Componenta Corporation Stock Exchange Release 5.2.2007 at 9.00
Financial Statements 1 January - 31 December 2006
* Componenta Group's pro forma net sales for the review period were
MEUR 616.9 (MEUR 567.5)
* Pro forma operating profit, excluding one-time items, was MEUR 40.4 (MEUR 12.6)
and the pro forma result after financial items excluding one-time items was
MEUR 23.8 (MEUR -4.0).
* Componenta's operating profit excluding one-time items was MEUR 14.9 (MEUR 6.6)
and the result after financial items was MEUR 5.0 (MEUR -2.4).
* Componenta's basic earnings per share was EUR 0.36 (EUR 0.26). The Group's pro
forma result for the year excluding one-time items was MEUR 18.1 (MEUR -1.6)
and the corresponding earnings per share was EUR 1.26 (EUR -0.26).
* The Board of Directors proposes to the Annual General Meeting of Shareholders
that a dividend of EUR 0.25 per share be paid for 2006.
On 18 October 2006 Componenta signed an agreement with Koc Holding A.S. and
related parties (Koc Group) under which it purchased 55% of the shares and voting
rights in Döktas, a company listed on the Istanbul Stock Exchange. In this
transaction, which was completed on 12 December 2006, Koc Group sold all the
Döktas shares that it held. After this transaction Componenta has increased its
holding in the company in trading on the Istanbul Stock Exchange. On 31 December
2006 Componenta had a 68.6% holding in the company. Componenta acquired shares
with a total value of MEUR 111.3 (balance sheet value on 31 December 2006). In
December, before the transaction was completed, Döktas purchased the remaining
75% of the share stock of British sales company Sherbrook International Limited.
The purchase of Döktas resulted in non-allocated goodwill of EUR 42.7 million.
Döktas Dökümcülük Sanayi ve Ticaret A.S. (Döktas) is a Turkish supplier of iron
and aluminium castings with net sales in 2006 of EUR 232.7 million and about
2 500 employees, including contract workers. The company comprises two business
units, an iron foundry in Orhangazi (61% of net sales) and an aluminium foundry
in Manisa (39% of net sales).
The acquisition changes the structure of Componenta Group significantly. The pro
forma figures presented in this release include the 2006 figures for Componenta
Group and Döktas Group for 2006. The pro forma figures are given to show what the
result and financial position of the combined Componenta Group and Döktas would
have been, based on the acquisition of Döktas, if the merger had taken place as
from 1 January 2005. In the 2006 fiscal year Döktas is included in the
consolidated official financial statements only in the balance sheet. The Döktas
figures are preliminary and are based on the information released on 5 February
2007.
Net sales and order book
The Group's pro forma net sales in 2006 were EUR 616.9 (567.5) million.
Componenta Group's net sales in January - December were EUR 362.1 (343.2) million.
Döktas' net sales including Sherbrook International Ltd were
EUR 254.8 (224.3) million in 2006.
The Group's pro forma net sales by customer industries in 2006 was as follows:
off-road 31% (30%), heavy trucks 28% (31%), cars and light trucks 20% (19%),
machine building 10% (10%), power and transmission 8% (7%) and other sales
3% (3%). Componenta's net sales by customer industries were as follows: heavy
trucks 43% (46%), off-road 26% (24%), machine building 17% (15%), power and
transmission 12% (12%) and other 2% (3%). Döktas' net sales were as follows: cars
and light trucks 48% (46%), off-road 38% (39%), heavy trucks 6% (8%), power and
transmission 1% (0%), machine building 0% (1%) and other sales 7% (6%).
The Group's pro forma net sales by geographical area in 2006 were as follows:
Nordic countries 29% (31%), other European countries 67% (65%) and other countries
4% (4%). Componenta's net sales by market area were as follows: Nordic countries
49% (51%), other European countries 45% (43%) and other countries 6% (6%). Döktas'
net sales by market area were as follows: Nordic countries 0% (1%), other European
countries 99% (99%) and other countries 1% (0%).
Result
Componenta's and Döktas' financial statements have been prepared in accordance
with international financial reporting standards (IFRS). The Group's pro forma
income statement has been prepared applying the same principles.
The Group's pro forma operating profit excluding one-time items was
EUR 40.4 (12.6) million and the pro forma result after financial items excluding
one-time items was EUR 23.8 (-4.0) million. Componenta's operating profit
excluding one-time items was EUR 14.9 (6.6) million and result after financial
items excluding one-time items was EUR 5.0 (- 2.4) million. Döktas' operating
profit excluding one-time items and Sherbrook was EUR 24.2 (5.3) million and result
after financial items EUR 23.6 (3.6) million. The pro forma figures include the
increase in financial expenses.
The Group's pro forma net financial costs amounted to EUR -16.6 (-16.6) million
and Componenta's net financial costs were EUR -9.9 (-8.9) million.
