Componenta Corporation's Financial Statements 1 January - 31 December 2010

Componenta Corporation Stock Exchange Release 25.1.2011 at 8.30

Result improved considerably, demand outlook remains good for 2011

• Componenta Group had net sales in 2010 of MEUR 452 (MEUR 300).
• Operating profit was MEUR 13.5 (MEUR -15.4).
• The result after financial items was MEUR -10.0 (MEUR -37.2).
• Earnings per share were EUR -0.45 (EUR -2.30).
• The order book increased 61% to MEUR 95 (MEUR 59).
• Capacity utilisation rate improved to 57% (38%).
• Net cash flow from operations was MEUR 25.2 (MEUR 14.2).
• Cash in bank and unused committed credit facilities totalled MEUR 75 at the end of the year.
• The Board of Directors proposes to the Annual General Meeting that no dividend will be paid for the 2010 fiscal year.

Summary of Componenta’s Q4/2010 interim report

Net sales in October - December totalled EUR 130.7 million, which was 72% more than in the same period in the previous year (EUR 76.1 million). The value of production rose 79% in the October - December period to EUR 128.3 (71.8) million. Group’s capacity utilisation rate in the fourth quarter was 66 % (38%).

The fourth quarter operating profit rose to EUR 5.8 million or 4.5% of net sales (EUR -1.7 million; -2.2%). The improvement from the previous year was mainly due to the considerably higher volumes and the measures taken earlier to adjust costs. The fourth quarter operating profit was weakened however by price increases of raw materials and recycled metal as a result of poor availability, in total EUR -1.2 million.

The fourth quarter result after financial items improved from the previous year to EUR -0.1 (-6.5) million. The result includes a one-time item of EUR -0.1 million.

The profit attributable to shareholders for the fourth quarter was EUR -0.5 (-5.3) million or EUR -0.03 (-0.32) per share.

Net cash flow from operations in October - December was EUR 18.2 (8.1) million.

Events in 2010 - summary

In February Componenta decided to strengthen its common ”One Componenta” way of operating with the goal of growing to become the leading cast component supplier in Europe. The business operations were reorganized and the Group’s customer businesses were organized in segments, for which sales management personnel were appointed and engineering and R&D resources allocated. Componenta’s business operations were divided into four operational areas and corporate functions for developing business operations - supply chain management, development of foundry and machine shop technology, purchasing and internal purchases - support the operational areas and their management. The Group’s Corporate Executive Team was reorganized at the same time and Yrjö Julin was appointed to the Corporate Executive Team with the new position of Chief Operating Officer. An Extended Corporate Executive Team was also established to develop and implement the Group’s strategy. In June Pauliina Rannikko was appointed to the Corporate Executive Team as SVP of Legal and Risk Management. In September Componenta issued a subordinated capital loan and an unsecured bond for a total of EUR 50.3 million. The subordinated capital loan and the unsecured bond were offered to a limited group of selected investors. The funds obtained through the issues were used to strengthen the company’s balance sheet and financial position and for general refinancing purposes.

Componenta’s Board of Directors approved subscriptions to the subordinated capital loan 2010 with a total nominal value of EUR 23.4 million. Holders of the company’s 2006 subordinated capital loans had the right to use the assets pertaining to the principal of the capital loans receivable from the company to pay the subscription price for the loan units of the subordinated capital loan 2010. Altogether EUR 11.1 million of the subordinated capital loan 2006 and convertible capital loan 2006 were used in payment for the subscription to the subordinated capital loan 2010. In addition, Componenta’s Board of Directors approved subscriptions to the unsecured bond 2010 with a nominal value of EUR 26.9 million.

Componenta’s operational business units in Finland - the foundries and machine shops - were merged in the last quarter of the year to form a single legal company. The new company, Componenta Finland Oy, which is a 100% owned subsidiary of the Group’s parent company Componenta Corporation, started operations on 1 January 2011. The change supports the operational management model adopted by the Group in February 2010. The objective is to centralise the sales support, finance, and wages and salaries functions to improve service and achieve cost savings.

Net sales and order book

The Group’s net sales in 2010 rose 51% to EUR 451.6 (299.6) million. The value of production in 2010 rose 63% to EUR 454.7 (278.5) million. The Group’s capacity utilisation rate during the year was 57% (38%). The order book at the end of December rose 61% from the corresponding time in the previous year to EUR 94.6 (58.8) million. The order book comprises confirmed orders for the following two months.

