Componenta Corporation Stock Exchange Release 26.1.2010 at 9.00
Componenta Group had net sales in 2009 of MEUR 299.6 (MEUR 681.4).
Operating profit excluding one-time items was MEUR -15.4 (MEUR 47.9).
Result after financial items, excluding one-time items, was MEUR -37.2 (MEUR
19.2).
Earnings per share excluding one-time items were EUR -2.30 (EUR 1.28).
Net cash flow from operations was MEUR 14.2 (MEUR 29.4).
In the fourth quarter the net sales of the Group totalled MEUR 76.1 (MEUR
125.3), operating profit excluding one-time items was MEUR -1.7 (MEUR -6.0),
result after financial items excluding one-time items was MEUR -6.5 (MEUR -16.1)
and net cash flow from operations MEUR 8.1 (MEUR 5.5).
Unused committed credit facilities and cash funds totalled MEUR 46.1 at the end
of the review period.
The Board of Directors' proposal to the Annual General Meeting is that no
dividend will be paid for 2009.
Events in 2009 in brief
Componenta Corporation issued shares and a subordinated capital loan for a total
of EUR 41.5 million in September 2009. The funds obtained in the share issue and
subordinated capital loan issue, were used to strengthen the company's balance
sheet and financial position. The decision to issue shares and a new
subordinated capital loan was based on the authorization given by the
extraordinary general meeting of shareholders on 8 September 2009.
Net sales and order book
The Group's net sales in 2009 totalled EUR 299.6 (EUR 681.4) million. Net sales
declined 56% and the value of production 59%. The order book at the end of
December declined 20% from the corresponding period in the previous year to EUR
58.8 (73.6) million.
Foundry division net sales in 2009 declined 58% from the previous year to EUR
124.9 (294.0) million. Net sales of the Machine shops division in 2009 fell 62%
to EUR 92.3 (243.3) million. Net sales of the Turkey division in 2009 fell 53%
to EUR 114.0 (242.7) million.
The Machine shops and Foundries divisions had a combined order book at the end
of 2009 of EUR 33.4 (53.5) 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 2009 was EUR 24.2 (17.9)
million.
Componenta's net sales in 2009 by customer sector were as follows: off-road 30%
(35%), heavy trucks 20% (28%), automotive 21% (14%), diesel & wind 10% (7%),
machine building 17% (15%) and other sales 1% (1%).
Result
Componenta's 2009 financial statements have been prepared in accordance with
international financial reporting standards (IFRS). Financial statements have
been prepared in accordance with IAS 34 accounting principles. The new standard
IFRS 8 and the revised standards IAS 1 and IAS 23 were applied as from 1 January
2009. In other respects Componenta has applied the same accounting principles in
the 2009 financial statements as in the 2008 financial statements, except for
planned depreciations of production machinery and equipment. On 1 January 2009
the Group started to use the units-of-production depreciation method, in which
the amount of depreciation is based on the actual output of production machinery
and equipment. Planned depreciation on a straight line was used previously for
production machinery and equipment. The units-of-production method gives a more
precise picture of the actual economic wear on production machinery and
equipment than the straight line method, especially when capacity usage changes
quickly. Introducing the new method of depreciation decreased depreciations in
2009 by EUR 12.4 million. Introducing the new method of depreciation does not
affect the 2008 figures for comparison.
Applying the IFRS 8 standard has not affected the Group's reported result or its
financial position. Group management monitors the performance of the business
segments, and the Group had already earlier organized its management structure
in line with the segment structure used in 2009.
The consolidated operating profit for the financial year, excluding one-time
items, was EUR -15.4 (47.9) million. The operating result declined from the
previous year due to the sharp fall in volumes, which was mainly due to lack of
activity on the market and because customers were reducing their own
inventories. The adaptation measures carried out in 2009 coupled with the lower
production volumes helped to reduce the Group's operating costs in 2009 by 54%
in proportion to the value of production. Other operating income includes
exchange rate differences on sales and purchases.
Quarterly analysis of changes in income statement
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| MEUR | Q1 | Q1 | Dif | Q2 | Q2 | Dif | Q3/ | Q3/ | Diff | Q4/ | Q4/ | Diff |
| | /0 | /0 | f % | /0 | /0 | f % | 09 | 08 | % | 09 | 08 | % |
| | 9 | 8 | | 9 | 8 | | | | | | | |
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| Net | 88 | 18 | -52 | 70 | 20 | -65 | 64. | 170 | -62% | 76. | 125 | -39% |
| sales | .1 | 5. | % | .6 | 1. | % | 8 | .1 | | 1 | .3 | |
| | | 0 | | | 0 | | | | | | | |
--------------------------------------------------------------------------------
| Value | 75 | 18 | -59 | 66 | 20 | -68 | 65. | 170 | -62% | 71. | 118 | -39% |
| of | .3 | 5. | % | .1 | 7. | % | 3 | .7 | | 8 | .1 | |
| produc | | 9 | | | 3 | | | | | | | |
| tion | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Materi | -2 | -6 | -64 | -2 | -7 | -73 | -23 | -68 | -66% | -24 | -45 | -45% |
| als | 4. | 7. | % | 0. | 6. | % | .3 | .0 | | .9 | .2 | |
| | 1 | 4 | | 6 | 6 | | | | | | | |
--------------------------------------------------------------------------------
| Direct | -2 | -4 | -47 | -2 | -4 | -54 | | -40 | -54% | -19 | -38 | -49% |
| wages | 5. | 6. | % | 1. | 5. | % | -18 | .9 | | .5 | .4 | |
| and | 1 | 9 | | 3 | 9 | | .7 | | | | | |
| extern | | | | | | | | | | | | |
| al | | | | | | | | | | | | |
| servic | | | | | | | | | | | | |
| es | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | -2 | -4 | -31 | -2 | -5 | -54 | | -48 | -52% | -25 | -35 | -26% |
| variab | 9. | 2. | % | 5. | 5. | % | -23 | .5 | | .9 | .0 | |
| le and | 2 | 5 | | 6 | 7 | | .5 | | | | | |
| fixed | | | | | | | | | | | | |
| costs | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | -7 | -1 | -50 | -6 | -1 | -62 | -65 | -15 | -58% | -70 | -11 | -41% |
| costs | 8. | 56 | % | 7. | 78 | % | .5 | 7.4 | | .3 | 8.6 | |
| | 3 | .8 | | 5 | .2 | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA | -3 | 29 | -11 | -1 | 29 | -10 | -0. | 13. | -102 | 1.4 | -0. | -382 |
| | .0 | .1 | 0% | .5 | .0 | 5% | 2 | 3 | % | | 5 | % |
--------------------------------------------------------------------------------
The Group's net financial costs for the period totalled EUR -21.8 (-28.7)
million. Net financial costs declined from the previous year mainly due to
exchange rate differences.
The Group's result after financial items excluding one-time items was EUR -37.2
(19.2) million. The result does not include any significant one-time items.
Income taxes calculated from the result for the review period totalled EUR 8.5
(-4.6) million. Deferred tax receivables have been recorded in the balance
sheet, and it is estimated that these can be utilized in the Netherlands, Sweden
and Finland during the next 2-6 years.
The net result for the period excluding one-time items was EUR -28.7 (14.4)
million.
The earnings per share excluding one-time items were EUR -2.30 (1.28).
Capital invested in the company at the end of the year was EUR 316.9 (338.8)
million. The return on investment excluding one-time items was -4.2% (13.8%) and
the return on equity excluding one-time items was -45.1% (15.3%).
The fourth quarter operating profit excluding one-time items was EUR -1.7 (-6.0)
million and the result after financial items, excluding one-time items, was EUR
-6.5 (-16.1) million.
Componenta's key financial indicators, excluding one-time items, during the past
three years were as follows:
--------------------------------------------------------------------------------
| | 2007 | 2008 | 2009 |
--------------------------------------------------------------------------------
| Net sales, MEUR | 634.7 | 681.4 | 299.6 |
--------------------------------------------------------------------------------
| Operating profit, | 34.9 | 47.9 | -15.4 |
| MEUR | | | |
--------------------------------------------------------------------------------
| Operating profit, | 5.5 | 7.0 | -5.2 |
| % | | | |
--------------------------------------------------------------------------------
| Return on equity, | 12.1 | 15.3 | -45.1 |
| % | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 20.3 | 15.9 | 17.5 |
--------------------------------------------------------------------------------
Financing
At the end of the year Componenta Corporation had outstanding capital notes and
convertible notes with a combined value of EUR 35.1 million, as defined in IFRS.
In March the Group repaid the final instalment of EUR 9.5 million of the
principal of the preferred capital notes issued in 2002, in accordance with the
terms of the notes. In September Componenta issued new 2009 subordinated capital
loan with a maturity period of five years, and this was subscribed for a total
amount of EUR 12.3 million. Holders of the company's 2005 and 2006 convertible
capital notes could use the principal of these convertible capital notes
receivable from the company to pay the subscription price for the new shares and
capital notes for the 2009 capital loan in accordance with the terms of the
share issue and capital notes. At the end of September 2009, the outstanding
unconverted capital notes entitled holders to subscribe 1,310,200 shares.
At the end of the review period, Componenta had EUR 38.5 million in unused,
committed credit facilities, as well as cash funds of EUR 7.6 million. In
addition the Group has a EUR 150 million commercial paper programme, for which
the company had no debt at the end of the review period. The Group's
interest-bearing net debt, excluding the outstanding capital notes of EUR 35.1
million, stood at EUR 206.5 (211.2) million. The costs of the debt financing
increased during the review period. The company's net debt as a proportion of
shareholders' equity, including the capital notes in shareholders' equity, was
200.8% (172.6%).
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 period the company had sold
trade receivables totalling EUR 32.7 (49.0) million.