The Group's pro forma operating profit including one-time items was
EUR 40.0 (15.9) million and the result after financial items was
EUR 37.6 (-0.7) million, which includes one-time proceeds of EUR 14.1 million
from the sale in December 2006 by Döktas of investments with a value of
EUR 24.2 million that were not part of business operations. The Group's pro
forma profit for the fiscal year was EUR 31.2 (1.9) million.
Componenta's operating profit including one-time items was EUR 14.5 (9.9) million,
result after financial items was EUR 4.6 (1.0) million and profit for the fiscal
year was EUR 3.5 (2.2) million.
Componenta's taxes totalled EUR -1.1 (+1.2) million. Tax receivables have been
recorded in the balance sheet, and it is estimated that these can be utilized in
the Netherlands in three years and in Finland in five years.
Componenta's basic earnings per share were EUR 0.36 (0.26). The Group's pro forma
result for the fiscal year excluding one-time items was EUR 18.1 (-1.6) million
and the corresponding earnings per share was EUR 1.26 (-0.26).
Equity invested in the company at the end of the year was EUR 354 (198.4) million
and the return on investment was 6.6% (5.0%). The 2006 pro forma return on
investment excluding one-time items was 11.2%.
Componenta's key financial indicators during the past three years were as follows:
2004 2005 2006
Net sales, MEUR 316.0 343.2 362.1
Operating profit, MEUR 25.7 9.9 14.5
Operating profit, % 8.1 2.9 4.0
Return on equity, % 28.1 4.2 6.0
Equity ratio, % 20.6 18.1 18.7
Financing
The Board of Directors of Componenta Corporation, under authorization from the
Extraordinary General Meeting of Shareholders, decided to issue capital notes.
The notes were issued on 17 November 2006. Under the terms of the notes the
nominal principal is EUR 14,166,000. The notes will be repaid in a single payment
on 17 November 2011. The issue rate for the notes is 95%. 17.11. Fixed interest of
6.75% will be paid annually on the principal annually on 17 November in arrears.
Componenta's Board of Directors also decided, under authorization from the
Extraordinary General Meeting, to issue convertible capital notes. The notes were
issued on 4 December 2006. Under the terms of the notes, the repayable nominal
principal is EUR 19,695.600. The issue rate for the notes is 95%. The notes will
be repaid in a single payment on 4 December 2011. Fixed interest of 5.75% will be
paid annually on the notes on 4 December in arrears. In addition to the notes
mentioned above issued in 2006, Componenta Corporation has issued capital notes
dated 15 February 2002 and convertible capital notes dated 15 March 2005. Part of
the capital notes is repaid each year and the outstanding nominal value at the end
of the fiscal year was EUR 15.9 million and the last maturity date will be
19 March 2009. Interest accumulated on the notes (12 month euribor + 4%) is paid
annually in arrears. The convertible capital notes with a nominal value of
EUR 19.0 million will be repaid in a single payment on 15 March 2010 and fixed
interest of 5.75% is paid annually in arrears. In accordance with the stipulations
of the Finnish Companies Act, no security has been given for the capital notes. At
the end of the year Componenta had outstanding capital notes totalling
EUR 64.5 million.
The Group had EUR 137.0 million in non-utilized long-term credit facilities at the
end of the review period. In addition the Group has a EUR 100.0 million commercial
paper programme. The Group's interest-bearing net debt, excluding the outstanding
capital notes of EUR 64.5 million, was EUR 186.9 (106.8) million. Gearing was
287.8% (297.5%). The company's net debt as a proportion of shareholders' equity,
including the capital notes in shareholders' equity, was 123.1% (123.7%).
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 the end of the year the company had sold sales
receivables totalling EUR 33.0 (18.7) million.
Componenta's cash flow from operations during the review period was
EUR 26.2 (18.6) million, and of this the change in net working capital was
EUR 1.6 (8.7) million. The net cash flow from investment was
EUR -104.2 (-11.6) 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 18.7% (18.1%). The Group's shareholders' equity,
including the capital notes on 31 December 2006 in shareholders' equity, as a
proportion of the balance sheet total was 32.5% (32.1%).
Cash loans, commitments and contingent liabilities given by the company to Group
companies classified as related parties on 31 December 2006 totalled
EUR 107.7 million. Cash loans, commitments and contingent liabilities given by
the company to private persons classified as related parties on
31 December 2006 totalled EUR 0.3 million.
Performance of business groups
In 2006 Componenta had one IFRS business segment: Cast Components. In addition to
that Döktas is treated as two separate business segments: Döktas' Cast Components
and Döktas' Aluminium Components. Outside these business segments remain the
associated companies, Sherbrook, the Wirsbo forges, the real estate companies and
the Group's administrative functions.
