Componenta Corporation - Financial Statement 1 January ? 31 December 2004
COMPONENTA CORPORATION STOCK EXCHANGE RELEASE 20.1.2005 at 9.30
Componenta Corporation
Financial Statement 1 January 31 December 2004
* Net sales in 2004 totalled MEUR 316.1 (net sales in previous
year MEUR 177.8); net sales of Cast and Other Components increased
15%, of De Globe 37% and of Other Business 22%.
* Operating profit excluding one-time items was MEUR 11.4 (8.1) and
the result after financial items, excluding one-time items,
was MEUR 3.9 (0.5).
* The consolidated operating profit including one-time items was
MEUR 23.1 (0.1) and the result after financial items was
MEUR 15.6 (-7.5).
* The earnings per share were EUR 2.14 (-0.47).
* The Board of Directors proposes to the
Annual General Meeting of Shareholders that a dividend of
EUR 0.50 per share be paid for 2004.
Markets and developments by customer sector
The Group's sales in January December increased 78% on the
previous year to EUR 316.1 (177.8) million, as the result of organic
growth and the acquisition of the Dutch foundry company De Globe. Net
sales of the Cast and Other Components business group increased 15% to
EUR 166.1 million, of De Globe 37% to EUR 109.4 million, and of Other
Business 22% to EUR 40.6 million.
The increase in heavy truck manufacturing in Europe continued during the
fourth quarter. Volumes delivered by Componenta to the heavy truck
industry in 2004 rose 25% for the whole year and 45% in the final quarter
from the previous year.
Deliveries to off-road manufacturers rose 36% in 2004 from the previous
year, deliveries to the power and transmission industries were 15% up,
and sales to the machine building industry grew by 14%. In the fourth
quarter, sales to off-road manufacturers rose 44%, deliveries to the
power and transmission industries increased 23% and sales to the machine
building industry grew by 46% from the corresponding period in the
previous year.
Net sales and order book
The Group had net sales in the January December review period of
EUR 316.1 (177.8) million and an order book at the end of December of
EUR 59.2 (25.1) million. The Cast and Other Components business group had
sales of EUR 166.1 (144.5) million, De Globe of EUR 109.4 (79.7) million
and Other Business of EUR 40.6 (33.3) million. At the end of the review
period, Cast and Other Components had an order book of
EUR 27.3 (20.4) million, De Globe of EUR 23.9 (15.1) million and
Other Business of EUR 8.0 (4.7) million.
Exports and foreign operations accounted for 81% (71%) of the Group's net
sales. Net sales by market area were as follows:
Central Europe 41% (17%), Scandinavia 35% (51%), Finland 19% (29%) and
other countries 5% (3%).
De Globe's sales to the off-road and heavy truck industries and for
compressors and pressure vessels fit in well with Componenta's previous
customer base. Componenta's net sales by customer sector were as follows:
heavy truck industry 46% (55%), off-road 21% (12%), machinery and
equipment manufacturers 16% (14%), power and transmission 12% (15%) and
others 4% (4%).
Result
Componenta Group made an operating profit, excluding one-time
items, of EUR 11.4 (8.1) million and the result after financial items,
excluding one-time items, was EUR 3.9 (0.5) million. The Cast and Other
Components business group recorded an operating profit of
EUR 11.6 (8.2) million, De Globe an operating loss excluding one-time items
of EUR -1.7 (-4.2) million, and Other Business an operating profit,
excluding one-time items, of EUR 1.5 (-0.1) million.
The Group's net financial costs amounted to EUR 7.6 (7.6) million, which
included De Globe's net financial costs of EUR 1.1 million.
