
share excluding one-time items were EUR 1.01 (0.40).
Equity invested in the company at the end of the year was
EUR 370.9 (359.5) million and the return on investment was 12.8% (6.6%).
Componenta's key financial indicators during the past three years were
as follows:
2005 2006 2007
Net sales, MEUR 343.2 362.1 634.7
Operating profit, MEUR 9.9 14.5 45.9
Operating profit, % 2.9 4.0 7.2
Return on equity, % 4.2 5.9 23.1
Equity ratio, % 18.1 19.2 20.3
Financing
In March the Group repaid EUR 3.2 million, or 10%, of the principal of
the preferred capital notes issued in 2002 in accordance with the terms
for the notes. On 31 December 2007 Componenta Corporation had
outstanding capital notes and convertible notes with a combined value of
EUR 55.3 million, as defined in IFRS. During 2007, 4,601 of Componenta's
convertible capital notes were converted into shares. As a result, the
number of Componenta shares increased by 920,200 and the shareholders'
equity in the IFRS balance sheet rose by EUR 7.8 million.
On 28 June 2007 Componenta signed a new five year EUR 200 million
syndicated credit facility to replace the Group's existing credit
facilities. The new facility strengthens Componenta's financial
position. The banks participating in the credit facility are Swedbank AB
(publ.), Nordea Bank Finland Plc, OKO Bank Plc, Bayerische Hypo- und
Vereinsbank AG, ABN Amro Bank N.V., Danske Bank A/S and HSH-Nordbank AG.
At the end of the year the Group had EUR 143.2 million in non-utilised
long-term credit facilities. In addition the Group has a
EUR 150.0 million commercial paper programme. The Group's interest-bearing
net debt, excluding the outstanding capital notes of EUR 55.3 million, stood
at EUR 187.4 (186.9) million. Gearing was 241.3% (270.7%). The company's
net debt as a proportion of shareholders' equity, including the capital
notes in shareholders' equity, was 120.2% (118.8%).
Componenta is making more effective use of capital with a programme to
sell its sales receivables. Under this arrangement, some of the sales
receivables are sold without any right of recourse. By the end of the
year the company had sold sales receivables totalling
EUR 43.5 (33.0) million.
Componenta's net cash flow from operations during 2007 was
EUR 42.6 (26.2) million, and of this the change in net working capital
was EUR 11.0 (1.6) million. The net cash flow from investment was
EUR -38.6 (-104.2) million, which includes the cash flow from the
Group's production investments and the cash flow from the sale and
purchase of shares and from the sale of fixed assets.
The Group's equity ratio was 20.3% (19.2%). The Group's shareholders'
equity, including the capital notes on 31 December 2007 in shareholders'
equity, as a proportion of the balance sheet total was 31.4% (32.5%).
Cash loans, commitments and contingent liabilities given by the company
to Group companies classified as related parties on 31 December 2007
totalled EUR 124.3 (107.7) million. Cash loans, commitments and
contingent liabilities given by the company to private persons
classified as related parties on 31 December 2007 totalled
EUR 0.3 (0.3) million.
Performance of business divisions
During 2007 Componenta had three divisions: Foundries, Machine shops,
and Döktas.In addition, the reports contain figures for Other business
which includes the service companies, the Componenta Wirsbo forges,
sales and logistics company Componenta UK, Componenta Pistons, the
business of Componenta Albin that has been divested, and the Group's
share of the figures for associated company Ulefos NV that has been
divested, real estate companies and the Group's administrative
functions.
Foundries division
The Foundries division comprises the Group's foundries in Karkkila,
Pori, Pietarsaari and Iisalmi in Finland, and the foundries in Weert and
Heerlen in the Netherlands.
The Foundries division had net sales in 2007 of
EUR 241.7 (224.5) million and an operating profit of
EUR 16.7 (6.6) million. The division's operating profit improved
significantly from the previous year mainly as a result of higher volumes
and enhanced efficiency in operations. The operating results of the
Karkkila and Heerlen Furan foundries improved considerably. The
division had fourth quarter net sales of EUR 64.2 (56.8) million
and an operating profit of EUR 4.7 (1.6) million.
Machine shops division
The Machine shops division comprises the Främmestad machine shop in
Sweden, the machine shops in Lempäälä and Pietarsaari in Finland, and
the machine shop operations in the Netherlands.
Machine shops had net sales in 2007 of EUR 158.6 (137.9) million and an
operating profit of EUR 5.0 (5.8) million.
During 2007 Componenta consolidated the operations of the Componenta
Åmål machine shop to Componenta Främmestad in Sweden. The consolidation
will safeguard long-term competitiveness, which can be achieved with a
larger unit and by raising efficiency in operations. The consolidation
is expected to improve the combined result of the business units by some
EUR 2 million as from 2008.