Net sales of the Turkey operations rose 76% from the previous year to EUR 204.8 (116.2) million. The order book at the end of December was 70% higher than in the previous year and stood at EUR 47.8 (28.1) million. The order book in Turkey was boosted in particular by encouraging developments in construction and mining machinery industry and in the automotive industry.

Net sales of the Finland operations rose 29% from the previous year to EUR 103.6 (80.4) million. The order book at the end of the year increased 33% from the previous year to EUR 15.7 (11.8) million. Increased orders from the heavy trucks industry and machine building industry were the main contributors to the improvement in the Finnish order book.

Net sales of the Holland operations increased 22% from the previous year to EUR 85.1 (69.5) million. The order book at the end of the year showed a 32% increase from the previous year and stood at EUR 16.4 (12.5) million. Increased orders from construction and mining machinery industry, from agricultural machinery industry, from heavy trucks industry and from the machine building industry contributed to the stronger order book in the Netherlands.

Net sales for operations in Sweden rose 104% from the previous year to EUR 84.7 (41.5) million. The order book at the end of the financial period was 111% higher than at the corresponding time in the previous year, standing at EUR 22.0 (10.5) million. A particular factor in the improvement in the order book in Sweden was the increase in orders from the heavy trucks industry and the machine building industry.

Componenta’s net sales in the financial year by customer business sector were as follows: heavy trucks 26% (20%), construction and mining 21% (15%), machine building 20% (28%), automotive 20% (20%), agriculture 11% (13%), wind power 2% (2%) and other sales 1% (1%).

Result

The Group’s EBITDA was EUR 29.5 (-3.2) million. The EUR 32.7 million improvement in EBITDA from the previous year was mainly due to higher production volumes and the adaption measures taken earlier to adjust costs. However, EBITDA was weakened by the rapid rise in iron raw material prices and by the sharp rise in other raw materials which are not covered by material surcharges, and exchange rate losses on sales and purchases, with a total impact of EUR -8.7 million.

Quarterly analysis of changes in income statement:

The consolidated operating profit for the year was EUR 13.5 (-15.4) million.

The Group’s net financial costs for the year were EUR -23.5 (-21.8) million. Net financial costs increased from the previous year by a total of EUR 1.7 million due to higher interest costs and exchange rate losses. The Group’s result for the period after financial items was EUR -10.0 (-37.2) million. The result includes a one-time item of EUR -0.1 million.

Income taxes calculated from the result for the review period totalled EUR +2.5 (+8.5) million. The net result for the period was EUR -7.5 (-28.7) million.

Basic earnings per share for the year were EUR -0.45 (-2.30).

The return on investment for the financial year was 5.0 % (-4.1 %) and the return on equity -10.3%              (-45.1%).

Componenta’s key financial indicators during the past three years have been as follows:

Balance sheet, financing and cash flow

In September 2010 Componenta Corporation issued a subordinated capital loan and an unsecured bond for a total of EUR 50.3 million. The funds obtained through the issues were used to strengthen the company’s balance sheet, financial position, and for general refinancing purposes.

Componenta’s Board of Directors approved subscriptions to the subordinated capital loan 2010 with a total nominal value of EUR 23.4 million. The five-year loan was offered to a limited group of selected investors. Holders of the company’s 2006 capital loans had the right to use the assets pertaining to the principal of the capital loans receivable from the company to pay the subscription price for the loan units of the subordinated capital loan 2010. Altogether EUR 11.1 million of the subordinated capital loan 2006 and convertible capital loan 2006 were used in payment for the subscription to the subordinated capital loan 2010. At the end of the financial year the company had outstanding nominal value of EUR 2.3 million of its outstanding convertible capital loan 2006 and EUR 2.9 million of its outstanding subordinated capital loan 2006.

At the end of December the Group had outstanding subordinated capital loans and convertible capital loans with a total value of EUR 40.4 million, as defined in IFRS. In March, the Group repaid the final instalment of EUR 7.4 million of the principal of the convertible capital loan issued in 2005, in accordance with the terms of the loan. At the end of the financial year, the outstanding unconverted capital loan issued in 2006 entitled their holders to subscribe 259,000 shares.

Componenta’s Board of Directors approved subscriptions to the unsecured bond 2010 with a nominal value of EUR 26.9 million. The three-year loan was offered to a limited group of selected investors.

During the financial year, long-term bilateral bank loans totalling EUR 33.3 million were drawn, to refinance short-term bank loans that matured during the financial year.

