COMPONENTA INTERIM REPORT 1.1. - 31.3.2015 Heikki Lehtonen - PowerPoint PPT Presentation

COMPONENTA INTERIM REPORT 1.1. - 31.3.2015 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 Q1/15 27 April 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 - Q1/2015 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 Q1/15 27 April 2015 0 100 200 300 400 500 600 700 Net sales rolling 12 months, MEUR Rullaava liikevaihto 12 kk, Me

Income Statement MEUR Q1 2015 Q1 2014 Change Order book 2% 92.3 90.7 Net sales 1% 133 132 EBITDA*) -15% 10.3 12.1 Operating profit*) -22% 5.8 7.4 Net financial expenses -29% -5.3 -7.5 Result after financial items*) n/m 0.5 -0.1 One-time items and exchange rate -1.4 -0.9 50% differences of operative balance sheet items Taxes -0.8 -0.3 134% Net profit -1.7 -1.3 26% Earnings/share, EUR -0.02 -0.09 -76% *) Excluding one-time items and exchange rate differences of operative balance sheet items. 27 April 2015 5 5

EBITDA MEUR Q1 2015 Q1 2014 Change Net sales 133.1 131.9 1% Value of production 135.8 135.9 0% Materials -62.1 -59.6 4% Direct wages and external services -23.4 -23.9 -2% Other variable and fixed costs -40.0 -40.3 -1% Total costs -125.5 -123.8 1% EBITDA*) 10.3 12.1 -15% *) Excluding one-time items and exchange rate differences of operative balance sheet items. 27 April 2015 6 6

Operating profit and Result after financial items Result after financial items*) Operating profit*) 2 10 8 0 MEUR MEUR 6 -2 4 -4 2 -6 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 *) 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. 27 April 2015 7 7

Key ratios MEUR 31.3.2015 31.3.2014 31.12.2014 Equity ratio, % 22.7 18.0 23.7 Return on equity, % *) -1.5 -2.8 -12.1 Return on equity, % -6.2 -6.4 -29.1 Return on investment, % *) 6.9 9.5 5.6 Return on investment, % 5.3 8.5 0.8 Net interest bearing debt, MEUR 226 223 216 Net gearing, % 208 267 194 Investments in production facilities, MEUR 5.0 4.0 22.6 Personnel at the end of period, including leased personnel 4,253 4,512 4,238 *) Excluding one-time items and exchange rate differences of operative balance sheet items. 27 April 2015 8 8

9 9 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 Q1/15 27 April 2015

Cash flow statement MEUR Q1 2015 Q1 2014 Cash flow from operations before change in net working capital, financing and taxes 7.3 11.2 Change in net working capital -7.7 5.0 Cash flow from operations before financing and taxes -0.4 16.2 Cash flow from operations*) -4.0 9.7 Cash flow from investments -5.1 -1.0 Cash flow from financing activities 4.8 -5.6 Change in liquid assets -4.4 3.0 *) Cash flow from operations weakened from the previous year mainly because of increase of inventories and receivables which were at exceptionally high level. 27 April 2015 10 10

Pig iron and steel scrap indexes Sources: Reuters Metal Bulletin, WV Stahl 27 April 2015 11 11

Development of exchange rates Turkish lira Source: Bloomberg 27 April 2015 12 12

EFFICIENCY IMPROVEMENT PROGRAM 13 13

Proforma EBITDA Q1/2015 43 MEUR 60 7.0 49.6 50 29.3 8.6 42.6 40 34.0 MEUR -9.3 30 26.1 20 -12.1 10 0 FY/12 Margin impact Realized Cost inflation Q1/15 Proforma cost Q1/15 Cost FY/16 EBITDA 1) of lost cost and FX EBITDA 2) savings 3) proforma savings EBITDA 4) volumes savings differences EBITDA New Force 3 1) Excluding one-time items 2) Excluding one-time items and exchange rate differences of operative balance sheet items. 3) Proforma cost savings: Rolling annual impact of implemented and/or decided cost savings and improvement actions on forward basis. 4) Year 2016 figure in this chart does not include any volume neither FX changes. 27 April 2015 14 14

