Financial Statements 1 January ? 31 December 2005
Componenta Corporation Stock Exchange Release 20.1.2006 at 10.00
Financial Statements 1 January 31 December 2005
* Net sales in 2005 totalled MEUR 343.2 (MEUR 316.0 in previous
year); net sales of the Cast Components business group increased 5%,
of De Globe 10% and of other operations 18%.
* Operating profit excluding one-time items was MEUR 6.6 (12.5) and
the result after financial items, excluding one-time items,
was MEUR -2.4 (4.6).
* Consolidated operating profit including one-time items totalled
MEUR 9.9 (25.7) and the profit after financial items was MEUR 1.0 (17.9).
* Net sales in the fourth quarter totalled MEUR 82.3 (91.4) and the
result after financial items, excluding one-time items, was
MEUR -2.6 (1.5).
* The earnings per share were EUR 0.26 (1.62) and the Board of
Directors proposes to the Annual General Meeting that no
dividend be paid for 2005.
Net sales and order book
The Group had net sales in the January December review period of
EUR 343.2 (316.0) million and an order book of EUR 60.4 (59.2) million
at the end of December. The Cast Components business group had sales of
EUR 175.2 (166.1) million, De Globe of EUR 120.5 (109.4) million
and other operations of EUR 47.8 (40.4) million. At the end of the review
period, Cast Components had an order book of EUR 28.3 (27.3) million,
De Globe of EUR 25.8 (23.9) million and other operations of
EUR 6.3 (8.0) million.
Production of heavy trucks in Europe started to decline during the fourth
quarter of the year. Componenta's deliveries to the heavy truck industry
in 2005 rose 6% from the previous year and fell 15% in the fourth quarter
from the corresponding quarter in the previous year. Sales to off-road
manufacturers grew 12%, deliveries to the power and transmission
industries rose 12%, and sales to the machine building industry grew 13%
during the year. Fourth quarter sales to off-road manufacturers declined
8%, deliveries to the power and transmission industries rose 1%, and
sales to the machine building industry declined 3%.
Componenta's net sales by customer sector were as follows: heavy truck
industry 46% (47%), off-road 24% (23%), machinery and equipment
manufacturers 15% (15%), power and transmission 12% (12%), and others 3%
(3%).
Componenta's net sales by market area were as follows: Nordic countries
51% (53%), other European countries 43% (42%) and other countries 6%
(4%).
Result
Componenta's financial statements have been prepared in accordance with
international financial reporting standards (IFRS). Componenta Group made
an operating profit, excluding one-time items, of EUR 6.6 (12.5) million
and the result after financial items, excluding one-time items, was
EUR -2.4 (4.6) million. The Cast Components business group had an operating
profit of EUR 5.2 (12.4) million, De Globe an operating loss of
EUR -0.7 (-1.7) million, and other operations recorded an operating profit,
excluding one-time items, of EUR 2.1 (1.8) million.
The Group's net financial costs amounted to EUR -8.9 (-7.9) million.
The consolidated result after financial items, excluding one-time items,
declined from the previous year mainly due to the costs and
the breaks in production caused by running in the new foundry machinery
and equipment installed at Karkkila and Heerlen. Running in the new
equipment at the Karkkila and Heerlen foundries impaired the result in
the review period by altogether about EUR 5.5 million. These two business
units recorded a combined operating loss in 2005 of
EUR -12.5 (-7.0) million. The price of steel scrap fluctuated greatly
during the year.
The Group's operating profit, including one-time items, was
EUR 9.9 (25.7) million, the result after financial items was
EUR 1.0 (17.9) million and the net result was EUR 2.5 (15.6) million.
Onetime items totalled EUR 3.3 (13.3) million, consisting mainly of
profit of EUR 2.2 million from the sale of Keycast and Profiz shares,
the recognition as income of EUR 4.6 million in negative goodwill in
connection with the purchase of De Globe shares, EUR 1.1 million in
closing down costs for the Alvesta foundry, and one-time costs of
EUR 2.7 million for adjustments and restructuring at De Globe and Åmål.
