Componenta interim report 1 January - 30 June 2009
Componenta Corporation Stock Exchange Release 17.7.2009 at 9.30
Componenta interim report 1 January - 30 June 2009
Consolidated net sales in the review period totalled MEUR 158.7 (MEUR 386.0).
Operating profit excluding one-time items was MEUR -10.5 (MEUR 46.2).
Result after financial items, excluding one-time items, was MEUR -21.0 (MEUR
33.5).
Earnings per share excluding one-time items, was EUR -1.43 (EUR 2.20).
In the second quarter consolidated net sales totalled MEUR 70.6 (MEUR 201.0),
operating profit excluding one-time items was MEUR -4.4 (MEUR 23.1) and result
after financial items, excluding one-time items, was MEUR -10.2 (MEUR 18.6).
Net sales and order book
The Group's net sales in January - June were EUR 158.7 (386.0) million. Net
sales declined 59% and the value of production 64%. The order book declined 63%
from the previous year and stood at EUR 51.7 (138.0) million at the end of June.
Foundry division net sales declined 55% from the previous year to EUR 72.1
(160.0) million.
Net sales of the Machine shops division fell 63% to EUR 49.9 (136.7) million.
The Machine shops and Foundries divisions had a combined order book at the end
of the review period of EUR 29.5 (86.4) million. Showing the order books for the
divisions separately is not justified because of the nature of Componenta's
supply chain.
Net sales of the Turkey division fell 63% to EUR 52.1 (141.7) million. The
division had an order book at the end of the review period of EUR 22.2 (48.1)
million.
Componenta's net sales by customer sector were as follows: off-road 30% (36%),
heavy trucks 18% (29%), automotive 18% (15%), diesel & wind 14% (6%), machine
building 19% (14%) and other 1% (1%).
Result
This unaudited interim report has been prepared in accordance with IAS 34
accounting principles. Componenta has applied the same accounting principles in
this interim report as in the 2008 financial statements, except for planned
depreciation 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. Previously planned depreciation on a straight line was used 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 improved the consolidated
operating result by EUR 6.2 million and the result for the period by EUR 4.7
million in the review period. Introducing the new method of depreciation does
not affect the 2008 figures for comparison.
The Group's operating profit in the review period excluding one-time items was
EUR -10.5 (46.2) million. The operating result declined from the previous year
mainly due to the sharp fall in volumes, which was caused by the decline in
markets and because of the customers' reduction of their own inventories. Due to
the adaptation measures taken towards the end of 2008 and during the first half
of this year the Group's operating costs decreased 56% in proportion of the
value of production. Other operating income includes exchange rate differences
on sales and purchases.
Analysis of changes in quarterly income statements
--------------------------------------------------------------------------------
| MEUR | Q1/09 | Q1/08 | Diff. | Q2/09 | Q2/08 | Diff. % |
| | | | % | | | |
--------------------------------------------------------------------------------
| Net Sales | 88.1 | 185.0 | -52 % | 70.6 | 201.0 | -65 % |
--------------------------------------------------------------------------------
| Value of production | 75.3 | 185.9 | -59 % | 66.1 | 207.3 | -68 % |
--------------------------------------------------------------------------------
| Materials | -24.1 | -67.4 | -64 % | -20.6 | -76.6 | -73 % |
--------------------------------------------------------------------------------
| Direct wages and | -25.1 | -46.9 | -47 % | -21.3 | -45.9 | -54 % |
| external services | | | | | | |
--------------------------------------------------------------------------------
| Other variable and | -29.2 | -42.5 | -31 % | -25.6 | -55.7 | -54 % |
| fixed costs | | | | | | |
--------------------------------------------------------------------------------
| Total costs | -78.3 | -156.8 | -50 % | -67.5 | -178.2 | -62 % |
--------------------------------------------------------------------------------
| EBITDA | -3.0 | 29.1 | -110 % | -1.5 | 29.0 | -105 % |
--------------------------------------------------------------------------------
The Group's net financial costs in the review period totalled EUR -10.5 (-12.7)
million. Net financial costs declined from the previous year mainly due to
exchange rate differences.
The consolidated result after financial items excluding one-time items was EUR
-21.0 (33.5) million. The result does not include any significant one-time
items.
Income taxes calculated from the result for the review period totalled EUR 5.1
(-8.5) million.
The net result for the period excluding one time items was EUR -15.9 (25.1)
million.
The earnings per share excluding one-time items were EUR -1.43 (2.20).
The return on investment excluding one-time items was -5.7% (25.7%) and return
on equity excluding one-time items was -51.3% (51.7%).
Financing
On 30 June 2009 Componenta Corporation had outstanding capital notes and
convertible capital notes with a combined value of EUR 42.4 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 loan. At the end of June 2009, the outstanding unconverted
capital notes entitled holders of them to subscribe to 3,165,000 shares.
At the end of the review period, Componenta had EUR 27.5 million in unused,
long-term credit facilities, as well as cash funds of EUR 4.9 million. In
addition, the Group has a EUR 150.0 million commercial paper programme, from
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 42.4
million, stood at EUR 221.3 (186.0) million. The costs of the debt financing
have increased during the review period. The company's net debt as a proportion
of shareholders' equity, including the capital notes in shareholders' equity,
was 226.6% (116.7%).
Componenta is making more efficient use of capital with a programme of selling
its trade receivables. Under this arrangement, some of the trade receivables are
sold without any right of recourse. By the end of the review period the company
had sold trade receivables totalling EUR 27.2 (59.7) million.
Componenta's cash flow from operations during the review period was EUR 10.5
(26.0) million, and of this the change in net working capital was EUR 22.2
(-16.9) million. The cash flow from investments was EUR -6.8 (-18.1) million,
which includes the cash flow from the Group's investments in production
facilities 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 13.9% (21.3%). The
Group's shareholders' equity on 30 June 2009, including the capital notes in
shareholders' equity, as a proportion of the balance sheet total was 24.6%
(31.8%). The Group's equity ratio has been impacted negatively by the change of
the cumulative translation difference of EUR 29 million since the beginning of
2008.
Performance of business divisions
Componenta's reporting structure changed when Componenta Wirsbo was transferred
from Other Business to the Machine shops division on 31 March 2009 and Tegelen
Pattern Shop, a unit that makes casting patterns in the Netherlands, was
transferred from Other Business to the Foundries division as from 1 January
2009. The figures for the first half of 2009 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 Weert and Heerlen in the Netherlands,
as well as the Tegelen Pattern Shop in the Netherlands.
The division's net sales in the review period declined 55% to EUR 72.1 (160.0)
million and the operating profit was EUR -7.0 million, corresponding to -9.7% of
net sales (EUR 21.2 million, 13.3%). Extremely low capacity usage was the main
factor having a negative impact on the division's operating result.
In the second quarter the division had sales of EUR 29.0 (86.4) million and an
operating profit of EUR -3.5 (12.4) million.
Machine shops
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.
Net sales of the Machine shops division fell 63% to EUR 49.9 (136.7) million and
the operating profit was EUR -5.5, corresponding to -11.0% of net sales (EUR 6.8
million, 5.0%). 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
located in Sweden, where adjusting the number of personnel has been slower than
in the Group's other countries.
The division had net sales in the second quarter of EUR 21.3 (71.0) million and
an operating profit of EUR -2.3 (4.2) million.
Turkey
Turkey division comprises the iron foundry in Orhangazi and the aluminium
foundry and production unit for aluminium wheels in Manisa.
Net sales of the Turkey division in the review period fell 63% to EUR 52.1
(141.7) million and the operating profit was EUR 0.1 million, corresponding to
0.2% of net sales (EUR 20.0 million, 14.1%). The division's operating profit for
the review period was hit by a sharp decline in volumes. Adjusting the costs has
succeeded well in Turkey, and despite the extremely low capacity utilization
rate the division's operating result turned positive during the second quarter.