Componenta's net cash flow from operations in 2009 was EUR 14.2 (29.4) million,
and of this the change in net working capital was EUR 37.5 (-4.2) million. The
cash flow from investments was EUR -12.6 (-40.6) million, which includes the
cash flow from the Group's investments in production 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 17.5% (15.9%). The
Group's shareholders' equity on 31 December 2009, including the capital notes in
shareholders' equity, as a proportion of the balance sheet total was 26.5%
(27.3%). The Group's equity ratio has been affected by the cumulative change in
the translation difference of some EUR -35 million since the beginning of 2008
in consequence of the weakening of the Turkish lira against the euro.
Loans, commitments and contingent liabilities given by the company to Group
companies classified as related parties on 31 December 2009 totalled EUR 161.7
(150.2) million. Loans, commitments and contingent liabilities given by the
company to private persons classified as related parties on 31 December 2009
totalled EUR 0.3 (0.2) million.
Performance of the business divisions
Componenta's reporting structure changed when Componenta Wirsbo was transferred
from the Other business to the Machine shops division on 31 March 2009 and
Tegelen Pattern Shop, a unit that makes casting patterns in the Netherlands,
also from the Other business to the Foundries division as from 1 January 2009.
The 2009 figures are reported in accordance with the new structure and all
figures for comparison for the divisions for 2008 have been adjusted to bring
them in line with this reporting structure.
Foundries
The Foundries division comprises the iron foundries in Karkkila, Pori,
Pietarsaari and Iisalmi in Finland and in Heerlen and Weert in the Netherlands,
as well as the Tegelen Pattern Shop in the Netherlands.
The division's net sales in 2009 declined 57.5% to EUR 124.9 (294.0) million.
The operating profit was EUR -11.9 million, corresponding to -9.5% of net sales
(EUR 23.2 million, 8.0%). Extremely low capacity usage was the main factor
having a negative impact on the division's operating profit.
The division had fourth quarter net sales of EUR 25.9 (62.6) million and an
operating profit of EUR -2.3 million, corresponding to -8.9% of net sales (EUR
-0.3 million, -0.4%).
Machine shops
The Machine shops division comprises the Främmestad machine shop and the Wirsbo
forge 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 net sales of the Machine shops division in 2009 fell 62.1% to EUR 92.3
(243.3) million. The operating profit was EUR -11.3 million, corresponding to
-12.3% of net sales (EUR 4.3 million, 1.8%). The division's operating profit
weakened mainly due to low volumes. A further factor was that a large part of
the division's personnel is based in Sweden, where adjusting the number of
personnel was significantly slower than in the other countries where Componenta
operates.
The division had fourth quarter net sales of EUR 23.4 (50.5) million and an
operating profit of EUR -2.8 million, corresponding to -12.2% of net sales (EUR
-3.2 million, -6.3%).
Turkey
The division comprises the iron foundry in Orhangazi and the aluminium foundry
and production unit for aluminium wheels in Manisa.
The Turkey division's net sales in 2009 fell 53% to EUR 114.0 (242.7) million.
The operating profit was EUR 2.4 million, corresponding to 2.1% of net sales
(EUR 19.9 million, 8.2%). The division's operating profit in 2009 was heavily
affected by the sharp decline in volumes. Adjusting the costs succeeded well in
Turkey, and despite the extremely low capacity utilization rate the division's
operating result was positive since the second quarter.
The Turkey division had net sales in the fourth quarter of EUR 35.2 (30.4)
million and an operating profit of EUR 1.1 million, corresponding to 3.1% of net
sales (EUR -4.2 million, -13.8%).
Other business
Other business comprises the sales and logistics company Componenta UK Ltd. in
Great Britain, real estate and service companies in Finland and the Group's
administrative functions. The operating profit, excluding one-time items, of the
other business in 2009 was EUR 4.7 (-0.3) million.
Other business had fourth quarter operating profit excluding one-time items of
EUR 1.4 (-0.5) million.
Shares and share capital
The shares of Componenta Corporation are quoted on the NASDAQ OMX Helsinki. At
the end of December 2009 the company had a total of 17,457,798 shares. At the
end of 2009 the company's share capital stood at EUR 21.9 (21.9) million. At the
end of 2009 the price of Componenta shares stood at EUR 4.12 (EUR 4.75). The
average share price in 2009 was EUR 4.45, the lowest quoted share price was EUR
3.60 and the highest 5.73. At the end of 2009 the company's market
capitalization was EUR 72.0 (52.0) million and the volume of shares traded
during the period was equivalent to 20.1% (32.0%) of the share stock.
The Annual General Meeting of Shareholders on 23 February 2009 decided to pay a
dividend of EUR 0.30 (0.50) per share for 2008.
On 22 September 2009 Componenta received notification from Varma Mutual Pension
Insurance Company that the share of the voting rights and share capital carried
by the shares in Componenta Corporation under its control had risen above the 5%
limit in the share issue of Componenta Corporation in which Varma Mutual Pension
Insurance Company subscribed 978,968 new shares on 21 September 2009.
On 22 September 2009 Componenta received notification from Cabana Trade S.A. and
Oy Högfors-Trading Ab, corporations where Heikki Lehtonen exercises control,
that the holding of these corporations had changed in Componenta Corporation
partly due to the share issue of Componenta Corporation on 21 September 2009 and
on the other hand due to share transactions between the two corporations.
According to the notification Cabana Trade S.A.'s share of the total number of
shares and voting rights in Componenta Corporation decreased below 30% and Oy
Högfors-Trading Ab's share of the total number of shares and voting rights in
Componenta Corporation exceeded 10%.
On 23 September 2009 Componenta received notification from Oy Etra Invest Ab
that the share of the voting rights and share capital carried by the shares in
Componenta Corporation under its control had decreased below the 25% limit in
the share issue of Componenta Corporation, in which Oy Etra Invest Ab subscribed
1,000,000 new shares on 21 September 2009.
Purchasing and disposing of company shares
Under the authorization given the Board of Directors by the Annual General
Meeting on 26 February 2007 the Board of Directors resolved on 16 April 2009 to
make a free direct issue of shares in order to pay the bonus for the 2007-2008
earnings periods in Componenta Group's 2007-2009 share-based incentive scheme.
In the share issue, 12,100 Componenta Corporation shares were issued and
conveyed without consideration to the key personnel participating in the
share-based incentive scheme, in accordance with the terms of the scheme.
Componenta's extraordinary general meeting of shareholders held on 8 September
2009 decided in accordance with the proposal of the Board of Directors to
authorize the Board to decide to issue shares and grant special rights with an
entitlement to shares as defined in chapter 10, section 1 of the Finnish Limited
Liabilities Companies Act in one or more issues, either against payment or free
of charge. The number of shares to be issued, including the shares to be
obtained under the special rights, may be a maximum of 8,000,000 shares. The
Board may decide to issue either new shares or any company shares held by the
company. A total of 6,500,000 shares from the authorization were used in the
2009 share issue, so 1,500,000 shares remain under the authorization. The
authorization cancels the authorization given the Board by the AGM on 26
February 2007 to decide to issue shares and grant special rights with
entitlement to shares.
Under the authorization of the Annual General Meeting held on 23 February 2009,
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 NASDAQ OMX 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 authorization is valid for a period of 18 months from
the date of the decision of the AGM. The Board has not exercised this
authorization to purchase company shares.
Share-based incentive scheme
The share-based incentive scheme was based on the decision taken on 3 April 2007
by the Board of Directors of Componenta Corporation. The scheme comprised three
one-year earnings periods, which were 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 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.
Potential earnings from the incentive scheme was based on the positive
development of the Group's cash flow in 2009. At the end of the review period
the target group contained 45 people. If the targets set for the scheme had been
met in full, the scheme would have paid a bonus of a maximum of 132,000
Componenta Corporation shares. For the 2009 earnings period, the Board of
Directors resolved not to allocate any shares in the scheme.
Investments
Investments in production facilities during the review period totalled EUR 15.5
(44.6) million, and finance lease investments accounted for EUR 4.4 (4.3)
million of these. The net cash flow from investments was EUR -12.6 (-40.6)
million.
Board of Directors and Management
The Annual General Meeting elects each year Componenta's Board of Directors,
which according to the Company's Articles of Association has 3-7 members. The
term of office of the Board continues until the close of the following Annual
General Meeting. The Board elects from its members Chairman and Vice Chairman.
The tasks and duties of the Board of Directors are laid down primarily by 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 for
the Board. According to the Rules of Procedure, the Board's tasks include
matters that have 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 in December 2009 under the
leadership of the Chairman.
Componenta's Annual General Meeting of Shareholders on 23 February 2009 elected
the following to the Board of Directors: Heikki Bergholm, Yrjö Julin, Heikki
Lehtonen, Juhani Mäkinen, Marjo Miettinen 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 of Directors met 16 times during the year, with an average attendance
rate of 98%.
The Board of Directors appoints the President and CEO and decides upon the
President and CEO's remuneration and other benefits. The functions and duties of
the President and CEO are defined in the Companies Act. In addition to these,
the duties of the Componenta Corporation's President and CEO include
managing and developing Componenta's business in accordance with the
instructions given by the Board of Directors,
presenting matters for consideration at meetings of the Board of Directors and
implementing the decisions of the Board of Directors.
Heikki Lehtonen is President and CEO of Componenta Corporation.
At the end of the review period the corporate executive team of Componenta
Corporation comprised the following: Heikki Lehtonen, President and CEO; Yaylalý
Günay, Senior Vice President, Investments; Hakan Göral, Senior Vice President,
Turkey division; CFO Mika Hassinen; Olli Karhunen, Senior Vice President,
Foundries division; 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. Yaylalý Günay retired at the
beginning of 2010.
Personnel
During the review period the Group had on average 3,798 (5,207) employees,
including 114 (812) leased employees. The number of Group personnel at the end
of 2009 was 3,698 (4,488), which includes 84 (194) leased employees. At the end
of the year 47% (46%) of the personnel was in Turkey, 28% (27%) in Finland, 16%
(17%) in the Netherlands and 9% (10%) in Sweden. The combined sum for personnel
expenses and external services in the Group in 2009 declined EUR 87.5 million,
or 51%, from the corresponding period in the previous year.