Income taxes were EUR +1.2 million positive (EUR -3.6 million), due to
the losses recorded by operations at the Karkkila and Heerlen units in
the year. A total of EUR 13.7 million in tax receivables were recorded in
the balance sheet for the losses, and it is estimated that these can be
utilised in the Netherlands in three years and in Finland in five years.
Earnings per share were EUR 0.26 (1.62).
The return on investment, including one-time items, was 5.0% (14.2%) and
return on equity 4.2% (28.1%).
On 20 October 2005 the European Commission announced that it had decided
to order Componenta Corporation to return to the City of Karkkila alleged
state aid that infringes the provisions on state aid in the EC treaty
totalling EUR 2.4 million with interest from the date when the aid was
made available to Corporation (EUR 2.6 million on 31 December 2005). The
alleged aid to be recovered under the Commission's decision comprises
EUR 0.7 million paid by the City of Karkkila to Componenta Corporation for
shares in the real estate company Karkkilan Keskustakiinteistöt Oy and
shareholder loan receivable of EUR 1.7 million paid by Karkkilan
Keskustakiinteistöt Oy to Componenta Corporation. Componenta Corporation
has appealed to the Court of First Instance of the European Communities
against the decision of the European Commission in an application for
annulment filed on 29 December 2005. The dispute is not included in the
income statement but is presented under contingent liabilities in the
notes to the financial statements.
Financing
The Board of Directors of Componenta Corporation, under the authorization
given by the Annual General Meeting of Shareholders, decided to issue
convertible capital notes and on 4 March 2005 approved subscriptions for
convertible capital notes with a nominal value of EUR 19.0 million. In
March the Group repaid EUR 3.2 million, or 10%, of the principal of the
old preferred capital notes in accordance with the terms for the notes.
On 31 December 2005 Componenta Corporation had outstanding capital notes
and convertible bonds with a combined value of EUR 37.7 million, as
defined in IFRS.
The Group had EUR 60.0 million in non-utilised long-term credit
facilities at the end of the review period. The Group has a
EUR 60 million commercial paper programme. The Group's interest-bearing
net debt, excluding the outstanding capital notes of
EUR 37.7 million, totalled EUR 106.8 million (EUR 118.1 million).
Net gearing, including the capital notes in shareholders' equity,
was 124% (147%).
Componenta is making more effective use of capital with a programme to
sell its sales receivables. Under this arrangement, some of the sales
receivables are sold without any right of recourse. By 31 December 2005
the company had sold sales receivables totalling EUR 18.7 (16.5) million.
The cash flow from operations was EUR 18.6 (11.2) million, and of this
the change in net working capital was EUR 8.7 (-1.2) million. The cash
flow from investments was EUR -11.6 (-9.4) million, which includes the
cash flow from the Group's production investments and the cash flow from
the sale and purchase of shares and from the sale of fixed assets.
The Group's equity ratio was 18.1% (20.6%) and the equity ratio,
including capital notes in shareholders' equity, was 32.1% (29.5%).
Performance of business groups
Cast Components
The Cast 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, machine building, power and
transmission, and off-road industries.
Cast Components had net sales in the review period of
EUR 175.2 (166.1) million and an operating profit of EUR 5.2 (12.4) million.
The order book on 31 December 2005 stood at EUR 28.3 (27.3) million.
The business group's operating profit declined from the previous year
mainly due to the costs and breaks in production caused by running in the
new foundry machinery and equipment installed at Karkkila and commissioning
the new painting line at the Främmested machine shop. Technical problems
on the production line at the Karkkila foundry and running in production
weakened the business group's result by EUR 3.9 million compared to the
previous year. In addition, the available capacity at the Karkkila
foundry did not match demand early in the year and products had to be
manufactured at the company's other foundries, with higher costs. During
the year, the production organization at Karkkila was restructured and
strengthened, a new melting furnace boosting production capacity was
taken into operation in the second quarter, and automatic pouring machine
was introduced in the third quarter. A fire at the Karkkila foundry at
the beginning of September caused a break in production of several days,
slowed down the running in of production, and weakened the result. The
Karkkila foundry recorded an operating loss for the whole year of
EUR -6.8 million. Commissioning the new equipment and machinery installed at
the foundry and machine shop in Pietarsaari during the summer took place
as planned and production on the new lines had been run in by the end of
the third quarter.