Turkey division had net sales in the second quarter of EUR 28.0 (71.1) million
and an operating profit of EUR 0.6 (7.0) million.
Other Business
Other Business comprises the sales and logistics company Componenta UK in Great
Britain, real estate and service companies and the Group's administrative
functions. Other Business recorded an operating profit in the review period,
excluding one-time items, of EUR 2.2 (-0.1) million.
Shares and share capital
The shares of Componenta Corporation are quoted on the NASDAQ OMX Exchange in
Helsinki. At the end of June 2009 the company had a total of 10,957,798 shares.
At the end of the period the company's share capital stood at EUR 21.9 (21.9)
million. On 30 June 2009 the quoted price of Componenta Corporation shares stood
at EUR 4.01 (8.50). The average share price during the review period was EUR
4.64, the lowest quoted share price was EUR 3.60 and the highest EUR 5.73. At
the end of the review period the company's market capitalization was EUR 43.9
(93.0) million and the volume of shares traded during the period was equivalent
to 9.1% (16.2%) of the share stock.
The Annual General Meeting of Shareholders decided to pay a dividend of EUR 0.30
(0.50) per share for 2008.
Purchasing and disposing of company shares
Under the authorization of the AGM 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.
The AGM on 26 February 2007 authorized the Board to decide to issue shares and
grant option rights and other special rights with an entitlement to shares under
the following terms and conditions:
Under the authorization the Board may decide to issue shares and grant option
rights and other special rights as defined in chapter 10, section 1 of the
Finnish Companies Act, such that a maximum of 2,000,000 shares are issued under
the authorization. The authorization does not exclude the right of the Board of
Directors to decide on a direct issue of shares.
The authorization is valid for a period of five years from the date of the
decision of the AGM.
Under the aforementioned authorization, on 16 April 2009 the Board of Directors
of Componenta Corporation resolved 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.
Share-based incentive scheme
The share-based incentive scheme is based on the decision taken on 3 April 2007
by the Board of Directors of Componenta Corporation. The scheme comprises three
one-year earnings periods, which are the calendar years 2007, 2008 and 2009. The
bonuses will be paid in 2008, 2009 and 2010 partly in company shares and partly
in cash. The part to be paid in cash will cover the tax and similar charges
arising from the bonus. There is a ban on selling the shares for two years after
the end of the earnings period.
Any yield from the incentive scheme is 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 are met in full, the
scheme will pay a bonus of a maximum of 132,000 Componenta Corporation shares.
For the 2009 earnings period, a maximum of 87,400 Componenta Corporation shares
will be allocated in the scheme. The President and CEO will account for a
maximum of 26,000 out of the total figure and other key personnel for altogether
a maximum of 61,400 shares.
Investments
Componenta's investments in production facilities during the review period
totalled EUR 7.1 (19.6) million, including the financial leasing investments of
EUR 1.7 (1.3) million. The cash flow from investments was EUR -6.8 (-18.1)
million.
Board of Directors and Management
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.
At the end of the review period the corporate executive team of Componenta
Corporation comprised the following: President and CEO Heikki Lehtonen; Yaylalý
Günay, Senior Vice President, Investments; Hakan Göral, Senior Vice President,
Turkey division; CFO Mika Hassinen; Olli Karhunen, Senior Vice President,
Foundries division; Jari Leino, Sales Director, Heavy Trucks; Anu Mankki, Senior
Vice President, Human Resources; Tapio Rantala, Director, Business Development;
Michael Sjöberg, Senior Vice President, Machine shops division; and
Communications Director Pirjo Aarniovuori.
Personnel
During the review period the Group had on average 3,872 (5,356) employees,
including 134 (952) leased employees. The number of Group personnel at the end
of June 2009 was 3,776 (5,489), which includes 109 (1,025) leased employees. At
the end of the first half of 2009, 43% (49%) of the Group's personnel were in
Turkey, 30% (23%) in Finland, 18% (18%) in the Netherlands and 9% (10%) in
Sweden. The combined sum for personnel expenses and external services in the
Group declined by EUR 46.5 million or 50% compared to the previous year.
Risks
Fluctuations in the prices of Componenta Group's main raw material, recycled
metal, affect the sales 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, so a rise in the price of recycled metal reduces the sales
margins temporarily. When the prices of recycled metal go down, the Group's
margins correspondingly improve for a while.
The electricity consumption of the Group's foundries and machine shops creates a
spot price risk for the purchased electricity, so the Group purchases
electricity price forwards to hedge against the impact of electricity prices on
the financial performance. The target hedging level for the forecast electricity
consumption by the Group's production plants is 90% for the next 12 months, 60%
for the following year and 40% for the third year. Trading in electricity price
forwards has been outsourced. The Group aims to pass on the increase in the
price of electricity to customers with a separate electricity surcharge.
Appropriate insurance has been taken against risks associated with assets and
interruption of operations and to minimize indemnity.
The financial risks relating to Componenta Group's business operations are
managed in accordance with the treasury policy approved by the Board of
Directors. The objective is to protect the Group against unfavourable changes in
the finance markets and to secure the Group's financial performance and
financial position. Management of financial risks takes place in the corporate
treasury function.
Translating the shareholders' equity of Componenta Turkey into euro creates a
significant translation risk for the Group in Turkish lira. Changes in the value
of the US dollar, the UK pound and the euro in relation to the Turkish lira have
an impact on the company's operating profit and profit after financial items in
the short term.
According to Componenta's treasury policy, the currency risk is divided into the
transaction risk resulting from foreign currency denominated income and expenses
and the translation risk resulting from foreign currency denominated equity
investments and the profit or loss on these.
The transaction position is formed by foreign currency-denominated sales
receivables and trade payables in the balance sheet where changes in these
affect the operating profit. Foreign currency-denominated cash and cash in bank
are processed separately from this position, as are the Group's internal and
external foreign currency loans, for which the impact on the result arising from
changes in exchange rates is entered under financial income and expenses. The
degree of hedging for both transaction positions is set at 90-110%. For
Componenta Turkey, however, the net value is calculated after setting foreign
currency-denominated sales receivables in the balance sheet against foreign
currency-denominated debt, taking advantage of the natural hedging relationship.
If the total sums of the foreign currency-denominated balance sheet items in
Turkey differ from each other, the degree of hedging shall be decided by the
president and CEO up to EUR 20 million.
The translation position is determined from the shareholder's equity and
retained earnings of non-Finnish subsidiary and associated companies for whom
the operating currency is not the euro. In accordance with the treasury policy,
the translation position is hedged at the discretion of the Group's President
and CEO 0-100%.
The Group has no significant concentrations of risk for receivables. The current
general economic situation increases customer credit risk. To reduce credit
risk, receivables from major customers have been sold to financial institutions
without any right of recourse and the payment periods for smaller customers have
been shortened. Monitoring of receivables has also been intensified and the
Group has had to resort to bans on deliveries to several smaller customers in
order to control the credit risk. The Group recognized no major credit losses
during the review period.
The company's financial agreements contain normal clauses according to which the
company's loans may fall due for payment before the maturity date also when
control of the company changes as a consequence of a public purchase offer. The
company is not party to any other significant contracts that will come into
force, that can be amended or that can cease to be valid if control of the
company changes as a consequence of a public purchase offer.
Prospects
Componenta's prospects for the latter part of 2009 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 the Group's customer sectors remains weak at the beginning
of the third quarter of 2009, due to the current recession in the global
economy.
The slow down in construction in the USA and Europe has reduced demand
considerably in the off-road industry. Investments in the mining industry are
expected to decrease significantly in 2009. Because of the recession, many
countries have initiated infrastructure projects, and it is estimated that these
projects will start to increase the demand for off-road vehicles in 2010. The
demand for agriculture machinery has decreased less than the other sectors in
the off-road industry.