Componenta's Cast Components
Componenta's Cast Components business group consists of Componenta's foundries
and machine shops that 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 316.7 (295.4) million
and an operating profit of EUR 14.0 (4.5) million. The order book at the end of
December stood at EUR 58.5 (54.1) million. The business group's operating profit
improved from the previous year mainly due to the increase in net sales and the
improved operating result of the Dutch business units. Cast Components had fourth
quarter net sales of EUR 82.5 (71.5) million and an operating profit of
EUR 3.7 (-0.2) million.
The Karkkila foundry's operating result was EUR -5.5 (-6.6) million. The current
programme to enhance operations at Karkkila is expected to further reduce the
unit's operating loss during 2007.
The Heerlen furan foundry recorded an operating loss in 2006 of
EUR -2.8 (-5.6) million. The enhancement programme at the unit is expected to
further improve the operating result during 2007.
Döktas' Cast Components (Orhangazi)
Döktas' Cast Components business group comprises the company's foundry and
machine shop in Orhangazi. The unit supplies ready-to-install components mainly
to the off-road industry and car and light truck manufacturers.
Döktas' Cast Components had net sales of EUR 142.6 (141.1) million and an
operating profit of EUR 15.1 (0.2) million. The unit's order book on 31 December
2006 stood at EUR 24.1 (22.1) million. The unit's operating result improved mainly
due to price increases made on account of rising raw material prices and the
devaluation of the Turkish lira.
Döktas' Aluminium Components (Manisa)
Döktas' Aluminium Components comprises the company's plant in Manisa that mainly
manufactures aluminium pressure cast components and aluminium wheels.
Döktas' Aluminium Components had net sales of EUR 90.1 (67.8) million and an
operating profit of EUR 9.1 (4.8) million. The unit had an order book on
31 December 2006 of EUR 10.5 (9.7) million.
Componenta's Other Business
Componenta's Other Business segment comprises the Wirsbo forges, as from 2007 the
sales company Sherbrook, associated companies, and the Group's support functions
and service units.
Other Business had net sales in January - December of EUR 45.4 (47.8) million and
operating profit excluding one-time items of EUR 0.9 (2.1) million. The order book
at the end of year stood at EUR 7.8 (6.3) million. Fourth quarter net sales
totalled EUR 13.0 (24.1) million and operating profit excluding one-time items was
EUR 0.2 (-0.7) million.
Sales by the Wirsbo forges fell and the operating profit declined from the
previous year.
Including Sherbrook, pro forma net sales for Other Business in January - December
were EUR 104.6 (101.1) million and the pro forma operating profit excluding
one-time items was EUR 2.2 (2.8) million.
Componenta's share of the result of the associated companies was
EUR 1.8 (2.1) million. Ulefos NV had net sales of EUR 38.2 (35.6) million and
result after financial items of EUR 4.2 (3.9) million.
Shares and share capital
The shares of Componenta Corporation are quoted on the Helsinki Exchanges. At the
end of the review period the company's share capital stood at
EUR 20.0 (19.3) million. The shares have a nominal value of 2 euros.
On 31 December 2006 the quoted price of Componenta Corporation shares stood at
EUR 8.59 (5.95). The average price during the year was EUR 6.56, the lowest quoted
price was EUR 5.29 and the highest EUR 8.80. At the end of the review period the
share capital had a market capitalization of EUR 86.1 (57.3) million and the volume
of shares traded during the review period was equivalent to 57% (51%) of the share
stock. The company has one share series. On 31 December 2006 the company had
10,022,000 (9,629,000) shares.
The Annual General Meeting of Shareholders on 8 February 2006 decided, in
accordance with the proposal of the Board of Directors, not to pay a dividend for
2005.
On 8 February 2006, Componenta received notification from Oy Etra-Invest Ab that
its share of the voting rights and share capital of Componenta Corporation had
exceeded 20% through a share transaction on 8 February 2006. On 31 December 2006,
Oy Etra-Invest Ab held 22.2% of the share capital and voting rights of Componenta
Corporation.
On 27 April 2006, Componenta received notification from Simo-Pekka Inkinen that
the share of the voting rights and share capital of Componenta Corporation
controlled by him had exceeded 5% through a share transaction on 24 April 2006.
On 31 December 2006, the shares controlled by Simo-Pekka Inkinen accounted for
6.6% of the share capital and voting rights of Componenta Corporation.
The share capital was raised by EUR 787,178 during the review period, as
393,589 new shares were subscribed using the option rights. The corresponding
increases in share capital were registered in the Trade Register on 27 April 2006,
15 June 2006, 28 July 2006, 5 October 2006, 26 October 2006, 24 November 2006 and
29 November 2006. The share subscription period using the option rights ended on
31 October 2006.
Authorization to purchase and dispose of company shares
The company's Board of Directors holds no current authorization to purchase or
dispose of the company's shares. The company does not own any of its own shares.