Fourth quarter net sales for Cast Components totalled
EUR 44.3 (47.1) million and the operating profit was EUR 1.1 (4.5) million.
The operating profit was significantly down on the previous year as a result
of the prolonged difficulties experienced at Karkkila.
De Globe
De Globe comprises two iron foundries located in the Netherlands that
supply complex cast components for the off-road and heavy truck
industries and for compressors and pressure vessels. Two
production lines function at the foundry in the town of Heerlen: Heerlen HWS
and Heerlen Furan. De Globe's joint functions moved in February from
Belfeld into rented premises in Weert, close to the Weert iron foundry.
In March, De Globe switched to a profit unit organization, with a
director appointed with responsibility for the operations and financial
performance of each unit.
Under an agreement signed on 30 June 2005, Componenta acquired the
remaining 45% of the shares and voting rights of the Dutch foundry
company De Globe B.V.. The shares were sold by Industriebank LIOF, a
Dutch capital investment fund, for a price of EUR 2.3 million. Following
the purchase, Componenta owns 100% of De Globe's shares. Componenta
recognized as income the EUR 4.6 million in negative goodwill arising
from the transaction. Componenta acquired 55% of the shares of De Globe
in March 2004, with an option to acquire the remaining shares by 2007.
De Globe had net sales in January December of EUR 120.5 (109.4) million
and an operating loss, excluding one-time items, of EUR 0.7 (-1.7) million.
The order book on 31 December 2005 stood at EUR 25.8 (23.9) million.
The growth in sales and correcting the prices of unprofitable
products improved De Globe's result. Transferring the foundry from
Belfeld alongside the foundry in Heerlen and running in the production
line weakened the result for the year by EUR 1.6 million compared to the
previous year. Breaks in production at the Heerlen foundry in July and at
the beginning of September slowed down the running in of production and
clearly weakened the result for the year. The furan production line
transferred to Heerlen recorded an operating loss for the whole year of
EUR -5.7 million. Fourth quarter net sales totalled
EUR 27.3 (31.1) million and the operating loss excluding one-time items
was EUR -1.3 (-1.5) million.
Other Business
Componenta's Other Business consists of the Wirsbo forges, associated
companies, the Group's support functions and service units, and divested
business.
On 30 March 2005, Componenta sold its 26% holding in IT company Profiz
Business Solution Oyj to Skuutinliikki Oy for approximately
EUR 0.4 million. The transaction had a slightly positive impact on
Componenta's result for the first quarter of 2005.
In a transaction confirmed on 30 June 2005, Componenta sold its 43%
holding of the shares of Keycast Oy to a new company established by OKO
Venture Capital and Keycast's operative management. The price for the
shares was EUR 6.5 million and Componenta recorded a sales profit of
EUR 2.1 million on the transaction in the second quarter.
Other Business had net sales in January December of
EUR 47.8 (40.4) million and an operating profit, excluding one-time items,
of EUR 2.1 (1.8) million. The order book at the end of the review period
stood at EUR 6.3 (8.0) million. Fourth quarter net sales totalled
EUR 10.8 (13.2) million and the operating loss excluding one-time items
was EUR -0.1 million (profit of EUR 0.9 million).
Sales by the Wirsbo forges increased 19% from the previous year to
EUR 46.6 million. The operating profit for the year improved in consequence
of the growth in sales and the steps taken to enhance operations.
Componenta's share of the result of the associated companies was
EUR 2.1 (1.9) million. Ulefos NV's net sales totalled EUR 35.6 (33.3) million
and profit after financial items was EUR 3.9 (2.7) million.
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 19.3 million. The shares have a nominal value of
2 euros. On 31 December 2005 the quoted price of Componenta Corporation
shares stood at EUR 5.95 (EUR 5.30). The average price during the year
was EUR 7.11, the lowest quoted price was EUR 5.32 and the highest
EUR 9.44. At the end of the review period the share capital had a market
value of EUR 57.3 million (EUR 51.0 million) and the volume of shares
traded during the review period was equivalent to 51% (24%) of the share
stock.