The number of heavy trucks registered in Europe in the period of January - May
was 45% less than in the previous year. Production volumes in this year are
expected to decline 50 - 60% from 2008. Manufacturers of heavy trucks have been
heavily clearing their own excess stocks in the first half of 2009. It is
estimated that the manufacturers' stocks will reach the level to correspond with
the current demand during the third quarter of 2009 or latest by the end of this
year.
The number of new passenger cars registered decreased 11% in the period of
January - June from the previous year. Automotive production in Europe increased
in the second quarter compared to the beginning of the year. The reason for the
increase is various subsidy measures taken in many countries, aimed at renewing
the fleet of cars.
Demand in the wind power sector has weakened during the review period as wind
power projects have faced problems with financing. Demand for diesel engines has
lately started to decrease. However, due to the long order book, deliveries to
the manufacturers of diesel engines have remained on a reasonable level.
Weakened prospects in the diesel engine industry will decrease the number of
components delivered to customers as they have started to clear their own
stocks.
Demand in the machine building industry is expected to remain low level.
Componenta's order book at the end of the second quarter of 2009 was 63% lower
than at the same time in the previous year. The order book has been heavily
reduced by the sharp fall in demand, which is largely due to the current crisis
in the global economy and recent measures taken by customers to reduce their own
stocks. On the other hand, at the end of the second quarter the order book stood
12% higher than at the end of previous quarter.
Adaptation actions taken at the end of the previous year and in the first half
of 2009 reduced the Group's operating costs in the second quarter altogether by
62% from the corresponding period in 2008. Investments in production facilities
are estimated to be around MEUR 10 (MEUR 42.3) in 2009.
Componenta Group's 2009 net sales are expected to fall more than 50% from the
previous year and the result after financial items, excluding one-time items, is
expected to be clearly negative. However, it is estimated that the Group's cash
flow from operations will be positive due to the major reduction in working
capital.
Interim report tables
Consolidated income statement
--------------------------------------------------------------------------------
| MEUR | 1.1.-30 | 1.1.-30 | 1.4.-30. | 1.4.-30. | 1.1.-31. |
| | .6.2009 | .6.2008 | 6.2009 | 6.2008 | 12.2008 |
--------------------------------------------------------------------------------
| Net sales | 158.7 | 386.0 | 70.6 | 201.0 | 681.4 |
--------------------------------------------------------------------------------
| Other operating income | 1.3 | 5.1 | -0.2 | -2.0 | 8.3 |
--------------------------------------------------------------------------------
| Operating expenses | -164.4 | -333.0 | -71.8 | -170.0 | -618.9 |
--------------------------------------------------------------------------------
| Depreciation, | -6.1 | -11.8 | -2.9 | -5.8 | -23.9 |
| amortization and | | | | | |
| write-down | | | | | |
--------------------------------------------------------------------------------
| Share of the associated | 0.0 | 0.0 | 0.0 | 0.0 | 0.2 |
| companies' result | | | | | |
--------------------------------------------------------------------------------
| Operating profit | -10.5 | 46.3 | -4.3 | 23.2 | 47.3 |
--------------------------------------------------------------------------------
| % of net sales | -6.6 | 12.0 | -6.2 | 11.5 | 6.9 |
--------------------------------------------------------------------------------
| Financial income and | -10.5 | -12.7 | -5.7 | -4.5 | -28.7 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Result after financial | -21.0 | 33.6 | -10.1 | 18.7 | 18.6 |
| items | | | | | |
--------------------------------------------------------------------------------
| % of net sales | -13.2 | 8.7 | -14.3 | 9.3 | 2.7 |
--------------------------------------------------------------------------------
| Income taxes | 5.1 | -8.5 | 2.6 | -4.7 | -4.6 |
--------------------------------------------------------------------------------
| Net profit | -15.8 | 25.1 | -7.5 | 14.0 | 13.9 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Allocation of net | | | | | |
| profit for the period | | | | | |
--------------------------------------------------------------------------------
| To equity holders of | -15.6 | 24.1 | -7.5 | 13.6 | 13.5 |
| the parent | | | | | |
--------------------------------------------------------------------------------
| To minority interest | -0.2 | 1.0 | -0.1 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| | -15.8 | 25.1 | -7.5 | 14.0 | 13.9 |
--------------------------------------------------------------------------------
| Earning per share | | | | | |
| calculated on the | | | | | |
| profit attributable to | | | | | |
| equity holders of the | | | | | |
| parent | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -1.43 | 2.20 | -0.68 | 1.24 | 1.24 |
--------------------------------------------------------------------------------
| Earnings per share with | -1.06 | 1.74 | -0.51 | 0.98 | 1.04 |
| dilution, EUR | | | | | |
--------------------------------------------------------------------------------
Consolidated statement of comprehensive income
--------------------------------------------------------------------------------
| MEUR | 1.1.-30 | 1.1.-30 | 1.4.-30 | 1.4.-30 | 1.1.-31. |
| | .6.2009 | .6.2008 | .6.2009 | .6.2008 | 12.2008 |
--------------------------------------------------------------------------------
| Net profit | -15.8 | 25.1 | -7.5 | 14.0 | 13.9 |
--------------------------------------------------------------------------------
| Other comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Translation differences | 0.0 | -15.4 | 4.9 | 6.3 | -30.8 |
--------------------------------------------------------------------------------
| Cash flow hedges | 0.7 | 2.3 | 1.7 | 3.4 | -5.3 |
--------------------------------------------------------------------------------
| Income tax on other | -0.2 | -0.6 | -0.5 | -1.0 | 1.4 |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 0.5 | -13.7 | 6.1 | 8.7 | -34.7 |
| income, net of tax | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | -15.3 | 11.4 | -1.4 | 22.7 | -20.8 |
| income | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Allocation of total | | | | | |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| To equity holders of the | -15.1 | 10.9 | -1.6 | 21.6 | -19.5 |
| parent | | | | | |
--------------------------------------------------------------------------------
| To minority interest | -0.2 | 0.5 | 0.2 | 1.1 | -1.3 |
--------------------------------------------------------------------------------
| | -15.3 | 11.4 | -1.4 | 22.7 | -20.8 |
--------------------------------------------------------------------------------
Consolidated income statement excluding one-time items
--------------------------------------------------------------------------------
| MEUR | 1.1.-30 | 1.1.-30 | 1.4.-30. | 1.4.-30. | 1.1.-31. |
| | .6.2009 | .6.2008 | 6.2009 | 6.2008 | 12.2008 |
--------------------------------------------------------------------------------
| Net sales | 158.7 | 386.0 | 70.6 | 201.0 | 681.4 |
--------------------------------------------------------------------------------
| Other operating income | 1.2 | 5.1 | -0.3 | -2.1 | 8.3 |
--------------------------------------------------------------------------------
| Operating expenses | -164.3 | -333.0 | -71.8 | -170.0 | -618.2 |
--------------------------------------------------------------------------------
| Depreciation, | -6.1 | -11.8 | -2.9 | -5.8 | -23.9 |
| amortization and | | | | | |
| write-down | | | | | |
--------------------------------------------------------------------------------
| Share of the associated | 0.0 | 0.0 | 0.0 | 0.0 | 0.2 |
| companies' result | | | | | |
--------------------------------------------------------------------------------
| Operating profit | -10.5 | 46.2 | -4.4 | 23.1 | 47.9 |
--------------------------------------------------------------------------------
| % of net sales | -6.6 | 12.0 | -6.3 | 11.5 | 7.0 |
--------------------------------------------------------------------------------
| Financial income and | -10.5 | -12.7 | -5.7 | -4.5 | -28.7 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Result after financial | -21.0 | 33.5 | -10.2 | 18.6 | 19.2 |
| items | | | | | |
--------------------------------------------------------------------------------
| % of net sales | -13.2 | 8.7 | -14.4 | 9.3 | 2.8 |
--------------------------------------------------------------------------------
| Income taxes | 5.1 | -8.4 | 2.6 | -4.7 | -4.8 |
--------------------------------------------------------------------------------
| Net profit | -15.9 | 25.1 | -7.6 | 13.9 | 14.4 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Allocation of net | | | | | |
| profit for the period | | | | | |
--------------------------------------------------------------------------------
| To equity holders of | -15.6 | 24.1 | -7.5 | 13.6 | 14.0 |
| the parent | | | | | |