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, reduce environmental noise from its
operations, 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 2009 the Group used 422 GWh (795 GWh) of energy. Most of the
energy used, 65% (68%) was electricity. The foundries consume more than 90% of
all the energy, especially for the melting processes at the foundries utilise a
lot of energy. In 2009 energy consumption at Componenta Group foundries in
proportion to output increased 33% from the previous year due to low utility
rate of all foundries.
Componenta will publish its 2009 sustainability report during spring 2010.
Research and development
At the end of 2009, 90 (86) people worked in research and development at
Componenta, which corresponds to 2% (2%) of the company's total personnel.
Componenta's research and development expenses in 2009 totalled EUR 1.9 (2.6)
million, corresponding to 0.6% (0.4%) of the Group's total net sales.
Risks
Business environment risks
Competition and price risk
The industry in which the Group operates is capital intensive, sensitive to
changes in the economic situation, and fragmented. If the economic recession is
prolonged, overcapacity may increase competition and market pressure on prices.
Componenta aims to price its products competitively in line with prevailing
market conditions. Managing all stages of the cast component supply chain
successfully reduce price fluctuations. In addition, Componenta strives to
reduce the risks arising from pricing and competition through internal transfers
of production and products to lower cost production locations such as Turkey.
Commodity risks
Fluctuations in the prices of Componenta Group's main raw material, recycled
metal, affect the profit margins on the Group's products. Increases in the price
of the raw materials are passed on to the products supplied to customers after a
certain delay, thus a rise in the price of recycled metal reduces the profit
margin temporarily. When the prices of recycled metal go down, the Group's
profit margins correspondingly improve for a while.
Cost risks relating to raw materials are mainly managed with price agreements.
Componenta has price agreements with its customers and under these agreements
the prices of products are adjusted in line with the changes in the raw material
prices.
The electricity consumption of the Group's foundries and machine shops creates a
spot price risk for the purchased electricity. The Group purchases electricity
price forwards to hedge financial results against the impact of changes in
electricity prices. 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. The difference between
forecast and actual electricity consumption can affect the financial performance
of the company. Trading in electricity price forwards has been outsourced. The
Group aims to pass on the changes in the price of electricity to customers with
a separate electricity surcharge.
Environmental risks
Componenta complies with environmental legislation in all its operations and
with the ISO 14001 standard in developing its products and operations. Changes
in environmental legislation and regulations may give rise to additional costs
for Componenta in connection with observing the terms of a permit or for
cleaning up the environment, and these costs may affect the Group's financial
results.
All of Componenta's foundry units have effective ISO 14001 environmental
management systems, for developing and improving environmental matters. The
Group strives to prevent risk situations through preventive maintenance,
guidelines and structural measures.
Operational risks
Customer risks
Componenta has major customers that are of great importance for the Group. It is
rare to lose a customer, since the costs in changing a supplier are high, mainly
because of the costs and quality risks related to ramping up products and the
making of tools and patterns.
Supplier risks
A vital factor for Componenta's business operations is the availability of
certain raw materials, such as recycled metal, pig iron and energy, at
competitive prices. Critical raw materials are purchased from at least two
suppliers to reduce the supplier risk.
Productivity, production and process risks
Componenta strives to identify, measure and monitor different risks with well
planned and systematically implemented procedures. Componenta cooperates with
insurance companies in dealing with matters relating to production stoppages and
has taken appropriate insurance against the risk of stoppages.
Labour market disruptions
Labour market disruptions are a risk factor, as they can disrupt production and
thus affect the punctuality of deliveries and the Group's business operations.
Contract and product liability risks
The Group is liable for any damage or injury caused by products it has
manufactured, supplied and represented. The Group has taken appropriate
insurances against these risks, and these insurances should cover the risks
related to the aforementioned damage.
Componenta also has contracts under which the company is also liable for
indirect damage or injury caused by its products. These contracts mainly contain
a limit on liability, and within these limits the company has strived to cover
indirect damage or injury with appropriate insurance. The company aims to manage
product liability risks with sales contract terms.
Personnel risks
Successful business operations and maintaining Componenta's competitive position
are dependent on skilled personnel remaining in the service of the company.
Componenta's goal is to create a work environment in which employees can develop
and to which they can commit, and to offer competitive benefits to personnel.
Data security risks
To support Componenta's business processes, information must be reliable and
easily available. In addition, information systems must be sufficiently
protected and secured to prevent information leaks. Standardizing business
applications, IT infrastructures and IT processes forms an important foundation
for managing IT risks. Carrying out these measures successfully reduces risks
related to internal audit and financial reporting.
Financial risks
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. Financial risks are managed by the corporate treasury
function.
Financing and liquidity risk
The Group strives to ensure the availability of its financing by spreading the
maturity dates and using a variety of sources and instruments for its loan
portfolio. According to the treasury policy, the Group shall have sufficient
liquidity to cover its commitments in the near future. The Group aims to
safeguard its liquidity through cash funds and through committed, unused credit
limits.
The terms, covenants, security and collateral for loans may restrict
Componenta's business opportunities. The loans and committed credit limits used
by the company contain solvency and cash flow covenants. The company has not
broken the terms of the covenants for loans and committed credit limits, and it
is unlikely that the company will break them.
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 as a consequence of a public tender 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 as a
consequence of a public tender offer.
Currency risk
Translating the shareholders' equity of Componenta Turkey into euros creates a
significant translation risk for the Group in Turkish lira. Changes in the value
of the US dollar, the GB pound sterling 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.
According to Componenta's treasury policy, approved by the Board of Directors,
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 trade
receivables and trade payables in the balance sheet where changes in these
affect the operating profit. Foreign currency denominated cash in hand and 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 trade 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 subsidiaries 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%.
Interest rate risk
The Group is exposed to interest rate risk, that is to the repricing and price
risks caused by movements in interest rates. The interest rate risk to which
fair values and the cash flow are exposed arises mainly from the Group's loan
portfolio, sold trade receivables, and finance leases.
To manage the interest rate risk, the company's loans and investments have been
spread between fixed and floating interest rate instruments. The interest rate
risk is also spread among several interest rate renewal periods, so that changes
in interest rates affect the company's financial position gradually. Interest
rate derivatives are also used to manage the interest rate risk.
Credit risk
Trade receivables from customers and receivables from financial institutions
based on deposits and derivatives expose the Group to credit risk. The Group has
no significant concentration of risk for receivables. The Group reduces its
customer credit risk exposure by selling some of its trade receivables to
financing companies without recourse, reducing payment periods for customers,
and monitoring more effectively customer receivables.
Each Group company is primarily liable for the credit risks attached to its own
trade receivables. The Group's treasury gives guidelines and monitors the
management of credit risk. The Group's customer base is very widespread, and
more than 95 % of the Group's sales are in Europe, spread in several countries.
Most customers are long standing customers and financially sound companies. The
Group recognized no major credit losses in 2009.
Events after end of period
The Group announced on 14 January 2010 to renew its organization and to
strengthen common way of operating starting from 1 February 2010. Accordingly
Componenta business operations will be organized into four operational areas,
which are Turkey, Finland, Holland and Sweden. Group-wide operational
development functions and processes such as supply chain management, development
of foundry and machine shops technology, purchasing and internal sourcing,
support the operational areas and operations management and add value to the
customers.
Yrjö Julin was appointed Chief Operating Officer and the member of Componenta
Executive Team, being responsible for operations management at Componenta. He
reports to Heikki Lehtonen, President and CEO of Componenta, acting also as a
deputy for President and CEO.
Hakan Göral was appointed Senior Vice President, Operations, Turkey; Olli
Karhunen Senior Vice President, Operations, Finland; Patrick Steensels Senior
Vice President, Operations, the Netherlands; and Michael Sjöberg Senior Vice
President, Operations, Sweden. They report to Yrjö Julin.
Michael Sjöberg is also responsible for Supply chain management in Componenta.
Tapio Rantala was appointed Vice President, Foundry technology development. He
acts also as Business Unit Director, Pietarsaari foundry. Juha Alhonoja was
appointed Vice President, Machining technology development. He continues also in
his position of Business Unit Director, Främmestad machine shop. Henk Klever was
appointed as Vice President, Purchasing. Lütfi Erten was appointed Vice
President, Internal sourcing. All Vice Presidents in Operations development
report to Yrjö Julin.
As from February 2010 the Corporate Executive Team (CET) of Componenta
Corporation comprises the following members: President and CEO Heikki Lehtonen,
COO Yrjö Julin, Hakan Göral, SVP, Operations Turkey, CFO Mika Hassinen and Anu
Mankki, SVP, HR. Communication Director Pirjo Aarniovuori acts as a Secretary of
CET. CET supports the President and CEO in executing the corporate strategy, by
following the business development, initiating the actions and defining
operative principles and methods.
The Extended Corporate Executive Team, focusing on development and deployment of
corporate strategy, consists of above mentioned CET members and Communications
Director, Senior Vice Presidents of Operations, Vice Presidents of Sales and
Product Development and Engineering Director.
Antti Lehto was appointed Vice President, Sales and Product Development,
Off-road and Central Europe. Lauri Eklin was appointed Vice President, Sales and
Product Development, Power and Nordic. Jari Leino was appointed Vice President,
Sales and Product Development, Heavy trucks. Hakan Göral, Senior Vice President,
Operations Turkey is also in charge of sales and product development in Turkey.
Hein Strijbos was appointed Engineering Director to lead the development of
engineering way to operate and capabilities development through which the One
Componenta interface to customers, management and coordination of engineering
projects and development of engineering resources are ensured. They all report
to President and CEO Heikki Lehtonen.
Dividend proposal
The distributable equity of the parent company on 31 December 2009 amounted to
EUR 87.2 million, of which the profit for the financial year was EUR 12.5
million. The Board of Directors proposes to the Annual General Meeting of
Shareholders that no dividend will be paid for 2009, in accordance with the
Group's current dividend policy.