Componenta Corporation and Nordea Bank Finland Plc have signed a market
making agreement that meets the requirements for Liquidity Providing (LP)
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 the shares. Under the terms of the
agreement, Nordea Bank Finland Plc will quote bids and offers for
Componenta shares so that the spread of the bid and offer prices is a
maximum of 2%, calculated on the bid price. The quoted prices cover a
minimum of 2,000 shares, the equivalent of 10 trading lots.
The Annual General Meeting of Shareholders decided to pay a dividend of
EUR 0.50 per share for 2004, 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 7 February 2005 authorized
the Board to decide on purchasing the company's own shares using
distributable funds, 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. The
authorization had not been exercised by 31 December 2005.
Authorization to raise the share capital
The Annual General Meeting authorized the Board of Directors to decide on
increasing the company's share capital through one or more issue of new
shares, convertible bonds or option rights. The share capital of the
company may be increased by a maximum of EUR 3 846 122 or by a lesser
amount that corresponds to a maximum of one fifth of the registered share
capital of the company and the voting rights attached to all the shares
on the date when the Annual General Meeting gave the authorization and
when the Board of Directors decided on the increase. The Board of
Directors of Componenta Corporation decided on the basis of this
authorization to issue convertible capital notes and on 4 March 2005
approved subscriptions for the Convertible Capital Notes 2005 with a
nominal value of EUR 19 million. The exchange rate for the shares is
EUR 10.00, so a maximum of 1,900,000 shares can be subscribed with
the notes.
Investments
Investments in production facilities during the review period totalled
EUR 22.4 (32.2) million, and finance lease investments accounted for
EUR 7.2 million of these. The cash flow from investments was
EUR -11.6 (-9.4) million.
Board of Directors and Management
Componenta's Annual General Meeting of Shareholders on 7 February 2005
elected the following to the Board of Directors: Heikki Bergholm, Heikki
Lehtonen, Juhani Mäkinen, Marjo Raitavuo and Matti Tikkakoski. The Board
elected Heikki Bergholm as its Chairman and Juhani Mäkinen as Vice
Chairman.
The corporate executive team of Componenta Group at the end of the review
period is formed by President and CEO Heikki Lehtonen; Olli Karhunen,
Director, Heavy Duty Components; Jari Leino, Director, Sales and Product
Development; Anu Mankki, Director, Human Resources as from 1 December 2005;
Marc Omes, Director, Sales and Product Development
(as from 22 August 2005); Michael Sjöberg, Director, Machine Shops;
Kimmo Suupohja, Director, Foundries as from 17 October 2005;
CFO Kimmo Virtanen and Communications Manager Pirjo Aarniovuori.
Personnel
During the review period the Group had on average 2214 (2168) employees.
At the end of December 2005, 48% (45%) of the Group's personnel were in
Finland, 25% (27%) in the Netherlands and 27% (28%) in Sweden.
Environment
Componenta is committed to continuous improvement and to reducing the
environmental impact of its production processes. The objectives of the
Group's environmental policy are to reduce consumption of energy and raw
materials, restrict particle and VOC emissions, reduce noise levels, and
increase the sorting and recycling of waste. Componenta will publish its
2005 environmental report during spring 2006.
Dividend proposal
The Board of Directors proposes to the Annual General Meeting of
Shareholders that no dividend be paid for 2005.
Annual General Meeting
The Annual General Meeting of Componenta Corporation will be held on 8
February 2006 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.
Publication of Annual Report
Componenta Corporation will publish the printed and Internet versions of
its 2005 annual report during week 5.
Prospects
Componenta's prospects in 2006 are based on general external financial
indicators, order forecasts given by customers, and on Componenta's order
intake and order book.
Demand in the heavy truck industry took a downward turn towards the end
of 2005. Demand for components for the off-road industry
was also down in the final quarter from the corresponding period in the
previous year. Demand for components from the power and transmission
industry and from machinery and equipment manufacturers has remained at a
healthy level throughout 2005.