--------------------------------------------------------------------------------
| To minority interest | -0.2 | 1.0 | -0.1 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| | -15.9 | 25.1 | -7.6 | 13.9 | 14.4 |
--------------------------------------------------------------------------------
| Earning per share | | | | | |
| calculated on the | | | | | |
| profit attributable to | | | | | |
| equity holders of the | | | | | |
| parent | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -1.43 | 2.20 | -0.68 | 1.24 | 1.28 |
--------------------------------------------------------------------------------
Consolidated statement of financial position
--------------------------------------------------------------------------------
| MEUR | 30.6.2009 | 30.6.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Intangible assets | 5.8 | 2.9 | 4.6 |
--------------------------------------------------------------------------------
| Goodwill | 31.7 | 36.5 | 31.7 |
--------------------------------------------------------------------------------
| Investment properties | 1.8 | 1.8 | 1.8 |
--------------------------------------------------------------------------------
| Tangible assets | 239.0 | 240.1 | 237.9 |
--------------------------------------------------------------------------------
| Investment in associates | 1.0 | 0.8 | 0.9 |
--------------------------------------------------------------------------------
| Receivables | 4.4 | 4.2 | 4.4 |
--------------------------------------------------------------------------------
| Other investments | 0.4 | 1.0 | 0.4 |
--------------------------------------------------------------------------------
| Deferred tax assets | 13.2 | 8.2 | 10.6 |
--------------------------------------------------------------------------------
| Total non-current assets | 297.2 | 295.6 | 292.4 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 50.3 | 94.4 | 83.8 |
--------------------------------------------------------------------------------
| Receivables | 44.5 | 101.9 | 66.7 |
--------------------------------------------------------------------------------
| Tax receivables | 0.2 | 0.0 | 2.3 |
--------------------------------------------------------------------------------
| Cash and bank accounts | 4.9 | 9.2 | 5.2 |
--------------------------------------------------------------------------------
| Total current assets | 99.9 | 205.5 | 158.0 |
--------------------------------------------------------------------------------
| Total assets | 397.1 | 501.1 | 450.4 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Shareholders' equity and | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | | |
--------------------------------------------------------------------------------
| Share capital | 21.9 | 21.9 | 21.9 |
--------------------------------------------------------------------------------
| Other equity | 26.4 | 75.2 | 44.8 |
--------------------------------------------------------------------------------
| Equity attributable to equity | 48.3 | 97.1 | 66.7 |
| holders of the parent | | | |
--------------------------------------------------------------------------------
| Minority interest | 6.9 | 9.6 | 7.1 |
--------------------------------------------------------------------------------
| Shareholders' equity | 55.2 | 106.7 | 73.8 |
--------------------------------------------------------------------------------
| Liabilities | | | |
--------------------------------------------------------------------------------
| Non-current | | | |
--------------------------------------------------------------------------------
| Capital loan | 27.1 | 41.1 | 41.8 |
--------------------------------------------------------------------------------
| Interest bearing | 178.0 | 119.4 | 165.3 |
--------------------------------------------------------------------------------
| Interest free | - | 0.5 | - |
--------------------------------------------------------------------------------
| Provisions | 6.1 | 7.7 | 5.8 |
--------------------------------------------------------------------------------
| Deferred tax liability | 5.5 | 9.0 | 7.9 |
--------------------------------------------------------------------------------
| Current | | | |
--------------------------------------------------------------------------------
| Capital loan | 15.4 | 11.6 | 9.5 |
--------------------------------------------------------------------------------
| Interest bearing | 48.2 | 75.8 | 51.2 |
--------------------------------------------------------------------------------
| Interest free | 59.8 | 121.0 | 93.3 |
--------------------------------------------------------------------------------
| Tax liabilities | 0.0 | 3.0 | 0.1 |
--------------------------------------------------------------------------------
| Provisions | 1.8 | 5.3 | 1.8 |
--------------------------------------------------------------------------------
| Total liabilities | 341.9 | 394.4 | 376.6 |
--------------------------------------------------------------------------------
| Total shareholders' equity and | 397.1 | 501.1 | 450.4 |
| liabilities | | | |
--------------------------------------------------------------------------------
Consolidated cash flow statement
--------------------------------------------------------------------------------
| MEUR | 1.1.- | 1.1.- | 1.1.- |
| | 3 | 30 | 31 |
| | 0.6.200 | .6.2008 | .12.2008 |
| | 9 | | |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | |
--------------------------------------------------------------------------------
| Result after financial items | -21.0 | 33.6 | 18.6 |
--------------------------------------------------------------------------------
| Depreciation, amortization and write-down | 6.1 | 11.8 | 23.9 |
--------------------------------------------------------------------------------
| Net financial income and expenses | 10.5 | 12.7 | 28.7 |
--------------------------------------------------------------------------------
| Other income and expenses, adjustments to | 0.3 | 1.7 | -2.6 |
| cash flow | | | |
--------------------------------------------------------------------------------
| Change in net working capital | 22.2 | -16.9 | -4.2 |
--------------------------------------------------------------------------------
| Cash flow from operations before financing | 18.1 | 42.9 | 64.4 |
| and income taxes | | | |
--------------------------------------------------------------------------------
| Interest received and paid and dividends | -10.5 | -14.5 | -28.0 |
| received | | | |
--------------------------------------------------------------------------------
| Taxes paid | 2.9 | -2.4 | -7.0 |
--------------------------------------------------------------------------------
| Net cash flow from operating activities | 10.5 | 26.0 | 29.4 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Capital expenditure in tangible and | -6.7 | -17.8 | -39.6 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Proceeds from tangible and intangible assets | - | - | 0.3 |
--------------------------------------------------------------------------------
| Other investments and loans granted | -0.1 | - | - |
--------------------------------------------------------------------------------
| Proceeds from other investments and | - | - | 0.0 |
| repayments of loan receivables | | | |
--------------------------------------------------------------------------------
| Acquisition of subsidiary, net of cash | - | -0.3 | -1.3 |
| acquired | | | |
--------------------------------------------------------------------------------
| Net cash flow from investing activities | -6.8 | -18.1 | -40.6 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| Dividends paid | -3.3 | -5.6 | -5.6 |
--------------------------------------------------------------------------------
| Repayment of finance lease liabilities | -0.8 | -0.6 | -2.4 |
--------------------------------------------------------------------------------
| Draw-down (+)/ repayment (-) of current | -5.4 | -56.0 | -82.7 |
| loans | | | |
--------------------------------------------------------------------------------
| Draw-down of non-current loans | 23.5 | 47.0 | 98.0 |
--------------------------------------------------------------------------------
| Repayment of non-current loans and other | -18.0 | -13.3 | -16.1 |
| changes | | | |
--------------------------------------------------------------------------------
| Net cash flow from financing activities | -4.0 | -28.5 | -8.7 |
--------------------------------------------------------------------------------
| Change in liquid assets | -0.3 | -20.6 | -20.0 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Cash and bank account at the beginning of | 5.2 | 27.5 | 27.5 |
| the period | | | |
--------------------------------------------------------------------------------
| Effects of exchange rate changes on cash | 0.0 | 2.3 | -2.3 |
--------------------------------------------------------------------------------
| Cash and bank account at the period end | 4.9 | 9.2 | 5.2 |
--------------------------------------------------------------------------------
| Change during the financial period | -0.3 | -20.6 | -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 | | | | 1.7 | -14. | 24.1 | 10.9 | 0.5 | 11.4 |
| comprehensive | | | | | 9 | | | | |
| income | | | | | | | | | |
