Componenta Corporation Stock Exchange Release 28.1.2009 at 10.00
Componenta Corporation's Financial Statements 1 January - 31 December 2008
Componenta Group had net sales in 2008 of MEUR 681.4 (MEUR 634.7).
Operating profit excluding one-time items was MEUR 47.9 (MEUR 34.9) and result
after financial items, excluding one-time items, was MEUR 19.2 (MEUR 14.9).
Fourth quarter net sales totalled MEUR 125.3 (MEUR 162.9), operating profit
excluding one-time items was MEUR -6.0 (MEUR 8.8) and result after financial
items excluding one-time items was MEUR -16.1 (MEUR 3.1).
Earnings per share, excluding one-time items, were EUR 1.28 (EUR 1.01).
Componenta's basic earnings per share in 2008 were EUR 1.24 (EUR 1.97).
The Board of Directors proposes to the Annual General Meeting of Shareholders
that a dividend of EUR 0.50 per share be paid for 2008.
Events in 2008 in brief
On 28 January 2008 Componenta signed an agreement with Metso Foundries Jyväskylä
Oy to transfer the technology for production on Metso's automated moulding line
to Componenta. Metso Foundries Jyväskylä Oy terminated production on this line
on 30 September 2008. The signed cooperation agreement enabled deliveries of
castings to Metso's customers to continue uninterrupted during and after the
transition stage.
Componenta changed its pricing system in consequence of rising raw material
costs. The prices of main raw materials such as recycled metal and pig iron
produced from iron ore rose by more than 100 % between the end of 2007 and June
2008. Because of this, Componenta introduced a price compensation system at the
end of June, so that the impact of changes in raw material prices is updated
monthly instead of quarterly as in the past.
In consequence of the turbulence in the finance markets, demand for Componenta's
products began to slow down in late September and early October. On 14 October
2008 Componenta announced that it was beginning to adapt the operations of its
units to lower demand in Turkey, the Netherlands, Sweden and Finland by reducing
the use of contract labour during October and November by altogether 720 persons
and by reducing the number of its own personnel by a total of 170 persons
through layoffs and redundancies. The company also reduced its use of external
subcontractors by an amount corresponding to the work input of 150 people.
Componenta commissioned the Group's new machine shop in Orhangazi, Turkey on 21
October 2008. In addition to the EUR 3 million investment in the building, a
further EUR 2 million was invested in machinery and equipment in 2008.
As the global financial crisis turned into an economic recession, the markets
weakened significantly in several of Componenta's customer sectors. As a result,
Componenta announced on 15 December 2008 that it was continuing measures that it
had started earlier by reducing production temporarily in line with reduced
demand. Componenta sharply reduced the use of labour in the Netherlands and
Turkey and increased the number of people laid off and made redundant from the
figures announced in October in Sweden, Finland and Turkey. The reductions of
leased employees, layoffs and redundancies amounted in total to 1,600 people,
and in addition the amount of subcontracting was reduced by an amount
corresponding to the work input of 200 people.
On 18 December 2008 the Court of First Instance (CFI) of the European
Communities reversed the decision made by the European Commission on 20 October
2005, in which the Commission stated that the city of Karkkila had given
Componenta state aid contrary to the EU Treaty totalling some EUR 2.4 million in
connection with a share purchase transaction.
Net sales and order book
The Group's net sales in 2008 totalled EUR 681.4 (634.7) million. Comparable
growth in net sales was 8.3%. The Group's net sales declined in the fourth
quarter 23.1% to EUR 125.3 (162.9) million.
Foundries division sales in 2008 increased 21.1% from the previous year to EUR
292.6 (241.7) million.
Sales of the Machine shops division in 2008 rose 6.8% from the previous year to
EUR 189.9 (177.8) million.
Sales of the Turkey division in 2008 increased 7.5 % from the previous year to
EUR 242.7 (225.7) million.
The Group's order book at the end of 2008 stood at EUR 73.6 (129.0) million. The
Foundries and Machine shops divisions had a combined order book at the end of
2008 of EUR 48.6 (72.1) million. Showing the order books for the divisions
separately is not justified due to the nature of Componenta's supply chain. The
order book of the Turkey division at the end of 2008 stood at EUR 17.9 (41.9)
million.
Componenta's net sales in 2008 by customer sector were as follows: off-road 35%
(36%), heavy truck industry 28% (27%), automotive 14% (17%), diesel & wind 7%
(5%), machine building 15% (14%) and other sales 1% (1%).
Componenta's net sales in 2008 by geographical area were as follows: Nordic
countries 30% (29%), other European countries 65% (66%) and other countries 5%
(5%).
Result
Componenta's 2008 financial statements have been prepared in accordance with
international financial reporting standards (IFRS). The exchange rate
differences for trade payables and trade receivables and related hedging items,
which were previously presented under financial items, are presented in the
relevant item under other operating income in the operating profit. These
exchange rate differences totalled EUR -3.2 million in 2007 and the figures
for comparison have been adjusted to bring them in line with the new form of
presentation. The adjustment has no impact on the 2007 result after financial
items or on the Group's equity on 31 December 2007. In other respects Componenta
has applied the same accounting principles when preparing the 2008 financial
statements as in the 2007 financial statements.
The consolidated operating profit for the financial year, excluding one-time
items, was EUR 47.9 (34.9) million. The operating results of the Foundries and
Turkey divisions increased considerably from the previous year mainly in
consequence of higher volumes and greater efficiency in operations. The
operating profit of the Machine shops division weakened slightly from the
previous year, mainly due to difficulties in cost adaptation.
The Group's net financial costs for the period totalled EUR -28.7 (-20.0)
million. Net financial costs rose EUR 8.7 million from the previous year mainly
due to exchange rate differences on loans and higher interest expenses.
The Group's result after financial items excluding one-time items was EUR 19.2
(14.9) million. The Group's one-time items in the period were EUR -0.6 (7.8)
million.
Income taxes, calculated from the profit for the period, totalled EUR -4.6
(-1.1) million. Deferred tax receivables have been recorded in the balance
sheet, and it is estimated that these can be utilized in Finland and Sweden
during the next 4 - 6 years.
Componenta's net result for the period, excluding one-time items, was EUR 14.4
(11.4) million and the corresponding figure including one-time items was EUR
13.9 (21.6) million.
The basic earnings per share, excluding one-time items, were EUR 1.28 (1.01) and
the corresponding figure including one-time items was EUR 1.24 (1.97).
Capital invested in the company at the end of the year was EUR 341.5 (370.9)
million. The return on investment excluding one-time items was 13.7% (9.8%) and
the return on equity excluding one-time items was 14.9% (12.1%).
The fourth quarter operating profit, excluding one-time items, was EUR -6.0
(8.8) million and the result after financial items, excluding one-time items,
was EUR -16.1 (3.1) million. Factors affecting the result were the decline in
net sales by 23.1 %, the exceptional items caused by the exceptionally sharp and
rapid fall in raw material prices, and the exceptional items arising from
adjusting the number of personnel. The total amount of the exceptional items is
estimated at approximately EUR 7 million.
Componenta's key financial indicators, including one-time items, during the past
three years were as follows:
2006 2007 2008
Net sales, MEUR 362.1 634.7 681.4
Operating profit, MEUR 14.5 42.7 47.3
Operating profit, % 4.0 6.7 6.9
Return on equity, % 5.9 23.0 14.5
Equity ratio, % 19.2 20.3 16.4
Financing
At the end of the year Componenta Corporation had outstanding capital notes and
convertible notes with a combined value of EUR 51.3 million, as defined in IFRS.