Commissioning the new machinery and equipment during 2004 and 2005 has
weakened Componenta's result, especially in 2005. The technical aspects
of the investments at Karkkila in Finland, Heerlen in the Netherlands and
Främmestad in Sweden were completed during 2005. Running in the new
equipment operationally at Karkkila and Heerlen will continue during
2006. The goal is to reduce the operating losses of these units during
2006 and to achieve a positive operating profit at Karkkila and Heerlen
in 2007.
Componenta's order book at the end of 2005 stood at the same level as in
the corresponding period of last year. Net sales in the first quarter of
2006 are expected to grow 10% from the last quarter of 2005 and to be on
the same level as in the corresponding period in the previous year. The
result after financial items, excluding one-time items, in the first
quarter of 2006 is estimated to improve from the last quarter of 2005.
Income statement
MEUR 1.1.-31.12.2005 1.1.-31.12.2004
Net sales 343.2 316.0
Other operating income 3.5 10.0
Operating expenses -327.0 -293.2
Depreciation, amortization and write-down -16.5 -15.4
Negative goodwill recognized as income 4.6 6.6
Share of the associated companies' result 2.1 1.9
Operating profit 9.9 25.7
% of net sales 2.9 8.1
Financial income and expenses -8.9 -7.9
Result after financial items 1.0 17.9
% of net sales 0.3 5.7
Income taxes 1.2 -3.6
Net profit 2.2 14.2
Allocation of net profit for the period
To equity holders of the parent 2.5 15.6
To minority interest -0.3 -1.4
2.2 14.2
Earnings per share, EUR 0.26 1.62
Earnings per share with dilution, EUR 0.26 1.62
Income statement excluding one-time items
MEUR 1.1.-30.9.2005 1.1.-31.12.2004
Net sales 343.2 316.0
Other operating income 1.1 0.7
Operating expenses -323.4 -290.8
Depreciation, amortization and write-down -16.5 -15.2
Negative goodwill recognized as income - -
Share of the associated companies' result 2.1 1.9
Operating profit 6.6 12.5
% of net sales 1.9 4.0
Financial income and expenses -8.9 -7.9
Result after financial items -2.4 4.6
% of net sales -0.7 1.5
Balance sheet
MEUR 1.1.-31.12.2005 1.1.-31.12.2004
Assets
Non-current assets
Intangible assets, excl. consolidated goodwill 2.1 1.7
Consolidated goodwill 0.5 0.5
Investment properties 1.9 1.9
Tangible assets 162.5 157.8
Investment in associates 6.9 10.5
Receivables 1.0 2.0
Other investments 0.5 1.2
Defferred tax assets 9.0 7.3
Total non-current assets 184.6 183.0
Current assets
Inventories 37.8 42.4
Receivables 41.5 45.9
Cash and bank accounts 5.3 1.2
Total current assets 84.6 89.5
Total assets 269.1 272.4
Liabilities and shareholders' equity
Shareholders' equity
Share capital 19.3 19.2
Other equity 27.8 29.3
Equity part of convertible capital notes 1.5 -
Equity attributable to equity holders of the parent 48.5 48.5
Minority interest 0.1 7.6
Shareholders' equity 48.6 56.1
Liabilities
Non-current liabilities
Capital loan (* 34.9 21.1
Interest bearing 57.8 68.3
Interest free 0.1 0.1
Provisions 0.7 0.9
Deferred tax liability 0.7
Current liabilities
Capital loan (* 2.9 3.2
Interest bearing 54.3 51.1
Interest free 68.9 70.6
Provisions 0.4 1.1
Total liabilities 220.5 216.3
Total liabilities and shareholders' equity 269.1 272.4
*) Reclassification according to IAS 39 and IAS 32 on 1 January 2005
Cash flow statement 1.1. - 31.12.