Investments
Componenta's investments in production facilities during the review period
totalled EUR 12.1 (22.4) million, and finance lease investments accounted for
EUR 5.3 million of these. The net cash flow from production investments was
EUR -6.9 (-11.6) million. The net cash flow from investments taking into
account the acquisition of Döktas A.S. was EUR -104.2 million.
Board of Directors and Management
Componenta's Annual General Meeting of Shareholders on 8 February 2006 elected
the following to the Board of Directors: Heikki Bergholm, Heikki Lehtonen, Juhani
Mäkinen, Marjo Raitavuo and Matti Tikkakoski. The Board of Directors elected
Heikki Bergholm as its Chairman and Juhani Mäkinen as Vice Chairman.
At the end of the review period the corporate executive team of Componenta Group
was formed by President and CEO Heikki Lehtonen; Olli Karhunen, Director,
Foundries; CFO Matti Kivekäs (as from 7 August 2006); Jari Leino, Director, Sales
and Product Development; Anu Mankki, Director, Human Resources; Marc Omes,
Director, Sales and Product Development; Marko Sipola, Director, Business
Development (as from 7 August 2006); Michael Sjöberg, Director, Machine Shops, and
Communications Manager Pirjo Aarniovuori.
After the end of the year Döktas Managing Director Yaylalý Günáy and Sales
Director Hakan Göral were appointed members of Componenta Corporation's corporate
executive team on 9 January 2007.
Personnel
Componenta Döktas Group total
Personnel 2,316 2,000 4,316
Leased personnel 312 621 933
Total 2,628 2,621 5,249
During the review period Componenta had on average 2,196 (2,214) employees. At the
end of December 2006 the Group had 4,316 (4,057) employees. The number of Group
personnel at the end of the year including leased personnel was 5,249 (4,833). At
the end of 2006, 22% of the Group's personnel were in Finland, 50% in Turkey,
16% in the Netherlands and 12% 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 reduction of the consumption of energy and raw
materials, reduction of particle and VOC emissions and reduction of external
ambient noise levels around each unit, sorting of waste and reduction of the
quantity of non-recyclable waste material.
One of the most important environmental aspects for Componenta Group is the use of
energy. During 2006 Componenta consumed 426 GWh (409 GWh) of energy and Döktas
383 GWh (393 GWh). Most, 67%, of the energy used is electricity. The foundries use
more than 90% of all the energy, since in particular the smelting processes at the
foundries use much energy. Energy consumption in proportion to production declined
in 2006 at Componenta's foundries by more than 6% and at Döktas by almost
5%, compared to 2005.
Componenta will publish its 2006 environmental report during the first half of
2007.
Research and development
At the end of 2006, 53 people worked in research and development at Componenta,
which corresponds to one (1) per cent of the company's total personnel.
Componenta's R&D expenses in 2006 totalled EUR 1.3 (1.4) million. This is
0.4% (0.4%) of the company's total net sales.
Dividend proposal
The distributable equity of the parent company on 31 December 2006 amounted to
EUR 18.1 million, of which the loss for the financial year was EUR -0.3 million.
The Board of Directors proposes to the Annual General Meeting of Shareholders that
a dividend of EUR 0.25 per share be paid for 2006, altogether EUR 2.5 million, and
EUR 15.6 million be retained in the shareholders' capital. Me. No significant
changes have taken place in the company's financial position after the end of the
year. The company's liquidity is strong, and in the opinion of the Board of
Directors the proposed distribution of profit does not put the company's solvency
at risk.
Annual General Meeting
The Annual General Meeting of Componenta Corporation will be held on 26 February
2007 at 1.00 pm.
The Board of Directors proposes to the Annual General Meeting that the company's
Articles of Association be changed in consequence of the new Finnish Companies Act
and that the Board be authorized to decide on issuing shares, option rights and
special rights as stated in Section 1 of Chapter 10 of the Finnish Companies Act
such that on the basis of the authorization a maximum of altogether
2,000,000 new shares is issued.
The Board of Directors proposes that the Annual General Meeting of Shareholders
authorizes the Board of Directors to resolve to repurchase own shares with the
unrestricted shareholders' equity of the Company. The authorization is proposed to
amount to a maximum of 1,000,000 own shares.
Publication of Annual Report
Componenta Corporation will publish its 2006 Annual Report during week 8.
Prospects
Componenta's prospects in 2007 are based on general external financial indicators,
order forecasts given by customers, and on Componenta's order intake and order
book.
The demand outlook in the Group's customer sectors is good at the beginning of
2007. Rising interest rates and unfavourable developments in exchange rates may
weaken prospects during the year.
Combining the operations of Componenta and Döktas is expected to achieve synergy
benefits of MEUR 10 by the end of 2008. The improvement in the performance of the
Karkkila and Heerlen units is expected to continue in 2007.