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 of the
notes. In addition, in July the Group repaid in full the capital notes issued in
2004 with their capitalized interest, EUR 2.1 million. During 2008, 16 of
Componenta's convertible capital notes were converted into shares. As a result,
the number of Componenta shares increased by 3,200 and the shareholders' equity
in the IFRS balance sheet rose by EUR 30,800. At the end of 2008 the outstanding
unconverted capital notes and convertible notes entitled holders to subscribe to
3,165,000 shares.
In October Componenta drew down long-term pension loans from Finnish pension
companies totalling EUR 20.0 million. At the end of the year the Group had
unused credit facilities of EUR 63.0 million. The Group also has a EUR 150.0
million commercial paper programme. The Group's interest-bearing net debt,
excluding the outstanding capital notes of EUR 51.3 million, stood at EUR 211.2
(187.4) million. The company's net debt as a proportion of shareholders' equity,
including the capital notes in shareholders' equity, was 168.9% (120.2%).
Componenta is making 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 the period the company had
sold trade receivables totalling EUR 49.0 (43.5) million.
Componenta's net cash flow from operations in 2008 was EUR 29.4 (42.6) million,
and of this the change in net working capital was EUR -4.2 (11.0) million. The
cash flow from investment was EUR -40.6 (-38.6) million, which includes the cash
flow from the Group's production investments and the cash flow from shares sold
and purchased and from fixed assets sold.
At the end of the review period the Group's equity ratio was 16.4% (20.3%). The
equity ratio declined from the previous year mainly due to the negative change
in the translation difference of some EUR 29 million for the Turkish subsidiary,
which in turn was in consequence of the major weakening of the Turkish lira
against the euro. The Group's shareholders' equity on 31 December 2008,
including the capital notes in shareholders' equity, as a proportion of the
balance sheet total was 27.8% (31.4%).
Loans, commitments and contingent liabilities given by the company to Group
companies classified as related parties on 31 December 2008 totalled EUR 150.2
(126.4) million. Loans, commitments and contingent liabilities given by the
company to private persons classified as related parties on 31 December 2008
totalled EUR 0.2 (0.3) million.
Performance of business divisions
Componenta amended its reporting structure on 1 January 2008, when two units
were transferred to the Machine shops division, Componenta Pistons from the
Other business division and the Orhangazi machine shop operations from the
Turkey division. All figures for comparison for the divisions for 2007 have been
adjusted to bring them in line with the new reporting structure.
Foundries
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 division had net sales in 2008 of EUR 292.6 (241.7) million and an operating
profit of EUR 23.3 million, corresponding to 8.0% of net sales (EUR 16.7
million, 6.9%). The division's operating profit improved from the previous year
mainly as a result of higher volumes and enhanced efficiency in operations. In
consequence of the sharp increases in raw material prices, in summer 2008
Componenta introduced a new price compensation system, so that the impact of
changes in raw material prices is updated closer to the event, on a monthly
basis instead of quarterly as before.
Capacity at the Iisalmi foundry was raised to meet the growing demand for wind
power components and capacity was increased at the Karkkila foundry for the
needs of the production being transferred from Metso's foundry in Jyväskylä.
Both investments were mainly carried out during the third quarter.
The division had fourth quarter net sales of EUR 62.3 (64.2) million and an
operating profit of EUR -0.2 (4.7) million. The operating profit was weakened by
the exceptionally rapid and sharp fall in raw material prices combined with a
sharp reduction in delivery volumes and the costs arising from adjusting the
number of personnel.
Machine shops
The Machine shops division comprises the Främmestad machine shop in Sweden, the
machine shops in Lempäälä and Pietarsaari in Finland, the machine shop
operations in Weert in the Netherlands, and the machine shop in Orhangazi,
Turkey.
The division had net sales in 2008 of EUR 189.9 (177.8) million and operating
profit of EUR 5.8 million, corresponding to 3.1% of net sales (EUR 6.5 million,
3.7%). The division's operating profit declined mainly because of the costs
arising from the measures to adapt operations. The new machine shop in Orhangazi
was completed during the summer and the unit's operations moved into the new
premises during the third quarter.
The division's net sales in the final quarter totalled EUR 40.8 (46.8) million
and the operating profit was EUR -0.2 (1.3) million. The operating profit
weakened mainly because of the costs arising from the adjusting the number of
personnel in Sweden.
Turkey
The Turkey division comprises the iron foundry in Orhangazi and the aluminium
foundry and production unit for aluminium wheels in Manisa.
The division had net sales in 2008 of EUR 242.7 (225.7) million and operating
profit of EUR 19.9 million, corresponding to 8.2% of net sales (EUR 10.4
million, 4.6%). Main factors that improved the division's financial performance
from the previous year were increasing volumes, higher efficiency in its
business operations, and the decline in the value of the Turkish lira against
the euro. During the year the Turkey division introduced the same price
compensation system for raw materials as the Foundries division.
Changes in the value of the Turkish lira against the euro improved the operating
profit of the Turkey division in the first quarter by EUR 7.1 million, weakened
it during the second and third quarters by altogether EUR 4.3 million, and
improved it again in the fourth quarter by EUR 3.4 million.
The division's fourth quarter net sales totalled EUR 30.4 (51.0) million and the
operating profit was EUR -4.2 (3.0) million. The operating profit was weakened
by the exceptionally rapid and sharp fall in raw material prices combined with a
sharp reduction in delivery volumes and the costs arising from adjusting the
number of personnel.
The Orhangazi iron foundry had net sales in 2008 of EUR 173.7 (149.6) million
and operating profit of EUR 12.5 (7.4) million. Net sales of the Manisa business
units in 2008 totalled EUR 69.0 (76.1) million and operating profit was EUR 7.5
(2.9) million.
Other business
Other business comprises the Componenta Wirsbo forges in Sweden, the sales and
logistics company Componenta UK in Great Britain, real estate companies and the
Group's administrative functions.
Other business had net sales in 2008 of EUR 130.1 (145.5) million and an
operating profit excluding one-time items of EUR -1.7 (1.6) million. The order
book at the end of 2008 stood at EUR 7.1 (15.0) million. Net sales of the
Componenta Wirsbo forges fell and the operating profit declined from the
previous year. Likewise the net sales of sales and logistics company Componenta
UK fell and the operating profit declined from the previous year.
Other business had fourth quarter net sales of EUR 22.8 (39.1) million and an
operating profit excluding one-time items of EUR -3.4 (-0.1) million. The
operating profit was weakened by the exceptionally rapid and sharp fall in raw
material prices combined with a sharp reduction in delivery volumes and the
costs arising from adjusting the number of personnel.
Shares and share capital
The shares of Componenta Corporation are quoted on the NASDAQ OMX Helsinki. At
the end of 2008 the company had a total of 10,945,698 (10,942,498) shares. At
the end of the period the company's share capital stood at EUR 21.9 (21.9)
million. On 31 December 2008 the quoted price of Componenta Corporation shares
stood at EUR 4.75 (8.37). The average price during the year was EUR 8.34, the
lowest quoted price was EUR 4.62 and the highest EUR 11.76. At the end of the
year the share capital had a market capitalization of EUR 52.0 (91.6) million
and the volume of shares traded during the period was equivalent to 32% (52%) of
the share stock. The company has one share series.
The Annual General Meeting of Shareholders (AGM) on 25 February 2008 decided, in
accordance with the proposal of the Board of Directors, to pay a dividend of EUR
0.50 per share for 2007.
On 16 January 2008 Componenta received notification from Etra Invest Oy that the
share of the voting rights and share capital carried by the shares in Componenta
Corporation under its control had risen above the 25% limit in a share
transaction on 16 January 2008. In addition, Etra Invest Oy informed Componenta
that it had raised its share of the voting rights and share capital of
Componenta Corporation to more than 30% in a share transaction on 14 August
2008.