MEUR 1.1.-31.12.2005 1.1.-31.12.2004
Cash flow from operations
Result after financial items 1.0 17.9
Depreciation, amortization and write-down 11.9 9.0
Net financial income and expenses 8.9 8.5
Other income and expenses, adjustments to cash flow -4.7 -15.1
Change in net working capital 8.7 -1.2
Cash flow from operations before financing
and income taxes 25.8 19.0
Interest received and paid and dividends received -7.2 -7.8
Taxes paid 0.0 0.0
Net cash flow from operations 18.6 11.2
Cash flow from investing activities
Capital expenditure in tangible and intangible assets -17.5 -27.3
Proceeds from tangible and intangible assets 0.2 3.3
Other investments and loans granted -2.7 -4.7
Proceeds from other investments and
repayments of loan receivables 8.4 19.3
Net cash flow from investing activities -11.6 -9.4
Cash flow from financing activities
Dividends paid -4.8 0.0
Share issue 0.1 -
Draw-down (+)/ repayment (-) of the equity
part of convertible capital notes 1.5 -
Repayment of finance lease liabilities -1.8 -1.1
Draw-down (+)/ repayment (-) of current loans 1.3 -14.2
Draw-down (+)/ repayment (-) of non-current loans 1.0 14.2
Net cash flow from financing activities -2.8 -1.2
Change in liquid assets 4.1 0.7
Statement of changes in shareholders' equity
Share-
holders'
equity
MEUR A B C D E F G Total H total
Shareholders'
equity 31.12.2004 19.2 11.5 24.2 0.0 17.8 72.8 7.6 80.3
IAS 39 -24.2 -0.7 -24.9 -24.9
Shareholders'
equity 1.1.2005 19.2 11.5 0.0 0.0 0.0 0.0 17.1 47.8 7.6 55.4
Electricity forwards
and interest rate
derivatives 0.9 0.0 0.9 0.9
Other changes 0.0 0.1 0.4 0.5 0.5
Direct entries
into equity 0.9 0.0 0.0 0.1 0.4 1.4 1.4
Profit/loss for
the period 2.5 2.5 -0.3 2.2
Income and expenses
for the period 0.0 0.0 0.0 0.0 2.5 2.5 -0.3 3.6
Dividends paid -4.8 -4.8 -4.8
Increase of
share capital,
warrants 0.0 0.0 0.0 0.1 0.0
Change in
minority
interest -7.2 -7.2
Equity share of
convertible
capital notes 1.5 1.5 1.5
Shareholders'
equity 31.12.2005 19.3 11.6 0.9 0.0 1.5 0.1 15.3 48.5 0.1 48.6
A Share capital
B Share premium account
C Hedging reserve
D Capital notes
E Equity share of convertible capital notes F Other items
G Retained earnings
H Minority interest
Key Ratios
31.12.2005 31.12.2004
Equity ratio, % 18.1 20.6
Equity ratio, %, preferred capital note in equity 32.1 29.5
Equity per share, EUR 5.04 5.05
Invested capital 198.4 199.7
Return on investment, % 5.0 14.2
Return on equity, % 4.2 28.1
Net interest bearing debt, MEUR, preferred capital
note in debt 144.5 142.4
Net interest bearing debt, MEUR preferred capital
note in equity 106.8 118.1
Net gearing, %, preferred capital note in debt 297.5 253.8
Net gearing, %, preferred capital note in equity 123.7 147.0
Order book, MEUR 60.4 59.2
Investments in non-current assets without finance
leases, MEUR 17.9 35.1
Investments in non-current assets incl. finance
leases, MEUR 25.1 37.0
Investments in non-current assets, % of net sales 7.3 11.7
Average number of personnel during the period 2,214 2,168
Number of personnel at period end 2,185 2,213
Share of export and foreign activities in net sales, % 81.9 81.4
Contingent liabilities, MEUR 100.2 103.6
Per Share Data
31.12.2005 31.12.2004
Number of shares at period end, 1,000 shares 9,629 9,615
Earnings per share (EPS), EUR 0.26 1.62
Earnings per share, with dilution (EPS), EUR 0.26 1.62
Equity per share, EUR 5.04 5.05
Dividend per share, EUR (* 0.10 0.50
Payout ratio, % 38.25 30.83
Effective dividend yield, % 1.68 9.43
P/E multiple 22.76 3.27
Share price at period end, 5.95 5.30
*) For year 2005 a proposal of the Board of Directors.