--------------------------------------------------------------------------------
| Other changes | | | 0.2 | | | | 0.2 | | 0.2 |
--------------------------------------------------------------------------------
| Dividends paid | | | | | | -5.5 | -5.5 | -0.1 | -5.6 |
--------------------------------------------------------------------------------
| Change in | | | | | | | 0.0 | -0.1 | -0.1 |
| minority | | | | | | | | | |
| interest | | | | | | | | | |
--------------------------------------------------------------------------------
| Increase of | 0.0 | 0.1 | 0.1 | | | | 0.2 | | 0.2 |
| share capital | | | | | | | | | |
| (warrants) | | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 21. | 15.0 | 6.4 | 2.8 | -5.1 | 56.1 | 97.1 | 9.6 | 106. |
| equity | 9 | | | | | | | | 7 |
| 30.6.2008 | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | | |
--------------------------------------------------------------------------------
| 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. | -19. | 45.5 | 66.7 | 7.1 | 73.8 |
| equity | 9 | | | 8 | 4 | | | | |
| 1.1.2009 | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | 0.5 | 0.0 | -15.6 | -15. | -0.2 | -15. |
| comprehensive | | | | | | | 1 | | 3 |
| income | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | | | | | | -3.3 | -3.3 | | -3.3 |
--------------------------------------------------------------------------------
| Shareholders' | 21. | 15.0 | 6.5 | -2. | -19. | 26.6 | 48.3 | 6.9 | 55.2 |
| equity | 9 | | | 3 | 4 | | | | |
| 30.6.2009 | | | | | | | | | |
--------------------------------------------------------------------------------
Key ratios
--------------------------------------------------------------------------------
| | 30.6.200 | 30.6.2008 | 31.12.200 |
| | 9 | | 8 |
--------------------------------------------------------------------------------
| Equity ratio. % | 13.9 | 21.3 | 16.4 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 4.41 | 8.87 | 6.09 |
--------------------------------------------------------------------------------
| Invested capital | 323.9 | 354.5 | 341.5 |
--------------------------------------------------------------------------------
| Return on investment, % | -5.7 | 25.7 | 13.6 |
--------------------------------------------------------------------------------
| Return on investment, excluding one-time | -5.7 | 25.7 | 13.7 |
| items % | | | |
--------------------------------------------------------------------------------
| Return on equity, % | -51.3 | 51.7 | 14.5 |
--------------------------------------------------------------------------------
| Return on equity, excluding one-time | -51.3 | 51.7 | 14.9 |
| items % | | | |
--------------------------------------------------------------------------------
| Net interest bearing debt, MEUR, | 263.7 | 238.6 | 262.5 |
| preferred capital note in debt | | | |
--------------------------------------------------------------------------------
| Net gearing, %, preferred capital note in | 477.6 | 223.6 | 355.8 |
| debt | | | |
--------------------------------------------------------------------------------
| Order book, MEUR | 51.7 | 138.0 | 73.6 |
--------------------------------------------------------------------------------
| Investments in non-current assets without | 6.9 | 18.6 | 39.3 |
| finance leases, MEUR | | | |
--------------------------------------------------------------------------------
| Investments in non-current assets incl | 8.6 | 20.0 | 43.6 |
| finance leases. MEUR | | | |
--------------------------------------------------------------------------------
| Investments in non-current assets, % of | 5.4 | 5.2 | 6.4 |
| net sales | | | |
--------------------------------------------------------------------------------
| Average number of personnel during the | 3,738 | 4,404 | 4,395 |
| period | | | |
--------------------------------------------------------------------------------
| Average number of personnel during the | 3,872 | 5,356 | 5,207 |
| period, incl. leased personnel | | | |
--------------------------------------------------------------------------------
| Number of personnel at period end | 3,667 | 4,464 | 4,294 |
--------------------------------------------------------------------------------
| Number of personnel at period end, incl. | 3,776 | 5,489 | 4,488 |
| leased personnel | | | |
--------------------------------------------------------------------------------
| Share of export and foreign activities in | 79.6 | 88.5 | 87.6 |
| net sales, % | | | |
--------------------------------------------------------------------------------
| Contingent liabilities, MEUR | 223.8 | 176.7 | 186.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | -1.43 | 2.20 | 1.24 |
--------------------------------------------------------------------------------
| Earnings per share, with dilution (EPS), | -1.06 | 1.74 | 1.04 |
| EUR | | | |
--------------------------------------------------------------------------------
| Cash flow per share, EUR | 0.96 | 2.38 | 2.68 |
--------------------------------------------------------------------------------
Changes in tangible assets and goodwill
--------------------------------------------------------------------------------
| MEUR | 1-6/2009 | 1-6/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
| Changes in tangible assets | | | |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of | 550.9 | 568.1 | 568.1 |
| the period | | | |
--------------------------------------------------------------------------------
| Translation difference | 0.2 | -26.1 | -54.4 |
--------------------------------------------------------------------------------
| Additions | 6.6 | 18.6 | 39.0 |
--------------------------------------------------------------------------------
| Disposal of subsidiary | - | - | - |
--------------------------------------------------------------------------------
| Disposals | -0.2 | -1.2 | -1.8 |
--------------------------------------------------------------------------------
| Acquisition cost at the end of the | 557.5 | 559.4 | 550.9 |
| period | | | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Accumulated depreciation at the | -313.0 | -323.2 | -323.2 |
| beginning of the period | | | |
--------------------------------------------------------------------------------
| Translation difference | -0.2 | 14.3 | 31.8 |
--------------------------------------------------------------------------------
| Accumulated depreciation on additions | - | - | - |
--------------------------------------------------------------------------------
| Accumulated depreciation on disposals | 0.0 | 0.9 | 1.4 |
--------------------------------------------------------------------------------
| Depreciation on disposal of subsidiary | - | - | - |
--------------------------------------------------------------------------------
| Depreciation during the period | -5.3 | -11.3 | -23.0 |
--------------------------------------------------------------------------------
| Accumulated depreciation at the end of | -318.5 | -319.3 | -313.0 |
| the period | | | |
--------------------------------------------------------------------------------
| Book value at the end of the period | 239.0 | 240.1 | 237.9 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Goodwill | | | |
--------------------------------------------------------------------------------
| Acquisition cost at the beginning of | 34.0 | 43.1 | 43.1 |
| the period | | | |
--------------------------------------------------------------------------------
| Additions | - | - | 0.0 |
--------------------------------------------------------------------------------
| Disposals | - | - | -1.4 |
--------------------------------------------------------------------------------
| Translation difference | 0.0 | -4.3 | -7.7 |
--------------------------------------------------------------------------------
| Acquisition cost at the end of the | 34.0 | 38.8 | 34.0 |
| period | | | |
--------------------------------------------------------------------------------
| Accumulated depreciation at the | -2.3 | -2.3 | -2.3 |
| beginning of the period | | | |
--------------------------------------------------------------------------------
| Accumulated depreciation at the end of | -2.3 | -2.3 | -2.3 |
| the period | | | |
--------------------------------------------------------------------------------
| Book value at the end of the period | 31.7 | 36.5 | 31.7 |
--------------------------------------------------------------------------------
Group development
Net sales by market area
--------------------------------------------------------------------------------
| MEUR | 1-12/2008 | 1-6/2008 | 1-6/2009 |
--------------------------------------------------------------------------------
| Finland | 102.4 | 57.6 | 33.2 |
--------------------------------------------------------------------------------
| Sweden | 104.8 | 55.1 | 19.0 |
--------------------------------------------------------------------------------
| Germany | 100.7 | 52.6 | 29.6 |
--------------------------------------------------------------------------------
| UK | 80.7 | 50.9 | 15.6 |
--------------------------------------------------------------------------------
| Turkey | 80.5 | 47.8 | 24.3 |
--------------------------------------------------------------------------------