During the period 1,200 new Componenta Corporation shares were subscribed with 6
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 2,400 and the invested
non-restricted equity fund by EUR 8,400.
A total of 2,000 new Componenta Corporation shares were subscribed with 10
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 4,000 and the share premium
account by EUR 16,000.
Board authorizations
The AGM on 25 February 2008 authorized the Board of Directors to 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
Helsinki Exchange 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 authorization is valid for a
period of 18 months from the date of the decision of the AGM.
The AGM on 26 February 2007 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: Under the authorization the Board may decide
to issue shares and grant option rights and other special rights as 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. The authorization is valid for a period of five years from the date of
the decision of the AGM.
The Board of Directors has not exercised either of these authorizations.
Share-based incentive scheme
The share-based incentive scheme is based on the decision taken on 3 April 2007
by the Board of Directors of Componenta Corporation. The scheme comprises three
one-year earnings periods, which are the calendar years 2007, 2008 and 2009. The
bonuses are paid in 2008, 2009 and 2010 partly in company shares and partly in
cash. The part to be paid in cash covers 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 incentive scheme is based on the Group's profit after
financial items and the Group's return on investment. At the end of 2008 the
target group contained 40 people. If the targets set for the scheme are met in
full, the scheme will pay a bonus of a maximum of 132,000 instead of 180,000
Componenta Corporation shares. For the 2008 earnings period the Board decided to
allocate altogether 12,100 Componenta Corporation shares that includes 1,905
shares of the 2007 allocation. The president and CEO will account 3,300 of these
shares and other key personnel altogether totally 8,800 shares. The scheme had
an impact before taxes on the result in 2008 of EUR 0.1 million.
Investments
Componenta's investments in production facilities during the year totalled EUR
42.3 (23.6) million, and finance lease investments accounted for EUR 4.3 (1.6)
million of this. The net cash flow from investments was EUR -40.6 (-38.6)
million. This figure includes EUR 1.3 million used during the review period to
purchase shares of Componenta Dökümcülük Ticaret Ve Sanayi A.S. on the Istanbul
Stock Exchange. At the end of 2008 Componenta owned 93.57% of the shares of
Componenta Dökümcülük Ticaret Ve Sanayi A.S.
Board of Directors and Management
The Annual General Meeting elects each year Componenta Corporation's Board of
Directors, which according to the Articles of Association consists of 3 - 7
members. The term of office of the Board of Directors expires at the close of
the following Annual General Meeting. The Board of Directors elects from its
members a chairman and vice-chairman.
The tasks and duties of the Board of Directors are laid down primarily in the
Articles of Association and the Finnish Companies Act. The Board has drawn up
written Rules of Procedure which define the tasks and operating principles of
the Board. According to these Rules of Procedure, the Board's tasks include all
matters that have a far-reaching impact on the operations of Componenta Group.
These include confirming the strategic guidelines, the annual budget and
operational plans, and deciding on major corporate restructuring and capital
expenditure. The Board assessed its activities under the leadership of its
chairman in December 2008.
The Board met 10 times in 2008. The average attendance rate of Board members at
meetings was 96%.
Componenta's Annual General Meeting of Shareholders on 25 February 2008 elected
the following to the Board of Directors: Heikki Bergholm, Heikki Lehtonen,
Juhani Mäkinen, Marjo Raitavuo and Matti Tikkakoski. The Board held its
organization meeting after the AGM and elected Heikki Bergholm as its Chairman
and Juhani Mäkinen as its Vice Chairman.
The Board appoints the President and CEO and decides on the President's
remuneration and other benefits. The functions and duties of the President are
defined in the Companies Act. In addition to these, the duties of the President
of Componenta Corporation include:
managing and developing Componenta Group's business in accordance with the
instructions given by the Board of Directors,
presenting matters for consideration at meetings of the Board of Directors
implementing the decisions of the Board of Directors.
Componenta's President and CEO is Heikki Lehtonen.
At the end of the year the corporate executive team of Componenta Corporation
comprised the following: President and CEO Heikki Lehtonen; Yaylalý Günay,
Senior Vice President, Investments; Hakan Göral, Senior Vice President, Turkey
division; CFO Mika Hassinen; Olli Karhunen, Senior Vice President, Foundries
division; Timo Laitinen, Senior Vice President, Sales and Product Development;
Jari Leino, Sales Director, Heavy Trucks; Anu Mankki, Senior Vice President,
Human Resources; Tapio Rantala, Director, Business Development; Michael Sjöberg,
Senior Vice President, Machine shops division, and Communications Director Pirjo
Aarniovuori.
Personnel
The average number of Group personnel during 2008 was 5,080 (5,094) including
788 (888) leased employees. The number of Group personnel at the end of 2008
was 4,163 (5,064), which includes 194 (906) contract employees. At the end of
the year 45% of the Group's personnel were in Turkey, 26% in Finland, 18% in the
Netherlands and 11% 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 2008 the Group used 795 GWh (814 GWh) of energy. Most of the
energy used, 68% (68%) was electricity. The foundries consume more than 90% of
all the energy, for especially the melting processes at the foundries utilise
much energy. In 2008 energy consumption at Componenta Group foundries in
proportion to output was the same as in the previous year.
Componenta will publish its 2008 sustainability report during spring 2009.
Research and development
At the end of 2008 86 people worked in research and development at Componenta,
which corresponds to two per cent of the company's total personnel. Componenta's
R&D expenses in 2008 totalled EUR 2.6 (2.3) million, corresponding to 0.4%
(0.4%) of the Group's total net sales.
Risks
Fluctuations in the prices of Componenta Group's main raw material, recycled
metal, affect the sales margins on the Group's products. When the price of
recycled metal rises, the increase in the price of the raw materials is passed
on to the products supplied to customers after a certain delay, so price
increases in recycled metal reduce the sales margin temporarily. When prices of
recycled metal go down, the Group's margins correspondingly improve.
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.
Translating the shareholders' equity of Componenta Turkey into euros creates a
significant translation risk for the Group. Changes in the value of the US
dollar, the GB pound and the euro in relation to the Turkish lira have an impact
on the company's operating profit and profit after financial items in the short
term.
During the year Componenta's Board of Directors approved a revised version of
the treasury policy, which was further revised towards the end of the year in
relation to the Turkish lira. According to the policy, the currency risk is
divided into the transaction risk resulting from foreign currency denominated
income and expenses and the translation risk resulting from foreign currency
denominated equity investments and the profit or loss on these.
The transaction position is formed by foreign currency-denominated sales
receivables and trade payables in the balance sheet where changes in these
affect the operating profit. Foreign currency-denominated cash and cash in bank
are processed separately from this position, as are the Group's internal and
external foreign currency loans, for which the impact on the result arising from
changes in exchange rates is entered under financial income and expenses. The
degree of hedging for both transaction positions is set at 90-110%. For
Componenta Turkey, however, the net value is calculated after setting foreign
currency-denominated sales receivables in the balance sheet against foreign
currency-denominated debt, taking advantage of the natural hedging relationship.
If the total sums of the foreign currency-denominated balance sheet items in
Turkey differ from each other, the degree of hedging shall be decided by the
president and CEO up to EUR 20 million.
The translation position is determined from the shareholder's equity and
retained earnings of non-Finnish subsidiary and associated companies for whom
the operating currency is not the euro. In accordance with the treasury policy,
the translation position is hedged at the discretion of the Group's President
and CEO 0-100%.
The Group has no significant concentration of risk for receivables. The Group
recognized no major credit losses in 2008.
The company's financial agreements contain normal 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 end of period
No significant events for the company have occurred after the end of the period.