The consolidated result after financial items, excluding one-time items,
improved from the previous year mainly because of the growth in sales and
the improvement in the operational performance of the Cast and Other
Components business area, the Wirsbo forge and associated companies. The
price of scrap steel, the main raw material, rose exceptionally sharply
at the start of the year. In addition, during the second half of 2004 the
prices of the steel scrap grades used by the foundries rose substantially
more than the average price mentioned above, so that the price of scrap
at the end of the year was 95% higher than the average price in 2003. The
impact on costs of the rise in the price of scrap was passed on to
product prices at the start of the second quarter and during the final
quarter. The rise in the price of scrap weakened the 2004 result by
EUR 2.0 million. Scrap prices have been volatile during the year. The
consolidated result was also weakened by De Globe's poor result,
especially in the final quarter. The main cause for De Globe's poor
result, in addition to the impact of scrap prices mentioned above, was
its unhealthy price structure. The prices of unprofitable products will
be revised during price negotiations in 2005. This is estimated to cause
the average price of De Globe's products to rise by 5%.
The Group's operating profit, including one-time items, was
EUR 23.1 (0.1) million, the result after financial items was
EUR 15.6 (-7.5) million and the net result was EUR 20.6 (-4.5) million.
One-time items totalled EUR 11.7 (-8.0) million, consisting mainly of
EUR 8.4 million in profit from the sale of Thermia shares, EUR 5.0 million
in negative goodwill recognized as income from the De Globe acquisition,
and a writedown of EUR -1.5 million on receivables for divested operations.
Income taxes were EUR 3.7 (3.0) million positive. Taxes arising from the
result for the period are covered by confirmed losses for previous
periods. In addition the Group's tax receivables are recorded in the
result for the period. The total tax receivables in the balance sheet are
foreseen to be utilized in the Netherlands in 2 years, in Finland in
3 - 5 years and in Sweden in 2 years.
Earnings per share were EUR 2.14 (-0.47).
The return on investment, including one-time items, was 13.1% (0.8%) and
return on equity 35.5% (-11.8%).
Financing
The Group's equity ratio was 23.3% (17.8%) and the equity ratio including
the capital notes in shareholders' equity was 32.1% (31.1%).
In March the Group repaid EUR 3.2 million, or 10%, of the principal of
the preferred capital notes in accordance with the terms for the notes.
On 31 December 2004 Componenta Corporation had outstanding preferred
capital notes to the value of EUR 22.2 million. In addition, De Globe had
preferred capital notes to the value of EUR 2.0 million from outside
the Group.
On 30 September 2004 Componenta Corporation signed a five year
EUR 90 million syndicated credit facility. This replaced the six credit
facilities previously held by the Group, which had a combined value of
EUR 69 million. The banks in the new syndicate are Nordea Bank Finland
Plc, Swedbank, Danske Bank A/S and OKO Bank.
The Group had EUR 51.3 million in non-utilised long-term credit
facilities at the end of the review period. The Group has a
EUR 40 million commercial paper programme. The Group's interest-bearing net
debt, excluding the EUR 24.2 million preferred capital notes, totalled
EUR 111.9 (99.4) million, which includes De Globe's interest-bearing net
debt of EUR 19.7 million. Net gearing, including the preferred capital
notes in shareholders' equity, was 128% (168%).
Componenta is making more effective use of capital with a programme to
sell its sales receivables, under which some of the sales receivables are
being sold without any right of recourse. By 31 December 2004, the
company had sold sales receivables totalling EUR 16.5 (11.9) million.
The cash flow from operations was EUR 10.1 (22.0) million, and of this
the change in net working capital was EUR 1.7 (9.9) million. The cash
flow from investments was EUR -9.4 (-0.3) million, which includes cash
flow from the Group's production investments and the cash flow from
shares sold and purchased and from the sale of fixed assets.
Performance of business groups
Cast and Other Components
The Cast and Other Components business group consists of Componenta's
foundries and machine shops in the Nordic countries, which supply ready
to install cast and machined components to the heavy truck, power and
transmission, other machine building and off-road industries.
Cast and Other Components had net sales of EUR 166.1 (144.5) million and
an operating profit of EUR 11.6 (8.2) million. The order book on
31 December 2004 stood at EUR 27.3 (20.4) million. The rising price of scrap
weakened the business group's result. The impact on costs of the
increased scrap price has been passed on to product prices during the
second and fourth quarters.