Annual General Meeting
The Annual General Meeting of Componenta Corporation will be held on 10 March
2010 at 11.00 am Finnish time at the company headquarters in Käpylä, in the
auditorium of the Sato building at Panuntie 4, 00610 Helsinki.
The Board of Directors proposes to the AGM that the Board to be authorized to
decide on purchasing the company's own shares for a maximum of 1,700,000 shares,
in one or several occasions, using the company's unrestricted shareholders'
equity. The shares shall be purchased at the market price for Componenta in
public trading on the NASDAQ OMX Helsinki, for which reason they will be
purchased other than in proportion to the holdings of shareholders.
The authorization is proposed to be valid for a period of 18 months from the
date of the decision of the AGM. The Board of Directors proposes that the
authorization cancels the authorization given the Board by the AGM on 23
February 2009 to decide on purchasing of the company's own shares.
The Board of Directors proposes to the Annual General Meeting that it would
remove the current section 7 in the Articles of Association, changing the
numbering of sections accordingly, as well as amend the current sections 4, 6,
8, 9 and 11.
Publication of Annual Report
Componenta Corporation will publish its 2009 Annual Report in week 7, 2010.
Prospects
Componenta's prospects for 2010 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 most of the Group's customer industries at the beginning
of 2010 remains weak, due to low demand for investment goods. Lowering the
stocks by customers has stopped which will improve their own production volumes
in 2010.
The low volume of construction in the USA and Europe reduced demand considerably
in the off-road industry in 2009. Increase in raw material prices in 2009
creates better prospects for demand in mining industry in 2010. Due to the
economic recession, many countries initiated infrastructure projects in 2009. It
is estimated that these projects will increase the demand for off-road vehicles
in 2010.
Componenta's deliveries to heavy trucks industry is estimated to clearly
increase in 2010 compared with the previous year. Increase in deliveries is
mainly due to normalisation of stock levels. Registrations of heavy trucks in
Europe are still at very low level.
The number of new passenger cars registered in Europe decreased only 1.6% in
2009 compared to the previous year. The number of produced vehicles stayed at
the same level as in the previous year due to various subsidy measures taken in
many countries, aimed at renewing the fleet of cars. In 2010, the registrations
of new passenger cars are expected to be lower than in 2009.
Demand in the wind power sector weakened considerably during 2009. Improved
situation in the financial markets is expected to improve the demand in the wind
power sector earliest in the second half of 2010.
Demand for diesel engines was weak in 2009. Due to the long order book of diesel
engine manufacturers, deliveries remained however at a reasonable level until
the end of 2009. Weakened prospects have decreased the number of components
delivered to customers as they keep reducing their own stocks.
Demand in the machine building industry is expected to recover step-by-step from
last year.
Componenta's order book was 20% higher in the beginning of 2010 compared to the
end of September in 2009.
Due to the adaptation actions implemented in 2009 and the sharp fall in volumes
operating costs of the Group decreased altogether 54% compared to the previous
year. Investments in production facilities in 2010 are expected to halve from
the previous year (EUR 15.5 million).
Componenta Group's 2010 net sales is expected to increase and result after
financial items excluding one-time items to improve clearly from previous year.
Cash flow from operations is still expected to stay positive.
Financial statements tables
Consolidated income statement
--------------------------------------------------------------------------------
| MEUR | 1.1.-31. | 1.1.-31.1 | 1.10.-31. | 1.10.-31. |
| | 12.2009 | 2.2008 | 12.2009 | 12.2008 |
--------------------------------------------------------------------------------
| Net sales | 299.6 | 681.4 | 76.1 | 125.3 |
--------------------------------------------------------------------------------
| Other operating income | 2.4 | 8.3 | 0.8 | 3.9 |
--------------------------------------------------------------------------------
| Operating expenses | -305.2 | -618.9 | -75.5 | -129.8 |
--------------------------------------------------------------------------------
| Depreciation, amortization | -12.5 | -23.9 | -3.3 | -6.0 |
| and write-down | | | | |
--------------------------------------------------------------------------------
| Share of the associated | 0.2 | 0.2 | 0.2 | 0.2 |
| companies' result | | | | |
--------------------------------------------------------------------------------
| Operating profit | -15.4 | 47.3 | -1.7 | -6.2 |
--------------------------------------------------------------------------------
| % of net sales | -5.1 | 6.9 | -2.2 | -5.0 |
--------------------------------------------------------------------------------
| Financial income and expenses | -21.8 | -28.7 | -4.9 | -10.1 |
--------------------------------------------------------------------------------
| Result after financial items | -37.2 | 18.6 | -6.5 | -16.3 |
--------------------------------------------------------------------------------
| % of net sales | -12.4 | 2.7 | -8.6 | -13.0 |
--------------------------------------------------------------------------------
| Income taxes | 8.5 | -4.6 | 1.2 | 3.7 |
--------------------------------------------------------------------------------
| Net profit | -28.7 | 13.9 | -5.3 | -12.6 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Allocation of net profit for | | | | |
| the period | | | | |
--------------------------------------------------------------------------------
| To equity holders of the | -28.3 | 13.5 | -5.3 | -11.8 |
| parent | | | | |
--------------------------------------------------------------------------------
| To minority interest | -0.3 | 0.4 | 0.0 | -0.8 |
--------------------------------------------------------------------------------
| | -28.7 | 13.9 | -5.3 | -12.6 |
--------------------------------------------------------------------------------
| Earning per share calculated | | | | |
| on the profit attributable to | | | | |
| equity holders of the parent | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -2.30 | 1.24 | -0.32 | -1.08 |
--------------------------------------------------------------------------------
| Earnings per share with | -1.84 | 1.04 | -0.29 | -0.81 |
| dilution, EUR | | | | |
--------------------------------------------------------------------------------
Consolidated statement of comprehensive income
--------------------------------------------------------------------------------
| MEUR | 1.1.-31. | 1.1.-31.1 | 1.10.-31. | 1.10.-31. |
| | 12.2009 | 2.2008 | 12.2009 | 12.2008 |
--------------------------------------------------------------------------------
| Net profit | -28.7 | 13.9 | -5.3 | -12.6 |
--------------------------------------------------------------------------------
| Other comprehensive income | | | | |
--------------------------------------------------------------------------------
| Translation differences | -1.0 | -30.8 | 0.3 | -26.5 |
--------------------------------------------------------------------------------
| Cash flow hedges | 2.1 | -5.3 | 1.5 | -5.0 |
--------------------------------------------------------------------------------
| Income tax on other | -0.5 | 1.4 | -0.4 | 1.3 |
| comprehensive income | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income, | 0.5 | -34.7 | 1.4 | -30.2 |
| net of tax | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income | -28.1 | -20.8 | -3.9 | -42.8 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Allocation of total | | | | |
| comprehensive income | | | | |
--------------------------------------------------------------------------------
| To equity holders of the | -27.8 | -19.5 | -3.9 | -40.7 |
| parent | | | | |
--------------------------------------------------------------------------------
| To minority interest | -0.3 | -1.3 | 0.0 | -2.1 |
--------------------------------------------------------------------------------
| | -28.1 | -20.8 | -3.9 | -42.8 |
--------------------------------------------------------------------------------
Consolidated income statement excluding one-time items
--------------------------------------------------------------------------------
| MEUR | 1.1.-30. | 1.1.-31.1 | 1.10.-31. | 1.10.-31. |
| | 9.2009 | 2.2008 | 12.2009 | 12.2008 |
--------------------------------------------------------------------------------
| Net sales | 299.6 | 681.4 | 76.1 | 125.3 |
--------------------------------------------------------------------------------
| Other operating income | 2.4 | 8.3 | 0.9 | 3.9 |
--------------------------------------------------------------------------------
| Operating expenses | -305.2 | -618.2 | -75.6 | -129.5 |
--------------------------------------------------------------------------------
| Depreciation, amortization | -12.5 | -23.9 | -3.3 | -6.0 |
| and write-down | | | | |
--------------------------------------------------------------------------------
| Share of the associated | 0.2 | 0.2 | 0.2 | 0.2 |
| companies' result | | | | |
--------------------------------------------------------------------------------
| Operating profit | -15.4 | 47.9 | -1.7 | -6.0 |
--------------------------------------------------------------------------------
| % of net sales | -5.2 | 7.0 | -2.2 | -4.8 |
--------------------------------------------------------------------------------
| Financial income and expenses | -21.8 | -28.7 | -4.9 | -10.1 |
--------------------------------------------------------------------------------
| Result after financial items | -37.2 | 19.2 | -6.5 | -16.1 |
--------------------------------------------------------------------------------
| % of net sales | -12.4 | 2.8 | -8.6 | -12.8 |
--------------------------------------------------------------------------------
| Income taxes | 8.5 | -4.8 | 1.2 | 3.6 |
--------------------------------------------------------------------------------
| Net profit | -28.7 | 14.4 | -5.3 | -12.4 |
--------------------------------------------------------------------------------
| Allocation of net profit for | | | | |
| the period | | | | |
--------------------------------------------------------------------------------
| To equity holders of the | -28.4 | 14.0 | -5.3 | -11.7 |
| parent | | | | |
--------------------------------------------------------------------------------
| To minority interest | -0.3 | 0.4 | 0.0 | -0.8 |
--------------------------------------------------------------------------------
| | -28.7 | 14.4 | -5.3 | -12.4 |
--------------------------------------------------------------------------------
| Earning per share calculated | | | | |
| on the profit attributable to | | | | |
| equity holders of the parent | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -2.30 | 1.28 | -0.32 | -1.07 |
--------------------------------------------------------------------------------
Consolidated statement of financial position
--------------------------------------------------------------------------------
| | | (restated*) |
--------------------------------------------------------------------------------
| MEUR | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Assets | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Intangible assets | 6.4 | 4.6 |
--------------------------------------------------------------------------------
| Goodwill | 31.5 | 31.7 |
--------------------------------------------------------------------------------
| Investment properties | 1.8 | 1.8 |
--------------------------------------------------------------------------------
| Tangible assets | 244.2 | 240.2 |
--------------------------------------------------------------------------------
| Investment in associates | 1.1 | 0.9 |
--------------------------------------------------------------------------------
| Receivables | 4.9 | 4.4 |
--------------------------------------------------------------------------------
| Other investments | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Deferred tax assets | 16.6 | 10.6 |
--------------------------------------------------------------------------------
| Total non-current assets | 307.0 | 294.7 |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Inventories | 41.0 | 83.8 |
--------------------------------------------------------------------------------
| Receivables | 32.7 | 62.3 |
--------------------------------------------------------------------------------
| Tax receivables | 0.2 | 2.3 |
--------------------------------------------------------------------------------
| Cash and bank accounts | 7.6 | 5.2 |
--------------------------------------------------------------------------------
| Total current assets | 81.4 | 153.6 |
--------------------------------------------------------------------------------
| Total assets | 388.4 | 448.3 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | |
--------------------------------------------------------------------------------
| Share capital | 21.9 | 21.9 |
--------------------------------------------------------------------------------
| Other equity | 39.4 | 42.4 |
--------------------------------------------------------------------------------
| Equity attributable to equity holders of the | 61.3 | 64.3 |
| parent | | |
--------------------------------------------------------------------------------
| Minority interest | 6.5 | 6.8 |
--------------------------------------------------------------------------------
| Shareholders' equity | 67.8 | 71.1 |
--------------------------------------------------------------------------------
| Liabilities | | |
--------------------------------------------------------------------------------
| Non-current | | |
--------------------------------------------------------------------------------
| Capital loan | 27.7 | 41.8 |
--------------------------------------------------------------------------------
| Interest bearing | 165.3 | 165.3 |
--------------------------------------------------------------------------------
| Interest free | - | - |
--------------------------------------------------------------------------------
| Provisions | 6.7 | 5.8 |
--------------------------------------------------------------------------------
| Deferred tax liability | 6.1 | 8.5 |
--------------------------------------------------------------------------------
| Current | | |
--------------------------------------------------------------------------------
| Capital loan | 7.4 | 9.5 |
--------------------------------------------------------------------------------
| Interest bearing | 48.8 | 51.2 |
--------------------------------------------------------------------------------
| Interest free | 57.5 | 93.3 |
--------------------------------------------------------------------------------
| Tax liabilities | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Provisions | 1.1 | 1.8 |
--------------------------------------------------------------------------------
| Total liabilities | 320.6 | 377.2 |
--------------------------------------------------------------------------------
| Total shareholders' equity and liabilities | 388.4 | 448.3 |
--------------------------------------------------------------------------------
*) Componenta's previously released consolidated statement of financial position
as per 31 December 2008 has been restated: the value of tangible assets has been
increased by MEUR 2.4 and the value of trade receivables decreased by MEUR 4.4.
