COMPONENTA FINANCIAL STATEMENTS 1.1. - 31.12.2014 Heikki Lehtonen - PowerPoint PPT Presentation

COMPONENTA FINANCIAL STATEMENTS 1.1. - 31.12.2014 Heikki Lehtonen President and CEO 2 2

Quarterly development of order book (including orders for the next two months) +2% 120 100 80 MEUR 60 40 20 0 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 10 February 2015 3 3

Liikevaihto vuosineljänneksittäin, Me Quarterly net sales, MEUR 4 4 100 125 150 175 25 50 75 0 Q1/10 Q2/10 Net sales, rolling 12 months Net sales Quarterly development of net sales Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 2010 - 2014 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 10 February 2015 0 100 200 300 400 500 600 700 Net sales rolling 12 months, MEUR Rullaava liikevaihto 12 kk, Me

Income Statement Q4 Q4 MEUR 2014 2013 Change 2014 2013 Change Order book +2% 89 87 +2% 89 87 Net sales -3% 120 124 -3% 495 511 EBITDA *) +10% 5.4 8.0 -32% 35.8 32.5 Operating profit *) +22% 1.2 3.6 -67% 17.8 14.5 Net financial expenses +12% -6.0 -6.1 -1% -27.3 -24.4 Result after financial items *) -4% -4.9 -2.5 +91% -9.5 -9.9 One-time items and exchange rate -10.5 -1.5 +618% -19.2 0.3 n/m differences of operative B/S items Taxes n/m -1.9 -6.0 -68% +0.2 -6.0 Net profit +84% -17.3 -10.0 +73% -28.6 -15.5 Earnings/share, EUR -16% -0.18 -0.37 -52% -0.63 -0.75 *) Excluding one-time items and exchange rate differences of operative balance sheet items. 10 February 2015 5 5

EBITDA variance analysis 2013 vs. 2014 60 12.7 50 40 35.8 1.6 -4.0 32.5 MEUR -4.0 -3.0 30 20 10 0 EBITDA New Force Loss of margin Quality Weakened Other EBITDA FY/13 1) cost savings due to lower problems in productivity improvements FY/14 1) volumes Orhangazi of Dutch Turkey operations 1) Excluding one-time items and exchange rates differences of operative balance sheet items. 6 6 10 February 2015

EBITDA variance analysis Q4/2013 vs. Q4/2014 12 3.0 10 -1.0 8.0 8 -1.6 -1.0 MEUR 5.4 6 -1.0 -1.0 4 2 0 EBITDA New Force Loss of Quality Weakened Higher costs Higher EBITDA Q4/13 1) cost savings margin due problems in productivity due to aluminium Q4/14 1) to lower Orhangazi of Dutch strengthened raw material volumes Turkey operations Turkish lira prices 1) Excluding one-time items and exchange rates differences of operative balance sheet items. 7 7 10 February 2015

EBITDA excluding one-time items and exchange rate differences of operative balance sheet items Q4 Q4 MEUR 2014 2013 Change 2014 2013 Change Net sales 119.6 123.5 -3% 495.2 510.5 -3% Value of production 118.9 118.8 +0% 506.2 512.2 -1% Materials -54.0 -52.9 +2% -223.5 -227.4 -2% Direct wages and external services -21.2 -20.4 +4% -89.8 -95.7 -6% Other variable and fixed costs -38.2 -37.4 +2% -157.1 -156.6 +0% Total costs -113.4 -110.7 +2% -470.4 -479.7 -2% EBITDA*) 5.4 8.0 -32% 35.8 32.5 +10% *) Excluding one-time items and exchange rate differences of operative balance sheet items. 10 February 2015 8 8

Operating profit and Result after financial items excluding one-time items and exchange rate differences of operative balance sheet items Result after financial items*) Operating profit*) 4 10 2 8 MEUR MEUR 0 6 -2 4 -4 2 -6 -8 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 *) Excluding one-time items and exchange rate *) Excluding one-time items and exchange rate differences of operative balance sheet items. differences of operative balance sheet items. 10 February 2015 9 9

Key ratios MEUR 31.12.2014 31.12.2013 Equity ratio, % 23.7 18.9 Return on equity, excluding one-time items, % -14.8 -12.8 Return on equity, % -29.1 -18.6 Return on investment, excluding one-time items, % 4.8 5.9 Return on investment, % 0.8 4.9 Net interest bearing debt, MEUR 216 230 Net gearing, % 194 270 Investments in production facilities, MEUR 22.6 18.9 Personnel at the end of period, including leased personnel 4,238 4,431 10 February 2015 10 10

11 11 MEUR -25 -20 -15 -10 10 15 20 25 -5 0 5 Q1/10 Q2/10 Q3/10 cash flow from operations Q4/10 Q1/11 Development of Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 10 February 2015

Cash flow statement MEUR 1-12/2014 1-12/2013 Cash flow from operations before change in net working capital, 24.2 28.6 financing and taxes Change in net working capital 2.6 -16.8 Cash flow from operations before financing and taxes 31.2 7.5 Cash flow from operations 2.2 -20.6 Cash flow from investments -15.7 -13.4 Cash flow from financing activities 3.0 36.0 Change in liquid assets -10.5 2.0 10 February 2015 12 12