Net sales in the fourth quarter totalled EUR 47.1 (36.8) million and the
operating profit was EUR 4.2 (1.7) million.
The running down of the Alvesta foundry which started in October 2003 and
the transfer of production to Karkkila have proceeded operationally on
schedule. Production ceased at Alvesta on 18 May 2004 and started up at
the upgraded foundry in Karkkila on 2 August 2004. Starting up production
at the Karkkila foundry weakened the result of the business group
especially in the third quarter. It is estimated that merging the two
foundries will give annual cost savings of some EUR 5 million as from 2005.
The price level of unprofitable products will be corrected during 2005
price negotiations.
De Globe
During the first quarter of 2004, Componenta purchased 55% of the
shares and voting rights of the Dutch foundry company De Globe. De Globe
comprises three iron foundries in the Netherlands which supply complex
cast components for the off-road and heavy truck industries, and for
compressors and pressure vessels. The acquisition of De Globe is in line
with Componenta's strategy of focusing on developing its core business.
De Globe has been consolidated into Componenta Group as from the
beginning of January 2004.
De Globe had net sales in January December of EUR 109.4 (79.7) million
and an operating loss, excluding one-time items, of
EUR 1.7 (-4.2) million. The order book on 31 December 2004 stood at
EUR 23.9 (15.1) million. The growth in net sales improved De Globe's result,
whereas the result suffered from the switch to non-continuous three-shift
production at the Hoensbroek and Weert foundries to cope with the major
increase in production, from the transfer of the Belfeld production line to
Hoensbroek, and in particular from the increase in the price of scrap.
Another cause of De Globe's poor result was its unhealthy price
structure. The prices of unprofitable products will be corrected during
2005 price negotiations. This is estimated to cause the average price of
De Globe's products to rise by 5%.
Net sales in the fourth quarter totalled EUR 31.1 (19.7) million and the
operating loss was EUR -1.5 (-2.6) million.
The Group has started a project to raise productivity at De Globe, which
involves closing down the foundry in Belfeld and transferring production
to the foundry in Hoensbroek. The investments to be made in connection
with the transfer of production and the costs for closing down and
transferring operations will be altogether EUR 12 million, of which EUR 9
million were incurred in 2004. These steps will bring estimated cost
savings of EUR 4 million a year as from summer 2005. In addition, a
separate development project has started at Hoensbroek to improve
productivity.
The industrial premises in Belfeld, the Netherlands were sold on
29 December 2004 to Gebr. Van-Eck Baexem B.V. for the price of
EUR 3.4 million. The property with its offices and industrial premises
will be left empty when the operations of the De Globe Belfeld foundry,
which have been located there, are transferred to Hoensbroek and De Globe's
joint functions move into rented premises in Weert.
Componenta's sales organization in the Nordic countries and De Globe's
sales organization in central Europe form a strong joint sales
organization in Europe. Componenta's machine shops and machining
expertise give a boost to De Globe's operations and enable a broader
service offering to customers.
Other Business
Componenta's Other Business consists of the Wirsbo forges, associated
companies, the Group's support functions and service units, as well as
divested business.
Other Business had net sales of EUR 40.6 (33.3) million and an operating
profit, excluding one-time items, of EUR 1.5 (-0.1) million. The order
book at the end of the review period stood at EUR 8.0 (4.7) million.
Net sales in the fourth quarter were EUR 13.3 (9.3) million and the
operating profit excluding one-time items was EUR 0.4 (0.6) million.
Componenta Wirsbo's sales increased from the previous year and the result
improved in consequence of the cost cutting programme. The cost cutting
programme and action to enhance operations are expected to further
improve Wirsbo's result in 2005.
Componenta Group's share of the result of the associated companies was
EUR 1.2 (1.3) million. Keycast had net sales of EUR 35.3 (33.6) million
and the result after financial items was EUR 2.1 (1.6) million. The
net sales of Ulefos NV rose to EUR 33.3 (26.4) million and the result
after financial items improved to EUR 2.7 (-0.3) million.