The division had net sales in the final quarter of
EUR 41.7 (36.7) million and an operating profit of EUR 1.1 (1.8) million.
Presenting the order books for the Foundries and Machine shops divisions
separately is not justified due to the nature of the Componenta supply
chain. The divisions had a combined order book at the end of the year of
EUR 66.5 (52.0) million.
Döktas division
The Döktas division comprises the iron foundry and machine shop in
Orhangazi and the aluminium foundry and machine shop in Manisa. The
financial figures presented in parenthesis are the 2006 figures when
Döktas did not belong to Componenta Group.
The Döktas division had net sales in 2007 of EUR 232.5 (218.2) million
and an operating profit of EUR 14.4 (24.2) million. The order book at
the end of the year stood at EUR 46.1 (34.7) million. Factors affecting
the division's operating profit during the year were the rise in raw
material prices, unfavourable developments in exchange rates, and low
sales of aluminium wheels. The division had final quarter net sales of
EUR 55.7 (57.1) million and an operating profit of EUR 2.3 (6.3) million.
The iron foundry and machine shop in Orhangazi supply ready-to-install
cast components mainly to the off-road industry and to car and light
truck manufacturers. Componenta Döktas Orhangazi had net sales in 2007
of EUR 156.4 million and an operating profit of EUR 10.8 million
(6.9% of net sales).
The aluminium foundry and machine shop in Manisa mainly manufacture
aluminium pressure cast components and aluminium wheels. Componenta
Döktas Manisa had net sales in 2007 of EUR 76.1 million and an operating
profit of EUR 3.6 million (4.7% of net sales).
Other business
Other business comprises the service companies, the Componenta Wirsbo
forges, sales and logistics company Componenta UK,Componenta Pistons,
the business of Componenta Albin that has been divested, and the Group's
share of the figures for associated company Ulefos NV that has been
divested, real estate companies and the Group's administrative
functions.
Other business had net sales in 2007 of EUR 151.0 (89.1) million and an
operating profit excluding one-time items of EUR 2.4 (2.7) million. The
order book at the end of 2007 stood at EUR 16.4 (8.8) million. Net sales
in the fourth quarter totalled EUR 40.5 (25.4) million and operating
profit excluding one-time items was EUR 0.0 (0.8) million.
Net sales of the Componenta Wirsbo forges increased and the operating
profit improved from the previous year. Similarly the net sales of sales
and logistics company Componenta UK rose and the operating profit
improved from the previous year.
Shares and share capital
The shares of Componenta Corporation are quoted on the OMX Nordic
Exchange Helsinki. At the end of the review period the company's share
capital stood at EUR 21.9 (20.0) million. On 31 December 2007 the quoted
price of Componenta Corporation shares stood at EUR 8.37 (8.59). The
average price during the year was EUR 11.05, the lowest quoted price was
EUR 8.17 and the highest EUR 14.37. At the end of the year the share
capital had a market capitalization of EUR 91.6 (86.1) million and the
volume of shares traded during the review period was equivalent to 52%
(57%) of the share stock. The company has one share series. On
31 December 2007 the company had 10,942,498 (10,022,298) shares.
The Annual General Meeting on 26 February 2007 decided, in accordance
with the proposal of the Board of Directors, to pay a dividend of
EUR 0.25 per share for 2006.
On 8 May 2007 Componenta received notification from Simo-Pekka Inkinen
that the share of the voting rights and share capital carried by the
shares in Componenta Corporation under his control had fallen below the
5% limit in a share transaction on 8 May 2007. On 31 December 2007 the
share of the voting rights and share capital carried by the shares in
Componenta Corporation under the control of Simo-Pekka Inkinen was 3.3%.
During the review period 581,400 new Componenta Corporation shares
were subscribed with 2,907 capital notes from the convertible capital
notes issued by Componenta Corporation in 2006. As a result of the
conversion, the share capital of Componenta Corporation rose by
altogether EUR 1,162,800 and the invested non-restricted equity fund
by EUR 4,069,800.
A total of 338,800 new Componenta Corporation shares were subscribed
with 1,694 capital notes from the convertible capital notes issued by
Componenta Corporation in 2005. As a result of the conversion the
share capital of Componenta Corporation rose by altogether EUR 677,600
and the share premium account by EUR 2,710,400.
Share-based incentive scheme
The Board of Directors of Componenta Corporation decided on 3 April 2007
under the authorization given by the Annual General Meeting to establish
a share-based incentive scheme for the period 2007 - 2009. The scheme
comprises three one-year earnings periods, which are the calendar years
2007, 2008 and 2009. The bonuses will be paid in 2008, 2009 and 2010,
partly in company shares and partly in cash. The part to be paid in cash
will cover the tax and similar charges arising from the bonus. There is
a ban on selling the shares for two years after the end of the earnings
period.