Dividend proposal
The distributable equity of the parent company on 31 December 2008 amounted to
EUR 48.8 million, of which the profit for the financial year was EUR 24.0
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 2008, altogether
EUR 5.5 million, and EUR 43.3 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 23 February
2009 at 11.00 am Finnish time.
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 its 2008 Annual Report in week 7, 2009.
Prospects
Componenta's prospects for 2009 are based on general external financial
indicators, order forecasts given by customers, and on Componenta's order intake
and order book.
Demand prospects in many of the Group's customer sectors are uncertain at the
beginning of 2009, due to the recent global economic recession.
The slow down in construction in the USA and Europe has reduced demand in the
off-road sector. Demand for mining machinery has taken a downward turn, mainly
due to the recent fall in the prices of raw materials.
Production volumes for heavy trucks are expected to decline significantly in
2009.
The uncertainty in the financial markets and the economic recession have
considerably cut demand in the automotive industry in Europe.
The demand outlook in the diesel and wind sectors remains good. Demand in the
machine building industry is expected to fall.
Componenta's order book at the end of fourth quarter of 2008 stood at EUR 74
(129.0) million, more than 40% lower than at the same time in the previous year.
Componenta has sharply reduced the use of leased employees in the Netherlands
and Turkey and made decisions on layoffs and redundances in Sweden, Finland and
Turkey. Total effect of reductions of leased employees, layoffs and redundancies
amount to 1,600 people.
Componenta Group's 2009 net sales are expected to fall 30% and the result after
financial items, excluding one-time items, is expected to decline significantly
from the 2008 figure. The Group's cash flow is expected to be clearly positive
due to the major reduction in working capital and the low level of investments.
Financial statements tables
Income statement
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| MEUR | 1.1.-31.1 | 1.1.-31.1 | 1.10.-31. | 1.10.-31. |
| | 2.2008 | 2.2007 | 12.2008 | 12.2007 |
--------------------------------------------------------------------------------
| Net sales | 681.4 | 634.7 | 125.3 | 162.9 |
--------------------------------------------------------------------------------
| Other operating income | 8.3 | 17.8 | 3.9 | 0.3 |
--------------------------------------------------------------------------------
| Operating expenses | -618.9 | -583.3 | -129.8 | -151.7 |
--------------------------------------------------------------------------------
| Depreciation, amortization | -23.9 | -26.6 | -6.0 | -7.0 |
| and write-down | | | | |
--------------------------------------------------------------------------------
| Share of the associated | 0.2 | 0.1 | 0.2 | 0.0 |
| companies' result | | | | |
--------------------------------------------------------------------------------
| Operating profit | 47.3 | 42.7 | -6.2 | 4.5 |
--------------------------------------------------------------------------------
| % of net sales | 6.9 | 6.7 | -5.0 | 2.8 |
--------------------------------------------------------------------------------
| Financial income and | -28.7 | -20.0 | -10.1 | -5.6 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Result after financial items | 18.6 | 22.7 | -16.3 | -1.1 |
--------------------------------------------------------------------------------
| % of net sales | 2.7 | 3.6 | -13.0 | -0.7 |
--------------------------------------------------------------------------------
| Income taxes | -4.6 | -1.1 | 3.7 | 0.1 |
--------------------------------------------------------------------------------
| Net profit | 13.9 | 21.6 | -12.6 | -1.0 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Allocation of net profit for | | | | |
| the period | | | | |
--------------------------------------------------------------------------------
| To equity holders of the | 13.5 | 20.9 | -11.8 | -0.9 |
| parent | | | | |
--------------------------------------------------------------------------------
| To minority interest | 0.4 | 0.7 | -0.8 | -0.1 |
--------------------------------------------------------------------------------
| | 13.9 | 21.6 | -12.6 | -1.0 |
--------------------------------------------------------------------------------
| Earning per share calculated | | | | |
| on the profit attributable | | | | |
| to equity holders of the | | | | |
| parent | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 1.24 | 1.97 | -1.08 | -0.09 |
--------------------------------------------------------------------------------
| Earnings per share with | 1.04 | 1.61 | -0.81 | -0.04 |
| dilution, EUR | | | | |
--------------------------------------------------------------------------------
Income statement excluding one-time items
--------------------------------------------------------------------------------
| MEUR | 1.1.-31.1 | 1.1.-31.1 | 1.10.-31. | 1.10.-31. |
| | 2.2008 | 2.2007 | 12.2008 | 12.2007 |
--------------------------------------------------------------------------------
| Net sales | 681.4 | 634.7 | 125.3 | 162.9 |
--------------------------------------------------------------------------------
| Other operating income | 8.3 | -1.5 | 3.9 | 0.4 |
--------------------------------------------------------------------------------
| Operating expenses | -618.2 | -574.0 | -129.5 | -148.1 |
--------------------------------------------------------------------------------
| Depreciation, amortization | -23.9 | -24.4 | -6.0 | -6.4 |
| and write-down | | | | |
--------------------------------------------------------------------------------
| Share of the associated | 0.2 | 0.1 | 0.2 | 0.0 |
| companies' result | | | | |
--------------------------------------------------------------------------------
| Operating profit | 47.9 | 34.9 | -6.0 | 8.8 |
--------------------------------------------------------------------------------
| % of net sales | 7.0 | 6.0 | -4.8 | 5.4 |
--------------------------------------------------------------------------------
| Financial income and | -28.7 | -20.0 | -10.1 | -5.7 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Result after financial items | 19.2 | 14.9 | -16.1 | 3.1 |
--------------------------------------------------------------------------------
| % of net sales | 2.8 | 2.4 | -12.8 | 1.9 |
--------------------------------------------------------------------------------
| Income taxes | -4.8 | -3.5 | 3.6 | -0.5 |
--------------------------------------------------------------------------------
| Net profit | 14.4 | 11.4 | -12.4 | 2.6 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Allocation of net profit for | | | | |
| the period | | | | |
--------------------------------------------------------------------------------
| To equity holders of the | 14.0 | 10.7 | -11.7 | 2.6 |
| parent | | | | |
--------------------------------------------------------------------------------
| To minority interest | 0.4 | 0.7 | -0.8 | -0.1 |
--------------------------------------------------------------------------------
| | 14.4 | 11.4 | -12.4 | 2.6 |
--------------------------------------------------------------------------------
| Earning per share calculated | | | | |
| on the profit attributable | | | | |
| to equity holders of the | | | | |
| parent | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 1.28 | 1.01 | -1.07 | 0.25 |
--------------------------------------------------------------------------------
The 2007 comparison data has been adjusted by transferring exchange rate
differences of sales and purchases and the corresponding hedging results from
financial income and expenses to other operating income. In 1.1.-31.12.2007
exchange rate differences were -3.2 MEUR and 1.10.-31.12.2007 -0.1 MEUR.