During the first quarter of 2004, Componenta sold its shares in the
associated company Thermia AB to Procuritas Capital Investors III, a
Swedish private equity investor. The shares were sold for
EUR 16.0 million and Componenta recorded a profit of EUR 8.4 million on the
transaction. The operations of Tallinn-based Vesiterm AS were sold in an
MBO for the price of EUR 0.1 million to the company's operative
management in June. Selling its shares in Thermia and the operations of
Vesiterm is in line with Componenta's strategy of divesting non-core
business.
Shares and share capital
The shares of Componenta Corporation are quoted on the main list of the
Helsinki Exchanges. At the end of the review period the company's share
capital stood at EUR 19.2 million. The shares have a nominal value of
2 euros. At the end of the review period on 31 December 2004 the quoted
price of Componenta Corporation shares stood at EUR 5.30 (2.92). The
average price during the year was EUR 4.15, the lowest quoted price was
EUR 2.85 and the highest EUR 6.25. The share capital had a market value
of EUR 51.0 (28.1) million at the end of the review period and the volume
of shares traded during the review period was equivalent to 23.9% (53.8%)
of the share stock.
The Annual General Meeting of Shareholders decided not to pay a dividend
for 2003, in accordance with the proposal of the Board of Directors.
Authorization to purchase and dispose of company shares
The Annual General Meeting of Shareholders on 10 February 2004 authorized
the Board to decide on purchasing a maximum of 480,765 of the company's
own shares, with a nominal value of 2 euros each, however such that the
combined number of shares belonging to the company and its subsidiaries
or the voting rights they hold after the purchase may not exceed
five per cent of the company's share capital or of the voting rights
held by all the shares. In addition, the Board may decide to dispose of
a maximum of 480,765 of the company's own shares acquired by the company.
The authorization to purchase and dispose of the company's own shares is in
force for one year from the decision of the Annual General Meeting. The
authorization had not been used at all on 31 December 2004.
Option rights
The Extraordinary Shareholders Meeting of Componenta Corporation, held on
30 September 2004, resolved to issue 450,000 stock option rights in
accordance with the proposal of the Board of Directors. The option rights
will be offered, disapplying the pre-emptive rights of shareholders, to
persons who subscribed for stock option rights on the basis of the Annual
General Meeting resolution of 15 March 2001 (Componenta 2001 stock option
rights), in so far as there has been no obligation to return such option
rights or the subscription period for shares under the option rights
granted on 15 March 2001 has not expired. A maximum of 450,000 new shares
with a nominal value of 2 euro each may be subscribed on the basis of the
option rights. The share capital of the company may increase as the result
of the share subscriptions by a maximum of EUR 900,000.
Componenta's Board of Directors decided to transfer the option rights
approved by the Extraordinary Meeting of Shareholders on 30 September 2004
to the book-entry securities system. The company intends to apply to
have the share option rights listed for public trading on the Helsinki
Exchanges.
Investments
Investments in production facilities during the review period totalled
EUR 30.3 (1.6) million. Of this amount, investments at Karkkila totalled
EUR 14.0 million and at De Globe EUR 10.8 million. The cash flow from
investments was EUR -9.4 (-0.3) million.
Board of Directors and Management
Componenta's Annual Shareholders' Meeting on 10 February 2004 elected the
following to the Board of Directors: Heikki Bergholm, Heikki Lehtonen,
Juhani Mäkinen, Marjo Raitavuo (new member) and Matti Tikkakoski. The
Board elected Heikki Bergholm as its Chairman and Juhani Mäkinen as Vice
Chairman.
The Corporate Executive Team of Componenta Group is formed by President
and CEO Heikki Lehtonen; Lauri Huhtala, Director, Foundries Finland;
Olli Karhunen, Director, Power and Transmission; Jari Leino, Director, Sales
and Development; Wim Schut, Director, Foundries Holland
(as from 1 April 2004); Michael Sjöberg, Director, Machine shops
(as from 16 August 2004); CFO Kimmo Virtanen and Communications Manager
Pirjo Aarniovuori.