Componenta's and Döktas' order books stood at a higher level at the end of
2006 than at the end of the previous year.
Componenta Group's 2007 net sales and result after financial items, excluding
one-time items, are expected to increase on the corresponding pro forma figures
for 2006.
Income statement
1.1.- 1.1.- 1.10.- 1.10.-
31.12. 31.12. 31.12. 31.12.
MEUR 2006 2005 2006 2005
Net sales 362.1 343.2 95.5 82.3
Other operating income 0.8 3.5 0.2 0.6
Operating expenses -332.8 -327.0 -87.9 -80.1
Depreciation, amortization and
write-down -17.4 -16.5 -4.5 -4.1
Negative goodwill recognized as
income 0.0 4.6 0.0 0.3
Share of the associated companies'
result 1.8 2.1 0.6 0.3
Operating profit 14.5 9.9 3.8 -0.7
% of net sales 4.0 2.9 4.0 -0.9
Financial income and expenses -9.9 -8.9 -3.0 -2.3
Result after financial items 4.6 1.0 0.9 -3.0
% of net sales 1.3 0.3 0.9 -3.7
Income taxes -1.1 1.2 -0.2 -0.1
Net profit 3.5 2.2 0.7 -3.1
Allocation of net profit for the
period
To equity holders of the parent 3.5 2.5 0.7 -3.1
To minority interest 0.0 -0.3 0.0 0.0
3.5 2.2 0.7 -3.1
Earning per share calculated on
the profit attributable to equity
holders of the parent
Earnings per share, EUR 0.36 0.26 0.10 -0.32
Earnings per share with dilution,
EUR 0.36 0.26 0.10 -0.32
Income statement excluding one-time items
1.1.- 1.1.- 1.10.- 1.10.-
31.12. 31.12. 31.12. 31.12.
MEUR 2006 2005 2006 2005
Net sales 362.1 343.2 95.5 82.3
Other operating income 0.8 1.1 0.2 0.5
Operating expenses -332.6 -323.4 -87.8 -79.4
Depreciation, amortization and
write-down -17.2 -16.5 -4.3 -4.1
Negative goodwill recognized as
income 0.0 - 0.0 -
Share of the associated
companies' result 1.8 2.1 0.6 0.3
Operating profit 14.9 6.6 4.2 -0.3
% of net sales 4.1 1.9 4.4 -0.4
Financial income and expenses -9.9 -8.9 -3.0 -2.3
Result after financial items 5.0 -2.4 1.2 -2.6
% of net sales 1.4 -0.7 1.3 -3.2
Pro forma income statement
Pro forma Pro forma
MEUR 1.1.-31.12.2006 1.1.-31.12.2005
Net sales 616.9 567.5
Other operating income 1.7 3.8
Operating expenses -556.6 -532.6
Depreciation, amortization and write-down -23.7 -29.4
Negative goodwill recognized as income 0.0 4.6
Share of the associated companies' result 1.8 2.1
Operating profit 40.0 15.9
% of net sales 6.5 2.8
Financial income and expenses -2.5 -16.6
Result after financial items 37.6 -0.7
% of net sales 6.1 0.1
Income taxes -6.4 2.6
Net profit 31.2 1.9
Allocation of net profit for the period
To equity holders of the parent 21.1 0.9
To minority interest 10.1 1.0
31.2 1.9
Share of ownership in Döktas 68.6 68.6
Pro forma income statement excluding one-time items
Pro forma Pro forma
MEUR 1.1.-31.12.2006 1.1.-31.12.2005
Net sales 616.9 567.5
Other operating income 1.7 1.4
Operating expenses -556.5 -529.0
Depreciation, amortization and write-down -23.5 -29.4
Negative goodwill recognized as income 0.0 0.0
Share of the associated companies' result 1.8 2.1
Operating profit 40.4 12.6
% of net sales 6.5 2.2
Financial income and expenses -16.6 -16.6
Result after financial items 23.8 -4.0
% of net sales 3.9 -0.7
Income taxes -5.7 2.5
Net profit 18.1 -1.6
Allocation of net profit for the period
To equity holders of the parent 12.2 -2.5
To minority interest 5.9 1.0
18.1 -1.6
Earning per share calculated on the profit
attributable to equity holders of the parent
Earnings per share, EUR 1.26 -0.26
Number of shares in parent company 9,726 9,622
Balance sheet
1.1.-31.12. 1.1.-31.12.