The Group’s net interest-bearing debt, excluding the outstanding subordinated capital loans and convertible capital loans of EUR 40.4 million, totalled EUR 189.4 (206.5) million at the end of the year. The company’s net interest-bearing debt as a proportion of shareholders’ equity, including the capital notes in the shareholders’ equity, was 170.5% (200.8%).

At the end of the financial year Componenta’s liquidity position was good. Cash in bank at the end of the financial year totalled EUR 11.0 million. Unused committed credit facilities totalled EUR 64.5 million at the end of the financial year. The Group also has a EUR 150 million commercial paper programme, from which the company had a debt payable of EUR 2.0 million at the end of the financial year.

Componenta’s net cash flow from operations during the financial year was EUR 25.2 (14.2) million, and of this the change in net working capital was EUR 13.6 (37.5) million. Componenta makes more efficient use of capital with a programme to sell its trade receivables. Under this arrangement, some of the trade receivables are sold without any right of recourse. By the end of the review period the company had sold trade receivables totalling EUR 63.9 (32.7) million.

At the end of 2010, invested capital in the company was EUR 311.5 (316.9) million.The Group’s equity ratio was 16.8% (17.5%). The Group’s shareholders’ equity on 31 December 2010, including the subordinated capital loans and convertible capital loans in shareholders’ equity, as a proportion of the balance sheet total was 26.4% (26.5%).

Loans, commitments and contingent liabilities given by the company to Group companies classified as related parties on 31 December 2010 totalled EUR 134.9 (161.7) million. Loans, commitments and contingent liabilities given by the company to private persons classified as related parties on 31 December 2010 totalled EUR 0.3 (0.3) million.

Investments

Componenta restricted the amount of investments in production facilities in 2010 due to the under-utilisation of capacity. Investments in production facilities during the year totalled EUR 8.5 (15.5) million, of which financial lease investments accounted for EUR 0.3 (4.4) million. The net cash flow from investing activities was EUR -10.4 (-12.6) million,which includes the cash flow from the Group’s investments in tangible and intangible assets, and the cash flow from shares sold and purchased and from the sale of fixed assets.

Research and development

At the end of 2010, 118 (90) people worked in Componenta’s research and development, which corresponds to 3% (2%) of the company’s total personnel. Componenta’s research and development expenses in 2010 totalled EUR 1.8 (1.9) million, the equivalent of 0.4% (0.6%) of the Group’s total net sales.

Environment

Componenta is committed to the continuous improvement and to reducing the environmental impact of its production. The objectives of the Group’s environmental policy are to reduce consumption of energy and raw materials, restrict particle and VOC emissions, reduce environmental noise from its operations, increase the sorting of waste, and reduce the amount of waste that cannot be re-used.

One of the most significant environmental aspects for Componenta Group is the use of energy. In 2010 the Group used 629 GWh (422 GWh) of energy. Most of the energy used, 66% (65%), was electricity. The foundries consume more than 90% of all the energy, since especially the melting processes at the foundries utilise much energy. In 2010 energy consumption at Componenta’s foundries in proportion to output was 10% lower than in the previous year.

Componenta will publish its 2010 corporate responsibility report during spring 2011.

Personnel

The Group had on average 4,155 (3,798) employees during the financial year, including 303 (114) leased employees. The number of Group personnel at the end of the year was 4,414 (3,698), which includes 398 (84) leased employees. At the end of the year, 52% (47%) of the personnel were in Turkey, 24% (28%) in Finland, 16% (17%) in the Netherlands, and 8% (9%) in Sweden.

Performance of operations

Componenta’s reporting structure was changed on 1 February 2010 when the Group organised its divisions into country-based operations. The figures for 2010 have been reported in accordance with the new structure, and all figures for comparison for country-based operations for 2009 have been adjusted to bring them in line with this reporting structure.

 Turkey operations

The operations in Turkey comprise the iron foundry and machine shop in Orhangazi and the aluminium foundry and production unit for aluminium wheels in Manisa.

Net sales for the operations in Turkey rose 76% in the year to EUR 204.8 (116.2) million. Operating profit was EUR 15.2 million, corresponding to 7.4% of net sales (EUR 2.2 million, 1.9%). The operating profit was boosted by the extremely positive developments in volumes in the construction and mining machinery and automotive industries. The operating profit was however weakened by the rapid rise in the price of iron raw material prices, the prices of other raw materials which are not covered by the material surcharges, and the exchange rate losses, in total EUR -2.3 million.