Personnel
During the financial year the Group had an average of 2168 (1595)
employees, which includes 595 De Globe employees. At the end of December 2004,
45% (55%) of the Group's personnel were in Finland, 27% (0%) in the
Netherlands and 28% (45%) in Sweden.
IFRS
Componenta's IFRS project has continued as planned during 2004. In
January a new reporting system was introduced that allowed the production
of financial statements to IFRS standards. Since then the accounting
principles for IFRS financial statements have been defined and
Componenta's opening IFRS balance sheet for 2004 has been prepared, based
on the IFRS standards in force in December 2004. Employee pensions are
treated as expensed.
Componenta's shareholders' equity in the opening IFRS balance sheet for
2004 is EUR 1.0 million smaller than in the FAS balance sheet, mainly due
to changes in the valuation of real estate, the increase in deferred tax
receivables, the increase in deferred tax liabilities, and changes in
goodwill values. The opening IFRS balance sheet total rises by
EUR 4.3 million mainly because of financial leasing agreements for
EUR 5.3 million.
It is expected that IFRS changes, mainly reduced goodwill depreciation,
the increase in depreciation on buildings and changes in the way financial
leasing agreements are processed, will improve the 2004 result by
EUR 0.8 million. EUR 5.1 million of the deferred tax receivables included
in the opening IFRS balance sheet has been used during 2004.
Comparable IFRS interim reports for 2004 will be published no later than
in connection with the first interim report for 2005. Componenta will
prepare the first official IFRS financial statements for the financial
year starting on 1 January 2005.
Financial objectives
The Board of Directors of Componenta has decided in connection with the
financial statements to define the Group's long term financial objectives
as follows:
- Return on investment (ROI) to be between 10 and 20 per cent over the
economical cycle
- Profitable organic growth based on adding value by increasing share of
engineering and customers outsourcing operations
- Equity ratio on the level of 40 per cent
- Dividend 30 - 50 per cent of result
Events after the end of the period
Componenta Corporation and Nordea Bank Finland Plc have signed a market
making agreement that meets the requirements for liquidity providing on
the Helsinki Exchanges. The agreement, which came into force on
4 January 2005, aims to improve the liquidity of Componenta's shares and
increase investor interest in Componenta shares. Under the terms of the
agreement, Nordea Bank Finland Plc will make bids and offers for Componenta's
shares so that the spread of the bid and offer prices is a maximum of 2%,
calculated on the bid price. The quoted prices must cover at least
2000 shares, which represents 10 trading lots.
Dividend proposal
The Board of Directors proposes to the Annual General Meeting of
Shareholders that a dividend of EUR 0.50 per share be paid for 2004,
totally EUR 4.8 million.
Annual General Meeting
The Annual General Meeting of Componenta Corporation will be held on 7
February 2005 at 2.00 pm.
The Board proposes that the Annual General Meeting of Shareholders
authorize the Board of Directors to decide to purchase the company's own
shares using distributable funds, provided that after the purchase the
aggregate number of the company shares belonging to the company, or the
voting rights carried by these shares, does not exceed five (5) per cent
of the company's share capital or of the voting rights carried by all the
shares.
The Board proposes that the Annual General Meeting of Shareholders
authorize the Board of Directors to decide to raise the share capital in
one or more instalments by issuing new shares, convertible bonds or stock
options such that the company's share capital may rise altogether by at
most EUR 3,846,122 or by a smaller amount that corresponds to at most a
fifth of the registered company share capital and the combined number of
votes held by the shares on the date when the Annual General Meeting
gave the authorization and on the date when the Board decided to raise
the share capital.
Publication of Annual Report
Componenta Corporation will publish the printed and Internet versions of
its annual report during week 5, 31 Jan 4 Feb 2005.
Prospects
Componenta's prospects for 2005 are based on general external financial
indicators, order forecasts given by customers, and on Componenta's order
intake and order book.