MEUR 2006 2005
Assets
Non-current assets
Intangible assets 2.0 2.1
Goodwill 43.4 0.5
Investment properties 1.9 1.9
Tangible assets 213.7 162.5
Investment in associates 7.4 6.9
Receivables 1.0 1.0
Other investments 0.5 0.5
Defferred tax assets 8.2 9.0
Total non-current assets 278.2 184.6
Current assets
Inventories 78.5 37.8
Receivables 95.9 41.5
Cash and bank accounts 15.3 5.3
Total current assets 189.7 84.6
Total assets 467.9 269.1
Liabilities and shareholders' equity
Shareholders' equity
Share capital 20.0 19.3
Other equity 31.7 27.8
Equity part of convertible capital notes 3.4 1.5
Equity attributable to equity holders of the parent 55.2 48.5
Minority interest 32.2 0.1
Shareholders' equity 87.3 48.6
Liabilities
Non-current
Capital loan 61.5 34.9
Interest bearing 94.4 57.8
Interest free 0.1 0.1
Provisions 1.2 0.7
Deferred tax liability 3.2 0.7
Current
Capital loan 2.9 2.9
Interest bearing 107.8 54.3
Interest free 102.4 68.7
Tax liabilities 2.0 0.2
Provisions 4.9 0.4
Total liabilities 380.6 220.5
Total liabilities and shareholders' equity 467.9 269.1
Cash flow statement
1.1.- 1.1.-
31.12. 31.12.
MEUR 2006 2005
Cash flow from operations
Result after financial items 4.6 1.0
Depreciation, amortization and write-down 17.4 11.9
Net financial income and expenses 9.9 8.9
Other income and expenses, adjustments to cash flow 0.2 -4.7
Change in net working capital 1.6 8.7
Cash flow from operations before financing and income
taxes 33.7 25.8
Interest received and paid and dividends received -7.6 -7.2
Taxes paid 0.0 0.0
Net cash flow from operations 26.2 18.6
Cash flow from investing activities
Capital expenditure in tangible and intangible assets -7.0 -17.5
Proceeds from tangible and intangible assets 0.1 0.2
Other investments and loans granted -0.1
Proceeds from other investments and repayments of loan
receivables 8.4
Acquisition of subsidiary, net of cash acquired -97.4 -2.6
Net cash flow from investing activities 104.2 -11.6
Cash flow from financing activities
Dividends paid 0.0 -4.8
Share issue 1.6 0.1
Draw-down (+)/ repayment (-) of the equity part of
convertible capital notes 2.2 1.5
Repayment of finance lease liabilities -2.2 -1.8
Draw-down (+)/ repayment (-) of current loans 26.1 1.3
Draw-down (+)/ repayment (-) of non-current loans 60.4 1.0
Net cash flow from financing activities 88.1 -2.8
Change in liquid assets 10.0 4.1
Cash and bank account at the beginning of the period 5.3 1.2
Cash and bank account at the period end 15.3 5.3
Change during the financial period 10.0 4.1
Statement of changes in shareholders' equity
Parent company share of equity
Share-
hol-
Retai- Mino- der's
Share Share Other Ot- ned rity equi-
capi- Pre- reser- her ear- inte- ty
MEUR tal mium ves items nings Total rest total
Shareholder's equity
1.1.2005 19.2 11.5 0.0 0.0 17.1 47.9 7.6 55.4
Derivatives 0.9 0.9 0.9
Other changes 0.1 0.4 0.5 0.5
Dividends paid -4.8 -4.8 -4.8
Increase of share capital
(warrants) 0.0 0.0 0.1 0.1
Change in minoroty interest 0.0 -7.2 -7.2
Equity share of convertible
capital notes 1.5 1.5 1.5
Profit/loss for the period 2.5 2.5 -0.3 2.2
Shareholder's equity
31.12.2005 19.3 11.6 2.4 0.1 15.3 48.5 0.1 48.6
Parent company share of equity
Share-
hol-
Retai- Mino- der's
Share Share Other Ot- ned rity equi-
capi- Pre- reser- her ear- inte- ty
MEUR tal mium ves items nings Total rest total
Shareholder's equity
1.1.2006 19.3 11.6 2.4 0.1 15.3 48.5 0.1 48.6
Derivatives -0.1 -0.1 -0.1
Other changes 0.1 0.3 0.4 0.4
Increase of share capital
(warrants) 0.8 0.8 0.0 1.6 1.6
Change in minoroty interest 0.0 32.1 32.1
Equity share of convertible
capital notes 1.2 1.2 1.2
Profit/loss for the period 3.5 3.5 0.0 3.5
Shareholder's equity
31.12.2006 20.0 12.4 3.4 0.1 19.1 55.2 32.2 87.3