In consequence of these adjustments, retained earnings and minority interest
have been decreased by MEUR 2.4 and MEUR 0.3 respectively and deferred tax
liabilities increased by MEUR 0.6. The restatement of tangible assets is related
to errors in capitalization entries for long-term patterns and tools in Sweden.
The decrease in the value of trade receivables is related to errors in the
reconciliation and registration of customer receivables in Turkey in 2008. In
accordance with the IAS 8.42 standard, both errors have been corrected in the
restated statement of financial position as per 31 December 2008. All figures
for comparison in 2008 have been restated. Restatement does not have an impact
on the consolidated income statement.
Consolidated cash flow statement
--------------------------------------------------------------------------------
| MEUR | 1.1.-31.12. | 1.1.-31.12. |
| | 2009 | 2008 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | |
--------------------------------------------------------------------------------
| Result after financial items | -37.2 | 18.6 |
--------------------------------------------------------------------------------
| Depreciation, amortization and write-down | 12.5 | 23.9 |
--------------------------------------------------------------------------------
| Net financial income and expenses | 21.8 | 28.7 |
--------------------------------------------------------------------------------
| Other income and expenses, adjustments to cash | 0.5 | -2.6 |
| flow | | |
--------------------------------------------------------------------------------
| Change in net working capital | 37.5 | -4.2 |
--------------------------------------------------------------------------------
| Cash flow from operations before financing and | 35.0 | 64.4 |
| income taxes | | |
--------------------------------------------------------------------------------
| Interest received and paid and dividends | -23.5 | -28.0 |
| received | | |
--------------------------------------------------------------------------------
| Taxes paid | 2.8 | -7.0 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities | 14.2 | 29.4 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | |
--------------------------------------------------------------------------------
| Capital expenditure in tangible and intangible | -12.5 | -39.6 |
| assets | | |
--------------------------------------------------------------------------------
| Proceeds from tangible and intangible assets | 0.4 | 0.3 |
--------------------------------------------------------------------------------
| Other investments and loans granted | -0.5 | - |
--------------------------------------------------------------------------------
| Proceeds from other investments and repayments | 0.0 | 0.0 |
| of loan receivables | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiary, net of cash acquired | - | -1.3 |
--------------------------------------------------------------------------------
| Net cash flow from investing activities | -12.6 | -40.6 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | | |
--------------------------------------------------------------------------------
| Dividends paid | -3.3 | -5.6 |
--------------------------------------------------------------------------------
| Proceeds from share issue | 13.3 | - |
--------------------------------------------------------------------------------
| Repayment of finance lease liabilities | -1.6 | -2.4 |
--------------------------------------------------------------------------------
| Draw-down (+)/ repayment (-) of current loans | -5.1 | -82.7 |
--------------------------------------------------------------------------------
| Draw-down of non-current loans | 38.3 | 98.0 |
--------------------------------------------------------------------------------
| Repayment of non-current loans and other changes | -40.7 | -16.1 |
--------------------------------------------------------------------------------
| Net cash flow from financing activities | 0.9 | -8.7 |
--------------------------------------------------------------------------------
| Change in liquid assets | 2.5 | -20.0 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Cash and bank account at the beginning of the | 5.2 | 27.5 |
| period | | |
--------------------------------------------------------------------------------
| Effects of exchange rate changes on cash | -0.1 | -2.3 |
--------------------------------------------------------------------------------
| Cash and bank account at the period end | 7.6 | 5.2 |
--------------------------------------------------------------------------------
| Change during the financial period | 2.5 | -20.0 |
--------------------------------------------------------------------------------
Statement of changes in consolidated shareholders' equity
--------------------------------------------------------------------------------
| MEUR | Sha | Shar | Othe | Cas | Tran | Retai | Tota | Mino | Shar |
| | re | e | r | h | s | ned | l | rity | e |
| | ca | pr | re | flo | lat | e | | int | hol |
| | pit | emiu | serv | w | ion | arnin | | eres | ders |
| | al | m | es | hed | diff | gs | | t | ' |
| | | ac | | ges | e | | | | eq |
| | | coun | | | re | | | | uity |
| | | t | | | nces | | | | tot |
| | | | | | | | | | al |
--------------------------------------------------------------------------------
| Shareholders' | 21. | 14.9 | 6.1 | 1.1 | 9.8 | 37.5 | 91.3 | 9.3 | 100. |
| equity | 9 | | | | | | | | 6 |
| 1.1.2008 | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | -3. | -29. | 13.5 | -19. | -1.3 | -20. |
| comprehensive | | | | 9 | 1 | | 5 | | 8 |
| income | | | | | | | | | |
--------------------------------------------------------------------------------
| Other changes | | | 0.2 | | | | 0.2 | | 0.2 |
--------------------------------------------------------------------------------
| Dividends paid | | | | | | -5.5 | -5.5 | -0.1 | -5.6 |
--------------------------------------------------------------------------------
| Change in | | | | | | | 0.0 | -0.9 | -0.9 |
| minority | | | | | | | | | |
| interest | | | | | | | | | |
--------------------------------------------------------------------------------
| Increase of | 0.0 | 0.1 | 0.2 | | | | 0.2 | | 0.2 |
| share capital | | | | | | | | | |
| (warrants) | | | | | | | | | |
--------------------------------------------------------------------------------
| Restatement | | | | | -4.1 | 1.7 | -2.4 | -0.3 | -2.7 |
--------------------------------------------------------------------------------
| Shareholders' | 21. | 15.0 | 6.5 | -2. | -23. | 47.3 | 64.3 | 6.8 | 71.1 |
| equity | 9 | | | 8 | 5 | | | | |
| 31.12.2008 | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | |
--------------------------------------------------------------------------------
| MEUR | Sha | Shar | Othe | Cas | Tran | Retai | Tota | Mino | Shar |
| | re | e | r | h | s | ned | l | rity | e |
| | cap | pr | re | flo | la | e | | int | hol |
| | ita | emiu | serv | w | tion | arnin | | eres | ders |
| | l | m | es | hed | dif | gs | | t | ' |
| | | ac | | ges | fe | | | | eq |
| | | coun | | | r | | | | uity |
| | | t | | | ence | | | | tot |
| | | | | | s | | | | al |
--------------------------------------------------------------------------------
| Shareholders' | 21. | 15.0 | 6.5 | -2. | -23. | 47.3 | 64.3 | 6.8 | 71.1 |
| equity | 9 | | | 8 | 5 | | | | |
| 1.1.2009 | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 1.5 | -1.0 | -28.3 | -27. | -0.3 | -28. |
| comprehensive | | | | | | | 8 | | 1 |
| income | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | | | | | | -3.3 | -3.3 | | -3.3 |
--------------------------------------------------------------------------------
| Share issue | | | 29.0 | | | | 29.0 | | 29.0 |
--------------------------------------------------------------------------------
| Redemption of | | | -0.9 | | | | -0.9 | | -0.9 |
| convertible | | | | | | | | | |
| capital notes | | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 21. | 15.0 | 34.6 | -1. | -24. | 15.6 | 61.3 | 6.5 | 67.8 |
| equity | 9 | | | 3 | 5 | | | | |
| 31.12.2009 | | | | | | | | | |
--------------------------------------------------------------------------------
Key ratios
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Equity ratio, % | 17.5 | 15.9 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 3.51 | 5.88 |
--------------------------------------------------------------------------------
| Invested capital | 316.9 | 338.8 |
--------------------------------------------------------------------------------
| Return on investment, % | -4.1 | 13.6 |
--------------------------------------------------------------------------------
| Return on investment, excluding one-time items % | -4.2 | 13.8 |
--------------------------------------------------------------------------------
| Return on equity, % | -45.1 | 14.8 |
--------------------------------------------------------------------------------
| Return on equity, excluding one-time items % | -45.1 | 15.3 |
--------------------------------------------------------------------------------
| Net interest bearing debt, MEUR, preferred capital | 241.6 | 262.5 |
| note in debt | | |
--------------------------------------------------------------------------------
| Net gearing, %, preferred capital note in debt | 356.4 | 369.1 |
--------------------------------------------------------------------------------
| Order book, MEUR | 58.8 | 73.6 |
--------------------------------------------------------------------------------
| Investments in non-current assets without finance | 13.4 | 41.7 |
| leases, MEUR | | |
--------------------------------------------------------------------------------
| Investments in non-current assets incl finance | 17.9 | 46.0 |
| leases, MEUR | | |
--------------------------------------------------------------------------------
| Investments in non-current assets, % of net sales | 6.0 | 6.7 |
--------------------------------------------------------------------------------
| Average number of personnel during the period | 3,684 | 4,395 |
--------------------------------------------------------------------------------
| Average number of personnel during the period, | 3,798 | 5,207 |
| incl. leased personnel | | |
--------------------------------------------------------------------------------
| Number of personnel at period end | 3,614 | 4,294 |
--------------------------------------------------------------------------------
| Number of personnel at period end, incl. leased | 3,698 | 4,488 |
| personnel | | |
--------------------------------------------------------------------------------
| Share of export and foreign activities in net | 82.7 | 87.6 |
| sales, % | | |
--------------------------------------------------------------------------------
| Contingent liabilities, MEUR | 221.1 | 186.4 |
--------------------------------------------------------------------------------
Per Share Data
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Number of shares at period end, 1,000 shares | 17,458 | 10,946 |
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | -2.30 | 1.24 |
--------------------------------------------------------------------------------