The growth in demand for heavy truck components, which started towards
the end of 2003, continued to strengthen during the fourth quarter of 2004.
Demand for components from the off-road industry has grown strongly
during 2004. Demand for components from the power and transmission
industry and from machinery and equipment manufacturers is expected to
continue to grow slightly.
Componenta's order book has built up considerably during 2004 and stood
at a strong level at the end of December. Componenta's comparable net
sales for the first quarter of 2005 are forecast to grow from the
previous year and to match those in the final quarter of 2004.
Componenta's result after financial items for the first quarter of 2005,
excluding one-time items, is expected to be better than in the
corresponding period of the previous year.
Income statement
MEUR 1.1.-31.12.2004 1.1.-31.12.2003
Net sales 316.6 177.8
Other operating income 10.0 1.5
Share of the associated companies' result 1.2 1.3
Operating expenses -294.4 -164.5
Depreciation, amortization and write-down -14.8 -16.0
Negative goodwill recognized as income 5.0 -
Operating profit 23.1 0.1
% of net sales 7.3 0.0
Financial income and expenses -7.6 -7.6
Result after financial items 15.6 -7.5
% of net sales 4.9 -4.2
Income taxes 3.7 3.0
Minority interest and conversion difference 1.3 0.0
Net profit 20.6 -4.5
Income statement excluding one-time items
MEUR 1.1.-31.12.2004 1.1.-31.12.2003
Net sales 316.1 177.8
Other operating income 0.7 0.6
Share of the associated companies' result 1.2 1.3
Operating expenses -292.0 -159.6
Depreciation, amortization and write-down -14.5 -12.0
Negative goodwill recognized as income - -
Operating profit 11.4 8.1
% of net sales 3.6 4.5
Financial income and expenses -7.6 -7.6
Result after financial items 3.9 0.5
% of net sales 1.2 0.3
Balance sheet
MEUR 31.12.2004 31.12.2003
Assets
Non-current assets 169.9 133.6
Current assets
Inventories 42.4 20.9
Receivables 59.6 35.5
Cash and bank accounts 1.2 0.5
Total current assets 103.2 57.0
Total assets 273.1 190.6
Liabilities and shareholders' equity
Shareholders' equity
Share capital 19.2 19.2
Other equity 33.2 12.6
Preferred capital note 24.2 25.4
Total shareholders' equity 76.6 57.3
Minority interest 11.1 2.0
Negative goodwill - -
Provisions 1.5 2.6
Liabilities
Non-current liabilities
Interest bearing 63.2 48.1
Interest free 0.1 0.0
Current liabilities
Interest bearing 49.9 51.9
Interest free 70.6 28.8
Total liabilities 183.8 128.7
Total liabilities and shareholders' equity 273.1 190.6
Cash flow statement 1.1.-31.12.