Key ratios
31.12.2006 31.12.2005
Equity ratio, % 18.7 18.1
Equity per share, EUR 5.50 5.04
Invested capital 354.0 198.4
Return on investment, % 6.6 5.0
Return on equity, % 6.0 4.2
Net interest bearing debt, MEUR 251.4 144.5
Net gearing, % 287.8 297.5
Order book, MEUR 101.0 60.4
Investments in non-current assets without finance
leases, MEUR 118.4 17.9
Investments in non-current assets incl. finance leases,
MEUR 123.6 25.1
Investments in non-current assets, % of net sales 34.1 7.3
Average number of personnel during the period 2,196 2,214
Number of personnel at period end 4,316 2,185
Share of export and foreign activities in net sales, % 82.4 81.9
Contingent liabilities, MEUR 190.1 100.2
Per share data
31.12.2006 31.12.2005
Number of shares at period end, 1,000 shares 10,022 9,629
Earnings per share (EPS), EUR 0.36 0.26
Earnings per share, with dilution (EPS), EUR 0.36 0.26
Equity per share, EUR 5.50 5.04
Dividend per share, EUR (* 0.25 0.00
Payout ratio, % 69.1 0.00
Effective dividend yield, % 2.91 0.00
P/E multiple 23.72 22.76
Share price at period end, 8.59 5.95
*) For year 2006 a proposal of the Board of Directors
Segments
Cast Components, MEUR 31.12.2006 31.12.2005
Assets 189.0 181.8
Liabilities 63.7 61.5
Investments in non-current assets incl. finance
leases 9.7 20.0
Depreciation 14.6 14.3
Döktas Cast Components, MEUR 31.12.2006 31.12.2005
Assets 123.4 -
Liabilities 19.6 -
Döktas Aluminium Components, MEUR 31.12.2006 31.12.2005
Assets 57.9 -
Liabilities 9.0 -
Nordic countries, MEUR 31.12.2006 31.12.2005
Assets 234.0 194.7
Investments in non-current assets incl. finance
leases 10.2 19.1
Other European countries, MEUR 31.12.2006 31.12.2005
Assets 232.8 74.4
Investments in non-current assets incl. finance
leases 1.9 6.0
Derivative instruments
31.12.2006 31.12.2005
Nominal Current Nominal Current
MEUR value value value value
Currency derivatives
Forward exchange agreements 7.6 0.0 4.3 0.0
Currency swaps 35.5 -0.3 34.5 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 43.0 0.7 53.9 -0.1
Commodity derivatives
Elctricity price forwards 7.1 0.3 4.0 1.2
Group development
Net sales by market area
MEUR 1-12/2005 1-12/2006
Nordic countries 175.9 177.1
Other European countries 146.8 162.6
Other countries 20.5 22.5
Total 343.2 362.1
Quarterly development by market area
MEUR Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06
Nordic countries 47.5 49.4 34.7 44.3 45.6 47.3 35.4 48.8
Other European countries 40.4 39.7 32.2 34.6 42.1 42.2 37.1 41.2
Other countries 5.3 6.3 5.5 3.5 5.9 5.1 5.9 5.5
Total 93.2 95.3 72.4 82.3 93.6 94.6 78.4 95.5
Group development
MEUR 1-12/2005 1-12/2006
Net sales 343.2 362.1
Operating profit 9.9 14.5
Net financial items -8.9 -9.9
Profit/loss after financial items 1.0 4.6
Group development by business group
Net sales, MEUR 1-12/2005 1-12/2006
Foundries 167.5 179.7
Machine shops 136.2 155.7
Heavy components 47.3 55.4
Internal sales -55.6 -74.2
Cast Components total 295.4 316.7
Other business 47.8 45.4
Componenta total 343.2 362.1
Operating profit, MEUR 1-12/2005 1-12/2006
Foundries 2.4 7.1
Machine shops 5.4 7.6
Heavy components -2.8 0.6
Other items -0.5 -1.3
Cast Components total 4.5 14.0
Other business 5.4 0.5
Componenta total 9.9 14.5
Order book, MEUR 12/05 12/06
Cast Components total 54.1 58.5
Other business 6.3 7.8
Componenta total 60.4 66.3
Group development by quarter
MEUR Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06
Net sales 93.2 95.3 72.4 82.3 93.6 94.6 78.4 95.5
Operating profit 3.9 8.6 -1.9 -0.7 5.3 6.6 -1.2 3.8
Net financial items -2.1 -2.2 -2.3 -2.3 -2.2 -2.5 -2.3 -3.0
Profit/loss after
financial items 1.8 6.4 -4.2 -3.0 3.1 4.1 -3.4 0.9
Quarterly development by business group