100 MEUR ORGANIC GROWTH PROGRAM 15 15

Net growth in 100 MEUR organic growth program has reached 102 MEUR by end of Q1/2015 MEUR 180 162 33 160 140 29 131 29 31 120 102 39 100 -60 100 80 61 60 40 20 0 Heavy Construction Agriculture Machine Growth Sales erosion Growth Likely Target Trucks and Building total total new Mining (gross) (net) contracts 1) 1) Componenta expects these contracts to realise with 75% likelihood 27 April 2015 16 16

INDICATORS OF ECONOMY 17 17

Manufacturing Purchasing Manager Indices Source: Bloomberg 27 April 2015 18 18

27 April 2015 IFO expectations Source: IFO 19 19

27 April 2015 CDS Index Source: Bloomberg 20 20

DEVELOPMENT OF SALES AND ORDER BOOK 21 21

Sales distribution Q1 2015 Sales by business segment *) Sales by market area Q1 2015 Q1 2015 vs. Q1 2014 MEUR 100 80 60 40 20 Germany 22 % Sweden 18 % 0 Turkey 14 % Finland 9 % Foundry Machine Aluminium Other Benelux 8 % UK 7 % division Shop division Business Italy 6 % France 5 % division Other Europe 4 % USA 5 % Other countries 2 % Q1 2015 Q1 2014 *) Figures excluding internal eliminations 27 April 2015 22 22

Sales by customer industry Q1 2015 Heavy Trucks Machine Construction Agricultural Automotive Building and Mining Machinery 32% (31%) 17% (18%) 21% (20%) 14% (17%) 16% (14%) 27 April 2015 23 23

Development of sales and order book in Heavy Trucks industry Sales to Heavy Trucks industry Q1 2015 vs. Q1 2014 +1% Order book Q1 2015 vs. Q1 2014 +7% 27 April 2015 24 24

Development of supply chain in Heavy Trucks industry compared to previous year Componenta’s Volvo Group’s Registrations of new deliveries to heavy deliveries to heavy trucks in trucks industry in distributors in Europe Europe Q1/2015 vs. Q1/2014 Q1/2015 vs. Q1/2014 1-2/2015 vs. 1-2/2014 +1% +8% +19% Sources: Volvo website, ACEA 27 April 2015 25 25

Registrations of new heavy trucks in Europe (EU27) Change +% 2015 Change -% 2011 2012 2013 2014 Source: ACEA 27 April 2015 26 26

Development of sales and order book in Construction and Mining industry Sales to Construction and Mining industry Q1 2015 vs. Q1 2014 -3% Order book Q1 2015 vs. Q1 2014 -17% 27 April 2015 27 27

Development of Caterpillar dealer deliveries Source: Caterpillar 27 April 2015 28 28

Development of sales and order book in Machine Building industry Sales to Machine Building industry Q1 2015 vs. Q1 2014 +5% Order book Q1 2015 vs. Q1 2014 +16% 27 April 2015 29 29

Development of sales and order book in Agricultural Machinery industry Sales to Agricultural Machinery industry Q1 2015 vs. Q1 2014 -17% Order book Q1 2015 vs. Q1 2014 -19% 27 April 2015 30 30

Business climate in European agriculture Source: CEMA 27 April 2015 31 31

Development of sales and order book in Automotive industry Sales to Automotive industry Q1 2015 vs. Q1 2014 +21% Order book Q1 2015 vs. Q1 2014 +23% 27 April 2015 32 32

Registrations of new passenger cars in Europe (EU27) Change +% 2012 2013 2015 2011 2014 Change -% Source: ACEA 27 April 2015 33 33

DEVELOPMENT OF BUSINESS SEGMENTS 34 34

Development of Foundry Division Net sales Operating profit*) 100 6 6% 80 4 4% MEUR 60 MEUR 2 2% 40 20 0 0% 0 -2 -2% Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 • Operating profit in the review period excluding MEUR Q1 2015 Q1 2014 Change one-time items and exchange rate differences of balance sheet items weakened 1.8 MEUR. Order book 51.9 55.3 -6% Net sales 81.4 84.6 -4% • Operating profit weakened as a result of decreased volumes and strengthened Turkish Operating profit*) 2.0 3.8 -47% lira in Orhangazi. Positive impacts from the efficiency improvement program were Personnel avg. 2,549 2,843 -10% eventually smaller than the negative impact of previously mentioned items. *) Excluding one-time items and exchange rate differences of operative balance sheet items. 27 April 2015 35 35