| Benelux countries | 72.4 | 42.4 | 9.3 |
--------------------------------------------------------------------------------
| Other European countries | 105.2 | 63.5 | 21.9 |
--------------------------------------------------------------------------------
| Other countries | 34.7 | 16.1 | 5.7 |
--------------------------------------------------------------------------------
| Total | 681.4 | 386.0 | 158.7 |
--------------------------------------------------------------------------------
Quarterly development by market area
--------------------------------------------------------------------------------
| MEUR | Q1/08 | Q2/08 | Q3/08 | Q4/08 | Q1/09 | Q2/09 |
--------------------------------------------------------------------------------
| Finland | 34.6 | 23.0 | 18.9 | 26.0 | 21.4 | 11.8 |
--------------------------------------------------------------------------------
| Sweden | 19.8 | 35.3 | 25.0 | 24.8 | 11.0 | 8.0 |
--------------------------------------------------------------------------------
| Germany | 25.5 | 27.1 | 28.4 | 19.7 | 16.9 | 12.7 |
--------------------------------------------------------------------------------
| UK | 26.8 | 24.1 | 19.1 | 10.7 | 7.6 | 7.9 |
--------------------------------------------------------------------------------
| Turkey | 21.6 | 26.2 | 26.2 | 6.5 | 9.0 | 15.3 |
--------------------------------------------------------------------------------
| Benelux countries | 18.8 | 23.7 | 18.3 | 11.7 | 6.8 | 2.6 |
--------------------------------------------------------------------------------
| Other European | 30.3 | 33.2 | 24.7 | 16.9 | 11.6 | 10.4 |
| countries | | | | | | |
--------------------------------------------------------------------------------
| Other countries | 7.7 | 8.4 | 9.5 | 9.2 | 3.8 | 1.9 |
--------------------------------------------------------------------------------
| Total | 185.0 | 201.0 | 170.1 | 125.3 | 88.1 | 70.6 |
--------------------------------------------------------------------------------
Group development
--------------------------------------------------------------------------------
| MEUR | 1-12/2008 | 1-6/2008 | 1-6/2009 |
--------------------------------------------------------------------------------
| Net sales | 681.4 | 386.0 | 158.7 |
--------------------------------------------------------------------------------
| Operating profit | 47.3 | 46.3 | -10.5 |
--------------------------------------------------------------------------------
| Net financial items *) | -28.7 | -12.7 | -10.5 |
--------------------------------------------------------------------------------
| Profit/loss after financial items | 18.6 | 33.6 | -21.0 |
--------------------------------------------------------------------------------
| *) Net financial items are included in the profit of Other | |
| business | |
--------------------------------------------------------------------------------
Group development by business division
--------------------------------------------------------------------------------
| Net sales, MEUR | 1-12/2008 | 1-6/2008 | 1-6/2009 |
--------------------------------------------------------------------------------
| Foundries | 294.0 | 160.0 | 72.1 |
--------------------------------------------------------------------------------
| Machine shops | 243.3 | 136.7 | 49.9 |
--------------------------------------------------------------------------------
| Turkey | 242.7 | 141.7 | 52.1 |
--------------------------------------------------------------------------------
| Other business | 75.7 | 46.5 | 24.9 |
--------------------------------------------------------------------------------
| Internal and one-time items | -174.2 | -99.0 | -40.3 |
--------------------------------------------------------------------------------
| Componenta total | 681.4 | 386.0 | 158.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit, MEUR | 1-12/2008 | 1-6/2008 | 1-6/2009 |
--------------------------------------------------------------------------------
| Foundries | 23.2 | 21.2 | -7.0 |
--------------------------------------------------------------------------------
| Machine shops | 4.3 | 6.8 | -5.5 |
--------------------------------------------------------------------------------
| Turkey | 19.9 | 20.0 | 0.1 |
--------------------------------------------------------------------------------
| Other business | -0.3 | -0.1 | 2.2 |
--------------------------------------------------------------------------------
| Internal and one-time items | 0.2 | -1.6 | -0.2 |
--------------------------------------------------------------------------------
| Componenta total | 47.3 | 46.3 | -10.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book, MEUR | 12/2008 | 6/2008 | 6/2009 |
--------------------------------------------------------------------------------
| Foundries and Machine shops | 53.5 | 86.4 | 29.5 |
--------------------------------------------------------------------------------
| Turkey | 17.9 | 48.1 | 22.2 |
--------------------------------------------------------------------------------
| Other business | 2.3 | 3.5 | 0.0 |
--------------------------------------------------------------------------------
| Componenta total | 73.6 | 138.0 | 51.7 |
--------------------------------------------------------------------------------
Group development by quarter
--------------------------------------------------------------------------------
| MEUR | Q1/08 | Q2/08 | Q3/08 | Q4/08 | Q1/09 | Q2/09 |
--------------------------------------------------------------------------------
| Net sales | 185.0 | 201.0 | 170.1 | 125.3 | 88.1 | 70.6 |
--------------------------------------------------------------------------------
| Operating profit | 23.1 | 23.2 | 7.2 | -6.2 | -6.1 | -4.3 |
--------------------------------------------------------------------------------
| Net financial items | -8.2 | -4.5 | -5.9 | -10.1 | -4.7 | -5.7 |
| *) | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss after | 14.9 | 18.7 | 1.3 | -16.3 | -10.9 | -10.1 |
| financial items | | | | | | |
--------------------------------------------------------------------------------
| *) Net financial items are included in | | | | |
| the profit of Other business | | | | |
--------------------------------------------------------------------------------
Quarterly development by business division
--------------------------------------------------------------------------------
| Net sales, MEUR | Q1/08 | Q2/08 | Q3/08 | Q4/08 | Q1/09 | Q2/09 |
--------------------------------------------------------------------------------
| Foundries | 73.6 | 86.4 | 71.5 | 62.6 | 43.1 | 29.0 |
--------------------------------------------------------------------------------
| Machine shops | 65.7 | 71.0 | 56.1 | 50.5 | 28.6 | 21.3 |
--------------------------------------------------------------------------------
| Turkey | 70.7 | 71.1 | 70.6 | 30.4 | 24.0 | 28.0 |
--------------------------------------------------------------------------------
| Other business | 24.8 | 21.7 | 16.3 | 12.8 | 12.8 | 12.1 |
--------------------------------------------------------------------------------
| Internal and | -49.9 | -49.1 | -44.3 | -30.9 | -20.5 | -19.8 |
| one-time items | | | | | | |
--------------------------------------------------------------------------------
| Componenta total | 185.0 | 201.0 | 170.1 | 125.3 | 88.1 | 70.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit, | Q1/08 | Q2/08 | Q3/08 | Q4/08 | Q1/09 | Q2/09 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| Foundries | 8.8 | 12.4 | 2.2 | -0.3 | -3.4 | -3.5 |
--------------------------------------------------------------------------------
| Machine shops | 2.6 | 4.2 | 0.7 | -3.2 | -3.2 | -2.3 |
--------------------------------------------------------------------------------
| Turkey | 13.0 | 7.0 | 4.2 | -4.2 | -0.6 | 0.6 |
--------------------------------------------------------------------------------
| Other business | 0.1 | -0.2 | 0.3 | -0.5 | 0.9 | 1.2 |
--------------------------------------------------------------------------------
| Internal and | -1.5 | -0.1 | -0.1 | 1.9 | 0.2 | -0.4 |
| one-time items | | | | | | |
--------------------------------------------------------------------------------
| Componenta total | 23.1 | 23.2 | 7.2 | -6.2 | -6.1 | -4.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order book at period | Q1/08 | Q2/08 | Q3/08 | Q4/08 | Q1/09 | Q2/09 |
| end, MEUR | | | | | | |
--------------------------------------------------------------------------------
| Foundries and | 85.7 | 86.4 | 85.5 | 53.5 | 29.8 | 29.5 |
| Machine shops | | | | | | |
--------------------------------------------------------------------------------
| Turkey | 45.7 | 48.1 | 31.2 | 17.9 | 14.6 | 22.2 |
--------------------------------------------------------------------------------
| Other business | 3.2 | 3.5 | 6.5 | 2.3 | 1.8 | 0.0 |
--------------------------------------------------------------------------------
| Componenta total | 134.6 | 138.0 | 123.2 | 73.6 | 46.2 | 51.7 |
--------------------------------------------------------------------------------
Group development excluding one-time items
--------------------------------------------------------------------------------
| MEUR | 1-12/2008 | 1-6/2008 | 1-6/2009 |
--------------------------------------------------------------------------------
| Net sales | 681.4 | 386.0 | 158.7 |