Fourth quarter net sales increased 67% to EUR 59.6 (35.6) million and operating profit totalled EUR 4.3 million, corresponding to 7.3% of net sales (EUR 1.1 million, 3.0%). The fourth quarter operating profit was boosted positively by iron raw material prices and by exchange rate gains, together totalling EUR 0.3 million.

At the end of the financial year, the order book for the Turkey operations was 70% higher than in the previous year, at EUR 47.8 (28.1) million.

Finland operations

The operations in Finland consist of the iron foundries in Iisalmi, Karkkila, Pietarsaari and Pori and the machine shops in Lempäälä and Pietarsaari. The operations also include the production unit for pistons in Pietarsaari.

Net sales for the operations in Finland rose 29% in the year to EUR 103.6 (80.4) million. The operating profit was EUR -0.2 million, or -0.2 % of net sales (EUR -3.9 million, -4.8%). The operating profit was boosted by the cuts in costs implemented towards the end of the previous year and by the higher production volumes, especially in the heavy trucks industry. The operating profit was weakened however by altogether EUR -3.8 million due to the rapid rise in iron raw material prices early in the year, and in the second half of the year by the prices of other raw materials which are not covered by the material surcharges in the second half of the year.

Fourth quarter net sales increased 87% to EUR 30.6 (16.4) million and operating profit was EUR 0.6 million, corresponding to 2.0% of net sales (EUR -1.7 million, -10.5%). The rapid rise in raw material prices had an impact of EUR -0.9 million on the fourth quarter operating profit.

At the end of the financial year, the order book for Finland operations was 33% higher than in the previous year, at EUR 15.7 (11.8) million.

Holland operations

The operations in the Netherlands comprise the iron foundries in Heerlen and Weert, the machine shop operations in Weert and the pattern shop in Tegelen.

Net sales for the Holland operations rose 22% to EUR 85.1 (69.5) million and the operating profit was EUR -1.5 million, or -1.8 % of net sales (EUR -10.2 million, -14.7%). Factors contributing to the improvement in the operating result were the adjustments in costs carried out earlier and the increase in production volumes. The rise in iron raw material prices early in the year and the prices of other raw materials which are not covered by the material surcharges in the second half of the year had a combined negative effect of EUR -2.4 million on the operating profit.

Fourth quarter net sales rose 54% to EUR 22.1 (14.4) million and operating profit was EUR -0.5 million, corresponding to -2.3% of net sales (EUR -1.5 million, -10.1%). The rapid rise in raw material prices weakened the fourth quarter operating profit by EUR -0.5 million.

At the end of the financial year, the order book for Holland operations was 32% higher than in the previous year, at EUR 16.4 (12.5) million. 

Sweden operations

The operations in Sweden comprise the Främmestad machine shop and the Wirsbo forge.

Net sales for operations in Sweden increased 104% in the financial year to EUR 84.7 (41.5) million and operating profit was EUR 0.8 million, corresponding to 0.9 % of net sales (EUR -8.8 million, -21.3%). The operating profit for Sweden operations improved from the previous year due to the cuts in costs carried out earlier and the considerably higher volumes, especially in the heavy trucks industry. The operating profit was weakened by the exceptional increases in electricity prices during the first quarter.

Fourth quarter net sales rose 109% to EUR 26.9 (12.9) million and operating profit was EUR 1.6 million, corresponding to 5.8% of net sales (EUR -1.9 million, -14.8%).

At the end of the financial year, the order book for Sweden operations was 111% higher than in the previous year, at EUR 22.0 (10.5) million.

Other business

Other business comprises the sales and logistics company Componenta UK Ltd in Great Britain, service and real estate companies in Finland, the Group’s administrative functions and associated company Kumsan A.S. in Turkey. Other business recorded an operating profit of EUR -1.0 (4.6) million.

Fourth quarter operating profit for Other Business totalled EUR -0.2 (2.1) million.

Shares and share capital

The shares of Componenta Corporation are quoted on the NASDAQ OMX Exchange in Helsinki. At the end of the financial year the company had a total of 17,457,798 shares. The company’s share capital at the end of the period stood at EUR 21.9 (21.9) million. The quoted price on 31 December 2010 stood at EUR 6.01 (4.12). The average price during the year was EUR 5.29, the lowest price was EUR 4.02, and the highest EUR 6.44. At the end of the financial year the share capital had a market capitalisation of EUR 104.6 (72.0) million and the volume of shares traded during the year was equivalent to 48.6% (20.1%) of the share stock.