Any yield from the scheme is based on the Group's profit after
financial items and the Group's return on investment. At the end of
2007 the target group contained 34 persons. If the targets set for the
scheme are met in full, the scheme will pay a bonus of a maximum of
180,000 Componenta Corporation shares. For the 2007 part of the
scheme, a maximum of 3,000 Componenta Corporation shares will be
allocated. The President and CEO will account for a maximum of 600 of
this total figure, and other key personnel altogether for a total
maximum of 2,400 shares. The scheme had an impact before taxes on the
result in the review period of EUR 0.05 million. The Board of
Directors has decided to allocate a maximum of 70,000 Componenta
Corporation shares for the 2008 part of the scheme. The President and
CEO will account for a maximum of 18,000 shares of this total figure.
Authorization to purchase and dispose of company shares
Under the authorization of the AGM held on 26 February 2007 the Board of
Directors may decide to purchase a maximum of 1,000,000 of the Company's
own shares using the Company's unrestricted shareholders' equity.
The shares shall be purchased in public trading, for which reason they
will be purchased other than in proportion to the holdings of
shareholders. The purchase price shall be based on the market price for
Componenta shares in public trading. The shares shall be purchased on
the OMX Nordic Exchange in Helsinki and in accordance with its rules and
regulations.
The Board of Directors may not implement the authorization to purchase
the Company's own shares if after the purchase the Company or its
subsidiary would possess or hold in pledge altogether more than 10 per
cent of all the Company's shares. The authorization does not exclude the
right of the Board of Directors to decide on a direct purchase of
shares.
The AGM authorized the Board 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 special rights as defined in chapter 10,
section 1 of the Finnish Companies Act such that a maximum total 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.
The Board has to date not exercised either of these authorizations.
Investments
Componenta's investments in production facilities during the review
period totalled EUR 23.6 (12.1) million. The net cash flow from
production investments was EUR -38.6 (-104.2) million.
Board of Directors and Management
Componenta's Annual General Meeting on 26 February 2007 elected the
following to the Board of Directors: Heikki Bergholm, Heikki Lehtonen,
Juhani Mäkinen, Marjo Raitavuo and Matti Tikkakoski. The Board elected
Heikki Bergholm as its Chairman and Juhani Mäkinen as Vice Chairman.
At the end of the year the corporate executive team of Componenta Group
comprised President and CEO Heikki Lehtonen; Olli Karhunen, Senior Vice
President, Foundries division; Michael Sjöberg, Senior Vice President,
Machine shops division; Hakan Göral, Senior Vice President, Componenta
Döktas division; Jari Leino, Sales Director, Heavy Trucks; Anu Mankki,
Senior Vice President, Human Resources; Marko Sipola, Senior Vice
President, Business Development; Yaylalý Günay, Senior Vice President,
Investments, and Pirjo Aarniovuori, Communications Director.
Mika Hassinen was appointed CFO of Componenta Corporation and a member
of the corporate executive team as from 2 January 2008.
Personnel
During 2007 the Group had on average 4,206 (2,196) employees. At the end
of the year the Group had 4,158 (4,316) employees. The number of Group
personnel at the end of the year including contract labour was 5,064
(5,249). At the end of 2007 51% of the Group's personnel were in Turkey,
22% in Finland, 17% in the Netherlands and 10% in Sweden.
Environment
Componenta is committed to continuous improvement and to reducing the
environmental impact of its production processes. The objectives of the
Group's environmental policy are to reduce consumption of energy and raw
materials, restrict particle and VOC emissions, and reduce environmental
noise from its operations. It also aims to increase the sorting of waste
and reduce the amount of waste that cannot be reused.
One of the most significant environmental aspects for Componenta Group
is the use of energy. In 2007 the Group used 814 GWh (809 GWh) of
energy. Most of the energy used, 68%, is electricity. The foundries
consume more than 90% of all the energy, for especially the melting
processes at the foundries utilise much energy. In 2007 energy
consumption at Componenta Group foundries in proportion to output fell
by about 5% compared to 2006.
Componenta will publish its 2007 environmental report during the spring
2008.
Research and development
At the end of 2007, 89 people worked in research and development at
Componenta, which corresponds to 2% of the company's total personnel.
Componenta's R&D expenses in 2007 totalled EUR 2.3 (1.4) million. This
is 0.4% (0.4%) of the Group's total net sales.
Risks
Fluctuations in the prices of Componenta Group's main raw material,
scrap metal, affect the sales margins on the Group's products. When the
price of scrap metal rises, the increase in the price of the raw
materials can be passed on to the products supplied to customers after a
certain delay, so price increases in scrap metal reduce the sales margin
temporarily. When scrap prices go down, the Group's margins improve for
a while.