Balance sheet
--------------------------------------------------------------------------------
| MEUR | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Assets | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Intangible assets | 4.6 | 2.4 |
--------------------------------------------------------------------------------
| Goodwill | 31.7 | 40.8 |
--------------------------------------------------------------------------------
| Investment properties | 1.8 | 1.8 |
--------------------------------------------------------------------------------
| Tangible assets | 237.9 | 244.9 |
--------------------------------------------------------------------------------
| Investment in associates | 0.9 | 0.9 |
--------------------------------------------------------------------------------
| Receivables | 4.4 | 4.9 |
--------------------------------------------------------------------------------
| Other investments | 0.4 | 0.3 |
--------------------------------------------------------------------------------
| Deferred tax assets | 10.6 | 9.4 |
--------------------------------------------------------------------------------
| Total non-current assets | 292.4 | 305.5 |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | 83.8 | 82.5 |
--------------------------------------------------------------------------------
| Receivables | 66.7 | 81.7 |
--------------------------------------------------------------------------------
| Tax receivables | 2.3 | 0.2 |
--------------------------------------------------------------------------------
| Cash and bank accounts | 5.2 | 27.5 |
--------------------------------------------------------------------------------
| Total current assets | 158.0 | 191.9 |
--------------------------------------------------------------------------------
| Total assets | 450.4 | 497.3 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | |
--------------------------------------------------------------------------------
| Share capital | 21.9 | 21.9 |
--------------------------------------------------------------------------------
| Other equity | 44.8 | 69.4 |
--------------------------------------------------------------------------------
| Equity attributable to equity holders of | 66.7 | 91.3 |
| the parent | | |
--------------------------------------------------------------------------------
| Minority interest | 7.1 | 9.3 |
--------------------------------------------------------------------------------
| Shareholders' equity | 73.8 | 100.6 |
--------------------------------------------------------------------------------
| Liabilities | | |
--------------------------------------------------------------------------------
| Non-current | | |
--------------------------------------------------------------------------------
| Capital loan | 41.8 | 50.2 |
--------------------------------------------------------------------------------
| Interest bearing | 165.3 | 77.0 |
--------------------------------------------------------------------------------
| Interest free | - | 0.3 |
--------------------------------------------------------------------------------
| Provisions | 5.8 | 6.4 |
--------------------------------------------------------------------------------
| Deferred tax liability | 7.9 | 9.4 |
--------------------------------------------------------------------------------
| Current | | |
--------------------------------------------------------------------------------
| Capital loan | 9.5 | 5.2 |
--------------------------------------------------------------------------------
| Interest bearing | 51.2 | 137.9 |
--------------------------------------------------------------------------------
| Interest free | 93.3 | 105.9 |
--------------------------------------------------------------------------------
| Tax liabilities | 0.1 | 0.9 |
--------------------------------------------------------------------------------
| Provisions | 1.8 | 3.5 |
--------------------------------------------------------------------------------
| Total liabilities | 376.6 | 396.7 |
--------------------------------------------------------------------------------
| Total shareholders' equity and liabilities | 450.4 | 497.3 |
--------------------------------------------------------------------------------
Cash flow statement
--------------------------------------------------------------------------------
| MEUR | 1.1.- | 1.1.- |
| | 31. | 31. |
| | 12.2008 | 12.2007 |
--------------------------------------------------------------------------------
| Cash flow from operations | | |
--------------------------------------------------------------------------------
| Result after financial items | 18.6 | 22.7 |
--------------------------------------------------------------------------------
| Depreciation, amortization and write-down | 23.9 | 26.6 |
--------------------------------------------------------------------------------
| Net financial income and expenses | 28.7 | 23.2 |
--------------------------------------------------------------------------------
| Other income and expenses, adjustments to cash flow | -2.6 | -15.1 |
--------------------------------------------------------------------------------
| Change in net working capital | -4.2 | 11.0 |
--------------------------------------------------------------------------------
| Cash flow from operations before financing and | 64.4 | 68.5 |
| income taxes | | |
--------------------------------------------------------------------------------
| Interest received and paid and dividends received | -28.0 | -23.1 |
--------------------------------------------------------------------------------
| Taxes paid | -7.0 | -2.8 |
--------------------------------------------------------------------------------
| Net cash flow from operations | 29.4 | 42.6 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | |
--------------------------------------------------------------------------------
| Capital expenditure in tangible and intangible | -39.6 | -22.3 |
| assets | | |
--------------------------------------------------------------------------------
| Proceeds from tangible and intangible assets | 0.3 | 0.1 |
--------------------------------------------------------------------------------
| Other investments and loans granted | - | -0.7 |
--------------------------------------------------------------------------------
| Proceeds from other investments and repayments of | 0.0 | 24.5 |
| loan receivables | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiary, net of cash acquired | -1.3 | -40.2 |
--------------------------------------------------------------------------------
| Net cash flow from investing activities | -40.6 | -38.6 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | | |
--------------------------------------------------------------------------------
| Dividends paid | -5.6 | -3.3 |
--------------------------------------------------------------------------------
| Share issue (capital notes) | - | 0.0 |
--------------------------------------------------------------------------------
| Draw-down (+)/ repayment (-) of the equity part of | - | 0.0 |
| convertible capital notes | | |
--------------------------------------------------------------------------------
| Repayment of finance lease liabilities | -2.4 | -3.3 |
--------------------------------------------------------------------------------
| Draw-down (+)/ repayment (-) of current loans | -82.7 | 44.2 |
--------------------------------------------------------------------------------
| Draw-down of non-current loans | 98.0 | 69.0 |
--------------------------------------------------------------------------------
| Repayment of non-current loans and other changes | -16.1 | -99.5 |
--------------------------------------------------------------------------------
| Net cash flow from financing activities | -8.7 | 7.2 |
--------------------------------------------------------------------------------
| Change in liquid assets | -20.0 | 11.2 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash and bank account at the beginning of the period | 27.5 | 15.3 |
--------------------------------------------------------------------------------
| Effects of exchange rate changes on cash | -2.3 | 1.0 |
--------------------------------------------------------------------------------
| Cash and bank account at the period end | 5.2 | 27.5 |
--------------------------------------------------------------------------------
| Change during the financial period | -20.0 | 11.2 |
--------------------------------------------------------------------------------
Statement of changes in shareholders' equity
--------------------------------------------------------------------------------
| MEUR | Shar | Shar | Othe | Tran | Retai | Total | Minor | Share |
| | e | e | r | s | ned | | ity | hold |
| | cap | pr | re | lat | e | | i | ers' |
| | ital | emiu | serv | ion | arnin | | ntere | equit |
| | | m | es | diff | gs | | st | y |
| | | ac | | e | | | | tot |
| | | coun | | re | | | | al |
| | | t | | nces | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 20.0 | 12.4 | 3.4 | 0.1 | 19.1 | 55.1 | 37.7 | 92.8 |
| equity 1.1.2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Derivatives | | | 0.3 | | | 0.3 | | 0.3 |
--------------------------------------------------------------------------------
| Share-based | | | 0.0 | | | 0.0 | | 0.0 |
| payments | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | 11.4 | | 11.4 | 1.2 | 12.6 |