--------------------------------------------------------------------------------
| Operating profit | 47.9 | 46.2 | -10.5 |
--------------------------------------------------------------------------------
| Net financial items *) | -28.7 | -12.7 | -10.5 |
--------------------------------------------------------------------------------
| Profit/loss after financial items | 19.2 | 33.5 | -21.0 |
--------------------------------------------------------------------------------
| *) 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 | 1-6/2008 | 1-6/2009 |
--------------------------------------------------------------------------------
| Foundries | 23.2 | 21.2 | -7.0 |
--------------------------------------------------------------------------------
| Machine shops | 4.3 | 6.8 | -5.5 |
--------------------------------------------------------------------------------
| Turkey | 19.9 | 20.0 | 0.1 |
--------------------------------------------------------------------------------
| Other business | -0.3 | -0.1 | 2.2 |
--------------------------------------------------------------------------------
| Internal items | 0.8 | -1.7 | -0.2 |
--------------------------------------------------------------------------------
| Componenta total | 47.9 | 46.2 | -10.5 |
--------------------------------------------------------------------------------
Group development by quarter excluding one-time items
--------------------------------------------------------------------------------
| MEUR | Q1/08 | Q2/08 | Q3/08 | Q4/08 | Q1/09 | Q2/09 |
--------------------------------------------------------------------------------
| Net sales | 185.0 | 201.0 | 170.1 | 125.3 | 88.1 | 70.6 |
--------------------------------------------------------------------------------
| Operating profit | 23.1 | 23.1 | 7.7 | -6.0 | -6.1 | -4.4 |
--------------------------------------------------------------------------------
| Net financial items | -8.2 | -4.5 | -5.9 | -10.1 | -4.7 | -5.7 |
| *) | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss after | 14.9 | 18.6 | 1.7 | -16.1 | -10.8 | -10.2 |
| financial items | | | | | | |
--------------------------------------------------------------------------------
| *) Net financial items are included in | | | | |
| the profit of Other business | | | | |
--------------------------------------------------------------------------------
Quarterly development by business division excluding one-time items
--------------------------------------------------------------------------------
| Operating profit. | Q1/08 | Q2/08 | Q3/08 | Q4/08 | Q1/09 | Q2/09 |
| MEUR | | | | | | |
--------------------------------------------------------------------------------
| Foundries | 8.8 | 12.4 | 2.2 | -0.3 | -3.4 | -3.5 |
--------------------------------------------------------------------------------
| Machine shops | 2.6 | 4.2 | 0.7 | -3.2 | -3.2 | -2.3 |
--------------------------------------------------------------------------------
| Turkey | 13.0 | 7.0 | 4.2 | -4.2 | -0.6 | 0.6 |
--------------------------------------------------------------------------------
| Other business | 0.1 | -0.2 | 0.3 | -0.5 | 0.9 | 1.2 |
--------------------------------------------------------------------------------
| Internal items | -1.5 | -0.2 | 0.3 | 2.1 | 0.2 | -0.4 |
--------------------------------------------------------------------------------
| Componenta total | 23.1 | 23.1 | 7.7 | -6.0 | -6.1 | -4.4 |
--------------------------------------------------------------------------------
Segments
--------------------------------------------------------------------------------
| Business segments | | | |
--------------------------------------------------------------------------------
| MEUR | 30.6.2009 | 30.6.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Foundries | | | |
--------------------------------------------------------------------------------
| Assets | 108.9 | 148.9 | 139.2 |
--------------------------------------------------------------------------------
| Liabilities | 19.0 | 50.4 | 37.9 |
--------------------------------------------------------------------------------
| Investments in non-current assets | 2.4 | 3.7 | 11.4 |
| (incl. finance leases) | | | |
--------------------------------------------------------------------------------
| Depreciation | 2.1 | 3.9 | 6.7 |
--------------------------------------------------------------------------------
| Machine shops | | | |
--------------------------------------------------------------------------------
| Assets | 69.5 | 102.6 | 88.2 |
--------------------------------------------------------------------------------
| Liabilities | 15.3 | 44.7 | 33.1 |
--------------------------------------------------------------------------------
| Investments in non-current assets | 0.6 | 6.1 | 10.7 |
| (incl. finance leases) | | | |
--------------------------------------------------------------------------------
| Depreciation | 1.2 | 2.8 | 5.7 |
--------------------------------------------------------------------------------
| Turkey | | | |
--------------------------------------------------------------------------------
| Assets | 180.9 | 207.8 | 180.1 |
--------------------------------------------------------------------------------
| Liabilities | 18.8 | 41.1 | 26.0 |
--------------------------------------------------------------------------------
| Investments in non-current assets | 3.1 | 8.9 | 17.0 |
| (incl. finance leases) | | | |
--------------------------------------------------------------------------------
| Depreciation | 1.6 | 3.4 | 8.6 |
--------------------------------------------------------------------------------
| Other business | | | |
--------------------------------------------------------------------------------
| Assets | 50.5 | 57.3 | 48.4 |
--------------------------------------------------------------------------------
| Liabilities | 21.6 | 29.6 | 21.2 |
--------------------------------------------------------------------------------
| Investments in non-current assets | 1.8 | 0.9 | 3.1 |
| (incl. finance leases) | | | |
--------------------------------------------------------------------------------
| Depreciation | 0.9 | 0.9 | 1.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Geographical areas | | | |
--------------------------------------------------------------------------------
| MEUR | 30.6.2009 | 30.6.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Finland | | | |
--------------------------------------------------------------------------------
| Non-current assets | 84.6 | 79.5 | 83.8 |
--------------------------------------------------------------------------------
| Investments in non-current assets | 4.5 | 4.4 | 13.2 |
| (incl. finance leases) | | | |
--------------------------------------------------------------------------------
| Sweden | | | |
--------------------------------------------------------------------------------
| Non-current assets | 23.7 | 26.7 | 23.8 |
--------------------------------------------------------------------------------
| Investments in non-current assets | 0.4 | 1.7 | 3.4 |
| (incl. finance leases) | | | |
--------------------------------------------------------------------------------
| Netherlands | | | |
--------------------------------------------------------------------------------
| Non-current assets | 33.9 | 33.7 | 34.1 |
--------------------------------------------------------------------------------
| Investments in non-current assets | 0.5 | 1.3 | 3.0 |
| (incl. finance leases) | | | |
--------------------------------------------------------------------------------
| Turkey | | | |
--------------------------------------------------------------------------------
| Non-current assets | 125.4 | 129.7 | 123.7 |
--------------------------------------------------------------------------------
| Investments in non-current assets | 3.1 | 12.1 | 22.6 |
| (incl. finance leases) | | | |
--------------------------------------------------------------------------------
| Other countries | | | |
--------------------------------------------------------------------------------
| Non-current assets | 0.8 | 1.0 | 0.8 |
--------------------------------------------------------------------------------
| Investments in non-current assets | 0.0 | 0.1 | 0.1 |
| (incl. finance leases) | | | |
--------------------------------------------------------------------------------
Fair values of derivative instruments
--------------------------------------------------------------------------------
| | 30.6.2009 | 30.6.20 | 31.12.20 |
| | | 08 | 08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR |
--------------------------------------------------------------------------------
| | Fair | Fair | Fair | Fair | Fair |
| | value, | value, | value, | value, | value, |
| | positi | negativ | net | net | net |
| | ve | e | | | |
--------------------------------------------------------------------------------
| Currency derivatives | | | | | |
--------------------------------------------------------------------------------
| Foreign exchange forwards | - | - | - | 0.0 | 0.3 |
--------------------------------------------------------------------------------
| Currency swaps | 0.4 | -0.5 | -0.1 | 0.2 | 2.3 |
--------------------------------------------------------------------------------