The electricity consumption of the Group's foundries and machine shops
creates a spot price risk for the purchased electricity, so the Group
purchases electricity price forwards to hedge against the impact of
electricity prices on the financial performance. The target hedging
level for the forecast electricity consumption by the Group's production
plants is 90% for the next 12 months, 60% for the following year and 40%
for the third year. Trading in electricity price forwards has been
outsourced. The Group aims to pass on the increase in the price of
electricity to customers with a separate electricity surcharge
Appropriate insurance has been taken against risks associated with
assets and interruption of operations and to minimize indemnity.
The financial risks relating to Componenta Group'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. Management of financial risks takes
place in the corporate treasury function
Following the acquisition of Döktas, Componenta now has a significant
currency position in Turkish lira. The company hedges the translation
and transaction risks in accordance with its treasury policy. Despite
the hedging, however, any changes in the value of the Turkish lira in
relation to other currencies, especially the euro, US dollar and GB
pound, may have an impact on Componenta's financial performance in the
short term.
The Group has no significant concentration of risk for receivables. The
Group recognized no major credit losses in 2007.
The company's financial agreements contain, in addition to normal
covenant terms, also clauses according to which the company's loans may
fall due for payment before the maturity date if control of the company
changes in consequence of a public purchase offer. The company is not
party to any other significant contracts that will come into force, that
can be amended or that can cease to be valid if control of the company
changes in consequence of a public purchase offer.
Events after the end of the period
Componenta announced on 15 January 2008 that the Group's result after
financial items excluding one-time items totalled EUR 14.9 (5.0) million
in 2007. The result fell short of the forecast given earlier. At the
same time production capacity usage at the Group's foundries and machine
shops is high due to the strong demand in the market. In consequence,
investments of some EUR 12 million are being made at the foundries in
Karkkila, Finland and Orhangazi, Turkey. These investments will be made
during 2008 and will increase the Group's casting capacity by about
45,000 tonnes, which will make possible additional annual sales of some
EUR 65 million.
On 16 January 2008 Componenta received the notification from Etra Invest
Oy that Etra Invest Oy's share of the voting rights and share capital of
Componenta Corporation has exceeded 25% with a share transaction
concluded 16 January 2008. The shares owned by Etra Invest Oy presented
26.16% of the voting rights and share capital in Componenta Corporation
on 16 January 2008, and correspondingly, the share of convertible
capital notes stood for the share of 1.69%.
Timo Laitinen (45), M.Sc. (Eng.), MBA, has been appointed Senior Vice
President, Sales and Product Development of Componenta on
25 January 2008. He will be responsible for the customer interface which
is managed through sales and customer management and product development.
Timo Laitinen will join Componenta on 3 March 2008.
Componenta signed on 28 January 2008 an agreement with Metso Foundries
Jyväskylä Oy to transfer technology for Metso's automatic moulding line
to Componenta. Metso Foundries Jyväskylä Oy will discontinue production
on this line by 30 September 2008. The cooperation agreement signed will
enable to continue to supply castings to Metso's customers without
disruption during the transition period and afterwards.
Dividend proposal
The distributable equity of the parent company on 31 December 2007
amounted to EUR 30.2 million, of which the profit for the financial year
was EUR 10.6 million. The Board of Directors proposes to the Annual
General Meeting of Shareholders that a dividend of EUR 0.50 per share be
paid for 2007, altogether EUR 5.5 million, and EUR 24.8 million be
retained in the shareholders' capital. No significant changes have taken
place in the company's financial position after the end of the year. The
company's liquidity is strong, and in the opinion of the Board of
Directors the proposed distribution of profit does not put the company's
solvency at risk.
Annual General Meeting
The Annual General Meeting of Componenta Corporation will be held on
25 February 2008 at 11.00 am.
The Board of Directors proposes to the AGM that the Board be authorized
to decide on purchasing the Company's own shares using the Company's
unrestricted shareholders' equity. It is proposed that the authorization
be for a maximum of 1,000,000 own shares.
Publication of Annual Report
Componenta Corporation will publish the printed annual report 2007
during week 7.
Prospects
Componenta's prospects in 2008 are based on general external financial
indicators, order forecasts given by customers, and on Componenta's
order intake and order book.
The demand outlook in all the Group's customer sectors is good at the
beginning of 2008. Componenta's order book at the end of 2007 was 35%
higher than at the same time in the previous year, corresponding almost
full capacity utilization. Global uncertainty in the finance market and
unfavourable developments in exchange rates may weaken Componenta's
prospects during the year.