Purchase and disposal of own shares

The Annual General Meeting (AGM) held on 10 March 2010 resolved, in accordance with the proposal of the Board of Directors, to authorise the Board of Directors to decide on the purchase of a maximum of 1,700,000 of the Company’s own shares, in one or several instalments, using the Company’s unrestricted shareholders’ equity. The shares shall be purchased otherwise than in proportion to the holdings of the shareholders through public trading arranged by NASDAQ OMX Helsinki Ltd at the market price prevailing at the moment of purchase. The authorisation is valid for a period of 18 months from the date of the decision of the AGM. The authorisation cancels the authorisation to resolve on the purchase of own shares given to the Board of Directors by the AGM on 23 February 2009.

The AGM on 26 February 2007 authorised the Board of Directors to decide to issue shares and grant option rights and other special rights with an entitlement to shares under the following terms and conditions: 

1. Under the authorisation the Board of Directors 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 authorisation. The authorisation does not exclude the right of the Board of Directors to decide on a direct issue of shares.  
2. The authorisation is valid for a period of five years from the date of the decision of the AGM.  

Under the above authorisation 12,100 Componenta Corporation shares were issued to pay the bonus for the 2007 – 2008 earning periods in Componenta’s 2007 – 2009 share-based incentive scheme.

Share-based incentive scheme 2010 - 2012

The Board of Directors of Componenta Corporation resolved on 10 March 2010 on a long-term bonus and incentive plan for key personnel. The target group for the plan comprises key persons in the Group as decided by the Board of Directors. At the end of the financial year the target group contained 45 people.

The plan includes three earning periods, the calendar years 2010, 2011 and 2012. The Board of Directors decides on the earning criteria for each earning period and on the targets for these. The earning criteria for the 2010 earning period were Componenta Group’s result after financial items and net cash flow from operations. The amount of the bonus in the earning period is determined after the end of the period by the extent to which the targets set for the earning criteria have been achieved.

Any bonuses will be paid in 2011, 2012 and 2013 as a combination of company shares and cash. The part to be paid in cash is intended to cover the taxes and tax-related costs arising from the bonus. If shares are paid in the incentive scheme, the shares may not be conveyed, pledged or otherwise used during a two-year restriction period.

For the 2010 earnings period, the Board of Directors resolved to allocate 40,950 shares of which to the President and CEO 7,500 shares and to the rest of the key personnel 33,450 shares altogether. The scheme’s impact on the Group’s result before tax at the end of 2010 was EUR -0.1 million.

Board of Directors and Management

After the Annual General Meeting on 10 March 2010, the Board of Directors held its organization meeting and elected Heikki Bergholm as its Chairman and Juhani Mäkinen as its Vice Chairman. The Board met 14 times in 2010. The average attendance rate of Board members at its meetings was 99 %. The Board of Directors assessed its performance, under the leadership of its Chairman, in December 2010.

Heikki Lehtonen is President and CEO of Componenta. At the end of the financial year the Corporate Executive Team (CET) of Componenta Corporation comprised the following members: President and CEO Heikki Lehtonen, COO Yrjö Julin, Hakan Göral, SVP of Operations Turkey, CFO Mika Hassinen, Anu Mankki, SVP of HR and Pauliina Rannikko, SVP of Legal and Risk Management. Communications Director Pirjo Aarniovuori acted as Secretary to CET.

At the end of the review period the Extended Corporate Executive Team comprised the members of CET and Secretary to CET listed above and the following: Olli Karhunen, SVP of Operations Finland; Patrick Steensels, SVP of Operations Holland; Michael Sjöberg, SVP of Operations Sweden; Tapio Rantala, VP of Foundry Technology Development; Ömer Lütfi Erten, VP of Internal Sourcing; Juha Alhonoja, VP of Machining Technology Development; Ville Taipale, VP of Purchasing; VP’s of Sales and Product Development Antti Lehto, Lauri Eklin, Jari Leino, and Hein Strijbos VP of Engineering.

Risks and business uncertainties

The most significant risks for Componenta are risks related to the business environment (competition and price risk, commodity and environmental risks), operational risks (customer and supplier risks, productivity, production and process risks, labour market disruptions, contract and product liability risks, personnel risks, and data security risks) as well as financial risks (funding and liquidity risk, currency, interest rate and credit risks).

In order to manage the Group’s business operations it is essential to secure the availability of certain raw materials, such as recycled metal and pig iron, and energy, at competitive prices. The cost risk relating to raw materials is mainly managed with price agreements, and under these agreements the prices of products are adjusted in line with the changes in raw material prices. Increases in prices for raw materials may tie up more funds in working capital than estimated.