Net sales, MEUR Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06
Foundries 45.0 47.0 36.1 39.2 45.9 48.9 39.7 45.2
Machine shops 36.8 37.5 28.6 33.3 40.3 39.2 34.0 42.2
Heavy components 10.5 13.6 11.2 12.1 13.9 15.0 12.1 14.5
Internal sales -13.7 -16.4 -12.4 -13.2 -19.1 -19.9 -15.7 -19.4
Cast Components total 78.6 81.7 63.5 71.5 81.0 83.2 70.0 82.5
Other business 14.6 13.6 8.9 10.8 12.6 11.4 8.4 13.0
Componenta total 93.2 95.3 72.4 82.3 93.6 94.6 78.4 95.5
Operating profit, MEUR Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06
Foundries 1.5 2.0 -0.9 -0.2 3.3 3.8 -1.6 1.6
Machine shops 1.8 1.6 0.4 1.5 2.6 2.0 0.9 2.1
Heavy components -0.9 0.1 -1.1 -0.9 -0.1 0.6 -0.2 0.4
Other items -0.1 0.2 0.0 -0.6 -0.8 0.0 -0.1 -0.3
Cast Components total 2.3 4.0 -1.5 -0.2 5.0 6.4 -1.0 3.7
Other business 1.6 4.6 -0.4 -0.5 0.3 0.2 -0.2 0.1
Componenta total 3.9 8.6 -1.9 -0.7 5.3 6.6 -1.2 3.8
Order book at period
end MEUR Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06
Cast Components total 55.2 55.1 49.2 54.1 58.7 55.1 57.2 58.5
Other business 8.6 7.4 6.4 6.3 6.8 6.5 7.7 7.8
Componenta total 63.8 62.4 55.6 60.4 65.5 61.6 64.9 66.3
Group development excluding one-time items
MEUR 1-12/2005 1-12/2006
Net sales 343.2 362.1
Operating profit 6.6 14.9
Net financial items -8.9 -9.9
Profit/loss after financial items -2.4 5.0
Group development by business group excluding one-time items
Operating profit, MEUR 1-12/2005 1-12/2006
Foundries 2.4 7.1
Machine shops 5.4 7.6
Heavy components -2.8 0.6
Other items -0.5 -1.3
Cast Components total 4.5 14.0
Other business 2.1 0.9
Componenta total 6.6 14.9
Group development by quarter excluding one-time items
MEUR Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06
Net sales 93.2 95.3 72.4 82.3 93.6 94.6 78.4 95.5
Operating profit 3.8 4.7 -1.6 -0.3 5.3 6.6 -1.2 4.2
Net financial items -2.1 -2.2 -2.3 -2.3 -2.2 -2.5 -2.3 -3.0
Profit/loss after
financial items 1.7 2.5 -4.0 -2.6 3.1 4.1 -3.4 1.2
Quarterly development by business group excluding one-time items
Operating profit, MEUR Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06
Foundries 1.5 2.0 -0.9 -0.2 3.3 3.8 -1.6 1.6
Machine shops 1.8 1.6 0.4 1.5 2.6 2.0 0.9 2.1
Heavy components -0.9 0.1 -1.1 -0.9 -0.1 0.6 -0.2 0.4
Other items -0.1 0.2 0.0 -0.6 -0.8 0.0 -0.1 -0.3
Cast Components total 2.3 4.0 -1.5 -0.2 5.0 6.4 -1.0 3.7
Other business 1.5 0.7 -0.1 -0.1 0.3 0.2 -0.2 0.4
Componenta total 3.8 4.7 -1.6 -0.3 5.3 6.6 -1.2 4.2
Largest registered shareholders on 31 December 2006
Share of
total voting
Shareholder Shares rights
1. Lehtonen Heikki 3,854,007 38.45%
Cabana Trade S.A. 3,676,731
Oy Högfors-Trading Ab 177,276
2. Etra-Invest Oy Ab 2,224,750 22.20%
3. Inkinen Simo-Pekka 658,034 6.57%
Inkinen Simo-Pekka 613,544
Nahkionkosken Voimalaitos Ky 41,490
Väli-Gunnarla Avoin Yhtiö 3,000
4. Ilmarinen Mutual Pension
Insurance Company 257,600 2.57%
5. Nordea Life Assurance Finland Ltd 219,050 2.19%
6. Lehtonen Anna-Maria 178,823 1.78%
7. Mandatum Finnish Small Cap Fund 159,500 1.59%
8. OP-Finland Small Firm Fund 124,049 1.24%
9. Bergholm Heikki 109,550 1.09%
10. Fondita Nordic Micro Cap
Investment Fund 100,000 1.00%
11. Lehtonen Yrjö M 96,040 0.96%
12. Laakkonen Mikko 70,000 0.70%
13. Lehtonen Antti 63,000 0.63%
14. Lehtonen Leena 41,875 0.42%
15. Nelimarkka Esa 35,000 0.35%
Nominee-registered shares 168,514 1.68%
Other shareholders 1,662,506 16.59%
Total 10,022,298 100.00
The members of the Board of Directors own 39.6% 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 decrease to 30.1%.
Helsinki, 5 February 2007
COMPONENTA CORPORATION
Board of Directors
Heikki Lehtonen
President and CEO
Further information:
Heikki Lehtonen
President and CEO
tel. +358 10 403 00
Matti Kivekäs
CFO
tel +358 10 403 00