Combining the operations of Componenta and Döktas and enhancing the
performance of the business units are expected to have a positive impact
on the Group's operating profit in 2008.
Componenta Group's 2008 net sales are expected to increase and the
result after financial items, excluding one-time items, is expected to
improve on the corresponding figures for 2007.
Income statement
1.1.- 1.1.- 1.10.- 1.10.-
MEUR 31.12.2007 31.12.2006 31.12.2007 31.12.2006
Net sales 634.7 362.1 162.9 95.5
Other operating
income 21.1 0.8 0.4 0.2
Operating expenses -583.4 -332.8 -151.8 -87.9
Depreciation,
amortization
and write-down -26.6 -17.4 -7.0 -4.5
Share of the
associated
companies' result 0.1 1.8 0.0 0.6
Operating profit 45.9 14.5 4.6 3.8
% of net sales 7.2 4.0 2.8 4.0
Financial
income and expenses -23.2 -9.9 -5.7 -3.0
Result after
financial items 22.7 4.6 -1.1 0.9
% of net sales 3.6 1.3 -0.7 0.9
Income taxes -1.1 -1.1 0.1 -0.2
Net result 21.6 3.5 -1.0 0.7
Allocation of net
result for the period
To equity holders
of the parent 20.9 3.5 -0.9 0.7
To minority interest 0.7 0.0 -0.1 0.0
21.6 3.5 -1.0 0.7
Earning per share
calculated on the
profit attributable
to equity holders of
the parent
Earnings per share,
EUR 1.97 0.36 -0.09 0.10
Earnings per share
with dilution, EUR 1.61 0.36 -0.04 0.10
Income statement excluding one-time items
1.1.- 1.1.- 1.10.- 1.10.-
MEUR 31.12.2007 31.12.2006 31.12.2007 31.12.2006
Net sales 634.7 362.1 162.9 95.5
Other operating
income 1.8 0.8 0.4 0.2
Operating expenses -574.1 -332.6 -148.1 -87.8
Depreciation,
amortization and
write-down -24.4 -17.2 -6.4 -4.3
Share of the
associated companies'
result 0.1 1.8 0.0 0.6
Operating profit 38.2 14.9 8.8 4.2
% of net sales 6.0 4.1 5.4 4.4
Financial income
and expenses -23.2 -9.9 -5.7 -3.0
Result after
financial items 14.9 5.0 3.1 1.2
% of net sales 2.4 1.4 1.9 1.3
Balance sheet
MEUR 31.12.2007 31.12.2006
Assets
Non-current assets
Intangible assets 2.4 2.0
Goodwill 41.4 30.9
Investment properties 1.8 1.9
Tangible assets 244.9 245.1
Investment in associates 0.3 7.4
Receivables 4.3 1.0
Other investments 0.9 0.5
Deferred tax assets 9.4 8.2
Total non-current assets 305.5 297.0
Current assets
Inventories 82.5 78.5
Receivables 81.7 93.3
Tax receivables 0.2 0.0
Cash and bank accounts 27.5 15.3
Total current assets 191.9 187.1
Total assets 497.3 484.2
Liabilities and shareholders' equity
Shareholders' equity
Share capital 21.9 20.0
Other equity 69.4 35.1
Equity attributable to equity holders
of the parent 91.3 55.1
Minority interest 9.3 37.7
Shareholders' equity 100.6 92.8
Liabilities
Non-current
Capital loan 50.2 61.5
Interest bearing 77.0 94.4
Interest free 0.3 0.1
Provisions 6.4 1.2
Deferred tax liability 9.4 9.5
Current
Capital loan 5.2 2.9
Interest bearing 137.9 107.8
Interest free 105.9 106.9
Tax liabilities 0.9 2.0
Provisions 3.5 4.9
Total liabilities 396.7 391.4
Total liabilities and
shareholders' equity 497.3 484.2
Cash flow statement
MEUR 1.1.-31.12.2007 1.1.-31.12.2006
Cash flow from operations
Result after financial items 22.7 4.6
Depreciation, amortization and write-
down 26.6 17.4
Net financial income and expenses 23.2 9.9
Other income and expenses, adjustments
to cash flow -15.1 0.2
Change in net working capital 11.0 1.6
Cash flow from operations before
financing and income taxes 68.5 33.7
Interest received and paid and
dividends received -23.1 -7.6
Taxes paid -2.8 0.0
Net cash flow from operations 42.6 26.2
Cash flow from investing activities
Capital expenditure in tangible and