The financial risks related to Componenta’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 financial markets and to secure the Group’s financial performance and financial position.

More information related to Componenta’s risks and risk management is given in the 2010 annual report and on the company’s website at www.componenta.com. 

Events after end of period

Componenta decided to expand its Corporate Executive Team (CET) in January by appointing Olli Karhunen (SVP of Operations Finland), Patrick Steensels (SVP of Operations Holland) and Michael Sjöberg (SVP of Operations Sweden) to CET.

In January, Componenta decided to begin personnel negotiations, as laid down in the Act on Co-operation within Undertakings, at Pietarsaari on 25 January 2011. Componenta is planning to terminate machining operations in Pietarsaari during the first half of the year and to transfer some of the machining work to Främmestad in Sweden and to Orhangazi in Turkey. If all earlier mentioned acts take place, it will mean a reduction of about 120 employees both in foundry and machining operations in Pietarsaari. One-time costs are expected to be EUR 3.0 million and will be incurred during the first quarter. In addition, investment and product transfer costs are estimated to be at some EUR 1.0 million, and these will be incurred during 2011.

Dividend proposal

The Board of Directors proposes to the Annual General Meeting to be held on 28 February 2011 that, in accordance with the Group’s current dividend policy, no dividend shall be paid for the 1 January - 31 December 2010 financial period. On 31 December 2010 the parent company had distributable equity of EUR 84.4 million.

Market outlook

The demand outlook in all the Group’s customer sectors is good at the beginning of 2011.

Demand in the heavy trucks sector is expected to continue at good level, in particular because of positive market development in Europe.

Demand for construction and mining machinery is expected to continue to develop favourably during 2011, mainly because of the higher mining material prices and the recovery in the economy.

Demand for agricultural machinery is estimated to rise from the previous year as a result of higher food prices and development in demand in Europe and North America.

Due to growing exports by Turkey’s automotive industry and encouraging development in demand for aluminium alloy wheels, the demand in the automotive industry is estimated to stay at good level in 2011.

Demand in the wind power sector is expected to remain at a low level in Europe.

Demand in the machine building industry is expected to continue to pick up gradually.

Prospects for Componenta

Componenta’s prospects for 2011 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta’s order intake and order book.

Componenta’s order book at the end of the financial year was 61 % higher than at the end of the previous year. In 2011 the Group’s net sales are expected to rise clearly and the result after financial items before one time items to be positive. Net cash flow from operations is expected to remain positive and changes in working capital should be moderate, mainly due to the sale of trade receivables.Investments in production facilities in 2011 are expected to be some EUR 15 million.

The continuing rise in raw material prices at the beginning of 2011 will affect the result in the beginning of the year.

Financial statements review tables

Componenta’s 2010 financial statements review has been prepared in accordance with international financial reporting standards (IFRS). In addition, it has applied the revised standards IFRS 3 and IAS 27 as from 1 January 2010. Applying the revised standards has not affected the Group’s reported result or its financial position. The financial statements review tables have been prepared in accordance with IAS 34 accounting principles. This financial statements review is unaudited.

Consolidated income statement

*) Earnings per share with dilution has been restated for the financial year 2009 and for the fourth quarter of the year 2009. The effect of the dilution was erroneously taken into account although the dilution decreased the loss of earnings per share.

Consolidated statement of comprehensive income

Consolidated statement of financial position

 Condensed consolidated cash flow statement 

Statement of changes in consolidated shareholders' equity

Key ratios

Per share data

*) 31 December 2009 restated
**) For year 2010 a proposal of the Board of Directors

Changes in tangible assets and goodwill

Group development

Net sales by market area

 Quarterly development by market area

Group development

*) Net financial items are not allocated to business segments

Group development by business segment   

*) Order book on 15 January 2010
**) Order book on 10 January 2011

Group development by quarter

*) Net financial items are not allocated to business segments

Quarterly development by business segment

*) Order book on 15 January 2010
**) Order book on 10 January 2011

Business segments

Fair values of derivative instruments

 Nominal values of derivative instruments

*) Currency derivatives mature in less than a year.

Contingent liabilities

Key exchange rates

Calculation of key financial ratios

Largest registered shareholders on 31 December 2010

The members of the Board of Directors own 32.1 % of the shares. All shares have equal voting rights. If all the warrants were converted to shares, the holding of shares by the members of the Board of Directors would change to 31.7%.

Helsinki, 25 January 2011

COMPONENTA CORPORATION

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 452 million in 2010. The Group employs approx. 4,400 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