| Earnings per share, with dilution (EPS), EUR | -1.84 | 1.04 |
--------------------------------------------------------------------------------
| Cash flow per share, EUR | 1.16 | 2.68 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 3.51 | 5.88 |
--------------------------------------------------------------------------------
| Dividend per share, EUR *) | 0.00 | 0.30 |
--------------------------------------------------------------------------------
| Payout ratio, % | 0.00 | 24.29 |
--------------------------------------------------------------------------------
| Effective dividend yield, % | 0.00 | 6.32 |
--------------------------------------------------------------------------------
| P/E multiple | neg. | 3.85 |
--------------------------------------------------------------------------------
| Share price at period end, EUR | 4.12 | 4.75 |
--------------------------------------------------------------------------------
*) For year 2009 a proposal of the Board of Directors
Changes in tangible assets and goodwill
--------------------------------------------------------------------------------
| MEUR | 1-12/2009 | 1-12/2008 |
--------------------------------------------------------------------------------
| Changes in tangible assets | | |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of the period | 553.2 | 568.1 |
--------------------------------------------------------------------------------
| Translation difference | 1.9 | -54.4 |
--------------------------------------------------------------------------------
| Additions | 14.5 | 41.4 |
--------------------------------------------------------------------------------
| Disposals | -38.6 | -1.8 |
--------------------------------------------------------------------------------
| Acquisition cost at the end of the period | 531.1 | 553.2 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Accumulated depreciation at the beginning of the | -313.0 | -323.2 |
| period | | |
--------------------------------------------------------------------------------
| Translation difference | -1.2 | 31.8 |
--------------------------------------------------------------------------------
| Accumulated depreciation on disposals | 38.1 | 1.4 |
--------------------------------------------------------------------------------
| Depreciation during the period | -10.8 | -23.0 |
--------------------------------------------------------------------------------
| Accumulated depreciation at the end of the period | -286.9 | -313.0 |
--------------------------------------------------------------------------------
| Book value at the end of the period | 244.2 | 240.2 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Goodwill | | |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of the period | 34.0 | 43.1 |
--------------------------------------------------------------------------------
| Additions | - | 0.0 |
--------------------------------------------------------------------------------
| Disposals | - | -1.4 |
--------------------------------------------------------------------------------
| Translation difference | -0.2 | -7.7 |
--------------------------------------------------------------------------------
| Acquisition cost at the end of the period | 33.8 | 34.0 |
--------------------------------------------------------------------------------
| Accumulated depreciation at the beginning of the | -2.3 | -2.3 |
| period | | |
--------------------------------------------------------------------------------
| Accumulated depreciation at the end of the period | -2.3 | -2.3 |
--------------------------------------------------------------------------------
| Book value at the end of the period | 31.5 | 31.7 |
--------------------------------------------------------------------------------
Group development
Net sales by market area
--------------------------------------------------------------------------------
| MEUR | 1-12/2008 | 1-12/2009 |
--------------------------------------------------------------------------------
| Finland | 102.4 | 51.8 |
--------------------------------------------------------------------------------
| Sweden | 104.8 | 39.8 |
--------------------------------------------------------------------------------
| Germany | 100.7 | 58.6 |
--------------------------------------------------------------------------------
| UK | 80.7 | 31.2 |
--------------------------------------------------------------------------------
| Turkey | 80.5 | 49.4 |
--------------------------------------------------------------------------------
| Benelux countries | 72.4 | 19.2 |
--------------------------------------------------------------------------------
| Other European countries | 105.2 | 37.8 |
--------------------------------------------------------------------------------
| Other countries | 34.7 | 11.7 |
--------------------------------------------------------------------------------
| Total | 681.4 | 299.6 |
--------------------------------------------------------------------------------
Quarterly development by market area
--------------------------------------------------------------------------------
| MEUR | Q1/0 | Q2/0 | Q3/0 | Q4/08 | Q1/09 | Q2/09 | Q3/09 | Q4/09 |
| | 8 | 8 | 8 | | | | | |
--------------------------------------------------------------------------------
| Finland | 34.6 | 23.0 | 18.9 | 26.0 | 21.4 | 11.8 | 9.0 | 9.6 |
--------------------------------------------------------------------------------
| Sweden | 19.8 | 35.3 | 25.0 | 24.8 | 11.0 | 8.0 | 8.7 | 12.1 |
--------------------------------------------------------------------------------
| Germany | 25.5 | 27.1 | 28.4 | 19.7 | 16.9 | 12.7 | 14.4 | 14.5 |
--------------------------------------------------------------------------------
| UK | 26.8 | 24.1 | 19.1 | 10.7 | 7.6 | 7.9 | 7.8 | 7.8 |
--------------------------------------------------------------------------------
| Turkey | 21.6 | 26.2 | 26.2 | 6.5 | 9.0 | 15.3 | 10.2 | 14.9 |
--------------------------------------------------------------------------------
| Benelux | 18.8 | 23.7 | 18.3 | 11.7 | 6.8 | 2.6 | 5.0 | 4.9 |
| countries | | | | | | | | |
--------------------------------------------------------------------------------
| Other European | 30.3 | 33.2 | 24.7 | 16.9 | 11.6 | 10.4 | 6.0 | 9.8 |
| countries | | | | | | | | |
--------------------------------------------------------------------------------
| Other countries | 7.7 | 8.4 | 9.5 | 9.2 | 3.8 | 1.9 | 3.7 | 2.3 |
--------------------------------------------------------------------------------
| Total | 185. | 201. | 170. | 125.3 | 88.1 | 70.6 | 64.8 | 76.1 |
| | 0 | 0 | 1 | | | | | |
--------------------------------------------------------------------------------
Group development
--------------------------------------------------------------------------------
| MEUR | 1-12/2008 | 1-12/2009 |
--------------------------------------------------------------------------------
| Net sales | 681.4 | 299.6 |
--------------------------------------------------------------------------------
| Operating profit | 47.3 | -15.4 |
--------------------------------------------------------------------------------
| Net financial items *) | -28.7 | -21.8 |
--------------------------------------------------------------------------------
| Profit/loss after financial items | 18.6 | -37.2 |
--------------------------------------------------------------------------------
*) Net financial items are included in the profit of Other business
Group development by business division
--------------------------------------------------------------------------------
| Net sales, MEUR | 1-12/2008 | 1-12/2009 |
--------------------------------------------------------------------------------
| Foundries | 294.0 | 124.9 |
--------------------------------------------------------------------------------
| Machine shops | 243.3 | 92.3 |
--------------------------------------------------------------------------------
| Turkey | 242.7 | 114.0 |
--------------------------------------------------------------------------------
| Other business | 75.7 | 49.8 |
--------------------------------------------------------------------------------
| Internal and one-time items | -174.2 | -81.4 |
--------------------------------------------------------------------------------
| Componenta total | 681.4 | 299.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit, MEUR | 1-12/2008 | 1-12/2009 |
--------------------------------------------------------------------------------
| Foundries | 23.2 | -11.9 |
--------------------------------------------------------------------------------
| Machine shops | 4.3 | -11.3 |
--------------------------------------------------------------------------------
| Turkey | 19.9 | 2.4 |
--------------------------------------------------------------------------------
| Other business | -0.3 | 4.7 |
--------------------------------------------------------------------------------
| Internal and one-time items | 0.2 | 0.7 |
--------------------------------------------------------------------------------
| Componenta total | 47.3 | -15.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book, MEUR | 12/2008 | 12/2009*) |
--------------------------------------------------------------------------------
| Foundries and Machine shops | 53.5 | 33.4 |
--------------------------------------------------------------------------------
| Turkey | 17.9 | 24.2 |
--------------------------------------------------------------------------------
| Other business | 2.3 | 1.2 |
--------------------------------------------------------------------------------
| Componenta total | 73.6 | 58.8 |
--------------------------------------------------------------------------------
*) Order book as per 15 January 2010
Group development by quarter
--------------------------------------------------------------------------------
| MEUR | Q1/0 | Q2/0 | Q3/0 | Q4/08 | Q1/09 | Q2/09 | Q3/09 | Q4/09 |
| | 8 | 8 | 8 | | | | | |
--------------------------------------------------------------------------------
| Net sales | 185. | 201. | 170. | 125.3 | 88.1 | 70.6 | 64.8 | 76.1 |
| | 0 | 0 | 1 | | | | | |
--------------------------------------------------------------------------------
| Operating | 23.1 | 23.2 | 7.2 | -6.2 | -6.1 | -4.3 | -3.2 | -1.7 |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| Net financial | -8.2 | -4.5 | -5.9 | -10.1 | -4.7 | -5.7 | -6.5 | -4.9 |
| items *) | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 14.9 | 18.7 | 1.3 | -16.3 | -10.9 | -10.1 | -9.7 | -6.5 |
| after financial | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
*) Net financial items are included in the profit of Other business
Quarterly development by business division
--------------------------------------------------------------------------------
| Net sales, MEUR | Q1/0 | Q2/0 | Q3/0 | Q4/08 | Q1/09 | Q2/09 | Q3/09 | Q4/09 |
| | 8 | 8 | 8 | | | | | |
--------------------------------------------------------------------------------
| Foundries | 73.6 | 86.4 | 71.5 | 62.6 | 43.1 | 29.0 | 26.8 | 25.9 |
--------------------------------------------------------------------------------
| Machine shops | 65.7 | 71.0 | 56.1 | 50.5 | 28.6 | 21.3 | 19.0 | 23.4 |
--------------------------------------------------------------------------------