intangible assets -22.3 -7.0
Proceeds from tangible and intangible
assets 0.1 0.1
Other investments and loans granted -0.7 -
Proceeds from other investments and
repayments of loan receivables 24.5 -
Acquisition of subsidiary, net of
cash acquired -40.2 -97.4
Net cash flow from investing activities -38.6 -104.2
Cash flow from financing activities
Dividends paid -3.3 0.0
Share issue (capital notes) 0.0 1.6
Draw-down (+)/ repayment (-) of the
equity part of convertible capital
notes 0.0 2.2
Repayment of finance lease
liabilities -3.3 -2.2
Draw-down (+)/ repayment (-) of
current loans 44.2 26.1
Draw-down (+)/ repayment (-) of
non-current loans -30.5 60.4
Net cash flow from financing activities 7.2 88.1
Change in liquid assets 11.2 10.0
Cash and bank account at the beginning
of the period 15.3 5.3
Effects of exchange rate changes on cash 1.0 0.0
Cash and bank account at the period end 27.5 15.3
Change during the financial period 11.2 10.0
Statement of changes in shareholders' equity
Trans- Share-
Share lation holder's
Share premium Other diffe- Retained Minority equity
MEUR capital account reserves rences earnings Total interest total
Shareholders'
equity
1.1.2006 19.3 11.6 2.4 0.1 15.3 48.5 0.1 48.6
Derivatives -0.1 -0.1 -0.1
Other changes 0.1 0.3 0.4 0.4
Increase of
share capital
(warrants) 0.8 0.8 0.0 1.6 1.6
Minority
interest 0.0 37.7 37.7
Equity share
of convertible
capital notes 1.2 1.2 1.2
Profit/loss for
the period 3.5 3.5 0.0 3.5
Shareholders'
equity
31.12.2006 20.0 12.4 3.4 0.1 19.1 55.1 37.7 92.8
Trans- Share-
Share lation holder's
Share premium Other diffe- Retained Minority equity
MEUR capital account reserves rences earnings Total interest total
Shareholders'
equity
1.1.2007 20.0 12.4 3.4 0.1 19.1 55.1 37.7 92.8
Derivatives 0.3 0.3 0.3
Share-based
payments 0.0 0.0 0.0
Other changes 11.4 11.4 1.2 12.6
Change in equity
hedging -1.8 -1.8 -1.8
Dividends paid -2.5 -2.5 -0.8 -3.3
Increase of
share capital
(convertible
notes) 1.8 2.5 3.4 7.8 7.8
Equity share of
convertible
capital notes 0.0 0.0 0.0
Change in minority
interest 0.0 -29.5 -29.5
Profit/loss for
the period 20.9 20.9 0.7 21.6
Shareholders'
equity
31.12.2007 21.9 14.9 7.2 9.8 37.5 91.3 9.3 100.6
Key ratios
31.12.2007 31.12.2006
Equity ratio, % 20.3 19.2
Equity per share, EUR 8.34 5.50
Invested capital 370.9 359.5
Return on investment, % 12.8 6.6
Return on investment, excluding one-time
items % 10.7 6.7
Return on equity, % 23.1 5.9
Return on equity, excluding one-time
items % 12.2 6.4
Net interest bearing debt, MEUR,
preferred capital note in debt 242.8 251.4
Net gearing, %, preferred capital note
in debt 241.3 270.7
Order book, MEUR 129.0 95.4
Investments in non-current assets
without finance leases, MEUR 62.9 118.4
Investments in non-current assets incl.
finance leases, MEUR 64.5 123.6
Investments in non-current assets, % of
net sales 10.2 34.1
Average number of personnel during the
period 4,206 2,196
Number of personnel at period end 4,158 4,316
Share of export and foreign activities
in net sales, % 89.1 82.4
Contingent liabilities, MEUR 177.5 190.1
Per share data
31.12.2007 31.12.2006
Number of shares at period end,
1,000 shares 10,942 10,022
Earnings per share (EPS), EUR 1.97 0.36
Earnings per share, with dilution (EPS),
EUR 1.61 0.36
Equity per share, EUR 8.34 5.50
Dividend per share, EUR *) 0.50 0.25
Payout ratio, % 25.37 69.05
Effective dividend yield, % 5.97 2.91
P/E multiple 4.25 23.72
Share price at period end, EUR 8.37 8.59
*) For year 2007 a proposal of the Board of Directors.