| translation | | | | | | | | |
| differences | | | | | | | | |
--------------------------------------------------------------------------------
| Change in equity | | | | -1.8 | | -1.8 | | -1.8 |
| hedging | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | | | | | -2.5 | -2.5 | -0.8 | -3.3 |
--------------------------------------------------------------------------------
| Increase of | 1.8 | 2.5 | 3.4 | | | 7.8 | | 7.8 |
| share capital | | | | | | | | |
| (warrants) | | | | | | | | |
--------------------------------------------------------------------------------
| Equity share of | | | 0.0 | | | 0.0 | | 0.0 |
| convertible | | | | | | | | |
| capital notes | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | | 0.0 | -29.5 | -29.5 |
| minority | | | | | | | | |
| interest | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for | | | | | 20.9 | 20.9 | 0.7 | 21.6 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 21.9 | 14.9 | 7.2 | 9.8 | 37.5 | 91.3 | 9.3 | 100.6 |
| equity | | | | | | | | |
| 31.12.2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR | Shar | Shar | Othe | Tran | Retai | Total | Minor | Share |
| | e | e | r | s | ned | | ity | hold |
| | ca | pr | re | la | e | | i | ers' |
| | pita | emiu | serv | tion | arnin | | ntere | equit |
| | l | m | es | dif | gs | | st | y |
| | | ac | | fe | | | | tot |
| | | coun | | r | | | | al |
| | | t | | ence | | | | |
| | | | | s | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 21.9 | 14.9 | 7.2 | 9.8 | 37.5 | 91.3 | 9.3 | 100.6 |
| equity 1.1.2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Derivatives | | | -3.9 | | | -3.9 | | -3.9 |
--------------------------------------------------------------------------------
| Change in | | | | -29. | | -29.2 | -1.7 | -30.8 |
| translation | | | | 2 | | | | |
| differences | | | | | | | | |
--------------------------------------------------------------------------------
| Other changes | | | 0.2 | | | 0.2 | | 0.2 |
--------------------------------------------------------------------------------
| Dividends paid | | | | | -5.5 | -5.5 | -0.1 | -5.6 |
--------------------------------------------------------------------------------
| Increase of | 0.0 | 0.1 | 0.1 | | | 0.2 | | 0.2 |
| share capital | | | | | | | | |
| (convertible | | | | | | | | |
| notes) | | | | | | | | |
--------------------------------------------------------------------------------
| Equity share of | | | | | | 0.0 | | 0.0 |
| convertible | | | | | | | | |
| capital notes | | | | | | | | |
--------------------------------------------------------------------------------
| Change in | | | | | | 0.0 | -0.9 | -0.9 |
| minority | | | | | | | | |
| interest | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for | | | | | 13.5 | 13.5 | 0.4 | 13.9 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 21.9 | 15.0 | 3.7 | -19. | 45.5 | 66.7 | 7.1 | 73.8 |
| equity | | | | 4 | | | | |
| 31.12.2008 | | | | | | | | |
--------------------------------------------------------------------------------
Key ratios
--------------------------------------------------------------------------------
| | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Equity ratio. % | 16.4 | 20.3 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 6.09 | 8.34 |
--------------------------------------------------------------------------------
| Invested capital | 341.5 | 370.9 |
--------------------------------------------------------------------------------
| Return on investment, % | 13.6 | 11.9 |
--------------------------------------------------------------------------------
| Return on investment, excluding one-time items % | 13.7 | 9.8 |
--------------------------------------------------------------------------------
| Return on equity, % | 14.5 | 23.0 |
--------------------------------------------------------------------------------
| Return on equity, excluding one-time items % | 14.9 | 12.1 |
--------------------------------------------------------------------------------
| Net interest bearing debt, MEUR, preferred | 262.5 | 242.8 |
| capital note in debt | | |
--------------------------------------------------------------------------------
| Net gearing, %, preferred capital note in debt | 355.8 | 241.3 |
--------------------------------------------------------------------------------
| Order book, MEUR | 73.6 | 129.0 |
--------------------------------------------------------------------------------
| Investments in non-current assets without finance | 39.3 | 62.9 |
| leases, MEUR | | |
--------------------------------------------------------------------------------
| Investments in non-current assets incl finance | 43.6 | 64.5 |
| leases. MEUR | | |
--------------------------------------------------------------------------------
| Investments in non-current assets, % of net sales | 6.4 | 10.2 |
--------------------------------------------------------------------------------
| Average number of personnel during the period | 4,292 | 4,206 |
--------------------------------------------------------------------------------
| Average number of personnel during the period, | 5,080 | 5,094 |
| incl. leased personnel | | |
--------------------------------------------------------------------------------
| Number of personnel at period end | 3,969 | 4,158 |
--------------------------------------------------------------------------------
| Number of personnel at period end, incl. leased | 4,163 | 5,064 |
| personnel | | |
--------------------------------------------------------------------------------
| Share of export and foreign activities in net | 87.6 | 89.1 |
| sales, % | | |
--------------------------------------------------------------------------------
| Contingent liabilities, MEUR | 186.4 | 177.5 |
--------------------------------------------------------------------------------
Per share data
--------------------------------------------------------------------------------
| | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Number of shares at period end, 1,000 shares | 10,946 | 10,942 |
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | 1.24 | 1.97 |
--------------------------------------------------------------------------------
| Earnings per share, with dilution (EPS), EUR | 1.04 | 1.61 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 6.09 | 8.34 |
--------------------------------------------------------------------------------
| Dividend per share, EUR *) | 0.50 | 0.50 |
--------------------------------------------------------------------------------
| Payout ratio, % | 40.48 | 25.37 |
--------------------------------------------------------------------------------
| Effective dividend yield, % | 10.53 | 5.97 |
--------------------------------------------------------------------------------
| P/E multiple | 3.85 | 4.25 |
--------------------------------------------------------------------------------
| Share price at period end, EUR | 4.75 | 8.37 |
--------------------------------------------------------------------------------
*) For the year 2008 a proposal of the Board of Directors.
Segments
--------------------------------------------------------------------------------
| Primary reporting format | | |
--------------------------------------------------------------------------------
| Foundries, MEUR | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Assets | 139.2 | 143.0 |
--------------------------------------------------------------------------------
| Liabilities | 37.9 | 38.1 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 11.4 | 4.4 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Depreciation | 7.7 | 12.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Machine shops, MEUR | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Assets | 65.7 | 70.4 |
--------------------------------------------------------------------------------
| Liabilities | 23.3 | 34.1 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 9.8 | 4.5 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Depreciation | 4.4 | 4.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turkey, MEUR | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Assets | 180.1 | 204.1 |
--------------------------------------------------------------------------------
| Liabilities | 26.0 | 34.3 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 17.0 | 13.1 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Depreciation | 8.6 | 8.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Secondary reporting format | | |
--------------------------------------------------------------------------------
| Nordic countries, MEUR | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Assets | 188.4 | 254.3 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 16.6 | 7.3 |
| finance leases) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other European countries, MEUR | 31.12.2008 | 31.12.2007 |
--------------------------------------------------------------------------------
| Assets | 262.0 | 243.0 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 25.7 | 16.2 |
| finance leases) | | |
--------------------------------------------------------------------------------
Changes in tangible assets and goodwill
--------------------------------------------------------------------------------
| MEUR | 1-12/2008 | 1-12/2007 |
--------------------------------------------------------------------------------
| Changes in tangible assets | | |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of the period | 568.1 | 545.1 |