MEUR 1.1.-31.12.2004 1.1.-31.12.2003
Cash flow from operations
Profit/loss before extraordinary items 15.6 -7.5
Depreciation, amortization and write-down 9.8 16.0
Net financial income and expenses 7.6 7.7
Other income and expenses, adjustments to cash flow -17.0 2.9
Change in net working capital 1.7 9.9
Cash flow from operations before financing
and income taxes 17.6 29.0
Net financial income and expenses -7.5 -7.0
Income taxes 0.0 0.0
Cash flow from operations 10.1 22.0
Cash flow from investing activities
Capital expenditure in tangible and intangible assets -27.3 -1.6
Proceeds from tangible and intangible assets 3.3 1.2
Other investments and loans granted -4.7 -0.7
Proceeds from other investments and repayments of
loan receivables 19.3 0.8
Cash flow from investing activities -9.4 -0.3
Cash flow from financing activities
Dividends paid -0.0 -1.0
Share issue - -
Draw-down (+)/ repayment (-) of preferred capital note -1.2 -3.2
Draw-down (+)/ repayment (-) of current loans -13.1 8.2
Draw-down (+)/ repayment (-) of non-current loans 14.2 -28.1
Cash flow from financing activities 0.0 -24.1
Increase (+)/ decrease(-) in cash and bank accounts 0.7 -2.4
Key Ratios
31.12.2004 31.12.2003
Change in net sales, % 77.8 -1.7
Operating profit, % of net sales 7.3 0.0
Equity ratio, % 23.3 17.8
Equity ratio, %, preferred capital note in equity 32.1 31.1
Invested capital 200.8 159.3
Return on investment, % 13.1 0.8
Return on equity, % 35.5 -11.8
Net interest bearing debt, MEUR 111.9 99.4
Net interest bearing debt, MEUR, preferred
capital note in debt 136.1 124.8
Net gearing, %, preferred capital note in equity 127.5 167.7
Net gearing, %, preferred capital note in debt 214.2 368.3
Order book, MEUR 59.2 25.1
Investments in non-current assets, MEUR 35.1 1.6
Investments in non-current assets, % of net sales 11.1 0.9
Average number of personnel during the period 2,168 1,595
Number of personnel at period end 2,213 1,565
Share of export and foreign activities in net sales, % 81.4 71.0
Contingent liabilities, MEUR 116.0 62.6
Per Share Data
31.12.2004 31.12.2003
Number of shares at period end, 1,000 shares 9,615 9,615
Earnings per share (EPS), EUR 2.14 -0.47
Equity per share, EUR 5.45 3.31
Dividend per share, EUR (* 0.50 0.00
Payout ratio, % 23.37 0.00
Effective dividend yield, % 9.43 0.00
P/E multiple 2.48 neg.
Share price at period end, 5.30 2.92
*) For year 2004 a proposal of the Board of Directors.
Derivative instruments
MEUR 31.12.2004 31.12.2003
Nominal Current Nominal Current
value value value value
Currency derivatives
Forward exchange agreements 33.0 0.1 14.7 0.1
Currency swaps 1.8 0.0 8.0 0.0
Interest rate derivatives
Interest rate options 6.0 0.0 6.0 0.0
Interest rate swaps 32.9 -0.4 24.0 -0.4
Derivative instruments are used to hedge the Group's foreign exchange and
interest rate risks.
Group development
MEUR 1.1.-31.12.2003 1.1.-31.12.2004
Net sales 177.8 316.1
Operating profit 0.1 23.1
Net financial items -7.6 -7.6
Profit/loss after financial items -7.5 15.6
Group development by business group
Net sales, MEUR 1.1.-31.12.2003 1.1.-31.12.2004
Cast and Other Components 144.5 166.1
De Globe - 109.4
Other business 33.3 40.6
Componenta Group total 177.8 316.1
Operating profit, MEUR 1.1.-31.12.2003 1.1.-31.12.2004
Cast and Other Components 8.2 11.6
De Globe - -1.7
Other business -8.1 13.2
Componenta Group total 0.1 23.1
Order book, MEUR 31.12.2003 31.12.2004
Cast and Other Components 20.4 27.3
De Globe - 23.9
Other business 4.7 8.0
Componenta Group total 25.1 59.2
Group development by quarter
MEUR Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04
Net sales 46.3 47.2 38.2 46.1 73.0 81.1 70.5 91.5