Changes in tangible assets and goodwill
MEUR 1-12/2007 1-12/2006
Changes in tangible assets
Acquisition cost at the
beginning of the period 545.1 339.4
Translation difference 13.8 2.5
Additions 27.3 206.7
Disposal of subsidiary -14.9 -
Disposals -3.1 -3.5
Acquisition cost at the
end of the period 568.1 545.1
Accumulated depreciation at the
beginning of the period -300.0 -176.8
Translation difference -7.7 -1.4
Accumulated depreciation on additions -2.0 -108.0
Accumulated depreciation on disposals 2.1 3.1
Depreciation on disposal of subsidiary 10.5 -
Depreciation during the period -26.2 -16.8
Accumulated depreciation at the end
of the period -323.2 -300.0
Book value at the end of the period 244.9 245.1
Goodwill
Acquisition cost at the
beginning of the period 33.2 2.8
Additions 7.8 30.4
Translation difference 2.7 -
Acquisition cost at the
end of the period 43.7 33.2
Accumulated depreciation at the
beginning of the period -2.3 -2.3
Accumulated depreciation at the end
of the period -2.3 -2.3
Book value at the end of the period 41.4 30.9
Segments
Primary reporting format
Foundries, MEUR 31.12.2007 31.12.2006
Assets 143.0 135.1
Liabilities 38.6 40.4
Investments in non-current assets
(incl. finance leases) 4.4 4.3
Depreciation 12.6 11.2
Machine shops, MEUR 31.12.2007 31.12.2006
Assets 60.8 53.9
Liabilities 25.6 23.3
Investments in non-current assets
(incl. finance leases) 3.5 5.4
Depreciation 3.5 3.4
Döktas, MEUR 31.12.2007 31.12.2006
Assets 210.7 192.4
Liabilities 34.6 33.1
Investments in non-current assets
(incl. finance leases) 13.8 -
Depreciation 8.6 -
Secondary reporting format
Nordic countries, MEUR 31.12.2007 31.12.2006
Assets 254.3 235.2
Investments in non-current assets
(incl. finance leases) 7.3 10.2
Other European countries, MEUR 31.12.2007 31.12.2006
Assets 243.0 249.0
Investments in non-current assets
(incl. finance leases) 16.2 1.9
Group development
Net sales by market area
MEUR 1-12/2006 1-12/2007
Nordic countries 177.1 183.5
Other European countries 162.6 421.8
Other countries 22.5 29.4
Total 362.1 634.7
Quarterly development by market area
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07
Nordic
countries 45.6 47.3 35.4 48.8 53.7 46.5 38.5 44.9
Other
European
countries 42.1 42.2 37.1 41.2 106.7 106.6 96.7 111.8
Other
countries 5.9 5.1 5.9 5.5 7.4 7.7 8.0 6.3
Total 93.6 94.6 78.4 95.5 167.9 160.7 143.2 162.9
Group development
MEUR 1-12/2006 1-12/2007
Net sales 362.1 634.7
Operating profit 14.5 45.9
Net financial items -9.9 -23.2
Result after financial items 4.6 22.7
Group development by business division
Net sales, MEUR 1-12/2006 1-12/2007
Foundries 224.5 241.7
Machine shops 137.9 158.6
Döktas - 232.5
Other business 89.1 151.0
Internal and one-time items -89.4 -149.1
Componenta total 362.1 634.7
Operating profit, MEUR 1-12/2006 1-12/2007
Foundries 6.6 16.7
Machine shops 5.8 5.0
Döktas - 14.4
Other business 2.7 2.4
Internal and one-time items -0.6 7.5
Componenta total 14.5 45.9
Order book, MEUR 12/2006 12/2007
Foundries and Machine shops 52.0 66.5
Döktas 34.7 46.1
Other business 8.8 16.4
Componenta total 95.4 129.0
Group development by quarter
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07
Net sales 93.6 94.6 78.4 95.5 167.9 160.7 142.3 162.9
Operating
profit 5.3 6.6 -1.2 3.8 26.2 11.3 3.9 4.6
Net financial
items -2.2 -2.5 -2.3 -3.0 -4.4 -6.2 -7.0 -5.7
Result after
financial
items 3.1 4.1 -3.4 0.9 21.8 5.1 -3.1 -1.1
Quarterly development by business division
Net sales,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07
Foundries 57.5 61.2 49.1 56.8 63.1 62.0 52.4 64.2
Machine
shops 35.4 35.1 30.7 36.7 41.2 40.6 35.2 41.7
Döktas - - - - 61.5 60.2 55.2 55.7
Other
business 25.1 23.5 15.1 25.4 41.3 36.5 32.6 40.5
Internal and
one-time
items -24.4 -25.2 -16.4 -23.4 -39.2 -38.6 -32.2 -39.1
Componenta
total 93.6 94.6 78.4 95.5 167.9 160.7 143.2 162.9
Operating