--------------------------------------------------------------------------------
| Translation difference | -54.4 | 13.8 |
--------------------------------------------------------------------------------
| Additions | 39.0 | 27.3 |
--------------------------------------------------------------------------------
| Disposal of subsidiary | - | -14.9 |
--------------------------------------------------------------------------------
| Disposals | -1.8 | -3.1 |
--------------------------------------------------------------------------------
| Acquisition cost at the end of the period | 550.9 | 568.1 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Accumulated depreciation at the beginning of | -323.2 | -300.0 |
| the period | | |
--------------------------------------------------------------------------------
| Translation difference | 31.8 | -7.7 |
--------------------------------------------------------------------------------
| Accumulated depreciation on additions | - | -2.0 |
--------------------------------------------------------------------------------
| Accumulated depreciation on disposals | 1.4 | 2.1 |
--------------------------------------------------------------------------------
| Depreciation on disposal of subsidiary | - | 10.5 |
--------------------------------------------------------------------------------
| Depreciation during the period | -23.0 | -26.2 |
--------------------------------------------------------------------------------
| Accumulated depreciation at the end of the | -313.0 | -323.2 |
| period | | |
--------------------------------------------------------------------------------
| Book value at the end of the period | 237.9 | 244.9 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Goodwill | | |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of the period | 43.1 | 32.6 |
--------------------------------------------------------------------------------
| Additions | 0.0 | 7.8 |
--------------------------------------------------------------------------------
| Disposals | -1.4 | - |
--------------------------------------------------------------------------------
| Translation difference | -7.7 | 2.7 |
--------------------------------------------------------------------------------
| Acquisition cost at the end of the period | 34.0 | 43.1 |
--------------------------------------------------------------------------------
| Accumulated depreciation at the beginning of | -2.3 | -2.3 |
| the period | | |
--------------------------------------------------------------------------------
| Accumulated depreciation at the end of the | -2.3 | -2.3 |
| period | | |
--------------------------------------------------------------------------------
| Book value at the end of the period | 31.7 | 40.8 |
--------------------------------------------------------------------------------
Group development
Net sales by market area
--------------------------------------------------------------------------------
| MEUR | 1-12/2007 | 1-12/2008 |
--------------------------------------------------------------------------------
| Nordic countries | 183.5 | 201.1 |
--------------------------------------------------------------------------------
| Other European countries | 421.8 | 445.6 |
--------------------------------------------------------------------------------
| Other countries | 29.4 | 34.7 |
--------------------------------------------------------------------------------
| Total | 634.7 | 681.4 |
--------------------------------------------------------------------------------
Quarterly development by market area
--------------------------------------------------------------------------------
| MEUR | Q1/0 | Q2/0 | Q3/0 | Q4/07 | Q1/08 | Q2/08 | Q3/08 | Q4/08 |
| | 7 | 7 | 7 | | | | | |
--------------------------------------------------------------------------------
| Nordic | 53.7 | 46.5 | 38.5 | 44.9 | 52.1 | 59.6 | 45.9 | 43.4 |
| countries | | | | | | | | |
--------------------------------------------------------------------------------
| Other European | 106. | 106. | 96.7 | 111.8 | 125.2 | 133.0 | 114.7 | 72.7 |
| countries | 7 | 6 | | | | | | |
--------------------------------------------------------------------------------
| Other countries | 7.4 | 7.7 | 8.0 | 6.3 | 7.7 | 8.4 | 9.5 | 9.2 |
--------------------------------------------------------------------------------
| Total | 167. | 160. | 143. | 162.9 | 185.0 | 201.0 | 170.1 | 125.3 |
| | 9 | 7 | 2 | | | | | |
--------------------------------------------------------------------------------
Group development
--------------------------------------------------------------------------------
| MEUR | 1-12/2007 | 1-12/2008 |
--------------------------------------------------------------------------------
| Net sales | 634.7 | 681.4 |
--------------------------------------------------------------------------------
| Operating profit | 42.7 | 47.3 |
--------------------------------------------------------------------------------
| Net financial items | -20.0 | -28.7 |
--------------------------------------------------------------------------------
| Profit/loss after financial items | 22.7 | 18.6 |
--------------------------------------------------------------------------------
Group development by business division
--------------------------------------------------------------------------------
| Net sales, MEUR | 1-12/2007 | 1-12/2008 |
--------------------------------------------------------------------------------
| Foundries | 241.7 | 292.6 |
--------------------------------------------------------------------------------
| Machine shops | 177.8 | 189.9 |
--------------------------------------------------------------------------------
| Turkey | 225.7 | 242.7 |
--------------------------------------------------------------------------------
| Other business | 145.5 | 130.1 |
--------------------------------------------------------------------------------
| Internal and one-time items | -156.0 | -173.8 |
--------------------------------------------------------------------------------
| Componenta total | 634.7 | 681.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit, MEUR | 1-12/2007 | 1-12/2008 |
--------------------------------------------------------------------------------
| Foundries | 16.7 | 23.3 |
--------------------------------------------------------------------------------
| Machine shops | 6.5 | 5.8 |
--------------------------------------------------------------------------------
| Turkey | 10.4 | 19.9 |
--------------------------------------------------------------------------------
| Other business | 1.6 | -1.7 |
--------------------------------------------------------------------------------
| Internal and one-time items | 7.5 | -0.1 |
--------------------------------------------------------------------------------
| Componenta total | 42.7 | 47.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book, MEUR | 12/2007 | 12/2008 |
--------------------------------------------------------------------------------
| Foundries and Machine shops | 72.1 | 48.6 |
--------------------------------------------------------------------------------
| Turkey | 41.9 | 17.9 |
--------------------------------------------------------------------------------
| Other business | 15.0 | 7.1 |
--------------------------------------------------------------------------------
| Componenta total | 129.0 | 73.6 |
--------------------------------------------------------------------------------
Group development by quarter
--------------------------------------------------------------------------------
| MEUR | Q1/0 | Q2/0 | Q3/0 | Q4/07 | Q1/08 | Q2/08 | Q3/08 | Q4/08 |
| | 7 | 7 | 7 | | | | | |
--------------------------------------------------------------------------------
| Net sales | 167. | 160. | 143. | 162.9 | 185.0 | 201.0 | 170.1 | 125.3 |
| | 9 | 7 | 2 | | | | | |
--------------------------------------------------------------------------------
| Operating | 26.3 | 9.5 | 2.4 | 4.5 | 23.1 | 23.2 | 7.2 | -6.2 |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| Net financial | -4.5 | -4.4 | -5.5 | -5.6 | -8.2 | -4.5 | -5.9 | -10.1 |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 21.8 | 5.1 | -3.1 | -1.1 | 14.9 | 18.7 | 1.3 | -16.3 |
| after financial | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
Quarterly development by business division
--------------------------------------------------------------------------------
| Net sales, MEUR | Q1/0 | Q2/0 | Q3/0 | Q4/07 | Q1/08 | Q2/08 | Q3/08 | Q4/08 |
| | 7 | 7 | 7 | | | | | |
--------------------------------------------------------------------------------
| Foundries | 63.1 | 62.0 | 52.4 | 64.2 | 73.1 | 86.1 | 71.1 | 62.3 |
--------------------------------------------------------------------------------
| Machine shops | 46.0 | 45.5 | 39.4 | 46.8 | 50.5 | 54.3 | 44.3 | 40.8 |
--------------------------------------------------------------------------------
| Turkey | 59.8 | 58.6 | 56.3 | 51.0 | 70.7 | 71.1 | 70.6 | 30.4 |
--------------------------------------------------------------------------------
| Other business | 39.9 | 35.2 | 31.4 | 39.1 | 40.3 | 38.7 | 28.3 | 22.8 |
--------------------------------------------------------------------------------
| Internal and | -40. | -40. | -36. | -38.2 | -49.6 | -49.1 | -44.2 | -30.9 |
| one-time items | 9 | 5 | 4 | | | | | |
--------------------------------------------------------------------------------