| Turkey | 70.7 | 71.1 | 70.6 | 30.4 | 24.0 | 28.0 | 26.8 | 35.2 |
--------------------------------------------------------------------------------
| Other business | 24.8 | 21.7 | 16.3 | 12.8 | 12.8 | 12.1 | 12.3 | 12.5 |
--------------------------------------------------------------------------------
| Internal and | -49. | -49. | -44. | -30.9 | -20.5 | -19.8 | -20.1 | -21.0 |
| one-time items | 9 | 1 | 3 | | | | | |
--------------------------------------------------------------------------------
| Componenta | 185. | 201. | 170. | 125.3 | 88.1 | 70.6 | 64.8 | 76.1 |
| total | 0 | 0 | 1 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | Q1/0 | Q2/0 | Q3/0 | Q4/08 | Q1/09 | Q2/09 | Q3/09 | Q4/09 |
| profit, MEUR | 8 | 8 | 8 | | | | | |
--------------------------------------------------------------------------------
| Foundries | 8.8 | 12.4 | 2.2 | -0.3 | -3.4 | -3.5 | -2.6 | -2.3 |
--------------------------------------------------------------------------------
| Machine shops | 2.6 | 4.2 | 0.7 | -3.2 | -3.2 | -2.3 | -2.9 | -2.8 |
--------------------------------------------------------------------------------
| Turkey | 13.0 | 7.0 | 4.2 | -4.2 | -0.6 | 0.6 | 1.3 | 1.1 |
--------------------------------------------------------------------------------
| Other business | 0.1 | -0.2 | 0.3 | -0.5 | 0.9 | 1.2 | 1.1 | 1.4 |
--------------------------------------------------------------------------------
| Internal and | -1.5 | -0.1 | -0.1 | 1.9 | 0.2 | -0.4 | -0.1 | 1.0 |
| one-time items | | | | | | | | |
--------------------------------------------------------------------------------
| Componenta | 23.1 | 23.2 | 7.2 | -6.2 | -6.1 | -4.3 | -3.2 | -1.7 |
| total | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book at | Q1/0 | Q2/0 | Q3/0 | Q4/08 | Q1/09 | Q2/09 | Q3/09 | Q4/09 |
| period end, | 8 | 8 | 8 | | | | | *) |
| MEUR | | | | | | | | |
--------------------------------------------------------------------------------
| Foundries and | 85.7 | 86.4 | 85.5 | 53.5 | 29.8 | 29.5 | 28.8 | 33.4 |
| Machine shops | | | | | | | | |
--------------------------------------------------------------------------------
| Turkey | 45.7 | 48.1 | 31.2 | 17.9 | 14.6 | 22.2 | 19.7 | 24.2 |
--------------------------------------------------------------------------------
| Other business | 3.2 | 3.5 | 6.5 | 2.3 | 1.8 | 0.0 | 0.6 | 1.2 |
--------------------------------------------------------------------------------
| Componenta | 134. | 138. | 123. | 73.6 | 46.2 | 51.7 | 49.0 | 58.8 |
| total | 6 | 0 | 2 | | | | | |
--------------------------------------------------------------------------------
*) Order book as per 15 January 2010
Group development excluding one-time items
--------------------------------------------------------------------------------
| MEUR | 1-12/2008 | 1-12/2009 |
--------------------------------------------------------------------------------
| Net sales | 681.4 | 299.6 |
--------------------------------------------------------------------------------
| Operating profit | 47.9 | -15.4 |
--------------------------------------------------------------------------------
| Net financial items *) | -28.7 | -21.8 |
--------------------------------------------------------------------------------
| Profit/loss after financial items | 19.2 | -37.2 |
--------------------------------------------------------------------------------
*) Net financial items are included in the profit of Other business
Group development by business division excluding one-time items
--------------------------------------------------------------------------------
| Operating profit, MEUR | 1-12/2008 | 1-12/2009 |
--------------------------------------------------------------------------------
| Foundries | 23.2 | -11.9 |
--------------------------------------------------------------------------------
| Machine shops | 4.3 | -11.3 |
--------------------------------------------------------------------------------
| Turkey | 19.9 | 2.4 |
--------------------------------------------------------------------------------
| Other business | -0.3 | 4.7 |
--------------------------------------------------------------------------------
| Internal items | 0.8 | 0.7 |
--------------------------------------------------------------------------------
| Componenta total | 47.9 | -15.4 |
--------------------------------------------------------------------------------
Group development by quarter excluding one-time items
--------------------------------------------------------------------------------
| MEUR | Q1/0 | Q2/0 | Q3/0 | Q4/08 | Q1/09 | Q2/09 | Q3/09 | Q4/09 |
| | 8 | 8 | 8 | | | | | |
--------------------------------------------------------------------------------
| Net sales | 185. | 201. | 170. | 125.3 | 88.1 | 70.6 | 64.8 | 76.1 |
| | 0 | 0 | 1 | | | | | |
--------------------------------------------------------------------------------
| Operating | 23.1 | 23.1 | 7.7 | -6.0 | -6.1 | -4.4 | -3.3 | -1.7 |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
| Net financial | -8.2 | -4.5 | -5.9 | -10.1 | -4.7 | -5.7 | -6.5 | -4.9 |
| items *) | | | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 14.9 | 18.6 | 1.7 | -16.1 | -10.8 | -10.2 | -9.7 | -6.5 |
| after financial | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
*) Net financial items are included in the profit of Other business
Quarterly development by business division excluding one-time items
--------------------------------------------------------------------------------
| Operating | Q1/0 | Q2/0 | Q3/0 | Q4/08 | Q1/09 | Q2/09 | Q3/09 | Q4/09 |
| profit. MEUR | 8 | 8 | 8 | | | | | |
--------------------------------------------------------------------------------
| Foundries | 8.8 | 12.4 | 2.2 | -0.3 | -3.4 | -3.5 | -2.6 | -2.3 |
--------------------------------------------------------------------------------
| Machine shops | 2.6 | 4.2 | 0.7 | -3.2 | -3.2 | -2.3 | -2.9 | -2.8 |
--------------------------------------------------------------------------------
| Turkey | 13.0 | 7.0 | 4.2 | -4.2 | -0.6 | 0.6 | 1.3 | 1.1 |
--------------------------------------------------------------------------------
| Other business | 0.1 | -0.2 | 0.3 | -0.5 | 0.9 | 1.2 | 1.1 | 1.4 |
--------------------------------------------------------------------------------
| Internal items | -1.5 | -0.2 | 0.3 | 2.1 | 0.2 | -0.4 | -0.1 | 1.0 |
--------------------------------------------------------------------------------
| Componenta | 23.1 | 23.1 | 7.7 | -6.0 | -6.1 | -4.4 | -3.3 | -1.7 |
| total | | | | | | | | |
--------------------------------------------------------------------------------
Segments
--------------------------------------------------------------------------------
| Business segments | | |
--------------------------------------------------------------------------------
| MEUR | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Foundries | | |
--------------------------------------------------------------------------------
| Assets | 112.1 | 139.2 |
--------------------------------------------------------------------------------
| Liabilities | 23.7 | 37.9 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 5.0 | 11.4 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Depreciation | 4.0 | 7.7 |
--------------------------------------------------------------------------------
| Machine shops | | |
--------------------------------------------------------------------------------
| Assets | 69.8 | 90.6 |
--------------------------------------------------------------------------------
| Liabilities | 18.1 | 33.1 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 3.3 | 13.1 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Depreciation | 2.6 | 5.7 |
--------------------------------------------------------------------------------
| Turkey | | |
--------------------------------------------------------------------------------
| Assets | 173.6 | 175.7 |
--------------------------------------------------------------------------------
| Liabilities | 19.9 | 26.0 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 5.3 | 17.0 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Depreciation | 3.5 | 8.6 |
--------------------------------------------------------------------------------
| Other business | | |
--------------------------------------------------------------------------------
| Assets | 50.0 | 48.4 |
--------------------------------------------------------------------------------
| Liabilities | 18.8 | 21.2 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 1.9 | 3.1 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Depreciation | 2.4 | 1.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Geographical areas | | |
--------------------------------------------------------------------------------
| MEUR | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Finland | | |
--------------------------------------------------------------------------------
| Non-current assets | 95.5 | 93.9 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 5.7 | 13.2 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Sweden | | |
--------------------------------------------------------------------------------
| Non-current assets | 29.1 | 26.1 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 2.9 | 5.7 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Netherlands | | |
--------------------------------------------------------------------------------
| Non-current assets | 34.3 | 34.1 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 1.6 | 3.0 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Turkey | | |
--------------------------------------------------------------------------------
| Non-current assets | 125.2 | 124.4 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 5.4 | 22.6 |
| finance leases) | | |
--------------------------------------------------------------------------------
| Other countries | | |
--------------------------------------------------------------------------------
| Non-current assets | 0.8 | 0.8 |
--------------------------------------------------------------------------------
| Investments in non-current assets (incl. | 0.0 | 0.1 |
| finance leases) | | |
--------------------------------------------------------------------------------
Fair values of derivative instruments
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.200 |
| | | 8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR |
--------------------------------------------------------------------------------
| | Fair | Fair | Fair | Fair |
| | value, | value, | value, | value, |
| | positive | negative | net | net |
--------------------------------------------------------------------------------
| Currency derivatives | | | | |
--------------------------------------------------------------------------------
| Foreign exchange forwards | 0.1 | 0.0 | 0.1 | 0.3 |
--------------------------------------------------------------------------------
| Currency swaps | 0.3 | -0.2 | 0.1 | 2.3 |
--------------------------------------------------------------------------------
| Interest rate derivatives | | | | |
--------------------------------------------------------------------------------
| Interest rate options | 0.8 | -0.4 | 0.4 | 0.6 |