profit,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07
Foundries 2.9 4.2 -2.1 1.6 5.2 6.1 0.8 4.7
Machine
shops 1.8 1.5 0.6 1.8 1.5 1.3 1.1 1.1
Döktas - - - - 5.2 4.7 2.2 2.3
Other
business 0.6 0.9 0.4 0.8 1.5 0.3 0.7 0.0
Internal and
one-time
items -0.1 -0.1 -0.1 -0.3 12.8 -1.0 -0.8 -3.5
Componenta
total 5.3 6.6 -1.2 3.8 26.2 11.3 3.9 4.6
Order book
at period
end, MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07
Foundries and
Machine
shops 52.6 48.9 50.0 52.0 51.4 53.6 62.7 66.5
Döktas - - - 34.7 42.3 39.3 45.4 46.1
Other
business 12.9 12.7 14.9 8.8 11.0 14.0 16.9 16.4
Componenta
total 65.5 61.6 64.9 95.4 104.7 106.9 125.0 129.0
Group development excluding one-time items
MEUR 1-12/2006 1-12/2007
Net sales 362.1 634.7
Operating profit 14.9 38.2
Net financial items -9.9 -23.2
Result after financial items 5.0 14.9
Group development by business division excluding one-time items
Operating profit, MEUR 1-12/2006 1-12/2007
Foundries 6.6 16.7
Machine shops 5.8 5.0
Döktas - 14.4
Other business 2.7 2.4
Internal items -0.2 -0.3
Componenta total 14.9 38.2
Group development by quarter excluding one-time items
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07
Net sales 93.6 94.6 78.4 95.5 167.9 160.7 143.2 162.9
Operating
profit 5.3 6.6 -1.2 4.2 13.3 11.3 4.9 8.8
Net financial
items -2.2 -2.5 -2.3 -3.0 -4.4 -6.2 -7.0 -5.7
Result after
financial
items 3.1 4.1 -3.4 1.2 8.9 5.1 -2.1 3.1
Quarterly development by business division excluding one-time items
Operating
profit,
MEUR Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07
Foundries 2.9 4.2 -2.1 1.6 5.2 6.1 0.8 4.7
Machine
shops 1.8 1.5 0.6 1.8 1.5 1.3 1.1 1.1
Döktas - - - - 5.2 4.7 2.2 2.3
Other
business 0.6 0.9 0.4 0.8 1.5 0.3 0.7 0.0
Internal
items -0.1 -0.1 -0.1 0.1 -0.1 -1.0 0.1 0.7
Componenta
total 5.3 6.6 -1.2 4.2 13.3 11.3 4.9 8.8
Largest registered shareholders on 31 December 2007
Share of total
Shareholder Shares voting rights
1 Lehtonen Heikki 4,058,674 37.09 %
Cabana Trade S.A. 3,801,988
Oy Högfors-Trading Ab 256,686
2 Etra-Invest Oy Ab 2,550,000 23.30 %
3 Inkinen Simo-Pekka 361,680 3.31 %
Inkinen Simo-Pekka 357,680
Väli-Gunnarla Avoin Yhtiö 4,000
4 OP-Finland Small Firm Fund 269,179 2.46 %
5 FIM Fenno Fund 207,478 1.90 %
6 Lehtonen Anna-Maria 178,823 1.63 %
7 Bergholm Heikki 165,000 1.51 %
8 Laakkonen Mikko 160,000 1.46 %
9 Mandatum Finnish Small Cap Fund 97,500 0.89 %
10 Fondita Nordic Micro Cap
Investment Fund 90,000 0.82 %
11 Lehtonen Yrjö M 85,040 0.78 %
12 Mutual Fund eQ Finland Small Cap 65,345 0.60 %
13 Ilmarinen Mutual Pension
Insurance Company 57,600 0.53 %
14 Seppo Saario Oy 55,000 0.50 %
15 Mutual Fund eQ Finland 51,556 0.47 %
Nominee-registered shares 302,345 2.76 %
Other shareholders 2,187,278 19.99 %
Total 10,942,498 100.00 %
The members of the Board of Directors own 38.8% of the shares. All
shares have equal voting rights. If all the convertible capital notes
were converted to shares, the holding of shares by the members of the
Board of Directors would decrease to 32.0%.
Helsinki, 30 January 2008
COMPONENTA CORPORATION
Board of Directors
Heikki Lehtonen
President and CEO
Further information:
Heikki Lehtonen
President and CEO
tel. +358 10 403 00
Mika Hassinen
CFO
tel. +358 10 403 00
Componenta is a metal sector company with international operations and
production plants located in Finland, the Netherlands, Sweden, and
Turkey. The net sales of Componenta were EUR 635 million in 2007. The
Group employs about 5,100 people. Componenta's shares are quoted on the
OMX Nordic Exchange in Helsinki. Componenta specializes in supplying
cast and machined components and total solutions made of them to its
global customers who are manufacturers of vehicles, machines and
equipment.
Componenta Corporation
Panuntie 4
FI-00610 Helsinki , Finland
Tel. +358 10 403 00
Fax +358 10 403 2721 www.componenta.com