Operating profit 1.6 2.8 0.9 -5.3 14.0 4.8 1.5 2.9
Net financial items -2.1 -1.9 -2.0 -1.6 -1.7 -1.7 -1.8 -2.3
Profit/loss after
financial items -0.5 1.0 -1.1 -6.9 12.2 3.1 -0.4 0.6
Quarterly development by business group
Net sales, MEUR Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04
Cast and Other Components 37.4 38.8 31.5 36.8 38.7 43.0 37.3 47.1
De Globe - - - - 25.2 28.1 25.0 31.1
Other business 8.9 8.4 6.7 9.3 9.1 9.9 8.2 13.3
Componenta Group total 46.3 47.2 38.2 46.1 73.0 81.1 70.5 91.5
Operating profit, MEUR Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04
Cast and Other Components 2.1 2.9 1.5 1.7 1.8 4.0 1.5 4.2
De Globe - - - - 0.2 0.1 -0.4 -1.5
Other business -0.5 -0.1 -0.5 -7.0 12.0 0.7 0.4 0.2
Componenta Group total 1.6 2.8 0.9 -5.3 14.0 4.8 1.5 2.9
Order book at period end,
MEUR Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04
Cast and Other Components 21.7 20.4 21.3 20.4 22.7 27.2 29.7 27.3
De Globe - - - - 19.9 20.0 22.3 23.9
Other business 5.4 6.1 5.6 4.7 5.5 5.4 7.9 8.0
Componenta Group total 27.1 26.5 26.9 25.1 48.0 52.6 59.9 59.2
Group development excluding one-time items
MEUR 1.1.-31.12.2003 1.1.-31.12.2004
Net sales 177.8 316.1
Operating profit 8.1 11.4
Net financial items -7.6 -7.6
Profit/loss after financial items 0.5 3.9
Group development by business group excluding one-time items
Operating profit, MEUR 1.1.-31.12.2003 1.1.-31.12.2004
Cast and Other Components 8.2 11.6
De Globe - -1.7
Other business -0.1 1.5
Componenta Group total 8.1 11.4
Group development by quarter excluding one-time items
MEUR Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04
Net sales 46.3 47.2 38.2 46.1 73.0 81.1 70.5 91.5
Operating profit 1.6 3.1 1.0 2.3 2.0 4.9 1.4 3.2
Net financial items -2.1 -1.9 -2.0 -1.6 -1.7 -1.7 -1.8 -2.3
Profit/loss after
financial items -0.5 1.3 -1.0 0.7 0.2 3.2 -0.4 0.9
Quarterly development by business group excluding one-time items
Operating profit, MEUR Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04
Cast and Other
Components 2.1 2.9 1.5 1.7 1.8 4.0 1.5 4.2
De Globe - - - - 0.2 0.1 -0.4 -1.5
Other business -0.5 0.2 -0.4 0.6 -0.1 0.8 0.3 0.4
Componenta Group total 1.6 3.1 1.0 2.3 2.0 4.9 1.4 3.2
Componenta Corporation
Largest registered shareholders on 31 December 2004
Share of total
Shareholder Shares voting rights %
1 Lehtonen Heikki 3,786,131 39.38
Cabana Trade S.A. 3,676,731
Oy Högfors-Trading Ab 109,400
2 Etra-Invest Oy Ab 1,512,400 15.73
3 Inkinen Simo-Pekka 460,044 4.78
4 Ilmarinen Mutual Pension Insurance Company 457,600 4.76
5 Investment Fund Alfred Berg Small Cap 205,500 2.14
6 Investment Fund Alfred Berg Finland 193,250 2.01
7 Lehtonen Anna-Maria 178,823 1.86
8 FIM Fenno Investment Fund 162,600 1.69
9 Lehtonen Yrjö M. 131,040 1.36
10 Laakkonen Mikko 110,000 1.14
11 Bergholm Heikki 101,000 1.05
12 The Finnish National Fund for Research and
Development (Sitra) 91,200 0.95
13 Lehtonen Antti 78,000 0.81
14 Finnish Cultural Foundation 75,000 0.78
15 Technology Industries of Finland 70,800 0.74
Nominee-registered shares 216,060 2.25
Other shareholders 1,785,861 18.57
Total 9,615,309 100.00
The members of the Board of Directors own 40.4% of the shares. All shares
have equal voting rights. The members of the Board of Directors hold 10.5% of the
outstanding warrants. If all the warrants were converted to shares, the holding
of shares by the members of the Board of Directors would decrease to 39.1%.
Helsinki, 20 January 2005
COMPONENTA CORPORATION
Heikki Lehtonen
President and CEO
FURTHER INFORMATION
Heikki Lehtonen Kimmo Virtanen
President and CEO CFO
tel. +358 9 225 021 tel. +358 9 225 021