| Componenta | 167. | 160. | 143. | 162.9 | 185.0 | 201.0 | 170.1 | 125.3 |
| total | 9 | 7 | 2 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | Q1/0 | Q2/0 | Q3/0 | Q4/07 | Q1/08 | Q2/08 | Q3/08 | Q4/08 |
| profit, MEUR | 7 | 7 | 7 | | | | | |
--------------------------------------------------------------------------------
| Foundries | 5.2 | 6.1 | 0.8 | 4.7 | 8.9 | 12.4 | 2.2 | -0.2 |
--------------------------------------------------------------------------------
| Machine shops | 1.8 | 1.7 | 1.7 | 1.3 | 2.0 | 2.7 | 1.4 | -0.2 |
--------------------------------------------------------------------------------
| Turkey | 5.1 | 2.8 | -0.6 | 3.0 | 13.0 | 7.0 | 4.2 | -4.2 |
--------------------------------------------------------------------------------
| Other business | 1.2 | 0.0 | 0.5 | -0.1 | 0.8 | 1.2 | -0.4 | -3.4 |
--------------------------------------------------------------------------------
| Internal and | 13.0 | -1.2 | 0.0 | -4.3 | -1.6 | -0.1 | -0.2 | 1.8 |
| one-time items | | | | | | | | |
--------------------------------------------------------------------------------
| Componenta | 26.3 | 9.5 | 2.4 | 4.5 | 23.1 | 23.2 | 7.2 | -6.2 |
| total | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book at | Q1/0 | Q2/0 | Q3/0 | Q4/07 | Q1/08 | Q2/08 | Q3/08 | Q4/08 |
| period end, | 7 | 7 | 7 | | | | | |
| MEUR | | | | | | | | |
--------------------------------------------------------------------------------
| Foundries and | 56.2 | 58.1 | 68.3 | 72.1 | 73.4 | 74.0 | 73.2 | 48.6 |
| Machine shops | | | | | | | | |
--------------------------------------------------------------------------------
| Turkey | 38.5 | 35.7 | 41.4 | 41.9 | 45.7 | 48.1 | 31.2 | 17.9 |
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| Other business | 9.9 | 13.1 | 15.3 | 15.0 | 15.5 | 16.0 | 18.7 | 7.1 |
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| Componenta | 104. | 106. | 125. | 129.0 | 134.6 | 138.0 | 123.2 | 73.6 |
| total | 7 | 9 | 0 | | | | | |
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Group development excluding one-time items
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| MEUR | 1-12/2007 | 1-12/2008 |
--------------------------------------------------------------------------------
| Net sales | 634.7 | 681.4 |
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| Operating profit | 34.9 | 47.9 |
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| Net financial items | -20.0 | -28.7 |
--------------------------------------------------------------------------------
| Profit/loss after financial items | 14.9 | 19.2 |
--------------------------------------------------------------------------------
Group development by business division excluding one-time items
--------------------------------------------------------------------------------
| Operating profit, MEUR | 1-12/2007 | 1-12/2008 |
--------------------------------------------------------------------------------
| Foundries | 16.7 | 23.3 |
--------------------------------------------------------------------------------
| Machine shops | 6.5 | 5.8 |
--------------------------------------------------------------------------------
| Turkey | 10.4 | 19.9 |
--------------------------------------------------------------------------------
| Other business | 1.6 | -1.7 |
--------------------------------------------------------------------------------
| Internal items | -0.3 | 0.6 |
--------------------------------------------------------------------------------
| Componenta total | 34.9 | 47.9 |
--------------------------------------------------------------------------------
Group development by quarter excluding one-time items
--------------------------------------------------------------------------------
| MEUR | Q1/0 | Q2/0 | Q3/0 | Q4/07 | Q1/08 | Q2/08 | Q3/08 | Q4/08 |
| | 7 | 7 | 7 | | | | | |
--------------------------------------------------------------------------------
| Net sales | 167. | 160. | 143. | 162.9 | 185.0 | 201.0 | 170.1 | 125.3 |
| | 9 | 7 | 2 | | | | | |
--------------------------------------------------------------------------------
| Operating | 13.4 | 9.5 | 3.3 | 8.8 | 23.1 | 23.1 | 7.7 | -6.0 |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| Net financial | -4.5 | -4.4 | -5.5 | -5.6 | -8.2 | -4.5 | -5.9 | -10.1 |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 8.9 | 5.1 | -2.1 | 3.1 | 14.9 | 18.6 | 1.7 | -16.1 |
| after financial | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
Quarterly development by business division excluding one-time items
--------------------------------------------------------------------------------
| Operating | Q1/0 | Q2/0 | Q3/0 | Q4/07 | Q1/08 | Q2/08 | Q3/08 | Q4/08 |
| profit. MEUR | 7 | 7 | 7 | | | | | |
--------------------------------------------------------------------------------
| Foundries | 5.2 | 6.1 | 0.8 | 4.7 | 8.9 | 12.4 | 2.2 | -0.2 |
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| Machine shops | 1.8 | 1.7 | 1.7 | 1.3 | 2.0 | 2.7 | 1.4 | -0.2 |
--------------------------------------------------------------------------------
| Turkey | 5.1 | 2.8 | -0.6 | 3.0 | 13.0 | 7.0 | 4.2 | -4.2 |
--------------------------------------------------------------------------------
| Other business | 1.2 | 0.0 | 0.5 | -0.1 | 0.8 | 1.2 | -0.4 | -3.4 |
--------------------------------------------------------------------------------
| Internal items | 0.1 | -1.2 | 0.9 | -0.1 | -1.6 | -0.2 | 0.3 | 2.0 |
--------------------------------------------------------------------------------
| Componenta | 13.4 | 9.5 | 3.3 | 8.8 | 23.1 | 23.1 | 7.7 | -6.0 |
| total | | | | | | | | |
--------------------------------------------------------------------------------
Largest registered shareholders on 31 December 2008
--------------------------------------------------------------------------------
| Shareholder | | Shares | Share of |
| | | | total voting |
| | | | rights, % |
--------------------------------------------------------------------------------
| 1 Lehtonen Heikki | | 4,308,040 | 39.36 |
--------------------------------------------------------------------------------
| Cabana Trade S.A. | 3,801,988 | | |
--------------------------------------------------------------------------------
| Oy Högfors-Trading Ab | 506,052 | | |
--------------------------------------------------------------------------------
| 2 Etra-Invest Oy Ab | | 3,237,464 | 29.58 |
--------------------------------------------------------------------------------
| 3 Laakkonen Mikko | | 200,000 | 1.83 |
--------------------------------------------------------------------------------
| 4 Inkinen Simo-Pekka | | 196,453 | 1.79 |
--------------------------------------------------------------------------------
| Inkinen Simo-Pekka | 189,453 | | |
--------------------------------------------------------------------------------
| Väli-Gunnarla Avoin Yhtiö | 7,000 | | |
--------------------------------------------------------------------------------
| 5 Bergholm Heikki | | 180,000 | 1.64 |
--------------------------------------------------------------------------------
| 6 Lehtonen Anna-Maria | | 178,823 | 1.63 |
--------------------------------------------------------------------------------
| 7 Mutual Fund Evli Wealth Manager | | 100,000 | 0.91 |
| (non-UCITS) | | | |
--------------------------------------------------------------------------------
| 8 Lehtonen Yrjö M. | | 79,040 | 0.72 |
--------------------------------------------------------------------------------
| 9 Seppo Saario Oy | | 73,000 | 0.67 |
--------------------------------------------------------------------------------
| 10 Ilmarinen Mutual Pension | | 57,600 | 0.53 |
| Insurance Company | | | |
--------------------------------------------------------------------------------
| 11 Mutual Fund eQ Finland (UCITS) | | 44,506 | 0.41 |
--------------------------------------------------------------------------------
| 12 Lehtonen Jyri | | 43,000 | 0.39 |
--------------------------------------------------------------------------------
| 13 Lehtonen Leena | | 42,340 | 0.39 |
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| 14 Nelimarkka Esa | | 35,000 | 0.32 |
--------------------------------------------------------------------------------
| 15 William and Ester Otsakorpi | | 32,000 | 0.29 |
| Foundation | | | |
--------------------------------------------------------------------------------
| Nominee-registered shares | | 357,060 | 3.26 |
--------------------------------------------------------------------------------
| Other shareholders | | 1,781,372 | 16.27 |
--------------------------------------------------------------------------------
| Total | | 10,945,698 | 100.00 |
--------------------------------------------------------------------------------
The members of the Board of Directors own 41.2% 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 decrease to 33.9%.
Helsinki, 28 January 2009
COMPONENTA CORPORATION
Board of Directors
Heikki Lehtonen
President and CEO
FURTHER INFORMATION
Heikki Lehtonen Mika Hassinen
President and CEO CFO
tel. +358 10 403 00 tel. +358 10 403 00
Componenta is a metal sector company with international operations and
production plants located in Finland, Turkey, the Netherlands and Sweden. The
net sales of Componenta were EUR 681.4 million in 2008. The Group employed 4,163
people at the end of 2008. Componenta's shares are quoted on the NASDAQ OMX
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