| Foreign exchange options | - | - | - | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives | | | | | |
--------------------------------------------------------------------------------
| Interest rate options | 1.0 | -0.2 | 0.8 | 0.3 | 0.6 |
--------------------------------------------------------------------------------
| Interest rate swaps | - | -2.2 | -2.2 | 0.6 | -2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity derivatives | | | | | |
--------------------------------------------------------------------------------
| Electricity price | 0.0 | -1.1 | -1.0 | 2.0 | -2.1 |
| forwards | | | | | |
--------------------------------------------------------------------------------
| Total | 1.5 | -4.1 | -2.6 | 3.1 | -1.7 |
--------------------------------------------------------------------------------
Nominal values of derivative instruments
--------------------------------------------------------------------------------
| | 30.6.2009 | 30.6.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| MEUR | Nominal | Nominal | Nominal |
| | value | value | value |
--------------------------------------------------------------------------------
| Currency derivatives *) | | | |
--------------------------------------------------------------------------------
| Foreign exchange forwards | - | 0.7 | 5.4 |
--------------------------------------------------------------------------------
| Currency swaps | 40.9 | 66.8 | 30.9 |
--------------------------------------------------------------------------------
| Foreign exchange options | - | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives | | | |
--------------------------------------------------------------------------------
| Interest rate options | 42.0 | 36.0 | 46.0 |
--------------------------------------------------------------------------------
| Interest rate swaps | | | |
--------------------------------------------------------------------------------
| Maturity in less than a year | 31.0 | 12.7 | 38.2 |
--------------------------------------------------------------------------------
| Maturity after one year and less than | 52.0 | 37.0 | 56.0 |
| five years | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity derivatives | | | |
--------------------------------------------------------------------------------
| Electricity price forwards | | | |
--------------------------------------------------------------------------------
| Maturity in less than a year | 1.7 | 1.5 | 4.4 |
--------------------------------------------------------------------------------
| Maturity after one year and less than | 6.0 | 5.0 | 5.5 |
| five years | | | |
--------------------------------------------------------------------------------
| Total | 173.6 | 159.7 | 186.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Currency derivatives mature in less | | | |
| than a year. | | | |
--------------------------------------------------------------------------------
Contingent liabilities
--------------------------------------------------------------------------------
| MEUR | 30.6.2009 | 30.6.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
| Real-estate mortgages | | | |
--------------------------------------------------------------------------------
| For own debts | 15.2 | 6.4 | 15.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Business mortgages | | | |
--------------------------------------------------------------------------------
| For own debts | 0.3 | 2.6 | 2.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Pledges | | | |
--------------------------------------------------------------------------------
| For own debts | 197.0 | 152.9 | 151.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other leasing commitments | 3.5 | 4.0 | 4.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | 7.8 | 10.8 | 13.2 |
--------------------------------------------------------------------------------
| Total | 223.8 | 176.7 | 186.4 |
--------------------------------------------------------------------------------
Key exchange rates
--------------------------------------------------------------------------------
| | Closing rate | Average rate |
--------------------------------------------------------------------------------
| One Euro is | 31.12.2008 | 30.6.2009 | 31.12.2008 | 30.6.2009 |
--------------------------------------------------------------------------------
| SEK | 10.8700 | 10.8125 | 9.6152 | 10.8614 |
--------------------------------------------------------------------------------
| USD | 1.3917 | 1.4134 | 1.4708 | 1.3328 |
--------------------------------------------------------------------------------
| GPB | 0.95250 | 0.85210 | 0.79628 | 0.89392 |
--------------------------------------------------------------------------------
| TRY (Turkish central | 2.1408 | 2.1469 | 1.8958 | 2.1408 |
| bank) | | | | |
--------------------------------------------------------------------------------
Calculation of key financial ratios
--------------------------------------------------------------------------------
| Return on | = | Profit/loss after financial items - income taxes x 100 |
| equity -% | | |
| (ROE) | | |
--------------------------------------------------------------------------------
| | | Shareholders' equity without preferred capital notes + |
| | | minority interest |
--------------------------------------------------------------------------------
| | | (quarterly average) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on | = | Profit/loss after financial items + interest and other |
| investmen | | financial expenses x 100 |
| t -% | | |
| (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 share | | warrants outstanding. When calculating the dilution effect |
| with | | of warrants, the number of shares has been adjusted with the |
| dilution, | | number of own shares which the company could have acquired, |
| EUR | | if it would have used the funds generated from the warrants |
| | | to buy back of own shares at market price (= average trading |
| | | price). After tax interest expense of the convertible loan |
| | | has been added to the profit of the period. Number of |
| | | shares that can be subsricbed by the loan, has been added to |
| | | the number of total shares. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow | = | Net cash generated from operating activities |
| 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 |
| capitaliz | | |
| ation | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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 30 June 2009
--------------------------------------------------------------------------------
| Shareholder | | Shares | Share of |
| | | | total voting |
| | | | rights, % |
--------------------------------------------------------------------------------
| 1 Lehtonen Heikki | | 4,311,340 | 39.34 |
--------------------------------------------------------------------------------
| Cabana Trade S.A. | 3,801,988 | | |
--------------------------------------------------------------------------------
| Oy Högfors-Trading Ab | 506,052 | | |
--------------------------------------------------------------------------------
| Lehtonen Heikki | 3,300 | | |
--------------------------------------------------------------------------------
| 2 Etra-Invest Oy Ab | | 3,237,464 | 29.54 |
--------------------------------------------------------------------------------
| 3 Laakkonen Mikko | | 200,000 | 1.83 |
--------------------------------------------------------------------------------
| 4 Bergholm Heikki | | 180,000 | 1.64 |
--------------------------------------------------------------------------------
| 5 Lehtonen Anna-Maria | | 178,823 | 1.63 |
--------------------------------------------------------------------------------
| 6 Mutual Fund Evli Wealth Manager | | 100,000 | 0.91 |
| (non-UCITS) | | | |
--------------------------------------------------------------------------------
| 7 Seppo Saario Oy | | 75,000 | 0.68 |
--------------------------------------------------------------------------------
| 8 Lehtonen Yrjö M. | | 67,040 | 0.61 |
--------------------------------------------------------------------------------
| 9 Ilmarinen Mutual Pension | | 57,600 | 0.53 |
| Insurance Company | | | |
--------------------------------------------------------------------------------
| 10 Troll Capital Oy | | 50,000 | 0.46 |
--------------------------------------------------------------------------------
| Nominee-registered shares | | 275,683 | 2.52 |
--------------------------------------------------------------------------------
| Other shareholders | | 2,224,848 | 20.30 |
--------------------------------------------------------------------------------
| Total | | 10,957,798 | 100.00 |
--------------------------------------------------------------------------------
The members of the Board of Directors own 41.2% of the shares. All shares have
equal voting rights. If all the warrants were converted to shares, the holding
of shares by the members of the Board of Directors would decrease to 33.9 %.
Helsinki, 17 July 2009
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 681 million in 2008. The Group employs 4,500
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
FI-00610 Helsinki , Finland
Tel. +358 10 403 00
Fax +358 10 403 2721
www.componenta.com