--------------------------------------------------------------------------------
| Interest rate swaps | - | -2.0 | -2.0 | -2.8 |
--------------------------------------------------------------------------------
| Commodity derivatives | | | | |
--------------------------------------------------------------------------------
| Electricity price forwards | 0.2 | -0.6 | -0.4 | -2.1 |
--------------------------------------------------------------------------------
| Total | 1.4 | -3.2 | -1.8 | -1.7 |
--------------------------------------------------------------------------------
Nominal values of derivative instruments
--------------------------------------------------------------------------------
| | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| MEUR | Nominal | Nominal value |
| | value | |
--------------------------------------------------------------------------------
| Currency derivatives *) | | |
--------------------------------------------------------------------------------
| Foreign exchange forwards | 6.0 | 5.4 |
--------------------------------------------------------------------------------
| Currency swaps | 43.1 | 30.9 |
--------------------------------------------------------------------------------
| Interest rate derivatives | | |
--------------------------------------------------------------------------------
| Interest rate options | 42.0 | 46.0 |
--------------------------------------------------------------------------------
| Interest rate swaps | | |
--------------------------------------------------------------------------------
| Maturity in less than a year | 24.0 | 42.2 |
--------------------------------------------------------------------------------
| Maturity after one year and less than five | 28.0 | 52.0 |
| years | | |
--------------------------------------------------------------------------------
| Commodity derivatives | | |
--------------------------------------------------------------------------------
| Electricity price forwards | | |
--------------------------------------------------------------------------------
| Maturity in less than a year | 3.9 | 4.4 |
--------------------------------------------------------------------------------
| Maturity after one year and less than five | 4.2 | 5.5 |
| years | | |
--------------------------------------------------------------------------------
| Total | 151.1 | 186.4 |
--------------------------------------------------------------------------------
*) Currency derivatives mature in less than a year.
Contingent liabilities
--------------------------------------------------------------------------------
| MEUR | 31.12.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Real-estate mortgages | | |
--------------------------------------------------------------------------------
| For own debts | 15.2 | 15.2 |
--------------------------------------------------------------------------------
| Business mortgages | | |
--------------------------------------------------------------------------------
| For own debts | - | 2.2 |
--------------------------------------------------------------------------------
| Pledges | | |
--------------------------------------------------------------------------------
| For own debts | 198.1 | 151.2 |
--------------------------------------------------------------------------------
| Other leasing commitments | 3.5 | 4.5 |
--------------------------------------------------------------------------------
| Other commitments | 4.4 | 13.2 |
--------------------------------------------------------------------------------
| Total | 221.1 | 186.4 |
--------------------------------------------------------------------------------
Key exchange rates
--------------------------------------------------------------------------------
| | Closing rate | Average rate |
--------------------------------------------------------------------------------
| One Euro is | 31.12.2008 | 31.12.2009 | 31.12.2008 | 31.12.2009 |
--------------------------------------------------------------------------------
| SEK | 10.8700 | 10.2520 | 9.6152 | 10.6191 |
--------------------------------------------------------------------------------
| USD | 1.3917 | 1.4406 | 1.4708 | 1.3948 |
--------------------------------------------------------------------------------
| GPB | 0.95250 | 0.88810 | 0.79628 | 0.89094 |
--------------------------------------------------------------------------------
| TRY (Turkish central | 2.1408 | 2.1603 | 1.8958 | 2.1508 |
| bank) | | | | |
--------------------------------------------------------------------------------
Calculation of key financial ratios
--------------------------------------------------------------------------------
| Return | = | Profit/loss after financial items - income taxes x 100 |
| on | | |
| equity | | |
| -% (ROE) | | |
--------------------------------------------------------------------------------
| | | Shareholders' equity without preferred capital notes + |
| | | minority interest |
--------------------------------------------------------------------------------
| | | (quarterly average) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return | = | Profit/loss after financial items + interest and other |
| on | | financial expenses x 100 |
| investme | | |
| nt -% | | |
| (ROI) | | |
--------------------------------------------------------------------------------
| | | Shareholders' equity + interest bearing liabilities |
--------------------------------------------------------------------------------
| | | (quarterly average) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | = | Shareholders' equity, preferred capital notes excluded + |
| ratio, % | | minority interest x 100 |
--------------------------------------------------------------------------------
| | | Balance sheet total - advances received |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | = | Profit/loss after financial items - income taxes +/- |
| per | | minority interest |
| share, | | |
| EUR | | |
| (EPS) | | |
| | | |
--------------------------------------------------------------------------------
| | | Average number of shares during the financial period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | = | As above, the number of shares has been increased with the |
| per | | warrants outstanding. When calculating the dilution effect |
| share | | of warrants, the number of shares has been adjusted with the |
| with | | number of own shares which the company could have acquired, |
| dilution | | if it would have used the funds generated from the warrants |
| , EUR | | to buy back of own shares at market price (= average trading |
| | | price). After tax interest expense of the convertible loan |
| | | has been added to the profit of the period. Number of |
| | | shares that can be subsricbed by the loan, has been added to |
| | | the number of total shares. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash | = | Net cash generated from operating activities |
| flow per | | |
| share, | | |
| EUR | | |
--------------------------------------------------------------------------------
| | | Average number of shares during the financial period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average | = | Trading volume |
| trading | | |
| price, | | |
| EUR | | |
--------------------------------------------------------------------------------
| | | Number of shares traded during the financial period |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | = | Shareholders' equity, preferred capital notes excluded |
| per | | |
| share, | | |
| EUR | | |
--------------------------------------------------------------------------------
| | | Number of shares at period end |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Market | = | Number of shares x market share price at period end |
| capitali | | |
| zation | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net | = | Interest bearing liabilities + preferred capital notes - |
| interest | | cash and bank accounts |
| bearing | | |
| debt | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net | = | Net interest bearing debt x 100 |
| gearing, | | |
| % | | |
--------------------------------------------------------------------------------
| | | Shareholders' equity, preferred capital notes excluded + |
| | | minority interest |
--------------------------------------------------------------------------------
Largest registered shareholders on 31 December 2009
--------------------------------------------------------------------------------
| Shareholder | | Shares | Share of |
| | | | total voting |
| | | | rights, % |
--------------------------------------------------------------------------------
| 1 Lehtonen Heikki | | 5,311,340 | 30.42 |
--------------------------------------------------------------------------------
| Cabana Trade S.A. | 3,501,98 | | |
| | 8 | | |
--------------------------------------------------------------------------------
| Oy Högfors-Trading Ab | 1,806,05 | | |
| | 2 | | |
--------------------------------------------------------------------------------
| Lehtonen Heikki | 3,300 | | |
--------------------------------------------------------------------------------
| 2 Etra-Invest Oy Ab | | 4,237,464 | 24.27 |
--------------------------------------------------------------------------------
| 3 Varma Mutual Pension Insurance | | 978,968 | 5.61 |
| Company | | | |
--------------------------------------------------------------------------------
| 4 Ilmarinen Mutual Pension | | 724,266 | 4.15 |
| Insurance Company | | | |
--------------------------------------------------------------------------------
| 5 Finnish Industry Investment Ltd | | 666,666 | 3.82 |
--------------------------------------------------------------------------------
| 6 FIM Forte Fund | | 393,403 | 2.25 |
--------------------------------------------------------------------------------
| 7 Finnish Cultural Foundation | | 236,000 | 1.35 |
--------------------------------------------------------------------------------
| 8 Bergholm Heikki | | 230,000 | 1.32 |
--------------------------------------------------------------------------------
| 9 Laakkonen Mikko | | 200,000 | 1.15 |
--------------------------------------------------------------------------------
| 10 Lehtonen Anna-Maria | | 178,823 | 1.02 |
--------------------------------------------------------------------------------
| Nominee-registered shares | | 274,505 | 1.57 |
--------------------------------------------------------------------------------
| Other shareholders | | 4,026,363 | 23.06 |
--------------------------------------------------------------------------------
| Total | | 17,457,798 | 100.00 |
--------------------------------------------------------------------------------
The members of the Board of Directors own 32.1% 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 29.9 %.
Helsinki, 26 January 2010
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, Turkey, the Netherlands and Sweden. The
net sales of Componenta were EUR 300 million in 2009. The Group employs
approximately 3,700 people. 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, 00610 Helsinki, Finland
Tel. +358 10 403 00
Fax +358 10 403 2721
www.componenta.com