Segments
Cast Components, MEUR 31.12.2005 31.12.2004
Assets 181.8 180.4
Liabilities 61.5 63.3
Investments in non-current assets incl. finance leases 20.1 35.1
Depreciation 14.3 13.6
Nordic countries, MEUR 31.12.2005 31.12.2004
Assets 194.7 199.3
Investments in non-current assets incl. finance leases 19.1 21.7
Other European countries, MEUR 31.12.2005 31.12.2004
Assets 74.4 73.1
Investments in non-current assets incl. finance leases 6.0 15.3
Derivative instruments
MEUR 31.12.2005 31.12.2004
Nominal Current Nominal Current
value value value value
Currency derivatives
Forward exchange agreements 37.7 0.0 33.0 0.1
Currency swaps 1.1 0.0 1.8 0.0
Interest rate derivatives
Interest rate options 6.0 0.0 6.0 0.0
Forward rate agreement 13.0 0.0 - -
Interest rate swaps 53.9 -0.1 32.9 -0.4
Commodity derivatives
Elctricity price forwards 4.0 1.2 5.7 -0.1
Derivative instruments are used to hedge the Group's foreign exchange and
interest rate risks.
Group development
Net sales by market area
MEUR 1.1.-31.12.2004 1.1.-31.12.2005
Nordic countries 167.9 175.9
Other European countries 133.8 146.8
Other countries 14.3 20.5
Total 316.0 343.2
Quarterly development by market area
Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/
MEUR 2004 2004 2004 2004 2005 2005 2005 2005
Nordic countries 39.4 43.0 36.1 49.4 47.5 49.4 34.7 44.3
Other European countries 30.6 34.8 30.6 37.8 40.4 39.7 32.2 34.6
Other countries 2.9 3.3 3.7 4.3 5.3 6.3 5.5 3.5
Total 73.0 81.1 70.4 91.4 93.2 95.3 72.4 82.3
Group development
MEUR 1.1.-31.12.2004 1.1.-31.12.2005
Net sales 316.0 343.2
Operating profit 25.7 9.9
Net financial items -7.9 -8.9
Profit/loss after financial items 17.9 1.0
Group development by business group
Net sales, MEUR 1.1.-31.12.2004 1.1.-31.12.2005
Componenta Cast Components 166.1 175.2
De Globe 109.4 120.5
Cast Components total 275.5 295.4
Other business 40.4 47.8
Componenta Group total 316.0 343.2
Operating profit, MEUR 1.1.-31.12.2004 1.1.-31.12.2005
Componenta Cast Components 12.4 5.2
De Globe -1.1 -0.7
Cast Components total 11.3 4.5
Other business 14.4 5.4
Componenta Group total 25.7 9.9
Order book, MEUR 31.12.2004 31.12.2005
Componenta Cast Components 27.3 28.3
De Globe 23.9 25.8
Cast Components total 51.2 54.1
Other business 8.0 6.3
Componenta Group total 59.2 60.4
Group development by quarter
Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/
MEUR 2004 2004 2004 2004 2005 2005 2005 2005
Net sales 73.0 81.1 70.4 91.4 93.2 95.3 72.4 82.3
Operating profit 15.9 4.3 1.9 3.6 3.9 8.6 -1.9 -0.7
Net financial items -1.8 -1.8 -1.9 -2.4 -2.1 -2.2 -2.3 -2.3
Profit/loss after
financial items 14.1 2.6 0.0 1.3 1.8 6.4 -4.2 -3.0
Quarterly development by business group
Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/
Net sales, MEUR 2004 2004 2004 2004 2005 2005 2005 2005
Componenta Cast Components 38.7 43.0 37.3 47.1 45.6 48.4 36.9 44.3
De Globe 25.2 28.1 25.0 31.1 33.2 33.4 26.6 27.3
Cast Components total 63.9 71.1 62.3 78.2 78.6 81.7 63.5 71.5
Other business 9.1 9.9 8.1 13.2 14.6 13.6 8.9 10.8
Componenta Group total 73.0 81.1 70.4 91.4 93.2 95.3 72.4 82.3
Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/
Operating profit, MEUR 2004 2004 2004 2004 2005 2005 2005 2005
Componenta Cast Components 2.0 4.2 1.7 4.5 1.6 3.0 -0.4 1.1
De Globe 0.1 0.1 -0.4 -0.9 0.7 1.0 -1.1 -1.3
Cast Components total 2.1 4.3 1.3 3.6 2.3 4.0 -1.5 -0.2
Other business 13.8 0.0 0.6 0.0 1.6 4.6 -0.4 -0.5
Componenta Group total 15.9 4.3 1.9 3.6 3.9 8.6 -1.9 -0.7
Order book at period Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/
end, MEUR 2004 2004 2004 2004 2005 2005 2005 2005
Componenta Cast Components 22.7 27.2 29.7 27.3 29.5 31.4 28.5 28.3
De Globe 19.9 20.0 22.3 23.9 25.7 23.6 20.7 25.8
Cast Components total 42.6 47.2 52.0 51.2 55.2 55.1 49.2 54.1
Other business 5.5 5.4 7.9 8.0 8.6 7.4 6.4 6.3
Componenta Group total 48.0 52.6 59.9 59.2 63.8 62.4 55.6 60.4
Group development excluding one-time items
MEUR 1.1.-31.12.2004 1.1.-31.12.2005
Net sales 316.0 343.2
Operating profit 12.5 6.6
Net financial items -7.9 -8.9
Profit/loss after financial items 4.6 -2.4
Group development by business group excluding one-time items
Operating profit, MEUR 1.1.-31.12.2004 1.1.-31.12.2005
Componenta Cast Components 12.4 5.2
De Globe -1.7 -0.7
Cast Components total 10.7 4.5
Other business 1.8 2.1
Componenta Group total 12.5 6.6
Group development by quarter excluding one-time items
Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/
MEUR 2004 2004 2004 2004 2005 2005 2005 2005
Net sales 73.0 81.1 70.4 91.4 93.2 95.3 72.4 82.3
Operating profit 2.3 4.5 1.8 3.9 3.8 4.7 -1.6 -0.3
Net financial items -1.8 -1.8 -1.9 -2.4 -2.1 -2.2 -2.3 -2.3
Profit/loss after
financial items 0.5 2.7 -0.1 1.5 1.7 2.5 -4.0 -2.6
Quarterly development by business group excluding one-time items
Componenta Cast Components 2.0 4.2 1.7 4.5 1.6 3.0 -0.4 1.1
De Globe 0.1 0.1 -0.4 -1.5 0.7 1.0 -1.1 -1.3
Cast Components total 2.1 4.3 1.3 3.0 2.3 4.0 -1.5 -0.2
Other business 0.2 0.2 0.5 0.9 1.5 0.7 -0.1 -0.1
Componenta Group total 2.3 4.5 1.8 3.9 3.8 4.7 -1.6 -0.3
Largest registered shareholders on 31 December 2005
Share of
total voting
Shareholder Shares rights
1 Lehtonen Heikki 3,806,131 39.53%
Cabana Trade S.A. 3,676,731
Oy Högfors-Trading Ab 115,900
Heikki Lehtonen 13,500
2 Etra-Invest Oy 1,500,000 15.58%
3 Inkinen Simo-Pekka 462,844 4.81%
4 Investment Fund OP-Arvo Osake 308,800 3.21%
5 Nordea Life Assurance Finland Ltd. 262,825 2.73%
6 Veritas Pension Insurance Company Ltd. 261,400 2.71%
7 Ilmarinen Mutual Pension Insurance Company 257,600 2.68%
8 Lehtonen Anna-Maria 178,823 1.86%
9 Lehtonen Yrjö M 111,040 1.15%
10 Bergholm Heikki 101,000 1.05%
Nominee-registered shares 234,126 2.43%
Other shareholders 2,144,120 22.27%
Total 9,628,709 100.00%
The members of the Board of Directors own 40.6% of the shares. All shares
have equal voting rights.
The members of the Board of Directors hold 10.8% 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 39.3%.
Helsinki, 20 January 2006
COMPONENTA CORPORATION
Board of Directors
Heikki Lehtonen
President and CEO
Further information:
Heikki Lehtonen
President and CEO
tel. +358 10 403 00
Kimmo Virtanen
CFO
tel +358 10 403 00