Pig iron and steel scrap indexes Sources: Reuters Metal Bulletin, WV Stahl 10 February 2015 13 13

Development of exchange rates Turkish lira Source: Reuters 10 February 2015 14 14

EFFICIENCY IMPROVEMENT PROGRAM 10 February 2015 15 15

Proforma EBITDA 2014 43.3 MEUR 60 7.0 53.3 50 3.0 46.3 7.5 43.3 27.6 40 35.8 MEUR -5.5 30 26.1 20 -12.4 10 0 FY/12 Margin Realized Cost FY/14 Proforma FY/14 Cost FY/15 Cost FY/16 EBITDA 1) impact of cost inflation and EBITDA 2) cost proforma savings EBITDA 4) savings EBITDA 4) lost savings FX diff. of savings 3) EBITDA New Force 3 New Force 3 volumes B/S items 1) Excluding one-time items 2) Excluding one-time items and exchange rate differences of operative balance sheet items. 3) Proforma cost savings: Annual impact of implemented and/or decided cost savings and improvement actions. 4) Year 2015 and 2016 figures do not include any volume neither FX changes. 10 February 2015 16 16

INDICATORS OF ECONOMY 17 17

Manufacturing Purchasing Manager Indices Source: Reuters 10 February 2015 18 18

10 February 2015 IFO expectations Source: IFO 19 19

10 February 2015 CDS Index Source: Reuters 20 20

DEVELOPMENT OF SALES AND ORDER BOOK 21 21

Sales distribution 2014 Sales by business segment *) Sales by market area 2014 2013 vs. 2014 MEUR 350 300 250 200 150 100 50 Germany 21% Sweden 18% 0 Turkey 12% UK 9% Foundry Machine Aluminium Other Finland 8% Benelux 8% division Shop division Business Italy 6% France 6% division USA 5% Other Europe 4% Other countries 2% 2013 2014 *) Figures excluding internal eliminations 10 February 2015 22 22

Sales by customer industry 2014 Heavy Trucks Machine Construction Agricultural Automotive Building and Mining Machinery 33% (31%) 17% (19%) 19% (18%) 14% (17%) 17% (15%) 10 February 2015 23 23

Development of sales and order book in Heavy Trucks industry Order book Q4 2014 vs. Q4 2013 +12% Sales to Heavy Trucks industry 2014 vs. 2013 -2% 10 February 2015 24 24

Development of supply chain in Heavy Trucks industry compared to previous year Componenta’s Volvo Group’s Registrations of deliveries to heavy deliveries to new heavy trucks trucks industry in distributors in Europe in Europe 2014 vs. 2013 2014 vs. 2013 2014 vs. 2013 -2% -12% -6% Sources: Volvo website, ACEA 10 February 2015 25 25

10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 55 000 5 000 26 26 0 JAN 09-10 Source: ACEA FEB 09-10 MAR 09-10 APR 09-10 MAY 09-10 2010 JUN 09-10 JUL 09-10 AUG 09-10 Registrations of new heavy trucks SEP 09-10 OCT 09-10 NOV 09-10 DEC 09-10 2011 JAN 10-11 FEB 10-11 MAR 10-11 APR 10-11 MAY 10-11 JUN 10-11 JUL 10-11 in Europe (EU27) 2012 AUG 10-11 SEP 10-11 OCT 10-11 NOV 10-11 DEC 10-11 JAN 11-12 FEB 11-12 MAR 11-12 2013 APR 11-12 MAY 11-12 JUN 11-12 JUL-11-12 AUG 11-12 SEP 11-12 OCT 11-12 2014 NOV 11-12 DEC 11-12 JAN 12-13 FEB 12-13 MAR 12-13 APR 12-13 MAY 12-13 JUN 12-13 Change -% JUL 12-13 AUG 12-13 SEP 12-13 OCT 12-13 NOV 12-13 DEC 12-13 JAN 13-14 FEB 13-14 MAR 13-14 APR 13-14 MAY 13-14 Change +% JUN 13-14 JUL 13-14 AUG 13-14 SEP 13-14 10 February 2015 OCT 13-14 NOV 13-14 DEC 13-14 -70% -50% -30% -10% 10% 30% 50% 70% 90% 110% 130% 150%

Development of sales and order book in Construction and Mining industry Order book Q4 2014 vs. Q4 2013 -19% Sales to Construction and Mining industry 2014 vs. 2013 -6% 10 February 2015 27 27

Development of Caterpillar dealers’ deliveries Source: Caterpillar 10 February 2015 28 28

Development of sales and order book in Machine Building industry Order book Q4 2014 vs. Q4 2013 0% Sales to Machine Building industry 2014 vs. 2013 +7% 10 February 2015 29 29

Development of sales and order book in Agricultural Machinery industry Order book Q4 2014 vs. Q4 2013 -8% Sales to Agricultural Machinery industry 2014 vs. 2013 -17% 10 February 2015 30 30

Business expectations in agriculture industry in Europe Source: CEMA 10 February 2015 31 31

Development of sales and order book in Automotive industry Order book Q4 2014 vs. Q4 2013 +26% Sales to Automotive industry 2014 vs. 2013 0% 10 February 2015 32 32

Registrations of new passenger cars in Europe (EU27) 2014 Change +% 2010 2011 2012 2013 Change -% Source: ACEA 10 February 2015 33 33